To,
The Members,
RAJESH SOLVEX LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RAJESHSOLVEX LIMITED
("the company"), which comprises the Balance Sheet as at 31 March 2018, the
Statement of Profit and Loss (including other comprehensive income), and cash flow
statement and Statement of Changes in equity for the year ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation and
presentation of these standalone financial statements that give a true and fair view of
the financial position and financial performance including other comprehensive income,
cash flows and statement of changes in equity of the Company in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards (IND AS) specified under Section 133 of the Act. This responsibility also
includes the maintenance of adequate accounting records in accordance with the provision
of the Act for safeguarding of the assets of the Company and for preventing and detecting
the frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit.
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordancewith the Standards onAuditing specified under
section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to.obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures inthe financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Companyspreparation of the financial
statements that give true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also _ includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting estimates made by
Companys Directors, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
\r\ our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the information
required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India including INDAS specified under
section 133 of the Act,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2018; b) In the case of the Statement of Profit and Loss, of the loss for the year
ended on that date; and
c) Cash Flow statement of the Company
Emphasis on Other Matter
1. The company has accumulated losses of Rs.7,86,19,2827- at the end of the current
Financial Year which exceeds its Paid Up capital of Rs.5,49,99,000/-
2. The audited financial statement for the year ended 31 Mar 2017 was carried out and
reported by K C Moondra and Company vide their unmodified audit report dated 23-05-2017,
whose report has been furnished to us by the management and which has been relied upon by
us for the purpose of our audit of financial statement. Our audit report is not qualified
in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 issued by the Central
Government of India in terms of sub section 11 of section 143 of the Act, and on the basis
of such checks of the books and records of the company as we considered appropriate and
according to the information and explanations given to us during the course of audit we
give in the AnnexureA a statement on the matters specified in the paragraph 3 and 4 of the
order.
2. Further to our comments in Annexure A, as required by section 143(3) of the Act, we
report that: a) We have sought and obtained all the information and explanations which to
the best of our knowledge, and belief were necessaryfor the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books •
c) the Balance Sheet and the Statement of Profit and Loss dealt with by this Report are
in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS as
specified under Section 133 of the Act except INDAS 12 of INCOME TAXESand INDAS 19 for
EMPLOYEE BENEFITS which are accounted for on cash basis.
e) There is nothing to disclose which is having adverse effect on the functioning of
the company.
f) Onthe basis of written representations received from the directors as on 31 March,
2018, taken on record by the Board of Directors, none of the directors is disqualified as
on 31 March, 2018, from being appointed as a director in terms of Section 164(2) of the
Act.
g)- With respect to the adequacy of the internal financial controls over financial
reporting of the company and the operating effectiveness of such control refer to our
separate report in Annexure B.
h) With respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rule 2014, in our opinion and to the
best of our information and according to the explanations given to us:
)i or the Company does not have any pending litigations which would impact its
financial position
ii) the Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) there were no amount which were required to be transferred, to the Investor
Education and Protection Fund by the company.
|
FOR S K KABRA ANDCOMPANY |
|
CHARTEREDACCOUNTANTS |
|
ICAI FRN:- 104508W |
|
CA SUSHIL KUMAR KABRA |
| PLACE :SURAT |
PARTNE R |
| DATE : 30.06.2018 |
M.NO . 132975 |
Annexure A
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of RAJESH
SOLVEX LIMITED ("the Company") as of March 31,2018 in conjunction with my/ our
audit of the standalone financial statements of the Company for the year ended on that
date.
Managements Responsibility for Internal FinancialControls
The Companys management is responsible for establishing and maintaining internal
financial controls based on "ttie internal control over financial reporting criteria
established bythe Company considering the essential components of internal
controlstatedinthe Guidance Noteon Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of Us
assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable financial information,
as required under the Companies Act, 2013.
AuditorsResponsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based ORour audit We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards onAuditing, issued by ICAI anddeemed to
be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable
to an audit of internal financial controls, both applicable to an audit of Internal
Finaneiat Controls and; both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with etttfcal requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if
such controls operated effectively in aH material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the intemat financial controls system over financial reporting and their-operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of intemat financial controls over financial reporting,
assessing the risk that a material weakness exists, andtesting and evaluating tie design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls
systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertainsto the maintenance of recordsthat, in reasonable detail, accurately and
fairly reflectthe transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being madeonly in
accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of thecompanys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation ofthe internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial
controlover financial reporting may become inadequate because of changes in conditions, or
that the degree of compliance with the policies orprocedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial
controlsover financial reporting were operating effectivelyas at March 31, 2018, based on
"the internal controlover financial reporting criteria established bythe Company
considering the essential components of internal controlstated in the Guidance Note on
Auditof Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India"].
|
FOR S K KABRA AND COMPANY |
|
CHARTERED ACCOUNTANTS |
|
ICAI FRN: 104508W |
|
CA SUSHIL KUMAR KABRA |
| PLACE :SURAT |
PARTNE R |
| DATE : 30.06.2018 |
M.NO . 132975 |
Annexure referred to in paragraph titled as "Report on other Legal and Regulatory
Requirements" of Auditorsreport to the members of RAJESH SOLVEX LIMITED.
(i) (a) The company is maintaining general records showing full particulars, including
quantitative details and situation of fixed assets
(b) As explained to us these fixed assets have been physically verified by the
management at reasonable intervals; as informed and explained to us no material
discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) As explained to us physical verification of inventory has been conducted at
reasonable intervals by the management and no material discrepancies werenoticed.
(iii) The company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013.
(a) Not Applicable
(b) Not Applicable
(c) NotApplicable
(iv) in respect of loans, investments, guarantees, and security provisions of section
185 and 186 of the Companies Act, 2013 have been complied with.
(v) the company has not accepted any deposits. The deposits from directors and their
relatives and body corporate are not covered under deposits. Since the directives issued
by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed thereunder, are not applicable,
hence the same has not been commented.
(vi) As explained to us maintenance of cost records has not been specified by the
Central Government under sub-section (1) of section 148 of the CompaniesAct, 2013. However
we have not verified those records.
(vii) (a) the company is regular in depositing undisputed statutory dues including
provident fund, employees state insurance, income-. tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate • authorities.
(b) According to information and explanation given to us the no dues of income tax or
sales tax or service tax or duty of customs or duty of excise or value added tax are
pending on account of dispute.
(viii) The company has not defaulted in repayment of principal of loans or borrowing to
a financial institution, bank, Government or dues to debenture holders.
(ix) As explained to us no moneys were raised by way of initial public offer or further
public offer (including debt instruments) and term loans. (x) According to information and
explanation given to us no fraud by the company or any fraud on the Company by its
officers or employees has been noticed or reported during the year.
(xi) No managerial remuneration was paid during the year.
(xii) Not Applicable
(xiii) According to the information and explanation given All transactions with the
related parties are in compliance with sections 177 and 188 of CompaniesAct, 2013 where
applicable and the detail? have been disclosed in the Financial Statements etc., as
required by the applicable accounting standards; (xiv) the company has not made
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year under review.
(xv) the company has not entered into any non-cash transactions with directors or
persons connected with him.
(xvi) the company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
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