To the Members of
RIDDHI SIDDHI GLUCO BIOLS LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Riddhi Siddhi Gluco
Biols Limited ("the Company"), which comprise of the Balance Sheet as at March
31 2023, and the statement of Profit and Loss, (Including other Comprehensive Income),
Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and
notes to the Standalone financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as
standalone financial statements).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone 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
Indian Accounting Standards prescribed under section 133 of the Act read with Companies
(Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") and other
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2023, and its profit and other comprehensive income, changes in equity and
its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditors
Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that
are relevant to our audit of the standalone financial statements under the provisions of
the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion on the standalone financial statements.
Emphasis of Matter Paragraph
1. We refer note number 29A(4) to the Standalone Financial Statements of the Company,
wherein the assessment proceeding u/s 153A/ 153C of the Income Tax Act, 1961 against the
Company along with other group companies/ LLPs and promoters are completed. In respect of
the completed assessment orders Management has filed appeals against the said orders with
CIT(Appeals) and is of the opinion that there wont be any liability in this regard and
accordingly the demand of Rs. 1846.47 lakhs raised by the Income tax authorities has been
considered as contingent liability.
2. We refer note number 33(b) to the Standalone Financial Statements of the Company,
wherein the Company has subscribed to the issue of 3,50,00,000 10% Non-convertible
Cumulative Non-Participating Redeemable Preference Shares (NCRPS) having face value of
100/- each of M/s Shree Rama Newsprint Limited (Subsidiary Company), for a cash
consideration amounting to Rs.35,000 Lakhs. The said infusion of funds by the Company has
been utilised by Subsidiary Company for the purpose of repayment of outstanding ICD.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
| No. Key Audit Matter |
Auditors Response |
|
Audit procedures in respect of this matter: |
| 1 Impairment of investments in the Subsidiary - Shree Rama News Print Limited
(SRNPL) and loss allowance on loans to the said subsidiary |
Our audit approach was a combination of test of internal controls and substantive
procedures which included the following: |
| (Refer to Note 4 in the standalone financial statements) |
• Evaluated the design, implementation and operating effectiveness of internal
controls over the loss allowances and impairment assessment process |
| The Company has made investments in equity shares, preference shares and debentures of
the subsidiary SRNPL, aggregating to Rs 49,040.60 Lakhs. |
• Evaluated the results and performance of the subsidiary to identify any
potential indicators of impairment. |
| Investments are assessed for impairment annually or earlier if loss allowances and
impairment indicators exist. If such indicators exist, impairment of carrying value of
investments in subsidiary are estimated to determine the extent of the impairment losses,
if any. |
• Evaluated the appropriateness of managements assessment on impairment by
comparing |
|
1. the market value (arrived at based on the quoted market price) of the equity
investment in the subsidiary to the carrying value, |
| Significant Management judgement is required in the area of impairment testing and in
assessing the loss allowances. |
2. Comparing the Companys share in the net worth of the subsidiary with the aggregate
value of loans given and investment made. |
| In view of the foregoing, impairment assessment of investment in the subsidiary has
been identified as a Key Audit Matter |
3. Fair valuation of Property, Plant and Equipment conducted by the independent valuer
appointed by the management of the subsidiary company. |
Information other than the Standalone Financial Statements and Auditors Report thereon
The Companys management and Board of Directors is responsible for the other
information. The other information comprises the information included in the Boards
Report including Annexures to the Boards Report, Management Discussion and Analysis,
Business Responsibility Report, Corporate Governance and Shareholders Information, but
does not include the consolidated financial statements and our auditors report thereon.
Our opinion on the Standalone financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon. In connection with our
audit of the standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the standalone financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we
are required to communicate the matter to those charged with governance as required under
SA 720 The Auditors responsibilities relating to other information.
We have nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Management and Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance including total comprehensive income, changes in
equity and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards specified under
section 133 of the Act and rules thereunder, as amended.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting 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 controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the standalone financial statements that give a true and fair view and are free from
material misstatements, whether due to fraud or error.
In preparing the standalone financial statements, management and Board of Directors are
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. Those Board of Directors are
also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
f) The loans and advances granted by the company to related party and other parties are
without specifying any terms of repayment. The aggregate amount of such loans granted to
related parties is Rs.36,583.61 Lakhs.
(iv) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and section 186 of the Act in
respect of grant of loans, providing guarantees and securities as applicable.
(v) The Company has not accepted any deposits from the public within the meaning of
Section 73 to 76 of the Act and Rules framed there under to extent notified.
(vi) The Central Government has not prescribed the maintenance of cost records under
sub-section (1) section 148 of the Act for the business activities carried out by the
Company. Accordingly, the provision of clause 3(vi) of the Order is not applicable to the
Company.
(vii) According to the information and explanations given to us and the records of the
Company examined by us, in our opinion,
a) the Company is generally regular in depositing the undisputed statutory dues,
including provident fund, employee state insurance, income tax, sales tax, service tax,
GST, duty of customs, duty of excise, value added tax, cess and any other material
statutory dues as applicable, with the appropriate authorities.
Further no undisputed amounts payable in respect of provident fund, employee state
insurance, income tax, sales tax, Goods and Service tax, duty of customs, duty of excise,
value added tax, cess and any other material statutory dues were in arrears as at March 31
2023 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, and the records of the
company examined by us, the dues in respect of sales tax, income-tax, duty of customs,
Goods and Service tax, entry tax, value added tax, central sales tax, duty of excise,
which have not been deposited with the appropriate authority on account of any disputes
are as under:
|
|
|
|
(Rs. in lakhs) |
| Name of the Statute |
Nature of the dues |
Amount |
Period |
Forum where dispute is pending |
| Income Tax Act |
Income Tax |
1846.47 |
2018-19 |
CIT (Appeals) |
| Central Excise Act |
Excise Duty |
295.30 |
2003-04 |
CESTAT, Delhi |
| Central Excise Act |
Excise Duty |
194.15 |
2007-10 |
CESTAT, Bangalore |
| Central Excise Act |
Excise Duty |
99.93 |
2004-05 |
Commissioner Appeals, Mangalore |
| Central Excise Act |
Excise Duty |
75.30 |
2008-10 |
Commissioner Appeals, Bangalore |
| Central Excise Act |
Excise Duty |
1535.87 |
2006-12 |
CESTAT, Ahmedabad |
| Central Excise Act |
Excise Duty |
285.92 |
2010-12 |
Commissioner, Belgaum |
| Maharashtra Value added Tax |
VAT |
44.74 |
2005-06 |
Assistant Commissioner, Mumbai |
(viii) There were no transactions relating to previously unrecorded income that were
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961
(43 of 1961) during the current financial year.
(ix) a) According to the records of the company examined by us and the information and
explanation given to us, the company has not defaulted in repayment of loans or borrowings
to any financial institution, bank or Government as at the Balance sheet date.
b) The company is not declared as a wilful defaulter by any bank or financial
institution or other lenders.
c) As per the examination of records of the Company, the term loans were applied for
the purpose for which they were obtained.
d) According to the records of the company examined by us and the information and
explanation given to us, the funds raised on short term basis have not been utilised for
long term purposes.
e) As per the explanation and information given to us and based on our audit
procedures, the company has not taken any funds from any entity or person on account of or
to meet the obligations of its subsidiaries or associates.
f) As per the explanation and information given to us and based on our audit
procedures, the company has not raised loans during the year on the pledge of securities
held in its subsidiaries or associate companies.
(x) a) The Company did not raise any moneys by way of initial public offer or further
public offer including debt instruments) nor has obtained any term loans during the year,
hence paragraph 3 (x) of the order is not applicable to the Company.
b) The Company has not made any preferential allotment of shares during the current
financial year.
(xi) a) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India and
according to the information and explanation given to us, we have neither come across any
instances of material fraud by the Company or on the Company by its officers or employees
noticed or reported during the year nor have we been informed of any such case by the
management.
b) As there are no frauds, hence sub para (b) of clause (xi) of the order is not
applicable to the company.
c) As represented to us by the management, no Whistle blower complaints received by the
company during the year.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act, where applicable and details of such
transactions have been disclosed in the financial statements as required under Ind AS and
Companies Act, 2013.
(xiv) a) In our opinion, the Company has an adequate internal audit system commensurate
with the size and the nature of its business.
b) We have considered, the internal audit reports issued to the Company during the year
and covering the period up to 31st March, 2023.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable to the Company.
(xvi) a) According to the information and explanations given to us and based on our
examination of the records of the Company, it is not required to be registered under
section 45-IA of the Reserve Bank of India Act 1934. Accordingly, the provisions of Clause
3(xvi) of the order are not applicable to the Company.
b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities, hence the sub para (b) is not applicable.
c) The Company is not a Core Investment Company, hence the said sub para (c) and (d) of
the clause (xvi) of the order is not applicable to the Company.
(xvii) The Company has not incurred cash loss during the current financial year as well
as immediately preceding financial year.
(xviii) There is no resignation of Statutory auditor during the year, hence the said
clause (xviii) of the order is not applicable.
(xix) According to the information and explanation given to us including the financial
ratios, ageing and expected dates of realisation of financial assets and payment of
financial liabilities, other information accompanying the financial statements, and on the
basis of Board of Directors and management plans, nothing has come to our attention which
causes us to believe that material uncertainty exists as on the date of the audit report
indicating that the company is not capable of meeting its liabilities existing at the date
of balance sheet as and when they fall due within a period of one year from the balance
sheet date. We, however, state that this is not an assurance as to the future viability of
the Company. We further state that our reporting is based on the facts up to the date of
the audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xx) According to the explanation given to us and based on our scrutiny of the books of
accounts, there are no unspent amounts towards Corporate Social Responsibility (CSR)
requiring a transfer to a Fund specified in Schedule VII to the Act in compliance with the
second proviso to sub-section (5) of Section 135 of the Act. Accordingly, reporting under
clause 3(xx)(a) and (b) of the Order is not applicable.
For Batliboi & Purohit
Chartered Accountants
Firm Registration Number: 101048W
Parag Hangekar
Partner
Membership No. 110096
UDIN: 23110096BGXDZZ9279
Date: May 29, 2023
Place: Mumbai
Annexure-B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Riddhi
Siddhi Gluco Biols Limited ("the Company") as of 31st March 2023
in conjunction with our audit of the financial statements of the Company for the year
ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI).
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 its 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our 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 on Auditing, issued by ICAI and deemed
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 Financial Controls and, both issued by the Institute of Chartered Accountants of
India. Those Standards and the Guidance Note require that we comply with ethical
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 all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the 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 or error. 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 system over
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) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the 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 made only 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 the
companys 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 of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion and to the best of our information & according to the explanations
give to us, the Company has, in all material respects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial reporting were operating effectively as at 31st March 2023, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Parag Hangekar
Partner
Membership No. 110096
UDIN: 23110096BGXDZZ9279
Date: May 29, 2023
Place: Mumbai
+91-9892691696
