To,
The Members of,
RHETAN TMT LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RHETAN TMT LIMITED, ("the
company") which comprise the Balance Sheet as at 31/03/2023, and the Statement of
Profit and Loss for the year then ended, and a summary of significant accounting policies
and other explanatory information.
In 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
Companies Act, 2013 (Act) in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, its profit for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing 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 financial statements under the
provisions of the Act 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 opinion.
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.
Reporting of key audit matters as per SA 701, The Company got listed on the BSE SME
Platform on September 5, 2022.
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report, Business Responsibility Report but does not
include the financial statements and our auditors report thereon.
Our opinion on the 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 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
during the course of our 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 report that fact. We have
nothing to report in this regard.
Managements responsibility for the financial statements
The Companys board of directors are responsible for the matters stated in section 134
(5) of the Act with respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the accounting standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate accounting
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 financial statement that give
a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is 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.
The 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 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in
our auditors report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
• As required by the Companies (Auditors Report) Order, 2020 ("the
Order") issued by the Central Government in terms of Section 143(11) of the Act, we
give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4
of the Order and Section 143(3) in "Annexure B"
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for 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 it appears from our examination of those books;
c. The balance sheet, the statement of profit and loss, and the cash flow statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid financial statements comply with the accounting
standards specified under section 133 of the Act, read with rule 7 of the Companies
(Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on March
31, 2023 taken on record by the board of directors, none of the directors is disqualified
as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the
Act;
f. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us;
• The Company does not have any pending litigations which would impact its
financial position;
• The Company did not have any long-term contracts including derivative contracts
for which there were any material foreseeable losses; and
• The Company is not required to transfer any amount, to the Investor Education
and Protection Fund by the Company.
|
For, G M C A & Co. Chartered Accountants |
|
FRN: 109850W |
|
CA. Mitt S. Patel |
|
(Partner) |
Place : Ahmedabad |
Membership No. 163940 |
Date : 24.05.2023 |
UDIN: 23163940BGPZMV3527 |
Annexure A to the Independent Auditors Report on the Financial Statements of RHETAN
TMT LIMITED for the year ended 31 March 2023
To,
The Members of RHETAN TMT LIMITED
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements
section of our report of even date)
(I) (a) (A) The Company has maintained proper records showing full particulars,
including quantitative details
and situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of Intangible
assets.
(b) Property, Plant and Equipment were physically verified by the management in
accordance with a planned programme of verifying them at reasonable intervals having
regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (other than properties where the
Company is the lessee, and the lease agreements are duly executed in favor of the lessee)
are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of
use asset) or intangible assets during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for holding
any benami property under the Prohibition of Benami Property Transactions Act, 1988 and
rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory at reasonable
intervals during the year. In
our opinion the coverage and the procedure of such verification by the management is
appropriate. Discrepancies of 10% or more in aggregate for each class of inventory were
not noticed on such physical verification.
(b) The Company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets any point of time during the year. Therefore, the requirement to report on
clause 3(ii)(b) of the Order is not applicable to the Company.
(iii) (a) During the year the Company has provided loans, advances in the nature of
loans, provided guarantee and
security to companies as follows :
Particulars |
Loans (In lakhs) |
Aggregate amount granted/ provided during the year, |
|
- Subsidiaries |
- |
- Related Parties |
0.40/- |
- Others |
10.11/- |
Balance outstanding as at balance sheet date in respect of above case, |
|
- Subsidiaries |
- |
- Related Parties |
0.78/- |
- Others |
77.29/- |
(b) During the year the investments made and the terms and conditions of the grant of
all loans and advances in the nature of loan during the year are, prima facie, not
prejudicial to the Companys interest.
(c) The company has granted interest free loan which is violation of the Act.
(d) There are no amounts of loan granted to companies which are overdue for more than
ninety days.
(e) There were no loans which had fallen due during the year, that have been renewed or
extended or fresh loans granted to settle the overdue of existing loans given to the same
parties.
(f) The Company has not granted any loans or advances in the nature of loans, either
repayable on demand or without specifying any terms or period of repayment to companies,
firms, Limited Liability Partnerships or any other parties. Accordingly, the requirement
to report on clause 3(iii)(f) of the Order is not applicable to the company.
(iv) According to the information and explanations given to us and on the basis of our
examination of the records, the Company has not given any loans, or provided any guarantee
or security as specified under Section 185 of the Companies Act, 2013 and the Company has
not provided any guarantee or security as specified under Section 186 of the Companies
Act, 2013. Further, the Company has complied with the provisions of Section 186 of the
Companies Act, 2013 in relation to loans given and investments made.
(v) The Company has not accepted any deposits or amounts which are deemed to be
deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.
(vi) We have reviewed the books of account maintained by the Company pursuant to the
rules made by the Central Government for the maintenance of cost records under section
148(1) of the Companies Act, 2013, related to the manufacturing activities and are of the
opinion that prima facie, the specified accounts and records have been made and
maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including
goods and services tax, provident fund, employees state insurance, incometax, sales-
tax, service tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues applicable to it. According to the information and explanations given to us
and based on audit procedures performed by us, no undisputed amounts Payable in respect of
these statutory dues were outstanding, at the year end, for a period of more than six
months from the date they became payable.
(b) The Company is regularly depositing with appropriate authorities undisputed
statutory dues. Therefore, the requirement to report on clause 3(v) of the Order is not
applicable to the Company.
(viii) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has not surrendered or
disclosed any transactions, previously unrecorded as income in the books of account, in
the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in
the payment of interest
thereon to any lender.
(b) The Company has not been declared willful defaulter by any bank or financial
institution or government or any government authority.
(c) According to the information and explanations given to us by the management, the
Company has not obtained any term loans during the year. Accordingly, clause 3(ix)(c) of
the Order is not applicable.
(d) On an overall examination of the standalone financial statements of the Company, no
funds raised on shortterm basis have been used for long-term purposes by the Company.
(e) On an overall examination of the standalone financial statements of the Company,
the Company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge of securities held
in its subsidiaries, joint ventures or associate companies. Hence, the requirement to
report on clause (ix)(f) of the Order is not applicable to the Company.
(x) (a) During the year the Company raised Rs. 5600.00 lakhs (including premium) by way
of initial public offer In
our opinion and according to the information and explanations given to us, Company has
utilized the money raised by way of initial public offer for the purposes of expansion
& Modernization of manufacturing plant, Funding the working Capital requirements and
General Corporate expenses.
(b) The Company has not made any preferential allotment or private placement of
shares/fully or partially or optionally convertible debentures during the year under audit
and hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to
the Company
(xi) (a) Based on examination of the books and records of the Company and according to
the information and
explanations given to us, considering the principles of materiality outlined in
Standards on Auditing, we report that no fraud by the Company or on the Company has been
noticed or reported during the course of the audit.
(b) During the year, no report under sub-section (12) of section 143 of the Companies
Act, 2013 has been filed by cost auditor and secretarial auditor or by us in Form ADT - 4
as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
(c) We have not Received any whistle blower complaints during the year while
determining the nature, timing and extent of our audit procedures.
(xii) The Company is not a Nidhi Company as per the provisions of the Companies Act,
2013. Therefore, the requirement to report on clause 3(xii)(a),(b) and (c) of the Order is
not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 where applicable and the details have been disclosed in the
notes to the standalone financial statements, as required by the applicable accounting
standards.
(xiv) (a) Based on information and explanations provided to us and our audit
procedures, in our opinion, the
Company has an internal audit system commensurate with the size and nature of its
business.
(b) Internal audit under section 138 of Companies Act, 2013 is applicable. We have
considered the Internal Audit observation in audit process.
(xv) The Company has not entered into any non-cash transactions with its directors or
persons connected with its directors and hence requirement to report on clause 3(xv) of
the Order is not applicable to the Company.
(xvi) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of
1934) are not applicable to the Company. Accordingly, the requirement to report on clause
(xvi)(a), (b), (c) & (d) of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and
accordingly the requirement to report on Clause 3(xviii) of the Order is not applicable to
the Company.
(xix) On the basis of the ageing report, financial ratios and expected dates of
realization of financial assets and payment of financial liabilities, any other
information accompanying the financial statements, Management plans and based on our
examination of the evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the
audit report that Company.
(xx) The companys net profit for the current financial year exceeds the threshold so
as per Section 135(5) Corporate social responsibility is applicable to the Company.
Therefore, The company is required to allocate CSR expenditure by March 31, 2024, as per
the Companies Act.
|
For, G M C A & Co. |
|
Chartered Accountants |
|
FRN: 109850W |
|
CA. Mitt S. Patel |
|
(Partner) |
Place : Ahmedabad |
Membership No. 163940 |
Date : 24.05.2023 |
UDIN: 23163940BGPZMV3527 |
Annexure "B" to Independent Auditor 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 M/S. RHETAN
TMT LIMITED.("the Company") as of March 31, 2023 in conjunction with our audit
of the standalone 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. 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 judgement, 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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, 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 March 31, 2023.
|
For, G M C A & Co. |
|
Chartered Accountants |
|
FRN: 109850W |
|
CA. Mitt S. Patel |
|
(Partner) |
Place : Ahmedabad |
Membership No. 163940 |
Date : 24.05.2023 |
UDIN: 23163940BGPZMV3527 |
+91-9892691696
