To the Members of RAGHUVIR SYNTHETICS LIMITED
Consolidated Report on the Audit of the Ind AS Financial Statements Opinion
We have audited the accompanying consolidated Financial Statements of RAGHUVIR
SYNTHETICS LIMITED (hereinafter referred to as "the Holding Company") and its
subsidiary (Holding Company and its subsidiary together referred to as "the
Group"),which comprise the consolidated balance sheet as at 31st March
2023, and the consolidated statement of profit and loss (including other comprehensive
income), consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements,
including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as "the consolidated financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid consolidated 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
consolidated state of affairs of the Group as at 31 March 2023, of its consolidated Loss
and other comprehensive loss, consolidated changes in equity and consolidated cash flows
for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act. Our responsibilities under those SAs are further
described in the Auditors Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the
ethical requirements that are relevant to our audit of the consolidated financial
statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants
of India and the relevant provisions of the Act, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our opinion on the
consolidated financial statements.
Key Audit Matters
We have determined that there are no key audit matters to communicate in our report.
Other Information
The Holding Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Holding
Companys Annual Report, but does not include the financial statements and our auditors
report thereon. The Holding Companys annual report is expected to be made available to us
after the date of this auditors report.
Our opinion on the consolidated 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 consolidated financial statements, our
responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
When we read the Holding Companys annual report, if we conclude that there is a
material misstatement therein, we are required to communicate the matter to those charged
with governance and take necessary actions, as applicable under the relevant laws and
regulations.
Managements Responsibility for the Financial Statements
The Holding Companys Management and Board of Directors are responsible for the
preparation and presentation of these consolidated financial statements in terms of the
requirements of the Act that give a true and fair view of the consolidated state of
affairs, consolidated profit/ loss and other comprehensive income, consolidated statement
of changes in equity and consolidated cash flows of the Group in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under Section 133 of the Act. The respective Management and
Board of Directors of the Companies included in the Group are responsible for maintenance
of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of each Company and for preventing and detecting frauds and other
irregularities; the selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and the 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 consolidated financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error, which
have been used for the purpose of preparation of the consolidated financial statements by
the Management and Board of Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Management and Board
of Directors of the companies included in the Group are responsible for assessing the
ability of each Company to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
respective Boa rd of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The respective Board of Directors of the Companies included in the Group are
responsible for overseeing the financial reporting process of each Company.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated
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 consolidated 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 consolidated 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 Ind AS 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 consolidated
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
? Obtain sufficient appropriate audit evidence regarding the financial information of
entities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the audit of
financial information of such entities included in the consolidated financial statements.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance of the Holding Company and such other
Companies included in the consolidated financial statements of which we are the
independent auditors 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 Standalone 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
1. As required by Section 143(3) of the Act, based on our audit and on the
consideration of the reports of the other auditors on the separate financial statements of
the subsidiary referred to in the other matters section above we report that, to the
extent applicable
(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 of the aforesaid
consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation
of the aforesaid consolidated financial statements have been kept so far as it appears
from our examination of those books.
(c) The consolidated balance sheet, the consolidated statement of profit and loss
(including other comprehensive income), the consolidated statement of changes in equity
and the consolidated statement of cash flows dealt with by this Report are in agreement
with the relevant books of account maintained for the purpose of preparation of the
consolidated financial statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Ind
AS specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the
Holding Company as on 31st March 2023 taken on record by the Board of Directors
of the Holding Company and on the basis of written representations received by the
management from directors of its subsidiary, as on 31st March 2023, none of the
directors of the Group companies incorporated in India is disqualified as on 31st
March 2023 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to
consolidated financial statements of the Holding Company and its subsidiary company and
the operating effectiveness of such controls, refer to our separate report in Annexure
A.
(f) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of
Section 197(16) of the Act, as amended, in our opinion and to the best of our
information and according to the explanations given to us, the remuneration paid by the
Holding Company and its subsidiary to its Directors during the year is in accordance with
the provisions of Section 197 of the Act.
(h) 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:
(i) The Group has disclosed the impact of pending litigations on its financial position
in its Consolidated financial statements. Refer notes 35 to the Consolidated financial
statements.
(ii) The Group has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts;
(iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Group.
(iv) (a) The Management has represented that, to the best of its knowledge and belief,
as disclosed in the
notes to accounts, no funds(which are material either individually or in the aggregate)
have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Holding Company or its subsidiary company, to
or in any other person or entity, including foreign entity ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, as
disclosed in the notes to accounts, no funds (which are material either individually or in
the aggregate) have been received by the Holding Company or its subsidiary company, from
any person or entity, including foreign entity ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.
(v) The Parent has not declared or paid any dividend during the year and has not
proposed final dividend for the year.
(vi) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for
the Company only with effect from financial year commencing from 1 April 2023, the
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not
applicable".
2. With respect to the matters specified in paragraphs 3(xxi) and 4 of the Companies
(Auditors Report) Order, 2020 (the "Order"/ "CARO") issued by the
Central Government in terms of Section 143(11) of the Act, to be included in the Auditors
report, according to the information and explanations given to us, and based on the CARO
reports issued by us for the Company and its subsidiaries included in the consolidated
financial statements of the Company, to which reporting under CARO is applicable, we
report that there are no qualifications or adverse remarks in these CARO reports.
FOR G.K. CHOKSI & CO.
[Firm Registration No. 101895W] Chartered Accountants
Place : Ahmedabad |
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Date : 26th May, 2023 |
ROHIT K. CHOKSI |
|
Partner |
|
Mem. No. 31103 |
|
UDIN :23031103BGXSUT5883 |
Annexure - A to the Independent Auditors Report of even date on the Ind AS Financial
Statements of
RAGHUVIR SYNTHETICS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
In conjunction with our audit of the Consolidated Financial Statements of the Company
as of and for the year ended 31st March, 2023, we have audited the internal
financial controls over financial reporting of RAGHUVIR SYNTHETICS LIMITED
("hereinafter referred to as "Parent"), its subsidiary, which are companies
incorporated in India, as of that date.
Managements Responsibility for Internal Financial Controls
The respective Board of Directors of the Parent, its Subsidiary which are companies
incorporated in India, are 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 internal financial controls over
financial reporting of the Parent, its subsidiary, 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 standalone Ind AS financial statements, whether due to fraud
or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by
other auditors of the subsidiary which is company incorporated in India, in terms of their
reports referred to in the Other Matters paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Parent, its subsidiary incorporated in India.
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 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 G.K. CHOKSI &CO.
[Firm Registration No. 101895W] Chartered Accountants
Place : Ahmedabad |
|
Date : 26th May, 2023 |
|
|
ROHIT K. CHOKSI |
|
Partner |
|
Mem. No. 31103 |
|
UDIN :23031103BGXSUT5883 |
+91-9892691696
