To,
The Members,
M/S. RAJESH EXPORTS LIMITED, Bangalore
Report on audit of financial statements
Opinion
We have audited the accompanying standalone financial statements of
Rajesh Exports Limited ("the company"), which comprise the Balance Sheet as at
31st March 2023, the Statement of Profit Income), the Statement of Changes in Equity and
the Statement of Cash Flows for the year then ended, and a summary ofthesignificant
policies and other explanatory information. (herein after 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 Companies Act, 2013 ("the Act") in the
manner so required and give a true and fair view in conformity with the Indian Accounting
Standards and other accounting principles generally accepted in India, of the state of
affairs of the company as at 31st March 2023 and its profit, total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing
(SAs) specified under Our responsibilities under those Standards are further described in
the Auditors Responsibilities for the Audit of the Standalone 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 Act and the Rules thereunder, and in accordance with these
requirements and the Code of Ethics.we have fulfilled 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 professional judgement, where
of most significant in our audit of the standalone financial statement of the current
period. These matters where addressed in the context of our audit of forming our opinion
thereon, we do not provide a separate opinion on these matters. financial
Information Other than the Standalone Financial Statements and
Auditors Report Thereon
The Companys Board of Directors is responsible for the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information but does not include the standalone
financial statements and our auditors report thereon. The Boards Report is
expected to be made available to us after the date of this auditor report. 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 standalone financial statements,
our responsibility is to read the other information identified above when it is made
available and, in doing so, consider whether the other information is materially
inconsistent with the 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.
Managements Responsibility for the Standalone Financial
Statements
The Companys Board of Directors is responsible for the matters
stated in Section 134(5) of the Act with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial performance,
including other comprehensive income, changes in equity and cash flows of the company in
accordance with the Indian accounting standards and other accounting principles generally
accepted in India. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding 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 misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the 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 the 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 Standalone
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 Standards on Auditing 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 Standards on Auditing (SAs), we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
Identify and assess the risks of material misstatement of the
standalone financial 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 financial control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for expressing our opinion on
whether the Company has adequate internal financial controls with reference to standalone
financial statements 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 the 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 standalone financialstatements 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
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying manner that achieves fair presentation.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the significantaudit findings,
including any significant deficiencies in internal control that we identify and 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 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
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the ‘Annexure I a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2) 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 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 including other
comprehensive income, statement of changes in equity and the statement of Cash Flows dealt
with by this report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone 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 as on 31st March, 2023 taken on record by the board of directors, none of
the directors 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
over financial reporting of the Company and the operating effectiveness of such
controls, refer to our separate Report in ‘Annexure II. (g) With respect
to the other matters to be included in the Auditors Report in accordance with the
requirements of the 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 company to its directors during the
year is in accordance with the provision 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 explanation given to us.
i. The Company has disclosed the pending litigations on its standalone
financial statements in note 26(11) of the standalone financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amount, required to be
transferred to the investors education and protection fund by the company.
iv. (a) the Management has represented that, to the best of their
knowledge and belief, other than as disclosed in the standalone financial statement,
no funds have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other persons
or entities, including foreign entities ("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 their knowledge
and belief, no funds have been received by the Company from any persons or entities,
including foreign entities ("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; and
(c) Based on the audit procedures that we have considered reasonable
and appropriate in the circumstances, nothing has come to our notice that has caused
us to believe that the representations under sub-clauses (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any material misstatement.
v. (a) The final dividend proposed in the previous year, declared
and paid by the Company during the year is in accordance with section 123 of the
Act., as applicable.
(b) The company has not declared any Interim Dividend during the year.
(c) The Board of Directors of the Company has proposed final dividend
of 100% per equity share for which is subject to the approval of members of ensuing
Annual General Meeting. The amount of dividend proposed is in accordance with Section 123
of the act, as applicable
vi. Proviso to Rule 3(1) of the companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of
recording audit trail (edit log) facility is applicable to the company with effect from
April, 1 2023, and accordingly, reporting under Rule 11(g) of the companies (Audit and
Auditors) Rules, 2014 is not applicable for the financial year ended 31 March 2023.
|
For B S D & CO |
|
Chartered Accountants |
|
Firm Regn. No. 000312S |
|
Sd/- |
| Place : Bengaluru |
(P L VENKATADRI) |
| Date : May 30, 2023 |
Partner |
|
M.No. 209054 |
|
UDIN : 23209054BGTVUS3509 |
ANNEXURE I TO THE INDEPENDENT AUDITORS REPORT
FOR THE YEAR ENDED 31ST MARCH 2023
(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 &
Equipment.
(B) The Company has maintained proper records showing full particulars
of Intangible Assets.
(b) The Company has program of physical verification of the property,
plant and equipment in a phased manner so as to cover all the assets over a period
of three years which, in our opinion, is reasonable considering the size of the company
and its nature of assets. Accordingly, some of the property, plant and equipment were
physically verified by the management According to information and explanations given to
us no material discrepancies were noticed on such verification when compared to book
figures.
(c) According to information and explanations provided and the records
verified, the title deeds of immovable properties of land and buildings are held by
the company in its name. In respect of immovable properties of land and building that have
been taken on lease, the lease agreements are in the name of the Company.
(d) According to the information and explanations provided to us and on
the basis of our examination of the records of the Company, the Company has not
revalued any of its property, plant and equipment or intangible assets during the year.
(e) According to the information and explanation provided to us and on
the basis of our examination of the records of the Company, no proceedings have been
initiated during the year or are pending against the Company as at 31st March 2023, for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) as (amended in 2016) and rules thereunder.
ii. According to the information and explanations given to us, the
management has conducted physical verification of inventories at reasonable intervals and
in our opinion, the coverage and procedure of such verification is appropriate considering
the size and nature of the company. The discrepancies noticed on physical verification of
stocks were not material in relation to operations of the company and the same have been
dealt properly in the books of accounts.
iii. According to the information and explanations given to us, the
company has not made any investments except in wholly owned subsidiary, provided guarantee
or security to subsidiary company during the year. The company has not given any loans or
guarantees or security to any firms, Limited Liability Partnerships or any other parties
during the year. Hence, Clause 3(a) and Clause 3 (c to f) are not applicable.
iv. According to information and explanations given to us, in respect
of investments, guarantees and security, the provisions of section 185 and 186 of the Act
are complied with.
v. The Company has not accepted any deposits during the year from the
public within the meaning of the provisions of Section 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and rules framed there under.
vi. As per the explanation given to us, the maintenance of cost records
has not been specified Central Government under sub-section (1) of section 148 of the
Companies Act, 2013.
vii. (a) According to the information and explanation given to us,
the company, in general, is regular in depositing undisputed statutory dues
including goods and service tax, provident fund, employees state insurance,
income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess
and other statutory dues to the appropriate authorities. According to the information and
explanations given to us, there are no undisputed amounts payable in respect of such
statutory dues which have remained outstanding as at 31st March 2023 for a period more
than six months from the date they became payable.
(b) According to the information and explanation given to us, the
following statutory dues referred to above sub clause (a) which have not been
deposited on account of dispute.
Particulars |
Nature of due |
Amount Rs. in lakhs |
Period to which the amount
relates |
From where dispute is pending |
ESI of Karnataka |
ESI |
89.27 |
2000-03 |
The Appeals Authority ESI,
Karnataka |
ESI of Karnataka |
ESI |
37.78 |
2006-07 |
The Appeals Authority ESI,
Karnataka |
Service Tax |
Service Tax |
367.25 |
2006-07 |
The Appellate Tribunal
Service tax |
| Value Added Tax |
VAT |
84.82 |
2010-11 |
Karnataka Appellate Tribunal |
| Value Added Tax |
VAT |
325.95 |
2011-12 |
Karnataka Appellate Tribunal |
| Value Added Tax |
VAT |
241.52 |
2012-13 |
Karnataka Appellate Tribunal |
viii. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, there were no transactions
relating to previously unrecorded income that were surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
ix. (a) The company has an ongoing litigation with Canara Bank, with
regard to the correct balance payable/receivable, the matter is pending before the
Honble High Court of Karnataka and the DRT, however the company has disclosed the
entire balance and the interest in the balance sheet, for accounting purpose which is not
an admission of the balance by the company.
(b) The Company has not been declared wilful defaulter by any bank,
financial institution or any other lender.
(c) The Company has not taken any term loans during the year.
(d) According to the information and explanation given to us, funds
raised on short term basis have not been utilized for long term purposes.
(e) According to the information and explanation given to us, 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) According to information and explanations given to us, the Company
has not raised loans during the year on the pledge of securities held in its subsidiaries,
joint ventures or associate companies.
x. (a) The company has not raised any money by way of initial
public offer or further public offer (including debt instrument) during the year. (b)
The Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year.
xi. (a) According to the information and explanations given to us,
no fraud by the company and no fraud on the company has been noticed or reported
during the year under report.
(b) No report under sub-section 12 of section 143 of the Companies Act
2013 has been filed ADT-4 as prescribed under the rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government, during the year.
(c) According to the information and explanations given to us, there
were no whistle blower complaints received by the company during the year.
xii. The Company is not a Nidhi Company.
xiii. According to the information and explanations given to us, the
Company is in compliance with Section 177 and Section 188 of the Act where applicable and
the details have been disclosed in the standalone Financial Statements, etc. as required
by the applicable accounting standards.
xiv. a) On the basis examination of records and information provided to
us, the Company has the Internal Audit System commensurate with the size and nature of its
business.
b) The Reports of the Internal Auditors for the period under audit have
been considered by us in determining nature and extent of audit procedures.
xv. According to the information and explanation given to us and based
on our examination of the records, the company has not entered into non-cash transaction
with directors and persons connected with them.
xvi. The company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934 and the company has not carried out any non-banking
financial activities during the year. Hence reporting under sub-clauses (b) to (d) is not
applicable.
xvii. The Company has not incurred cash losses during the year covered
by our audit and also in the immediately preceding financial year. xviii. There has
been no resignation of Statutory Auditors during the year.
xix. According to the information and explanations given to us and on
the basis of the financial ratios, ageing and expected date of realization of financial
assets and payments of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of Directors and 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 date of the audit
report that 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. xx. In our opinion and according to the information and explanations given to us,
there is no unspent amount under sub-section (5) of section 135 of the Companies Act, 2013
pursuant to any project. Accordingly, clause 3(xx)(a) and 3(xx)(b) of the Order is not
applicable. xxi. This report is in respect of standalone financial statements of the
company, hence reporting under clause xxi is not applicable.
|
For B S D & CO |
|
Chartered Accountants |
|
Firm Regn. No. 000312S |
|
Sd/- |
| Place : Bengaluru |
(P L VENKATADRI) |
| Date : May 30, 2023 |
Partner |
|
M.No. 209054 |
|
UDIN : 23209054BGTVUS3509 |
ANNEXURE II TO THE INDEPENDENT AUDITORS REPORT
FOR THE YEAR ENDED 31ST MARCH 2023.
(Referred to in paragraph 2(f) under ‘Report on Other Legal and
Regulatory Requirements section of our report of even date)
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. Rajesh Exports Limited, ("the Company") as of 31st March 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 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, 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 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 standalone financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal
financial control over financial reporting includes those
(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 standalone 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 standalone 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
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 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 B S D & CO |
|
Chartered Accountants |
|
Firm Regn. No. 000312S |
|
Sd/- |
| Place : Bengaluru |
(P L VENKATADRI) |
| Date : May 30, 2023 |
Partner |
|
M.No. 209054 |
|
UDIN : 23209054BGTVUS3509 |
+91-9892691696
