TO THE MEMBERS OF RISHABH DIGHA STEEL AND ALLIED PRODUCTS LIMITED
REPORT TO THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements Rishabh Digha
Steel And Allied Products Limited (the Company), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss for the year ended, The Cash statement as
on March 31, 2023 and a summary of significant accounting policies and other explanatory
information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation 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, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding of the assets of the
Company and for preventing and detecting the frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of internal
financial control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures selected depend on
the auditors judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the Companys preparation of
the financial statements that give true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by Companys Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial statements.
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 Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India :
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2023;
(b) In the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended
on that date
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
Due to COVID-19 , the business operations of the company were totally
disrupted and the management could not find the best possible way to retrieve the business
operations back on track. The management had then decided to stop the business operations
in totality and thus the company had suffered the losses as on the 31st March, 2023.The
total assets of the company are sufficient to meet the liabilities of the company and this
will not affect the going concern of the company.
EMPHASIS OF MATTERS
There are no matters to be emphasized as there are no litigations
against the company
The impact of COVID-19 has been addressed in the Para : Material
Uncertainty Related To Going
Concern mentioned above.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies(Auditors Report)Order, 2020 ("the
Order")issued by the Central Government of India in term of sub section (11) of
section 143 of the Act, as the same is applicable we do give in the Annexure A statement
on matters specified in Paragraph 3 and 4 of the Order.
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 appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and 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) With respect to the adequacy of internal financial control over the
financial reporting of the company and the operating effectiveness of such controls refer
to our Separate report in Annexure B.
f) On the basis of written representations received from the directors
as on 31 March, 2023, taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March, 2023, from being appointed as a director in terms of Section
164(2) of the Act.
g) With respect to the other matters included in the Auditors Report
in accordance with rule 11 of the Companies (Audit and Auditors) Rule,2014,in our opinion
and to our best of our information and according to the explanations given to us :
i. The Company does not have any pending litigation which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there can be any material foreseeable losses.
iii. The company did not have any pending funds to be transferred to
the Investor Education Protection Fund.
For M/s. Akshay D Shah & Co. LLP
Chartered Accountants
Sd/-
CA Kunal B Lodaya (Designated Partner)
M.N. 183189 FRN.121865W
UDIN : 23183189BGWIMT2715 Place: Mumbai Date: 10-05-2023
Annexure A to the Auditors Report
The Annexure referred to in our report to the members of Rishabh Digha
Steel & Allied Products Limited for the year Ended on 31st March,2023. We report that:
i) a) (A) The company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed assets but is in the
process of doing the same.
(B) The company does not have any intangible assets and therefore the
provision of clause (i)(a)(B) of the Companies (Auditors Report) Order, 2020 is not
applicable.
b) The Fixed Assets have been physically verified by the management
during the year and no material discrepancies between the books records and the physical
fixed assets have been noticed.
c) The Company has satisfactory title to all the assets.
d) The Company has not revalued any of its Plant, Property &
Equipment during the year and therefore the provision of clause (i)(d) of the Companies
(Auditors Report)
Order, 2020 is not applicable
e) The company does not have any proceedings under the Benami
Transactions (Prohibition) Act, 1988 ( 45 of 1988) and rules made thereunder.
ii) a) The company does not have any business operations during the
year and therefore the provisions of clause (ii)(a) of the Companies (Auditors Report)
Order 2020 is not applicable.
b) The company has not availed any working capital loan exceeding
Rupees Five Crores in aggregate from banks or financial institutions and therefore the
provisions of clause (ii)(b) of the Companies (Auditors Report) Order 2020 is not
applicable.
iii) The company has not made investments in, provided any guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured, to
companies, firms, Limited Liability Partnerships or any other parties. Therefore, the
provision of clause (iii) (a) to (iii) (f) of the Companies (Auditors Report) Order, 2020
is not applicable.
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 I86 of the
Companies Act, 2013 in respect of loans, investments, guarantees, and security given.
v) The company has not accepted deposits so the directives issued by
the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under is not applicable.
Therefore, the provision of clause v of the Companies (Auditors Report) Order, 2020 is not
applicable
vi) The maintenance of cost records as specified by the Central
Government under sub-section (1) of section 148 of the Companies Act are not applicable.
Therefore, the provision of clause vi of the Companies (Auditors Report) Order, 2020 is
not applicable.
vii) a) According to the information and explanation given to us,
company is generally regular in depositing undisputed statutory dues including provident
fund, employees state insurance, income- tax, GST and any other statutory dues with the
appropriate authorities.
b) According to the information and explanation given to us there are
no dues of income tax or sales tax or service tax or duty of customs or GST or duty of
excise or value added tax or cess which have not been deposited on account of any dispute.
viii) The company did not have any income tax assessments under the
Income Tax Act, 1961 during the year and also the company does not have any undisclosed or
unrecorded transactions of previous years and therefore the provision of clause (viii) of
the Companies (Auditors Report) Order, 2020 is not applicable
ix) According to the information and explanation given to us, company
has availed a Bank Overdraft Facility of Rs. 135, 89,145/- from the Bank of Baroda against
the Fixed Deposits amounting to Rs. 150, 99,050/- so made in the same bank and has not
defaulted in repayment of dues including interest. Therefore, the provision of clause (ix)
(a) to (ix) (f) of the Companies (Auditors Report) Order, 2020 is not applicable
x) (a) In our opinion and according to the information and explanations
to us, the company has not raised money by way of initial public offer or further public
offer (including debt instruments). Therefore, the provision of clause (x)(a) of the
Companies (Auditors Report) Order, 2020 is not applicable.
(b) In our opinion and according to the information and explanations to
us, the company has not made any preferential allotment or private placement of shares or
convertible debentures during the year. Therefore, the provision of clause (x)(b) of the
Companies (Auditors Report) Order, 2020 is not applicable
xi) (a) According to the information and explanation given to us no
fraud by the company and on the company by its officers has been noticed or reported
during the year. Therefore, the provision of clause (xi)(a) of the Companies (Auditors
Report) Order, 2020 is not applicable.
(b) The company has not reported any frauds during the year and
therefore the auditors are not required to submit any reports in Form ADT-4. Therefore,
the provision of clause (xi)(b) of the Companies (Auditors Report) Order, 2020 is not
applicable.
(c) The company has not received any whistle blower complaints during
the year and Therefore, the provision of clause (xi)(c) of the Companies (Auditors Report)
Order, 2020 is not applicable.
xii) In our opinion, the Company is not Nidhi Company. Therefore, the
provision of clause (xii) of the Companies (Auditors Report) Order, 2020 is not
applicable.
xiii) All transactions with the related parties are in compliance with
section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the
Financial Statements as required by the applicable accounting standards. Related Party
transaction are as per Note No. 21 forming part of the financial statements.
xiv) (a) In our opinion and based on our examination, the company has
an internal audit system commensurate with the size and nature of its business.
(b) The company has appointed internal auditor as mentioned under the
section 138 of the Companies Act, 2013 and we have considered the internal audit reports
of the company issued till date, for the period under audit.
xv) In our opinion and according to the information and explanations to
us the company has not entered into any non-cash transactions with directors or persons
connected with him. Therefore, the provisions of clause xv the Companies (Auditors Report)
Order, 2020 is not applicable.
xvi) The company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934 and therefore, the provisions of clause xvi of
paragraph 3 of the Order are not applicable to the Company.
xvii) The company has incurred a cash loss of Rs. 25,88,457.93/- during
the FY 2022-23 and the cash loss of Rs. 30,16,088.60/- during the FY 2021-22.
xviii) There are no resignations of statutory auditors during the year
and therefore the provisions of clause (xviii) of the Companies (Auditors Report) Order,
2020 is not applicable.
xix) The company even after incurring cash losses during the year is in
a good position to pay off its liabilities if any that may arise during the period of one
year from the balance sheet date and also no material uncertainty exists as on the balance
sheet date.
xx) The Corporate Social Responsibility provisions as defined under the
Companies Act, 2013 are not applicable to the company and hence the provisions of clause
(xx) of the Companies (Auditors Report) Order, 2020 is not applicable.
xxi) The company is not required to prepared the consolidated financial
statements with its group companies and therefore the provisions of clause (xxi) of the
Companies (Auditors Report) Order, 2020 is not applicable
For M/s. Akshay D Shah & Co.LLP
Chartered Accountants
Sd/-
CA Kunal Lodaya Designated Partner Membership No.:183189 UDIN :
23183189BGWIMT2715 Place: Mumbai Date: 10-05-2023
Annexure B" to the Independent Auditors Report of even date on
the Financial Statements of Rishabh Digha Steel And Allied Products Limited
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 Rishabh Digha Steel And Allied Products Limited 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.
The internal control over financial reporting criteria established by
the company considering the essential component 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. 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 risk 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 purpose 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, the company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting effectively as at March 31, 2023 based on 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 Reporting issued by the Institute of Chartered Accountants of
India.
For M/s. Akshay D Shah & Co. LLP
Chartered Accountants
Sd/-
CA Kunal B Lodaya (Designated Partner)
M.N. 183189 FRN.121865W
UDIN : 23183189BGWIMT2715 Place: Mumbai Date: 10-05-2023
ACCOUNTING FOR THE YEAR ENDED 31ST MARCH 2023
+91-9892691696
