To
The Members of
Ritesh International Ltd
Report on Audit of the Standalone Ind AS Financial Statements
Opinion
1. We have audited the accompanying standalone Ind AS financial statements of Ritesh
International Ltd (“the company”), which comprise the Standalone Balance Sheet
as at 31 March 2023, the Standalone Statement of Profit and Loss including the statement
of Other Comprehensive Income, the Standalone Cash Flow Statement and the Statement of
Changes in Equity for the year then ended, and notes to the standalone Ind AS financial
statements, including 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 Standalone Ind AS financial statements give the information
required by the Companies Act, 2013, as amended (“the 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
and total comprehensive income(comprising of Profit and other comprehensive income), its
cash flow and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone Ind AS financial statements in accordance
with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the “Auditors
Responsibilities for the Audit of the standalone Ind AS 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 Ind AS financial
statements under the provisions of the Act and Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone Ind AS financial statements for the financial
year ended March 31, 2023. These matters were addressed in the context of our audit of the
standalone Ind AS financial statements as a whole and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. We have determined the matter
described below to be the key audit matters to be communicated in our report.
| Key Audit matters |
How our audit addressed the key audit matter |
| Revenue from sale of products (As described financial statements) in Note
2(b) of the Standalone Ind AS |
| The Company recognizes revenues when control of the goods is transferred to the
customer at an amount that reflects the consideration to which the company expects to be
entitled in exchange for theses goods. |
Following procedures have been performed to address this key audit matter: |
| The terms of sales arrangement, including the timing of transfer of control, delivery
specifications and judgment in determining timing of the sales revenue. |
- Considered the companys revenue recognition policy and its compliance in terms of
Ind AS 115 ‘Revenue from the Customers. |
| Accordingly, due to risk associated with revenue recognition, it was determined to be
a key audit matter in our audit of the standalone Ind AS financial statements |
- Assessed the design and tested the operating effectiveness of internal control
related to revenue recognition. |
|
- Selected samples of sales transactions made pre and post year end, agreed the period
of revenue recognition to underlying documents. |
|
. Assessed the relevant disclosures made within the standalone Ind AS financial
statements. |
Other Information
5. The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Annual Report, but does not include
the standalone Ind AS financial matters and our auditors report thereon.
Our opinion on the standalone Ind AS 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 Ind AS financial statements, our
responsibility is to read the other information and, in doing so, consider whether such
other information is materially inconsistent with the standalone Ind AS financial
statements or our knowledge obtained during 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.
Responsibilities of Management for the Standalone Ind AS Financial Statements
6. 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 Ind AS financial statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity of the company in accordance
with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) specified under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and 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 standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
7. In preparing the standalone Ind AS 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. Those charged with Governance
are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibility for the Audit of the Standalone Ind AS
Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the standalone Ind
AS financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditors report that include 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.
Misstatement 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 Ind AS financial statements.
9. 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 standalone Ind AS
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
Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls.
e 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.
e Evaluate the overall presentation, structure and content of the standalone Ind AS
financial statements, including the disclosures, and whether the standalone Ind AS
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
10. 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.
11. 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.
12. From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the standalone Ind AS
financial statements for the financial year ended March 31, 2023 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
13. As required by the Companies (Auditors Report) Order, 2016 (“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 B” a statement on the matters specified in
paragraphs 3 and 4 of the order.
14. 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 Standalone Balance Sheet, the Statement of Profit and Loss (including the
Statement of Other Comprehensive Income), the Standalone Cash Flow Statement and
Standalone Statement of Changes in Equity dealt with by this Report are in agreement with
the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with
the Accounting Standards specified under section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as amended;
(e) on the basis of 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 31% 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 with reference to these standalone Ind AS financial statements
and the operating effectiveness of such controls, refer to our separate Report in
“Annexure-A “to this report.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has
been paid/provided by the Company to its directors in accordance with the provisions of
section 197 read with Schedule V to 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, as amended, in
our opinion and to the best of our information and according to the explanations given to
us:
i The company has disclosed the impact of pending litigation on its financial position
in its standalone Ind AS 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 were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the company.
|
For Bhushan Aggarwal & Co. |
|
(FRN No.005362N) |
|
Chartered Accountants |
| Place : Ahmedgarh |
(Shashi Bhushan) |
| Date : 25.05.2023 |
Prop |
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M.No.084005 |
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UDIN:23084005BGYSDX&774 |
ANNEXURE A to the Independent Auditors Report of even date on the Standalone Ind AS
Financial Statements of Ritesh International Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 (“the Act”)
1. We have audited the internal financial controls over financial reporting of Ritesh
International Limited (“the Company”) as of March 31, 2023 in conjunction with
our audit of the standalone Ind AS financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
2. 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. 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 the 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 Act.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting with reference to these standalone Ind AS financial
statements 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”) issued by ICAI and the Standards on Auditing as specified under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. 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 with reference to
these standalone Ind AS financial statements was established and maintained and if such
controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy
of the internal financial controls system over financial reporting with reference to these
standalone Ind AS financial statements and their operating effectiveness. Our audit of
internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting with reference to these standalone
Ind AS financial statements, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
5. 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 over
financial reporting with reference to these standalone Ind AS financial statements
Meaning of Internal Financial Controls over Financial Reporting with reference to these
standalone Ind AS financial statements
6. A Companys internal financial control over financial reporting with reference to
these standalone Ind AS financial statements 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
with reference to these standalone Ind AS financial statements 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 with
reference to these standalone Ind AS financial statements
7. Because of the inherent limitations of internal financial controls over financial
reporting with reference to these standalone Ind AS financial statements, 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 with reference
to these standalone Ind AS financial statements 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
8. In our opinion, the Company has, in all material respects, adequate internal
financial controls over financial reporting with reference to these standalone Ind AS
financial statements and such internal financial controls over financial reporting with
reference to these standalone Ind AS financial statements were operating effectively as at
March 31, 2022, 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 Bhushan Aggarwal & Co. |
|
(FRN No.005362N) |
|
Chartered Accountants |
| Place : Ahmedgarh |
(Shashi Bhushan) |
| Date : 25.05.2023 |
Prop |
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M.No.084005 |
|
UDIN:23084005BGYSDX&774 |
ANNEXURES TO THE INDEPENDENT AUDITORS” REPORT
Annexure B referred to in paragraph 1 under the heading “Report on Other Legal and
Regulatory Requirements” of our report of even date on the standalone Ind AS
financial statements of Ritesh International Limited.
i (a) The company is maintaining proper records showing full particulars including
quantitative details and situation of property, plant and equipment and Intangible assets.
On 13.02.2005 there was a fire in the office premises of the company, in which some of the
records of the company maintained up to 31.03.2004 have been destroyed including the fixed
assets register.
(b) Property, plant, and equipments were physically verified during the year by the
Management in accordance with a phased programme of verification, which, in our opinion is
reasonable having regard to the size of the Company, nature and value of its assets. No
material discrepancies were noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting of the true
and fair view of the financial statements and according to the information and
explanations given by the management, the title deeds of immovable properties included in
property, plant and equipment and Intangible assets are held in the name of the company.
(d) The company has not revalued its Property, Plant and Equipment during the year.
(e) Based on the information and explanations furnished to us, no proceedings have been
initiated or pending against the Company for holding benami property under the Prohibition
of Benami Property Transactions Act, 1988 (as amended in 2016) formerly the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder, and
therefore the question of our commenting on whether the Company has appropriately
disclosed the details in its financial statements does not arise.
ii. a) The inventory has been physically verified by the management during the year. In
our opinion, the frequency of verification is reasonable. No material discrepancies were
noticed on physical verification. Inventories lying with third parties have been confirmed
by them as at year end and no material discrepancies were noticed in respect of such
confirmations.
b) During the year, the company is availing working limits in excess of Rs. 5 crores,
in aggregate, from bank on the basis of security of Current assets. The company has not
filed any financial quarterly returns or statements with such bank. iii. The company has
not granted loans to any body corporate covered in the register maintained under section
189 of the Companies Act, 2013(‘the Act)
iv. The company has not granted any loans, or provided any guarantees or security to
the parties covered under section 185 of the Act. Further, in our opinion and according to
the information and explanations given to us, the Company has complied with the provisions
of section 186 of the Companies Act, 2013, as the company has not provided any loans,
guarantees or security or made investments with the parties covered under section 186 of
the Act.
The Company has not accepted any deposits or amounts which are deemed to be deposits
within the meaning of section 73 to 76 of the Act and the Companies (Acceptance of
Deposits) Rules, 2014 (as amended).
VI. We have broadly 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 manufacture of Companys products and
are of the opinion that prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of the same.
Vii. (a) The company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income tax, GST and any other
statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, Employees State Insurance, income tax, GST and
other statutory dues were in arrears as at 31 March 2023 for a period of more than six
months from the date they became payable.
viii. According to the information and explanations given to us and records of the
company examined by us, there is no income surrendered or disclosed as income during the
year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in
the books of account.
ix. In our opinion and according to information and explanations given by the
management, the Company has not defaulted in repayment of dues to any bank. Further, the
Company does not have any outstanding debentures and loan from financial institution or
government.
a) The Company has not raised any money by way of initial public offer / further public
offer / debt instruments and term loans during the year under review and hence, not
commented upon.
b) the Company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review and hence, not
commented upon. xi. a) During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted auditing practice in
India, and according to the information and explanations given to us, we have neither come
across any instance of material fraud by the company or on the company, noticed or
reported during the year, nor have we been informed of such case by the Management.
b) During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, a report under Section 143(12)
of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014 was not required to be filed with the Central Government of India.
Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the
Company.
?) During the course of our examination of the books and records of the Company carried
out in accordance with the generally accepted auditing practices in India, and according
to the information and explanations given to us, and as represented to us by the
management, no whistle-blower complaints have been received during the year by the
Company. Accordingly, the reporting under clause 3(xi)(c) of the Order is not applicable
to the Company
xii. The Company is not a nidhi company and hence reporting under clause 3(xii) of
Order is not applicable to the Company.
xiii. The Company has entered into transactions with the related parties in compliance
with the provisions of Section 177 and 188 of Companies Act, 2013. The details of such
related party transactions have been disclosed in the standalone Ind AS financial
statements as required under Indian Accounting Standards 24 “Related Party
Disclosures” specified under Section 133 of the Act.
Xiv. In our opinion and according to the information and explanations given to us, the
Company has an internal audit system commensurate with the size and nature of its
business. The repot of the Internal Auditor for the period under audit has been considered
by us.
XV. According to the information and explanations given by the management, the Company
has not entered into any non-cash transactions with directors or persons connected with
him as referred to in section 192 of Companies Act, 2013.
XVI. a) According to the information and explanations given to us, the provisions of
Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
b) The Company has not conducted any non-banking financial/ housing finance activities
during the year. Accordingly, this clause of the order is not applicable. c) The Company
is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve
Bank of India. Accordingly, this clause of the order is not applicable.
d) Based on the information and explanations provided by the management of the Company,
the Group does not have any CICs, which are part of the Group. We have not, however,
separately evaluated whether the information provided by the management is accurate and
complete. Accordingly, this clause of the order is not applicable.
XVii. The Company has not incurred any cash losses in the financial year or in the
immediately preceding financial year.
X Vii. There has been no resignation of the Statutory Auditors during the year.
Accordingly, this clause of the Order is not applicable.
Xix. According to the information and explanations given to us and on the basis of the
financial ratios , ageing and expected dates of realization of financial assets and
payment 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 the date of the audit
report that the Company is not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
XX. 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 Act pursuant to any
project. Accordingly, this clause of the Order is not applicable.
|
For Bhushan Aggarwal & Co. |
|
(FRN No.005362N) |
|
Chartered Accountants |
| Place : Ahmedgarh |
(Shashi Bhushan) |
| Date : 25.05.2023 |
Prop |
|
M.No.084005 |
|
UDIN:23084005BGYSDX&774 |
+91-9892691696
