TO THE MEMBERS OF SHREE RAJESHWARANAND PAPER MILLS LIMITED
Report on the Audit of the Standalone Financial Statements Disclaimer
of Opinion
We were engaged to audit the financial statements of SHREE
RAJESHWARANAND PAPER MILLS LIMITED ("the company"), which comprise the balance
sheet as at March 31, 2023, the statement of Profit and Loss, [the statement of changes in
equity (where applicable)] and statement of cash flows for the year then ended, and notes
to the financial statements, including a summary of significant accounting policies.
We do not express an opinion on the accompanying financial statements
of the entity. Because of the significance of the matters described in the Basis for
Disclaimer of Opinion section of our report, we have not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion on these financial
statements.
Basis of Disclaimer of Opinion
Due to circumstances beyond our control, we were unable to obtain
sufficient appropriate audit evidence to provide a basis for an audit opinion. The reasons
for our disclaimer are lack of access to relevant books of accounts and unavailability of
necessary information. Because of the significance of the matters described we do not
express an opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the, financial statements of the
current period. These matters were addressed in the context of our audit, of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion, on these matters.
We have determined that there are no key audit matters to be
communicated in our report.
Other Information
The companys management and board of directors are responsible for the
other information. The other information comprises Boards Report on corporate governance
and Business Responsibility report but does not include the standalone financial statement
and oaf~z~ auditors report thereon. f/^,
Our opinion on the financial statement does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of standalone financial statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the standalone financial statements or
our knowledge obtained during the course of our audit procedures or otherwise appear 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 on that fact.
We have nothing to report in this regard.
Managements Responsibility for the Standalone Ind AS Financial
Statements
The Companys Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these standalone Ind AS financial statements that give a true and fair view
of the state of affairs, Profit (including other comprehensive income), changes in equity
and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under
section 133 of the Act.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safe guarding 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 Ind AS financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Board of directors is also responsible for overseeing the companys
financial reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether
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 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 aggregate,
they could reasonably be expected to influence the economic decision of users taken on the
basis of these standalone financial statements.
As a 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 risk of material misstatement of the
standalone financial statements, weather due to fraud or error, design and perform audit
procedure responsive to those risk, and obtain evidence that are sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than the one resulting from error, as fraud
may involve collusion, forgery, intentional, omission, misrepresentation, or the override
of internal control.
• Obtain an understanding of internal financial control relevant
to the audit in order to design audit procedure 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 control 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 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 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
standalone financial statements, including the disclosures, and whether the standalone
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative materiality and qualitative factors
in (i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the standalone financial
statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the 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 the Companies (Auditors Report) Order, 2020
("the Order") issued by the
Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) As described in the Basis for Disclaimer of Opinion paragraph, we
sought but were unable to obtain all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit.
(b) Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether 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) Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether the Balance Sheet, and
Statement of Profit and Loss dealt with by this Report are in agreement with the books of
account.
(d) Due to the possible effects of the matter described in the Basis
for Disclaimer of Opinion paragraph, we are unable to state whether the aforesaid
financial statements comply with the Accounting Standards under Section 133 of the Act
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors and 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
with reference to financial statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure B".
(g) 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, we
are unable to express the opinion in this matter as company is under corporate insolvency
resolution process and we have not been given any information with us.
| Date: 17/01/2024 |
| Place: Ahmedabad |
| UDIN: 24133926BKCJGM2170 |
Annexure A to the Independent Auditors Report of SHREE RAJESHWARANAND
PAPER
MILLS LIMITED
(Referred to in our report of even date)
With reference to the Annexure A referred to in the Independent
Auditors report to the members of the Company on the standalone Ind AS financial
statements for the year ended 31st March 2022, we report the following:
I. In Respect of Fixed Assets
(a) As mentioned in Disclaimer of Opinion paragraph we have limited
access to data due to which we are unable to express opinion whether company has
maintained proper records showing full particulars including quantitative details and
situation of fixed assets or not.
(b) Fixed assets have been physically verified by the insolvency
professional; No material discrepancies were noticed except as mentioned in note 2.1 of
Financial statements on such verification.
(c) We have not received any original title deeds of immovable
properties of the Company held as fixed assets which are in custody of the Company.
Because of non-availability of the title deeds with us we express no opinion on the
ownership and validity of the title of the Company to these properties.
(d) The company has not revalued its property, plant and equipment
(including the right of use assets) or intangible assets or both during the year, the
clause for revaluation of Property, Plant and Equipment is not applicable.
(e) No proceedings have been initiated or are pending against the
company for holding any Benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made thereunder.
II. In Respect of Inventories
The Company does not have any inventory of stores and spares, fuel and
lubricants
during the year and there is no question of verification thereof.
III. Compliance under section 189 of The Companies Act, 2013
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data, the
Company has not granted any loans, secured or unsecured, to companies,
firms.
Limited Liability Partnerships or other parties covered in the register
maintained
under section 189 of the Companies Act, 2013.
IV. Compliance under section 185 and 186 of The Companies Act, 2013
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data, The Company has not granted any loans, made investments or provided
guarantees.
V. Compliance under section 73 to 76 of The Companies Act, 2013 and
Rules framed thereunder while accepting Deposits
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data, the Company has not accepted any deposit during the year.
VI. Maintenance of cost records
The Company has not done any production activity during the year and
there is no commercial activity of the company. So the company does not have any cost
records in the light of the fact that production activity is not done during the year.
Hence there is no review of the non-existent cost records.
VII. Deposit of Statutory Dues
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data, the Company has outstanding statutory dues as on 31st march
2023.
VIII. Unrecorded income
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data there were no transactions relating to previously unrecorded income that
have been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (43 of 1961).
IX. Repayment of Loans and Borrowings
As mentioned in Disclaimer of Opinion paragraph and information and
explanations available with us, the Company has defaulted in payment of loans to concerned
creditors and due to which Corporate Insolvency Resolution Process is started against the
company.
X. Utilization of Money Raised by Public Offers and Term Loan for which
they Raised
According to the information and explanations give to us and based on
our examination of the records of the Company, the Company has not raised any moneys by
way of initial public offer or further public offer (including debt instruments) and has
not obtained any term loans during the year. Accordingly, paragraph 3(ix) of the Order is
not applicable to the Company.
XI. Reporting of Fraud during the Year
As per information provided to us by insolvency professional, the
transaction auditor has identified fraudulent transaction amounting to Rs. 54.93 crores as
per section 66 of Insolvency Bankruptcy code,2016.
XII. Compliance by Nidhi Company Regarding Net Owned Fund to Deposits
Ratio
As per information and records available, the Company is not a Nidhi
Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the
Company and hence not commented upon.
XIII. Related party compliance with Section 177 and 188 of companies
Act - 2013
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data We could not provide our opinion whether the Company is in compliance with
Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions
with the related parties and the details of related party transactions or not.
XIV. Internal Audit Systems
The Company has suspended production during the year and hence there
are no operating activities and hence there is no internal audit system employed by the
Company over financial reporting as at March 31, 2023.
XV. Compliance under section 192 of Companies Act - 2013
As mentioned in Disclaimer of Opinion paragraph, based on limited
access to data we could not express opinion that whether 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 or not.
XVI. Requirement of Registration under 45-IA of Reserve Bank of India
Act, 1934
According to the information and explanations given to us, the
provisions of section 45- IA of are not applicable to the company.
XVII. Cash losses
The Company has not incurred cash losses duringthe financial
yearcovered by our audit and the immediately preceding financial year.
XVIII. Resignation of statutory auditors
According to the information and explanations given to us, there has
not been any resignation of statutory auditors during the year.
XIX. Material Uncertainty
On the basis of the financial ratios, ageing and expected dates of
realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements and our knowledge of the Board of
Directors/lnsolvency Professional and Management plans and based on our examination of the
evidence supporting the assumptions, we believe that any material uncertainty exists as on
the date of the audit report indicating 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. 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. Transfer to fund specified under Schedule VII of Companies Act,
2013
The company has no obligation to spend under corporate social
responsibility. So, reporting under clause (xx) of the order is not applicable for the
year
Annexure B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial
reporting of SHREE RAJESHWARANAND PAPER MILLS LIMITED ("the Company") as of
March 31, 2023 in conjunction with our audit of the standalone financial statements of the
Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys Management is responsible for establishing and
maintaining internal financial controls 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 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 as specified under
section 143(10) of the Companies Act, 2013, to the extent 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 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 internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with 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
The Company has suspended production during the year and hence there
are no operating activities and hence there is no internal control system employed by the
Company over financial reporting 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.
| CA Marmik Shah |
| Partner ^ |
| M. No 133926 |
| UDIN: 24133926BKCJGM2170 |
| Date :17th January 2024 |
+91-9892691696
