TO THE MEMBERS OF SHREE RAJIV LOCHAN OIL EXTRACTION LIMITED, RAIPUR
(C.G.). Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of SHREE RAJIV
LOCHAN OIL EXTRACTION LIMITED, RAIPUR (C.G.). - 492 001. - 496 661 which comprise the
Balance Sheet as at 31st March 2023, and the statement of Profit and Loss, for the year
ended on that date, and notes to the 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 financial statements give the
information required by the Companies Act, 2013 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 its profit/loss 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
specified under section 143(10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the Auditor?s Responsibilities for the Audit
of the 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
financial statements under the provisions of the Companies Act, 2013 and the Rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI?s Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for
the Standalone Financial Statements
The Company?s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial
position, financial performance, changes in equity 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. 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 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 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, the Board of Directors is
responsible for assessing the Company?s 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 Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the
company?s financial reporting process.
Auditor?s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor?s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances. Under
section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our
opinion on whether the company has adequate internal financial controls system in place
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management?s 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 Company?s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor?s
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 auditor?s 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
financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
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.
Report on Other Legal And Regulatory Requirement
As required by the Companies (Auditors? Report) Order, 2020 issued
by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act,
we give in the Annexure a statement on the matters specified in paragraphs 3 of the said
order.
As required by section 143(3) of the Act, We hereby report that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our audit.
2. 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.
3. The Company is not having any branches during the year under audit.
4. The Balance Sheet and Statement of Profit & Loss including Other
Comprehensive Income, and Statement of Cash Flow Statement dealt with by this report are
in agreement with the books of accounts.
5. In our opinion, the Balance Sheet and Statement of Profit &
Loss, Statement of Change in Equity and Statement of Cash Flow Statement comply with the
Indian Accounting Standards notified under this Act.
6. On the basis of examination of books of accounts, we are of opinion
that, there were no financial transactions or matters which have adverse effect on the
Company.
7. On the basis of written representation received from the directors
as on 31st March 2023, and taken on records by the Board of director, none of
the director is disqualified as on 31st March 2023 from being appointed as a
director in terms of Section 164 (2) of the of the Companies Act, 2013.
8. In our opinion, there is NIL qualifications, reservations or adverse
remarks in respect of maintenance of books of accounts or other matter connected herewith.
9. In our opinion, Companies has adequate internal financial control
system commensurate with size of the company & nature of business.
10. According to the information explanation given to us, there is no
pending litigation against the Company which requires separate disclosure in the financial
statements.
11. According to the information explanation given to us, we are of
opinion that the Company has no material foreseeable losses for which provision is
required to be made under law or accounting standards.
12. According to the information explanation given to us, we are of
opinion that the Company is not required to transfer any amount to Investor Education and
Protection Fund.
Auditors 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 RAJIV LOCHAN OIL EXTRACTION LIMITED, RAIPUR (C.G.). - 492 001.
("The Company") as of 31st March, 2023 in conjunction with our audit
of the financial statements of the Company for the year ended on that date.
Management?s Responsibility for Internal Financial Controls
The Company?s 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
company?s 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 auditor?s 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 Company?s 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
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 31 March 2023, based on
the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
ANNEXURE TO THE AUDITOR?S REPORT
(Referred to in paragraph 7 of our report of even date)
We report that:
(i) (a) (A) The company is maintaining proper records showing full
particulars, including quantitative details and situation of Property, Plant and
Equipment;
(B) The company is maintaining proper records showing full particulars
of intangible assets.
(b) As explained to us, Property, Plant and Equipment have been
physicallyverified by the management at reasonable intervals; no material discrepancies
were noticed on such verification;
(c) The title deed so fall the immovable properties (other than
properties where the company is the lessee and the lease agreements are duly executed in
favor of the lessee) disclosed in the financial statements are held in the name of the
company, except the following:-
| Descriptio n of Property |
Gross carryin g value |
Held inname of |
Whetherpro moter,direct or ortheirrelati ve
oremployee |
Periodheld - indicateran ge,where
appropriate |
Reasonfornotb eingheldinnam e of company |
|
|
|
NIL |
|
|
(d) The company has not revalued its Property, Plant and Equipment
(including Right of Use assets) or intangible assets or both during the year.
(e) As explained to us, no proceedings have been initiated or are
pending against thecompany for holding any benami property under the Benami Transactions
(Prohibition)Act,1988 (45of1988) and rules made there under.
(ii) (a) As explained to us, physical verification of inventory has
been conducted at reasonable intervals by the management. In our opinion, the coverage and
procedure of such verification by the management is appropriate. No discrepancy of 10% or
more in the aggregate for each class of inventory were noticed on physical verification of
stocks by the management as compared to book records.
b) The company has not been sanctioned working capital limits in excess
of five crore rupees, in aggregate, from banks or financial institutions on the basis of
security of current assets during any point of time of the year and hence clause 3(ii)(b)
of the order is not applicable.
(iii) a) During the year the company has not made investments in, nor
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. Except the following
| SN |
Name of the Party |
Amount |
N ature |
| 1 |
Dista Ventures Pvt. Ltd |
52,668.00 |
Loans and advances |
| 2 |
Hiranand Raheja |
1,78,890.00 |
Loans and advances |
| 3 |
Madhu Khurana |
1,18,420.00 |
Loans and advances |
| 4 |
Niche Technologies Pvt ltd. |
7,080.00 |
Loans and advances |
| 5 |
Pinky Raheja |
42,00,000.00 |
Loans and advances |
| 6 |
Sushil Khurana |
1,29,270.00 |
Loans and advances |
| 7 |
Subh Raipur Vyapar Vihar Developers. |
3,19,950.00 |
Loans and advances |
| 8 |
United Infra Steel Pvt. Ltd |
1,53,10,582.00 |
Loans and advances |
| 9 |
Varda Agratrade Pvt. Ltd |
1,42,00,000.00 |
Loans and advances |
| 10 |
V.R. Realities |
1,57,470.00 |
Loans and advances |
a. According to the information and explanations given to us, the
investments made, guarantees provided, security given and the terms and conditions of the
grant of all loans and advances in the nature of loans and guarantees provided are not
prima facie prejudicial to the companys interest;
b. There is no stipulation of schedule of repayment of principal and
payment of interest and therefore we are unable to comment on the regularity of repayment
of principal & payment of interest.
c. Since the term of arrangement do not stipulate any repayment
schedule we are unable to comment whether the amount is overdue or not.
d. No loans or advance in the nature of loan granted which has fallen
due during the year, has been renewed or extended or fresh loans granted to settle the
over due so existing loans given to the same parties except following:
| Name of Party |
Amount renewed or extended |
% of total loan |
Remark, if any |
|
Nil |
|
|
e. The company has not granted any loans or advances in the nature of
loans either repayable on demand or without specifying any terms or period of repayment.
(iv) Inrespect of loans, investments, guarantees, and security,
provisions of section 185 and 186 of the Companies Act, 2013 have been complied with
except non-charging of interest on the loan.
(v) The company has not accepted any deposits or amounts which are
deemed to be deposits covered under sections 73 to 76 of the Companies Act, 2013.
(vi) As per information & explanation given by the management,
maintenance of cost records has been specified by the Central Government under
sub-section(1) of section 148 of the Companies Act.
(vii) (a) According to the records made available to us, company is
regular
in depositing undisputed statutory dues including Goods and Services
Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty
of customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate authorities. According to the information and explanation given to us there
were no outstanding statutory dues as on 31st of March, 2023 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no statutory dues referred to in sub-clause (a) that have not been deposited on account of
any dispute.
| Name of the Statute |
Nature of the Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where Dispute is pending |
Remarks, if Any |
|
|
|
Nil |
|
|
(viii) According to the information and explanations given by the
management, no transactions not recorded in the books of account have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(ix) (a) In our opinion and according to the information and
explanations given by the management, we are of the opinion that the company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon
to any lender.
| Nature of borrowing, including debt securities |
Name of lender* |
Amount not paid on due date |
Whether principal or interest |
No. of days delay or unpaid |
Remarks , if any |
|
Nil |
|
|
|
|
(b) According to the information and explanations given by the
management, the company is not declared willful defaulter by any bank or financial
institution or other lender.
(c) In our opinion and according to the information and explanations
given by the management, the Company has utilized the money obtained by way of term loans
during the year for the purposes for which they were obtained, except for:
| Nature of the fund raised |
Name of the lender |
Amount diverted (Rs.) |
Purpose for which amount was sanctioned |
Purpose for which amount was utilized |
Remarks |
|
|
|
Nil |
|
|
(d) In our opinion and according to the information and explanations
given by the management, funds raised on short term basis have not been utilized for long
term purposes.
(e) In our opinion and according to the information and explanations
given by the management, 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) In our opinion and according to the information and explanations
given by the management, 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 instruments) 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 by the
management, no fraud by the company or any fraud on the company has been noticed or
reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies
Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government;
(c) According to the information and explanations given to us by the
management, no whistle-blower complaints had been received by the company.
(xii) The company is not a Nidhi Company. Therefore, clause xii is not
applicable on the company.
(xiii) According to the information and explanations given to us, all
transactions with the related parties are in compliance with sections 177 and 188 of
Companies Act, where applicable and the details have been disclosed in the financial
statements.
(xiv) In our opinion and based on our examination, the company does not
require to have an internal audit system.
(xv) On the basis of the information and explanations given to us, in
our opinion during the year the company has not entered into any noncash transactions with
directors or persons connected with him.
(xvi) (a) In our Opinion and based on our examination, the Company is
not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934
(2 of 1934).
(b) In our Opinion and based on our examination, the Company has not
conducted any Non-Banking Financial or Housing Finance activities without a valid
Certificate of Registration (COR) from the Reserve Bank of India as per the Reserve Bank
of India Act, 1934,
(c) In our Opinion and based on our examination, the Company is not a
Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India.
(d) According to the information and explanations given by the
management, the Group does not have any CIC as part of the Group.
(xvii) Based on our examination, the company has not incurred cash
losses in the financial year and in the immediately preceding financial year.
(xviii) Therehas been no resignation of the statutory auditors during
the year.
(xix) On the information obtained from the management and audit
procedures performed 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, the auditors knowledge of the Board of Directors
and management plans, we are of the opinion that no material uncertainty exists as on the
date of the audit report that company is 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) Based on our examination, the provision of section 135 are not
applicable on the company. Hence this clause is not applicable on the company.
(xxi) There have not been any qualifications or adverse remarks by the
respective auditors in the Companies (Auditors Report) Order (CARO) reports of the
companies included in the consolidated financial statements.
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