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R J Bio-Tech Ltd.

BSE: 536456 Sector: Others
NSE: N.A. ISIN Code: INE594O01015
BSE 00:00 | 14 Jun R J Bio-Tech Ltd
NSE 05:30 | 01 Jan R J Bio-Tech Ltd
OPEN 8.25
PREVIOUS CLOSE 8.25
VOLUME 3000
52-Week high 8.90
52-Week low 5.12
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.25
CLOSE 8.25
VOLUME 3000
52-Week high 8.90
52-Week low 5.12
P/E
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

R J Bio-Tech Ltd. (RJBIOTECH) - Auditors Report

Company auditors report

To

The Members

R ] Bio-Tech Limited

"Siddharth Arcade" Opp. Holiday Camp Station Road

Aurangabad - 431 005

We have audited the accompanying standalone financial statements of R J Bio-TechLimited (‘the Company’) which comprise the Balance Sheet as at 31st March 2021the Statement of Profit and Loss the Cash Flow Statement for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as 'financial statements').

01] Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid financial statements give the informationrequired by the Companies Act 2013 as amended (‘the Act’) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March 2021its Profit & Loss its Cash Flows for the year ended on that date.

02] Basis for Qualified Opinion

i) Following events or conditions indicate that a material uncertainty exists that maycast significant doubt on the Company’s ability to continue as a going concern andtherefore it may be unable to realise its assets and discharge its liabilities in thenormal course of business. The financial statements (and notes thereto) do not disclosethis fact. However the financial statements of the Company have been prepared on a goingconcern basis.

We draw attention to the standalone financial statements which indicates that -

- The Company has incurred a net loss of Rs. 15.68 Crores during the year ended 31stMarch 2021 and also its current liabilities over current assets exceeded by Rs. 39.07Crores.

- The Company has accumulated losses and its Net Worth has been fully eroded.

- The Company’s financing arrangements expired and the amount outstanding of Rs.36.17 Crores was payable on March 31 2021. The Company has been unable to renegotiate orobtain replacement financing and the loan to the company is currently classified by bankas Non Performing Asset. The bank has recently declared the company as a willful defaulterand hence further alternate financing from the banking system seems to be difficult.

i

ii) Under the Micro Small & Medium Enterprises Development Act 2006 which cameinto force from 2nd October 2006 certain disclosures are required to be made relating toMicro Small & Medium Enterprises. No such disclosures are made in financialsstatements in the absence of relevent information with the company which is not incompliance with the requirements of Schedule III of the Companies Act 2013.

iii) The company has not determined the liability towards retirement benefits such asleave encashment etc. as per the Accounting Standard 15 - "Employee Benefits'prescribed under section 133 of the Companies Act 2013. No provision has been made in thebooks of accounts for the above liability as per the acturial valuation report. Thefinancial statement do not disclose the financial impact of the above provisions. The Lossin the statement of Profit & Loss and Current Liabilities are understated to thatextent. This constitutes* a departure from the Accounting Standard -15 "EmployeeBenefits".

iv) The company has not accounted for interest on loans taken from banks during theyear. This is not in compliance with the accounting policies followed by the company tilllast financial year where in interest accrued on loans was accounted for in the books.

As a result of the matters stated in Para (i) Para (il) Para (iii) & Para (iv)above we were unable to determine whether any adjustments might have been found necessaryin respect of recorded assets and liabilities in the Balance Sheet and the coi respondingelements making up the Statement of Profit and Loss and Cash Flow Statement.

We have conducted our audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the companies Act 2013. Our responsibilities underthose Standards are further described in Auditor's Responsibilities for Audit of FinancialStatements section of our report. We are independent of the Company in accordance with thecode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAl's Code of Ethics Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our Qualified opinion.

03] Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion theron and we do not provide a seprate opinion an these matters.These matters has been addressed in the Basis for Qualified Opinion paragraph of our AuditReport.

05] Management’s Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5] of the Companies Act 2013 ("the Act"] with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity] and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the company’s financialreporting process.

06] Auditor’s Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

-As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

-Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

-Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

-Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

-Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

-Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

07] Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofCompanies Act 2013 we give in the 'Annexure A' a statement on the matters specified inparagraph 3 and 4 of the Order to the extend applicable.

2) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in the 'Annexure B'

3) As required by section 143(3) of the Act we report that:

a) Except for the effects of the matters described in Basis for Qualified Opinionparagraph we have sought & obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit;

b) Except the matters described in Basis for Qualified Opinion paragraph in ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books.

c] Except for the effects of the matters described in Basis for Qualified Opinionparagraph the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

d] Except for the possible effects of the matters described in the Basis for QualifiedOpinion paragraph In our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts] Rules 2014.

e] The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

f] On the basis of written representations received from the Directors as on March312021. and taken on record by the Board of Directors none of the directors isdisqualified as on March 312021. from being appointed as a director in terms of Section164(2] of the Act.

g] Except the matters described in Basis for Qualified Opinion paragraph in ouropinion We have no qualification reservation or adverse remark relating to themaintenance of accounts and other matters connected therewith;

h] With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors] Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The details of pending litigations amount involved contingent liability for theselitigations are given in Note No. 37 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are no such amounts which are required to be transferred to InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct 2013 and rules made there under.

ANNEXURE A' TO THE AUDITOR'S REPORT REFERRED TO IN OUR REPORT OF EVEN DATE FOR THE YEARENDED AS ON 31.03.2021

(i) Property Plant & Equipments:

(a) The Company has maintained proper records showing full particulars includingquantitativ details and situation of Property Plant & Equipments.

(b) The Property Plant & Equipments have been physically verified by themanagement at reasonabl intervals. No material discrepancies were noticed on suchverification.

(C ) Title deeds of immovable property has been held in the name of company for thispurpose we hav relied on 7/12 abstract keptron record as on 31.03.2021.

(ii) Inventory:

According to the information & explanations given the annual physical verificationof inventor could not be conducted as on 31st March 2021 due to Government imposedlockdowns and travf restrictions because of COVID 19. As per the information giveninventory verification wa conducted on a later date i.e 14th June 2021 by deriving theinventory as on 31st March 2021. A per information & explanations given to us nomajor discrepancies were noticed on such physic; count & verification of stock ascompared to book records.

(iii) Loans:

During the year under review the company has not granted any loan secured or unsecuredt Companies Firms Limited Liability Partnership or other parties covered in registermaintaine u/s 189 of the Companies Act 2013 hence clause (iii) (a) to (c) are notapplicable.

(iv) Loans Investment and Guarantees

As per the information and explanations given to us we are of the opinion that theCompany ht complied the provisions of Section 185 and 186. The Company has not given anyguarantee t others.

(v) Deposits:

The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act an the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions < clause 3 (v) of the Order are not applicable to the Company and hencenot commented upon.

(vi) Cost Records:

As explained to us Central Government has not prescribed for maintenance of costrecords und< sub-section (1) of section 148 of Companies Act 2013.

(vii) Statutory Dues:

(a) The Company has not being regular / delayed in payment of undisputed statutory duesincludir provident fund employee's state insurance income-tax customs duty goods andservice tax ce: and other statutory dues applicable to it. ^e*"**^

[b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees’ state insurance income-tax customsduty goods and service tax cess and other statutory dues were outstanding at the yearend for a period of more than six months from the date they became payable except infollowing cases noticed during the period under review:

i) Income Tax demand reflected on Income Tax website of Rs.30879/- for the period fromA.Y 2007-08 to 2014-15 for which payment is made on 13/06/2021. There are no dues.

ii) Undisputed demand for TDS defaults shown on TDS Traces website of Rs. 491890.00/- which are not provided in books & paid till the date of our audit.

(c) According to the information and explanations given to us there are no materialdisputed dues ir respect of Service Tax Duty of Customs and cess which have not beendeposited with the appropriate authorities on account of any dispute. However accordingto information anc explanations given to us & on the basis of documents examined thefollowing dues of Income ta> has not been deposited by the Company on account ofdisputes:

NAME OF THE STATUE : THE INCOME TAX ACT 1961

Period Income Tax Demand Details Forum
A. Y. 2013-2014 NIL [Refer Note) Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax (Appeals)-l Aurangabad Income Tax Appellate Tribunal Pune
A. Y. 2014-2015 Rs. 8244360/- Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax [Appeals)-! Aurangabad Income Tax Appellate Tribunal Pune

Note Assessed income has been set off against the B/F Business Loss hence Tax Liabilityis NIL

(viii) Default to FIS & Banks:

The company has defaulted in repayment of loans or borrowing from the Bank [State Bankof India MIDC Waluj Aurangabad Branch [Currently shifted to Stressed Assets ManagementBranch -II Mumbai)] in respect of secured loans for last few years. Further theoutstanding loan have beer classified as NPA as on 27 June 2016 by the bank. The detailsof defaults in repayment made by th< company is as follows:

Details of defaults in repayment of Loans :

Particulars Amount in Rs
Principal 246390111
Interest accrued 200092041
Penal Interest 23464439

(Note: The above figures are based on Balance Confirmations given by the Bank whilethe company has not accounte for the interest due on the loans during the year]

(ix) Utilization of IPO Further Public Offer & Term Loan:

During the current financial year the company has not raised any public issue and anyfresh tern loan hence not applicable.

(x) Frauds:

During the course of our examinations of the books & records of the companycarried out in accordance with the generally accepted auditing practices in India &according to the information & explanations given to us we have neither come acrossany instances of material fraud on or by the Company noticed or reported during the yearnor have we been informed of such case by management.

Cxi) Approval of Managerial Remuneration :

During the year company has not paid any Managerial Remuneration. Hence notapplicable.

(xii) Nidhi Company : Company is not a Nidhi Company. Hence Not Applicable.

(xiii) Related Party Transactions:

As per the information and explanation given to us all transactions with relatedparties are ir compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosct in the Financial Statements as required by AS-18.

(xiv) Private Placement or Preferential Issues

The company has not made any preferential allotment or private placement of shares orfully oi partly convertible debentures during the year under review.

(xv) Non Cash Transactions:

According to the information given to us the company has not entered into any non-casttransactions with directors or person connected with him .

(xvi) Register under RBI Act 1934 :

The company is not required to be registered u/s 45-IA of Reserve Bank of India Act1934.

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act’)

Opinion

We have audited the internal Financial controls over financial reporting ofRJ BiotechLimited (The Company’) as of 31st March 2021 in conjunction with our audit of theStandalone Financial Statements of the Company for the year ended and as on that dates.

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal Financial controls over Financialreporting were operating effectively as at 31bt March 2021 based on theinternal control over Financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting (hereinafter referred as "theguidance note") issued by the Institute of Chartered Accountant of India.(hereinafterreferred as "ICA1")

Management’s Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting('the Guidance Note’) issued by the Institute of Chartered Accountants of India ('theICA1’)". These responsibilities include the design implementation andmaintenance of adequate internal Financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable Financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing ('the Standards’) prescribed under section 143(10) ofthe Act and Guidance Note to the extent applicable to an Audit of internal Financialcontrols both issued by the ICA1. Those Standards and the Guidance Note lequiie that wecomply with the ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal Financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal Financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over Financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis foi oui audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles.

A Company’s internal financial control over financial reporting includes thosepolicies and procedures that

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company; and .

iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting Because ofthe inherent limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to ei 1 oi 01 fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control oveifinancial reporting may become inadequate because of changes in conditions or that thedegree of conipbance with the policies or procedures may deteriorate.

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