THE MEMBERS OF
RADIX INDUSTRIES (INDIA) LIMITED
Report on the Audit of the Ind AS Financial Statements:
We have audited the accompanying Ind AS financial statements of M/s. RADIXINDUSTRIES (INDIA) LIMITED ("the Company") which comprise the balance sheetas at 31st March 2021 the statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the statement of Cash Flowsended on that date and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as the "Ind AS financialstatements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act2013 ("the Act'') in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended("Ind AS'') and other accounting principles generally accepted in India ofthe state of affairs (financial position) of the Company as at 31st March 2021and its profit (financial performance including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Ind AS financial statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the Ind AS financial statements under the provisions ofthe Companies Act 2013 and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our audit opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
"We have determined that there are no key audit matters to communicate in ourreport."
Information other than the Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe Ind AS financial statements and our auditor's report thereon.
Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Ind ASfinancial statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Ind AS financial statementsthat give a true and fair view of the state of affairs (financial position) profit orloss (financial performance including other comprehensive income) changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Ind AS specified under Section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
In preparing the Ind AS financial statements management is responsible for assessingthe Company'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 responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Ind AS financial statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud 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 Ind AS financial statements.
As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act 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 reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting 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 auditor's report to the related disclosures inthe Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS financial statements may be influenced. Weconsider 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 Ind AS financialstatements.
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 also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
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 in terms of Section 143(11) of the Act we give in "AnnexureA" 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. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Statement of changes in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.
d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Companies Act 2013 read withRule 7 of the Companies (Accounts) Rules 2014.
e. On the basis of written representations received from the directors as on March 312021 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2021 from being appointed as a director in terms of Section 164(2) of theCompanies Act 2013.
f. With respect to the adequacy of internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion to the best of our information and according to the explanations givento us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of section 197 of the act.
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) Rule 2014as amended in ouropinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition as on reporting date.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.
"Annexure A" to the Auditor's Report:
(i) (a) According to the information and explanations furnished to us the company hasmaintained proper records showing full particulars including quantitative details andsituation of its fixed assets.
(b) According to the information and explanations given to us the company hasphysically verified its fixed assets during the year which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
(c) The company doesn't having any immovable properties as on reporting date and hencethe reporting requirement under this clause doesn't arise.
(ii) (a) According to the information and explanations furnished to us the company hasphysically verified its inventories at reasonable intervals during the period underreport. In our opinion and according to information and explanation given to us thediscrepancies if any noticed on verification of inventories between the physical stocksand the book records were not material and have been properly dealt with in the books ofaccount.
(iii) According to the information and explanations furnished to us the company hasnot granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in register maintained under Section 189 of theCompanies Act 2013. Consequently the provisions of clauses iii (a) iii (b) and iii (c)of the order are not applicable to the Company.
(iv) According to the information and explanations furnished to us the company has notgiven any loan made any investment given any guarantee or provided any security coveredunder section 185 and 186 of the Companies Act 2013.
(v) According to the information and explanations given to us the company has notaccepted any deposits covered under the provisions of section 73 to 76 or any otherrelevant provisions of the Act. Further according to the information furnished to us noorder has been passed on the company by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliancewith the provisions of Sections 73 to76 of the Companies Act 2013.
(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under Section 148(1) of the Act and we areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. However a detailed examination of cost records has not been made by us with aview to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations furnished to us and accordingto the books and records produced for our examination in our opinion the company isregular in depositing with the appropriate authorities the undisputed statutory duesincluding Provident Fund Employees' State insurance Income Tax GST Custom Duty Cessand other material statutory dues wherever applicable to it and further there are noundisputed statutory dues that were outstanding as at the date of the Balance Sheet fora period of more than six months from the date they became payable.
(b) According to the information and explanations furnished to us and according to therecords of the company the company has no disputed dues on account of Provident FundEmployees' State insurance Income Tax GST Custom Duty Cess pending remittance as atMarch 31 2021.
(viii) According to the information and explanations given to us there were nodefaults in repayment of dues to financial institutions banks government or debentureholders at the date of balance sheet.
(ix) According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and the term loans from Banks and Financial Institutions during the year.Hence reporting requirement in terms of Clauses (ix) does not arise during the periodunder report.
(x) According to the information and explanations furnished to us and based on theaudit procedures generally adopted by us we report that during the period no fraud onthe company by its officers or employees has been notices or reported during the year.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
(xii) To the best of our knowledge and according to the information and explanationsfurnished to us the company is not a Nidhi company and hence reporting under clause3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations furnished to us the company hasnot entered in to any transactions with related parties in accordance with the provisionsof sections 177 and 188 of the Companies Act 2013. Hence reporting requirement in termsof Clauses (xiii) does not arise during the period under report.
(xiv) According to the information and explanations furnished to us the company hasnot made any preferential allotment or private placement of shares or fully or partly paidconvertible debentures during the year and hence reporting under clause 3(xiv) of theOrder is not applicable to the Company.
(xv) According to the information and explanations furnished to us the company has notentered into any non-cash transactions with its directors or persons connected to itsdirectors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.
(xvi) According to the information and explanations furnished to us the company is notrequired to be registered under the section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls with Reference to Ind AS Financial Statementsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls with reference to Ind AS financialstatements of RADIX INDUSTRIES (INDIA) LIMITED ("the Company") as of 31stMarch 2021in conjunction with our audit of the Ind AS financial statements of the companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of accounting records and timely preparation of reliablefinancial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements of the company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by Institute of Chartered Accountants of India (ICAI) and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControl and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to financial statements was established and maintainedand if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial control withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemwith reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
A Company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) 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
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls with reference fo financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2021 based on internal control with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Control OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
| ||For M/s. K.S.RAO & Co. |
| ||Chartered Accountants |
| ||Firm Reg. No. 003109S |
| ||Sd/- |
| ||(K.VAMSI KRISHNA) |
| ||Partner |
|Place: Chivatam (Camp) ||M.No. 238809 |
|Date: 23rd April 2021 ||UDIN: 21238809AAAAAP2245 |