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Rajkamal Synthetics Ltd.

BSE: 514028 Sector: Industrials
NSE: N.A. ISIN Code: INE376L01013
BSE 00:00 | 11 Aug 28.35 -0.30
(-1.05%)
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NSE 05:30 | 01 Jan Rajkamal Synthetics Ltd
OPEN 28.65
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VOLUME 71036
52-Week high 38.80
52-Week low 3.80
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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OPEN 28.65
CLOSE 28.65
VOLUME 71036
52-Week high 38.80
52-Week low 3.80
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rajkamal Synthetics Ltd. (RAJKAMALSYNTH) - Auditors Report

Company auditors report

To the Members of Rajkamal Synthetics Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of RajkamalSynthetics Limited("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the profit (including Othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the independence requirements thatare relevant to our audit of the financial statements under the provisions of the Act andthe Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.

Material Uncertainty Related to Going Concern

We draw attention to 23 of the financial statements whereincompany's net worth eroded due to losses in current year as well as previous yearwhich indicate a material uncertainty exists that may cast a significant doubt on thecompany's ability to continue as a going concern. However for the reason more fullydescribed in aforesaid note the accounts of the Company have been prepared as goingConcern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere 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 awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined the matters described below to be the key audit mattersto be communicated in our report.

Our response:

• We evaluated the design and tested the operating effectivenessof controls in respect of the determination of the provisions. We determined that theoperation of the controls provided us with evidence over the completeness accuracy andvaluation of the provisions.

• We read the summary of litigation matters provided by managementand held discussions with the management and their legal counsels. We requested legalletters from some of the Company's external legal advisors with respect to thematters included in the aforesaid disclosures. Where appropriate we examinedcorrespondence connected with the cases.

• For litigation provisions we tested the calculation of theprovisions assessed the assumptions against third party data where available andassessed the estimates against historical trends.

• We considered management's judgements on the level ofprovisioning and disclosures in respect of the aforesaid matters which we considered tobe appropriate.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the financial statements and ourauditor's report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibility of Management for Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance 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 ofthe 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. We draw attention to note no infinancial statements which indicate that the company has incurred loss of Rs 10.34 lakhsduring the year as of that net worth has been eroded. Also Company do not have any sales/revenue during the last financial year. These conditions along with other matter setforth in such case exists a material uncertainty that may cast significant doubt about thecompany's ability to continue as a going concern. However in view of the above managementis of the view that the going concern basis of accounting is appropriate. Our opinion isnot modified in respect of this matter.

Those Board of Directors are also responsible for overseeing thecompany's financial reporting process. Auditor's Responsibilities for the Auditof the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the Ind ASfinancial statements for the financial year ended March 31 2021 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 of the Companies Act 2013 we give in the ‘Annexure A' astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Cash Flows and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of account

d) In our opinion the aforesaid Ind AS financial statements complywith the

Indian Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended

e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion the managerial remuneration for the year ended March31 2021 has been paid / provided by the Company to its directors in accordance with theprovisions of section 197 read with Schedule V to the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has does not have any pending litigations which wouldimpact is financial position.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For Harshil Shah& Co.
Chartered Accountants
Firm Reg. No.: 141179W
Himmat Sharma
Partner
Membership No: 156501
Place: Mumbai
Date:September 28 2021
UDIN : 21156501AAAABV5033

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to themembers of the Company on the Financial Statements for the year ended March 31 2021 wereport that:

(i) (a) According to the information and explanations given to us theCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.

(b) According to the information and explanations given to us theCompany has a programme of physical verification of its fixed assets by which all fixedassets are verified in a phased manner over a period of three years. In our opinion theperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the programme certain fixed assets werephysically verified during the year and no material discrepancies were observed on suchverification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable. No materialdiscrepancies were noticed on such physical verification.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act. Accordingly paragraph 3(iii) of the Order are not applicable tothe Company.

(iv) According to the information and explanations given to us theCompany has not given any loans or made any investments or provided any guarantee orsecurity as specified under Section 185 and 186 of the Companies Act 2013. Accordinglyparagraph 3(iv) of the Order is not applicable.

(v) According to information and explanations given to us the Companyhas not accepted any deposits from the public in accordance with the provisions of section73 to 76 or any relevant provisions of the Act and rules framed thereunder.

(vi) To the best of our knowledge and as explained the CentralGovernment has not specified the maintenance of cost records under clause 148(1) of theCompanies Act 2013 for the Company. Accordingly paragraph 3 (vi) of the Order are notapplicable to the Company.

(vii) (a) There are not any deduction of PF ESIC Sales Tax CustomDuty Service Tax or GST.

During the year company do not have filed GST returns. Though being NILSales no liability of GST arises during the financial year.

Due to non-filing of GST Return Company's GST Registration hasbeen cancelled by the department.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax valueadded tax duty of customs service tax Goods and service tax cess and other materialstatutory dues were in arrears as at 31 March 2021 for a period of more than six monthsfrom the date they became payable except TDS liability of Rs 11300/-.

(b) According to the information and explanations given to us thereare no outstanding dues in respect of provident fund income tax sales tax value addedtax duty of customs Goods and service tax cess that have not been deposited by theCompany on account of dispute.

(viii) According to the information and explanations given to us basedon our audit procedures and as per information and explanation given to us the Companyhas defaulted in repayment of loan to ICICI bank amounting Rs.283500/- from June 2020 toMarch 2021 which was payable in the form of Monthly EMI of Rs. 31500/- . In the month ofFebruary 2021 company has paid 185000/- against the same car loan and settled the same.The Company did not have any outstanding dues in respect of loans or borrowings from anyfinancial institution government or debenture holders during the year.

(ix) According to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3 (ix)of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(xii) According to the information and explanations given to us in ouropinion and according to the information and explanations given to us the Company is nota nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Harshil Shah& Co.
Chartered Accountants
Firm Reg. No.: 141179W
Himmat Sharma
Partner
Membership No: 156501
Place: Mumbai
Date: September 28 2021
UDIN : 21156501AAAABV5033

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls 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 financialreporting of Rajkamal Synthetics Limited("the Company") as of March 31 2021 inconjunction with our audit of the Ind AS Financial Statements of the Company for the yearended on that date.

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining Internal Financial Controls based on the Internal Control over FinancialReporting criteria established by the Company considering the essential components ofInternal Control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). 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 offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's InternalFinancial Controls over Financial Reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an Audit of Internal Financial Controls both applicable to an Auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain Reasonable Assurance about whetheradequate Internal Financial Controls over Financial Reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the Internal Financial Controls system over Financial Reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over Financial Reportingincluded obtaining an understanding of Internal Financial Controls over FinancialReporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of Internal Control based on the assessed risk. Theprocedures selected depend on the Auditor's Judgment including the assessment of therisks of material misstatement of the Ind AS Financial Statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's InternalFinancial Controls system over Financial Reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's Internal Financial Control over Financial Reporting isa process 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 Controlover Financial Reporting includes those policies and procedures that;

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assetsthat could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

For Harshil Shah & Co.
Chartered Accountants
Firm Reg. No.: 141179W
Himmat Sharma
Partner
Membership No: 156501
Place: Mumbai
Date: September 28 2021
UDIN : 21156501AAAABV5033

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