Rajkot Investment Trust Ltd.
|BSE: 539495||Sector: Financials|
|NSE: N.A.||ISIN Code: INE176R01014|
|BSE 00:00 | 13 Jun||Rajkot Investment Trust Ltd|
|NSE 05:30 | 01 Jan||Rajkot Investment Trust Ltd|
|BSE: 539495||Sector: Financials|
|NSE: N.A.||ISIN Code: INE176R01014|
|BSE 00:00 | 13 Jun||Rajkot Investment Trust Ltd|
|NSE 05:30 | 01 Jan||Rajkot Investment Trust Ltd|
To the Members of
M/s RAJKOT INVESTMENT TRUST LIMITED
Report on the Audit of Standalone Financial Statements Opinion
We have audited the standalone financial statements of M/s Rajkot Investment TrustLimited which comprise the balance sheet as at March 31 2021 and the statement ofProfit and Loss statement of changes in equity and statement of cash flows for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information In our opinion and to the best ofour information and according to the explanations given to us except for theincomplete disclosure of the information referred to in the Basis for Qualified Opinionparagraph the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and profit/loss changes in equityand its cash flows for the year ended on that date.
According to the information and explanations given to us the Company has receivedamount of Rs. 125000000/- for which the management is not able to identify and providethe source of funds received and nature of funds received. This amount of Rs.125000000/- is shown as Suspense Account under Note No. 20 under Other FinancialLiabilities of Balance Sheet as on 31st March 2021.
According to the information and explanations given to us the Company has paid amountof Rs. 210000/ for which the management is not able to identify and provide the detailsof payments made and nature of amount paid. This amount of Rs. 210000/- is shown asSuspense Account under Note No. 09 under Other Financial Assets of Balance Sheet as on31st March 2021.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment 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 thereon and we do not provide a separate opinion on these matters.
The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit 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.
Management's Responsibility for the Standalone 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 theIndian accounting Standards (Ind AS) specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statement that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Board of Directors isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so. Boards of Directors are alsoresponsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: z Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. z Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the company has adequate internalfinancial controls with reference to standalone financial statements in place and theoperating effectiveness of such controls z Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. z Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone 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 conditions maycause the Company to cease to continue as a going concern. z Evaluate the overallpresentation structure and content of the standalone financial statements including thedisclosures and whether the standalone 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 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.
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 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit Subject to :
According to the information and explanations given to us the Company has receivedamount of Rs. 12 5000000/- for which the management is not able to identify andprovide the source of funds received and nature of funds received. This amount of Rs.125000000/- is shown as Suspense Account under Note No. 20 under Other FinancialLiabilities of Balance Sheet as on 31st March 2021.
According to the information and explanations given to us the Company has paid amountof Rs. 210000/- for which the management is not able to identify and provide thedetails of payments made and nature of amount paid. This amount of Rs. 210000/- is shownas Suspense Account under Note No. 09 under Other Financial Assets of Balance Sheet as on31st March 2021. b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books. c) TheBalance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with bythis Report are in agreement with the books of account d) In our opinion the aforesaidstandalone financial statements comply with the Indian Accounting Standards specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e)On the basis of the written representations received from the directors 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 theAct. f) 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 "Annexure B". g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has filed legal cases against the borrowersto whom secured loans have been given and are not repaying the loans. Details aredisclosed in its financial statements [Refer Note 47 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. Following are the instances ofdelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company :
iv. The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from November 8 2016 to December30 2016 have not been made in these financial statements since they do not pertain to thefinancial year ended March 31 2021.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under Report on Other Legal & RegulatoryRequirements' section of our report of even date to the Members of M/s Rajkot InvestmentTrust Limited)
1. In Respect of its Fixed Assets :
a) The Company is in the process of maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets;
b) The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the Company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company The title deeds of immovable properties areheld in the name of the Company.
2. In Respect of Inventory :
a) The Company is in the business of providing Non-Banking Financial Services andconsequently does not hold any Inventory except inventory of shares. The management hasconducted the physical verification of inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
3. According to information and explanations given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability partnerships orother parties covered in the Register maintained under section 189 of the Act.Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are not applicableto the Company and hence not commented upon.
4. According to the information and explanations given to us the Company has compliedwith the provisions of section 185 and I86 of the Companies Act 2013 In respect of loansinvestments guarantees and security wherever applicable.
5. The Company is a non-banking finance company. According to the information andexplanations given to us the Company has not accepted any deposits from the public andhence the directives issued by the Reserve Bank of India and the provisions of Sections 73to 76 or any other relevant provisions of the Companies Act 2013.
6. According to the information and explanations given to us the maintenance of CostRecords has not been specified by the Central Government under sub-section (1) of Section148 of the Act in respect of the activities carried on by the Company.
7. In respect of statutory dues: a) According to information and explanations given tous and on the basis of our examination of the books of account and records the Companyhas been generally regular in depositing undisputed statutory dues including ProvidentFund Employees State Insurance Income-Tax Sales tax Service Tax Duty of Customs Dutyof Excise Value added Tax Cess and any other statutory dues with the appropriateauthorities. b) According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2021 for a periodof more than six months from the date on when they become payable. c) According to theinformation and explanation given to us there are no dues of income tax sales taxservice tax duty of customs duty of excise value added tax outstanding on account ofany dispute except as following:
Details of dues of Income Tax which have not been deposited as at year end on accountof dispute are given below:
8. According to the information and explanations given to us the Company has notdefaulted in the repayment of loans or borrowings to banks financial institutions. TheCompany has not taken any loan from the government and has not issued any debentures.
9. According to the information and explanations given to us the Company has notraised any new money by way of initial public offer or further public offer including debtinstruments and term Loans during the year under audit. Accordingly the provisions ofclause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we report that no fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.
11. According to the information and explanations given to us the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.
12. The Company is not a Nidhi Company. Therefore the provisions of clause 3 (xii) ofthe Companies (Auditor's Report) Order 2016 is not applicable to the Company.
13. According to the information and explanations given to us the Company is incompliance with Section 177 and 188 of the Companies Act 2013 where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the standalone financial statements etc. as required by the applicableaccounting standards 14. According to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Accordingly the provisions ofclause 3 (xiv) of the Order are not applicable to the Company and hence not commentedupon. 15. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of Clause 3(xv) of the order are not applicable to the Companyand hence not commented upon.
16. On the basis of examination of relevant records and according to information andexplanations given to us The Company is required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and holds a valid certificate of registration underthe same dated August 051999.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to paragraph 2(f) under the Report on Other Legal and Regulatory Requirementssection of our report of even date to the members of M/s Rajkot Investment Trust Limited)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")
We have audited the internal financial controls over financial reporting of M/s RAJKOTINVESTMENT TRUST LIMITED ("the Company") as of March 31 2021 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended 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 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 Reportingissued by the Institute of Chartered Accountants of India (ICAI'). 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 Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 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. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting 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 op[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 of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st 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 issued by the Institute of CharteredAccountants of India.