To the Members of Rajshree Polypack Limited Report on the Audit of the FinancialStatements Opinion
We have audited the financial statements of Rajshree Polypacl Limited ("theCompany") which comprise the Balance Shee as at March 31 2021 and the Statement ofProfit and Loss and Statement of Cash Flows for the year then ended and note: to thefinancial statements including a summary of significan accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statement: give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view ir conformity with the Accounting Standards prescribed unde section 133 of theAct read with Companies (Accounts) Rules 2014 as amended and other accounting principlesgenerall;
accepted in India of the state of affairs of the Company as at
March 31 2021 and profit and its cash flows for the year ended
on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
|Key Audit Matters (Risk) ||How was the Key Audit Matter addressed in the Audit |
|Revenue is recognised when the customer obtains control of the goods. We identified revenue recognition as a key audit matter because the management and its external shareholders focus on revenue as a key performance indicator. This could create an incentive for revenue to be overstated or recognised before control has been transferred. ||In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence: |
| ||1. Evaluated the Company's accounting policies pertaining to revenue recognition and assessed compliance with the policies in terms of AS 9 - Revenue Recognition |
| ||2. Understood management's process to evaluate recognition of revenue on transfer of significant risks and rewards of ownership of the goods to the customers. |
| ||3. Evaluated the design of key controls and operating effectiveness of the relevant key controls with respect to revenue recognition on test check basis. |
| ||4. Performed substantive testing by selecting samples of revenue transactions recorded during the year by verifying the underlying documents on test check basis . |
| ||5. Performed analytical procedures on revenue recognised during the year to identify unusual variances. |
| ||6. Performed confirmation procedures on selected customer balances at the balance sheet date. |
| ||7. Verified on test check basis revenue transactions recorded before and after the financial year end date to determine whether the revenue had been recognised in the appropriate financial period. |
| ||8. Verified entries posted for discounts and credit notes to identify unusual items. |
Emphasis of Matter
We draw attention to note 38 to the financial statements which states that themanagement has made an assessment of the impact of COVID-19 on the Company's operationsfinancial performance and position as at and for the end of year ended March 31 2021 andhas concluded that there is no material impact which is required to be recognized in thefinancial statements. Accordingly no adjustments have been made to the financialstatements. Our opinion is not modified in respect of this matter.
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 thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described above to be the key audit matters to be communicatedin our report:
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 Director's report but does not include the financial statementsand our auditor's report thereon. The Director's report is expected to be made availableto us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.
When we read the Director's report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance under SA 720 'The Auditor's responsibilities Relating to Other Information.
Responsibilities of Management and Those charged with Governance for FinancialStatements
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 financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards 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 appropriate ofaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
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 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.
We give in "Annexure A" a detailed description of Auditor's responsibilitiesfor Audit of the Financial Statements.
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 ofthe Act we give in "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
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 and the Statement of Cash Flowdealt with by this Report are in agreement with the books of account
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under 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 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure C"
g. 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 Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 28 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
3. As required by The Companies (Amendment) Act 2017 in our opinion according toinformation explanations given to us the remuneration paid by the Company to itsdirectors is within the limits laid prescribed under Section 197 of the Act and the rulesthereunder.
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON
EVEN DATE ON THE FINANCIAL STATEMENTS OF RAJSHREE
Auditor's Responsibilities for the Audit of the 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 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasinternal financial controls with reference to financial statements in place and theoperating effectiveness 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions 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.
ANNEXURE B TO INDEPENDENT AUDITORS' REPORT OF
EVEN DATE ON THE FINANCIAL STATEMENTS OF RAJSHREE
POLYPACK LIMTIED FOR THE YEAR ENDED MARCH 31 2021
[Referred to in paragraph 1 under 'Report on Other Legal and
Regulatory Requirements' in the Independent Auditors' Report]
(i) . (a) The Company has maintained proper records showing
full particulars including quantitative details and situation of fixed assets(Property Plant and Equipment).
(b) All the fixed assets were physically verified by the management in the previousyear in accordance with a planned programme of verifying them once in three year which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.
(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.
(ii) . The inventory (excluding stocks with third parties) has
been physically verified by the management during the year. In respect of inventorylying with third parties these have substantially been confirmed by them. In our opinionthe frequency of verification is reasonable. No material discrepancies were noticed onverification between the physical stocks and the book records.
(iii) . The Company has not granted any loans secured
or unsecured to Companies Firms Limited Liability Partnerships (LLP) or other partiescovered in the register maintained under section 189 of the Companies Act 2013 ('theAct'). Accordingly the provisions stated in paragraph 3 (iii) (a) to (c) of the Order arenot applicable to the Company.
(iv) . In our opinion and according to the information and
explanations given to us the Company has not either directly or indirectly grantedany loan to any of its directors or to any other person in whom the director isinterested in
accordance with the provisions of section 185 of the Act and the Company has not madeinvestments through more than two layers of investment companies in accordance with theprovisions of section 186 of the Act. Accordingly provisions stated in paragraph 3(iv) ofthe Order are not applicable to the Company.
(v) . In our opinion and according to the information and
explanations given to us the Company has not accepted deposits as per the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed thereunder. Accordingly paragraph 3(v) of the Order is not applicable to the Company.
(vi) . The maintenance of cost records has been specified by
the Central Government under section 148(1) of the Act is respect of specified productsof the company. For such products we have broadly reviewed the cost records maintained bythe Company pursuant to Companies (Cost records and Audit) Rules 2013 as amendedprescribed by the Central Government under subsection (1) of Section 148 of the Act and weare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have not however made a detailed examination of the reports with a viewto determine whether they are accurate or complete.
(vii) . According to the information and explanations given to us and the records ofthe Company examined by us in our opinion undisputed statutory dues includingprovident fund income-tax goods and service tax duty of custom cess and otherstatutory dues have generally been regularly deposited with the appropriate authoritiesthough there has been a slight delay in a few cases.
(a) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income-tax duty of custom goods and service taxcess and other statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable.
(b) According to the information and explanation given to us and examination of recordsof the Company the outstanding dues of income tax which have not been deposited onaccount of any dispute is as follows:
|Name of the statute ||Nature of dues ||Amount ||Period to which the amount relates ||Forum where dispute is pending ||Remarks if any |
|Income Tax Act 1961 ||Income Tax ||401706 ||FY 2017-18 ||Commissioner of Income Tax (Appeals) ||" |
|Income Tax Act 1961 ||Income Tax ||114962 ||FY 2018-19 ||Commissioner of Income Tax (Appeals) ||' |
(viii) .In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to the financial institution bank ordebenture holders.
(ix) . In our opinion according to the information explanation provided to us moneyraised by way of Initial public offer and term loans
during the year have been applied for the purpose for which they were raised. TheCompany has not raised any money by way of further public offer (including debtinstruments) during the year.
(x) . During the course of our audit examination of the books and records of theCompany carried out in accordance with the generally
accepted auditing practices in India and according to the information and explanationsgiven to us we have neither come across
any instance of material fraud by the Company or on the Company by its officers oremployees.
(xi) . According to the information and explanations given to
us and based on our examination of the records of the Company the Company has paidmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.
(xii) . In our opinion and according to the information and
explanations given to us the Company is not a Nidhi Company. Accordingly theprovisions stated in paragraph 3(xii) of the Order are not applicable to the Company.
(xiii) .According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) .According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions stated in paragraph 3 (xiv) of the Order are notapplicable to the Company.
(xv) .According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly provisions statedin paragraph 3(xv) of the Order are not applicable to the Company.
(xvi) .In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions stated in paragraphclause 3 (xvi) of the Order are not applicable to the Company.
ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF
EVEN DATE ON THE FINANCIAL STATEMENTS OF RAJSHREE
[Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date to the Members of RajshreePolypack Limited on the Financial Statements for the year ended 31 March 2021]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to financial statementsof Rajshree Polypack Limited ("the Company") as of March 31 2021 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing and maintaining 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 (ICAI) (the"Guidance Note"). These responsibilities include the design implementation andmaintenance of internal financial controls that were operating effectively for ensuringthe orderly and efficient conduct of its business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether internal financial controls with reference to financial statementswas established 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 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 controls 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 judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to 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 withreference 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) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls With reference to financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility
of collusion or improper management override of controls material misstatements due toerror or fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls with reference to financial statements to future periods aresubject to the risk that the internal financial control with reference to financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects internal financial controlswith reference to financial statements and such internal financial controls with referenceto financial statements were operating effectively as at March 31 2021 based on theinternal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote.
| ||For MSKA & Associates |
| ||Chartered Accountants |
| ||ICAI Firm Registration No. 105047W |
| ||Siddharth Iyer |
| ||Partner |
| ||Membership No.116084 |
| ||UDIN: 21116084AAAABL4770 |
|Place: Mumbai || |
|Date: June 24 2021 || |