To the Members of Rama Phosphates Limited Report on the FinancialStatements Opinion
We have audited the Financial Statements of Rama Phosphates Limited("the Company") which comprise of the Balance Sheet as at 31st March 2022 theStatement of Profit and Loss Statement of Changes in Equity and Statement of Cash Flowsfor the year then ended and notes to the Financial Statements including a summary ofsignificant accounting policies and other explanatory information.
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 accounting principles generally accepted in India
(a) in the case of the Balance Sheet of the state of affairs of theCompany as at March 31 2022;
(b) in the case of the Statement of Profit and Loss of the Profit forthe year ended on that date;
(c) in the case of the Statement of Changes in Equity of the changesin equity for the year ended on that date; and
(d) in the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance 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 on the Financial Statements.
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.
|S.N. ||Key Audit Matters ||Auditor's Response |
|1 ||Measurement of Arm's Length price for Related party transaction ||Price comparisons for the given materials with the available quoted rates and transactions of the same magnitude with other parties are reviewed. |
|2 ||Provision for Doubtful Advances and Recoverable ||Review of future recoverability in the light of applicable statute and provisioning policy. |
|3 ||Accounting of Government Subsidy income ||Review of quantity sold and rates notified during the year under NBS policy. |
|4 ||Recognition and Cost ascertainment of significant addition to fixed assets. ||The procedures of cost ascertainment adopted by the management were verified. The management procedures that were verified include identification and measurement of borrowing cost allocable to capital expenditure. |
Information Other than the Financial Statements and Auditor's Reportthereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises of the information included in theManagement Discussion and Analysis Board's Report including Annexures to the said Board'sReport Corporate Governance and Shareholder's Information but does not include thefinancial statements and our auditor'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 connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained during the course ofour 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.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Actwith respect to the preparation of these financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance 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 management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing("SAs") will always detect a material misstatementwhen 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 skepticism 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 the goingconcern basis 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto 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.
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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act 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 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 the Statementof Changes in Equity and the Cash Flow Statement dealt with by this Report are inagreement with the relevant books of account.
d) In our opinion the aforesaid financial statements comply with theInd AS 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 thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of 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".
g) With respect to the matter to be included in the Auditors' Reportunder Section 197(16) of the Act in our opinion and to the best of our information andaccording to the explanations given to us the remuneration paid by the Company to it'sdirectors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - (refer note no. 35 of the financialstatement).
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring the amount required to betransferred to the Investor Education and Protection Fund by the Company.
iv. (a) The management has represented that
to the best of its knowledge and belief other than as disclosed innote 41 to the accounts no funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever ("UltimateBeneficiaries") by or on behalf of the Company or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries.
(b) The management has represented that to the best of its knowledgeand belief other than as disclosed in note 41 to the accounts no funds have beenreceived by the Company from any persons or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever ("Ultimate Beneficiaries") by oron behalf of the Funding Party or provide any guarantee security or the like on behalf ofthe Ultimate Beneficiaries.
(c) Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (iv) (a) and (iv) (b) contain anymaterial mis-statement.
v. The Board of Directors of the Company have proposed final dividendfor the year which is subject to the approval of the members at the ensuing Annual GeneralMeeting. The amount of dividend proposed is in accordance with section 123 of the Act asapplicable.
For Khandelwal & Mehta LLP
Chartered Accountants Firm
Regn. No. W100084
S. L. Khandelwal (Partner)
M. No. : 101388
UDIN : 22101388AKBQTZ4223
Place : Mumbai
Date : 27th May 2022.
ANNEXURE - 'A' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF RAMA PHOSPHATES LIMITED
Statement on the matters specified in paragraphs 3 and 4 of theCompanies (Auditor's Report) Order 2020 ("the Order") issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act 2013("the Act") to the extent applicable.
i . In respect of its Property Plant and
a) The Company on the basis of available information has maintainedproper records showing full particulars including quantitative details and situations ofProperty Plant and Equipment and intangible assets;
b) The Management of the Company has physically verified the PropertyPlant and Equipment in accordance with its policy of physical verification at reasonableintervals. The discrepancies if any noticed during such verification have been suitablyadjusted in the books of account. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets;
c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.
d) According to information and explanations given to us and on thebasis of examination of the records of the Company none of its Property Plant andEquipment (including Right of Use assets) or intangible assets or both are revalued duringthe year.
e) On the basis of available informationthe
Company does not hold any benami property under the Benami Transactions(Prohibition) Act 1988 (45 of 1988) and rules made there under.
ii. a) According to the information and explanations given to us theinventories have been physically verified at reasonable intervals by the management duringthe year and no material discrepancies have been noticed.In our opinion and according tothe information and explanations given to us the procedures followed by the managementfor physical verification of inventory are reasonable and adequate in relation to the sizeof the Company and the nature of the business.
b) According to the information and explanations given to us and on thebasis of examination of the records of the Company the Company has been sanctionedworking capital limits in excess of Rupees five crore in the aggregate from banks on thebasis of security of current assets and the quarterly returns or statements filed by theCompany with such banks are in agreement with the books of account of the Company.
iii. According to the information and explanations given to us and onthe basis of our examination of books of account during the year the Company has not madeinvestments in granted and loans or advances provided any guarantee or security tocompanies firms Limited Liability Partnerships or any other parties. Accordinglyparagraph 3(iii) of the order is not applicable.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made and the Company has not provided anyguaranty or security.
v. According to the information and explanation given to us theCompany has not accepted any deposits or amounts which are deemed to be deposits as perthe provisions of Section 73 to 76 or any other relevant provisions of the Act and therules framed there under.
vi. We have broadly reviewed the cost records maintained by the Companypursuant to the Companies (Cost Accounting Records) Rules 2011 prescribed by the CentralGovernment for the maintenance of cost records under section 148 (1) of the Act in respectof the Company's Products to which the said rules are made applicable and are of theopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the records with a view to determinewhether they are accurate or complete.
vii. a) According to the records of the
Company undisputed statutory dues including Goods and Services Taxprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues have beenregularly deposited with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of aforesaid dues wereoutstanding as at 31st March 2022 for a period of more than six months from the date itbecame payable.
b) According to the records of the Company and information andexplanations given to us the following are the dues of Sales Tax Duty of Excise ValueAdded Tax on account of disputes:
|Name of t he statue ||Nature of the dues ||Rs. In Lacs ||Period to which the amounts relate ||Forum where dispute is pending |
|MP Commercial Tax Act 1994 ||Sales Tax ||3.58 ||F.Y 2001 -02 ||Appellate Board Indore. |
|MP Commercial Tax Act 1994 ||Sales Tax ||6.47 ||F.Y 1994 -95 ||Hon'ble M.P High Court Indore |
|Madhya Pradesh Entry Tax 1976 ||Entry Tax ||1.00 ||F.Y. 1995 -96 ||Hon'ble M.P High Court Indore |
|Central Sales Tax Act1956 ||Central Sales Tax ||115.89 ||F.Y. 2003 -04 2004-05 ||Hon'ble M.P High Court Indore |
|Madhya Pradesh Entry Tax 1976 ||Entry Tax ||157.71 ||F.Y. 2007 -08 ||Hon'ble Supreme Court |
|Madhya Pradesh Value Added Tax 2002 ||VAT Tax ||0.43 ||F.Y. 2015 -16 ||Appeal before Additional Commissioner Indore |
|Custom Act- 1962 ||Penalty under Custom act ||19.00 ||F.Y. 2010 -11 ||Hon'ble M.P High Court Indore |
According to the information and explanations given to us and therecords of the Company examined by us there are no dues of Income Tax Wealth TaxService Tax Goods and Service Tax Custom Duty Cess which have not been deposited onaccount of any dispute
viii. On the basis of our examination of the books and according to theinformation and explanations given to us there is no transaction which is not recorded inthe books of account and have been surrendered or disclosed as income during the year inthe tax assessments under the Income Tax Act 1961 (43 of 1961).
ix. a) On the basis of our examination of the books and according tothe information and explanations given to us during the year there are no defaults inrepayment of dues to financial institutions banks Government or debenture holders.
b) During the year the Company is not declared as wilful defaulter byany bank or financials institution or other lender.
c) During the year the Company has not obtained any Term Loan.
d) Funds raised on short term basis have not been utilised for longterm purposes.
e) The Company does not have any subsidiaries associates or jointventures hence question of raising of any funds from any entity or person on account of orto meet the obligations of its subsidiaries associates or joint ventures does not arise.
f) The Company does not have any subsidiaries associates or jointventures hence question of raising of loans on the pledge of securities held insubsidiaries joint ventures or associate companies does not arise.
x. a) In our opinion and on the basis of information and explanationsgiven to us the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments).
b) In our opinion and on the basis of information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or convertible debentures (fully partially or optionally convertible) during theyear.
xi. 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.
xii. In our opinion and according to information and explanations givento us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.
xiii. According to information and explanations given to us and basedon our examination of the records of the company transactions with related parties are inaccordance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in Financial Statements as required by applicable Ind AS.
xiv. a) According to information and explan ations given to us andbased on our examination of the records of the Company it has an internal audit systemcommensurate with the size and nature of its business.
b) The reports of the Internal Auditors for the period under audit wereconsidered by us.
xv. According to information and explanations given to us and based onour examination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Therefore paragraph 3(xv) ofthe Order is not applicable.
xvi. In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under section 45- IA of ReserveBank of India Act 1934. Therefore paragraph 3(xvi) of the Order is not applicable.
xvii. The Company has not incurred any cash loss in the financial yearand in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors duringthe year. Therefore paragraph 3(xviii) of the Order is not applicable.
xix. On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements our knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report that the Company is capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date.
xx. According to the information and explanations given to us and basedon our examination of the records of the Company there is no unspent amount which isrequired to be transferred to any Fund Specified in Schedule VII to the Companies Act orto a Special account in compliance with the provisions of Sub-section (6) of Section 135of the said Act.
xxi. The Company does not have any subsidiaries associates or jointventures. Therefore paragraph 3(xxi) of the Order is not applicable to the Company.
For Khandelwal & Mehta LLP
Firm Regn. No. W100084
S. L. Khandelwal
M. No. : 101388
UDIN : 22101388AKBQTZ4223
Place : Mumbai
Date : 27th May 2022.
ANNEXURE - B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF RAMA PHOSPHATES LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Rama Phosphates Limited ("the Company") as of March 31 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.
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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
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 Act to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls 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 over financial reporting was established and maintained and if suchcontrols 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 financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting 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 overfinancial 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 authorizations 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 assets thatcould 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.
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 2022 basedon the 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 (ICAI).
For Khandelwal & Mehta LLP
Chartered Accountants Firm
Regn. No. W100084
S. L. Khandelwal (Partner)
M. No. : 101388
UDIN : 22101388AKBQTZ4223
Place : Mumbai
Date : 27th May 2022.