To the Members of Rasi Electrodes Ltd
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone financial statements of Rasi ElectrodesLimited ("the Company") which comprises the balance sheet as at 31st March2021 and the statement of profit and loss statement of changes in equity and statementof cash flows for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act2013(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 on March 31 2021 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditors'Responsibilities 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 ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and therules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion on thestandalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto be communicated in our report.
Information other than the Standalone Financial Statements and Auditor's Reportthereon:
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis. Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's information but does notinclude the Standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.
This responsibility also includes maintenance of adequate records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting 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 statements thatgive a true and fair view and free from material misstatements whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditors' 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 highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the result of our work and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofThe Companies Act 2013 we give in the Annexure Aa statement on the matters specified inparagraphs 3 and 4 of the Order.
2. 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 purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet Statement of Profit and Loss and CashFlow Statement dealt with by this Report are in agreement with the books of account. d. Inour opinion the aforesaid financial statements comply with Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e.On the basis of written representations received from the directors as on March 31 2021taken on record by the Board of Directors none of the directors are disqualified as onMarch 31 2021 from being appointed as a director in terms of Section 164(2)of the Act. f.With respect to the adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in "Annexure B".
With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i) The Company doesnot have any pending litigations which would impact its financial position.
ii) The Company does not have any long-term contracts requiring a provision formaterial foreseeable losses.
iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to in our report to the members of Rasi Electrodes Ltd (thecompany) for the year ended 31st March 2021. We Report that (i) In respect ofits fixed assets: a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of Fixed Assets; b. These fixed assets havebeen physically verified by the Management at reasonable intervals and no materialdiscrepancies were noticed on such verification. c. The title deeds of immovableproperties are held in the name of the company.
(ii) In respect of Inventories: a. The physical verification of the Inventories hasbeen conducted at reasonable intervals by the management. b. The procedures of physicalverification of Inventories followed by the management are reasonable and adequate inrelation to the size of the Company and nature of its business. c. The Company hasmaintained proper records of Inventories and no material discrepancies were noticed onphysical verification. (iii) According to the information and explanations given to usthe company has not granted any loan secured or unsecured to companies firms limitedLiability Partnership or other parties covered in the register maintained under section189 of the Act and hence clause (iii)(a) to (c) are not applicable to the Company.
(iv) The Company has complied with the provisions of section 185 and 186 of theCompanies Act 2013 in respect of loans investments provided by the Company. The companyhas not provided any guarantee or security to any company covered u/s185.
(v) According to the information and explanation provided to us the Company has notaccepted any deposits from the public.
(vi) On the basis of information given to us we are of the opinion that prima faciethe cost records and accounts prescribed by the Central Government of India under subsection (1) of Section 148 of the Companies Act 2013 have been maintained. Wehave however not made a detailed examination of the same.
(vii) a. According to the information and explanations given to us and on the basis ofour examination of the books of account and records the Company has been regular indepositing undisputed statutory dues including Provident Fund Employee State InsuranceIncome tax Goods and Service Tax Sales Tax Vat Customs Duty Service tax Excise Dutyand any other statutory dues with the appropriate authorities.
According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 31 2021 for a period of morethan six months from the date on which they became payable. b. According to theinformation and explanation given to us details of statutory dues which have not beendeposited as on 31st March 2021 on account of any dispute are given below:
|Name of the Statute ||Name of the dispute ||Amount (in Rs.) ||Period to which relates ||Forum where the dispute is pending |
|Customs Act 1962 ||Custums duty ||8485596/- ||2011-2013 ||Customs Excise Service Tax Appellate Tribunal Chennai |
b.(i) Disputed Income tax of Rs.1456090/- for the year ended 31.03.2012 for whichapplication filed under the VSV Act 2020during the year 2020-21 and tax due amount asper form 3 Rs.908459/-paid during the Year. Form 5 under VSV Act awaited.
b.(ii) Disputed Income tax of Rs.1608176 /-for the year ended 31.03.2013 for whichapplication filed under the VSV Act 2020during the year 2020-21 and tax due amount asper form 3 Rs.709735/-paid during the Year. Form 5 under VSV Act awaited.
(viii) In our opinion and according to the information and explanation given to us theCompany has not defaulted in the repayment of loans and borrowings to FinancialInstitutions Banks and Government.
(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term Loans and hence the provisions Clause 3(ix) ofthe Order are not applicable to the Company.
(x) In our opinion and according to the information and explanations given to us thecompany has not noticed any fraud by the Company or any fraud on the Company by itsofficers or employees or reported during the course of our audit.
(xi) According to the information and explanation given to us managerial remunerationpaid is in accordance with the provisions of section 197 read with Schedule V of theCompanies Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with section 177 and 188 of the Companies Act 2013 wherever applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review. Hence theprovisions of clause 3(xiv) of the Order is not applicable.
(xv) According to the information and explanation given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions during the period with directors or persons connected with him. Accordinglyparagraph 3 (xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
"Annexure B" to the Independent Auditor's Report
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 RasiElectrodes Ltd ("The Company") as on 31st March 2021 in conjunctionwith our audit of the Standalone Ind AS financial statements of the Company for the yearended on the 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 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 extent applicableto an audit of internal financial controls. Those Standards and the Guidance Note requiredthat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 and 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 Standalone Ind AS financial statements whether due to fraudor 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 systemover financial 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 Standalone Ind AS 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the StandaloneInd AS financial statements.
Inherent Limitations of Internal Financial Controls over financial Reporting
Because of the inherent limitations financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not to be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting 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 Noted on Audit ofInternal Financial Controls Reporting Over Financial Reporting issued by the Institute ofChartered Accountants of India".
| ||For SURESH KUMAR & CO. |
| ||Chartered Accountants |
| ||(FRN-004273S) |
| ||SURESH KUMAR B |
|Place: Chennai ||Proprietor |
|Date: June 30 2021. ||Membership No. 028376 |
| ||UDIN: 21028376AAAADH6586 |