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RDB Rasayans Ltd.

BSE: 533608 Sector: Industrials
NSE: N.A. ISIN Code: INE123M01017
BSE 00:00 | 18 Jan 113.80 -4.65
(-3.93%)
OPEN

121.00

HIGH

121.00

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112.90

NSE 05:30 | 01 Jan RDB Rasayans Ltd
OPEN 121.00
PREVIOUS CLOSE 118.45
VOLUME 47004
52-Week high 128.50
52-Week low 49.00
P/E 10.61
Mkt Cap.(Rs cr) 202
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 121.00
CLOSE 118.45
VOLUME 47004
52-Week high 128.50
52-Week low 49.00
P/E 10.61
Mkt Cap.(Rs cr) 202
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

RDB Rasayans Ltd. (RDBRASAYANS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

RDB RASAYANS LIMITED

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

1. We have audited the accompanying financial statements of RDB RASAYANS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement of CashFlows the Statement of Changes in Equity for the year then ended on that date and notesto the financial statements including a summary of significant accounting policies andother explanatory information (herein after referred to as "FinancialStatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 its profit (including OtherComprehensive Loss) Changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

2. 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 together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

3. 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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No Key Audit Matter Auditor's Response
1. Recoverability of Indirect tax receivables Principal Audit Procedures
As at March 31 2021 other assets includes input credits and indirect taxes recoverable which are pending adjudication/ adjustment. With the assistance of internal tax specialists who have knowledge of relevant tax regulations we assessed management's processes and tested internal controls implemented for the identification recognition and measurement of tax positions. As part of our audit procedures for uncertain tax positions we evaluated whether management's assessment of the tax effect of significant business transactions and events in current fiscal year which could result in uncertain tax provisions or impact the measurement of existing uncertain tax positions comply with the applicable tax laws.
2. Contingent Liabilities Principal Audit Procedures
The Company operates in a complex tax environment and is required to discharge direct and indirect tax obligations under various legislations such as Income Tax Act 1961 the Finance Act 1994 Goods and Services Tax Acts and VAT Acts of various states. In assessing the exposure of the Company for the tax litigations we have performed the following procedures:
The tax authorities under these legislations have raised certain tax demands on the Company in respect of the past periods. The Company has disputed such demands and has appealed against them at appropriate forums. As at March 31 2021 the Company has an amount of Rs 185.70 lakhs involved in various pending tax litigations. • Obtained an understanding of the process laid down by the management for performing their assessment taking into consideration past legal precedents changes in laws and regulations expert opinions obtained from external tax/legal experts (as applicable);
Ind AS 37 requires the Company to perform an assessment of the probability of economic outflow on account of such disputed tax matters and determine whether any particular obligation needs to be recorded as a provision in the books of account or to be disclosed as a contingent liability. • Assessed the processes and entity level controls established by the Company to ensure completeness of information with respect to tax litigations;
Considering the significant degree of judgement applied by the management in making such assessments and the resultant impact on the financial statements we have considered it to be an area of significance for our audit. • Along with our tax experts we undertook the following procedures:
• Reading communications with relevant tax authorities including notices demands orders etc. relevant to the ending litigations as made available to us by the management;
• Testing the accuracy of disputed amounts from the underlying communications received from tax
• Considered the submissions made to appellate authorities and expert opinions obtained by the Company from external tax/legal experts (wherever applicable) which form the basis for management's assessment;
• Assessed the positions taken by the management in the light of the aforesaid information and based on the examination of the matters by our tax experts.
• Read the disclosures included in the Standalone Ind AS Financial Statements in accordance with Ind AS 37.

Other Information

4. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and Analysis;Board's Report including Annexures to Board Report Corporate Governance and Shareholders'Information but does not include the financial statements and our auditor's reportthereon. The aforesaid documents are expected to be made available to us after the date ofthis auditor's report.

5. Our opinion on the financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

6. In connection with our audit of the financial statements our responsibility is toread the other information when it becomes available and in doing so consider whetherthe other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated.

7. When we read the aforesaid documents if we conclude that there is a materialmisstatement therein we are required to communicate the matters to those charged withgovernance.

Management's Responsibility for the Financial Statements

8. 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 financial statements that give a true and fair view of the financial positionfinancial performance changes in equity 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. This responsibility also includes maintenance ofadequate accounting records i n 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 accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

9. 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.

10. The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

11. 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.

12. 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.

• Obtained 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 Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system 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.

13. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

14. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

15. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about thematters or when we determine that a matter should not be communicated in our reportbecause the adverse consequences of doing so would reasonably be expected to outweigh thepublic interest benefits of such communication.

16. Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

Report on Other Legal and Regulatory Requirements

17. 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 the Annexure-A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

18. 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 (including other comprehensiveincome) and the Cash Flow Statement Statement of Changes in Equity dealt with by thisreport 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 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 to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

According to the information and explanations given to us and the records of thecompany examined by us total managerial remuneration paid as reflected in the financialstatements for the year ended 31st March 2021 are in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the Act.

(h) 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:

a. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements. Refer Note 34 of the financial statements

b. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

c. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(S. Tibrewal)
Partner
Place : Kolkata (Membership number 300388)
Date : 25.06.2021 UDIN : 21300388AAAACZ1866

ANNEXURE- A: TO THE INDEPENDENT AUDITOR'S REPORT

To the Members of RDB RASAYANS LIMITED

[Referred to in paragraph 17 of the Auditors' Report of even date]

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of Property plant and equipments.

(b) As explained to us the company has a system of verifying all its major PropertyPlant & Equipments according to the phased programme designed to cover all the itemswhich considering the size and nature of operations of the company appears to bereasonable. The Property Plant & Equipments so scheduled for verification during thisyear have been physically verified. The discrepancies noticed on such verification werenot material and have been properly dealt with in the books of accounts.

(c) The title deeds of immovable properties are held in the name of the company.

2. The inventory (excluding stock lying with third parties) has been physicallyverified by the management at regular intervals. The discrepancies noticed on physicalverification of inventory as compared to book records were not material and have beenproperly dealt with in the books of account. In respect of the inventory lying with thethird parties these have been substantially confirmed by them.

3. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Hence clause is not applicable.

4. According to the records of the company examined by us and according to theinformation and explanations given to us in our opinion the company has not granted anyloan to any parties covered u/s 185 of the Companies Act 2013. Further loan granted u/s186 of the Companies Act 2013 are in compliance with the relevant section. The companyhave not given any guarantees or security nor has made any investments covered under theprovisions of section 185 and 186 of the Companies Act 2013.

5. The Company has not accepted any deposits and directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable.

6. We have broadly reviewed the books of accounts maintained by the Company pursuant tothe order made by the Central Government for the maintenance of cost records under section148(1) of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however carried out any detailedexamination of such records and accounts.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositing theundisputed statutory dues including provident fund employees' state insuranceincome-tax duty of customs goods and services tax cess and any other statutory dues asapplicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of statutory dues as at 31st March 2021 which hasnot been deposited on account of a dispute are as follows-

Name of the statute Nature Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 50.36 2012-13 CIT Appeal
Income Tax Act 1961 Income Tax 59.79 2014-15 CIT Appeal
Income Tax Act 1961 Income Tax 2.90 2016-17 CIT Appeal
Income Tax Act 1961 Income Tax 5.65 2017-18 CIT Appeal
Central Excise Act 1944 Excise 2.34 2013-14 to 2017-18 Appellate Tribunal
Central Excise Act 1944 Penalty 2.60
Central Excise Act 1944 Excise 22.21
Central Excise Act 1944 Penalty 24.01 2013-14 Commissioner (Appeal)
Central Excise Act 1944 Excise 0.44 2007-08 to 2011-12 Appellate Tribunal
Central Excise Act 1944 Excise 0.57

8. According to the information and explanation given to us and the records of theCompany examined by us the Company has not defaulted in repayment of dues of any of loansor borrowings to any banks.

The Company has neither taken any loan from financial institutions or Government norissued any debentures.

9. The Company has neither raised any money by public issues of shares or debenturesnor obtained any term loans during the year.

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 have neither come across anyinstance of fraud on or by the Company nor on the company by its officers/employees hasbeen noticed or reported during the year nor have we been informed of such case by themanagement.

11. According to the information and explanations given to us and the records of thecompany examined by us total managerial remuneration paid as reflected in the financialstatements for the year ended 31st March 2021 are in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the Act.

12. The related statutes are not applicable as the Company is not a Nidhi Company.

13. According to the information and explanations given to us and the records of theCompany examined by us the company has complied with the requirements of sections 177 and188 of the Act with respect to its transactions with the related parties. Pursuant to therequirement of the applicable Accounting Standard details of the related partytransactions have been disclosed in Note 36 of the financial statements for the year underaudit.

14. The Company has neither made any preferential allotment of shares nor fully orpartly convertible debentures during the year under audit.

15. According to the information and explanations given to us and the records of theCompany examined by us the Company has not entered into any non-cash transactions withany director of the Company and the holding company or persons connected with theminvolving acquisition of assets by or from them for consideration other than cash.

16. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For L. B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(S. Tibrewal)
Partner
Place : Kolkata (Membership number 300388)
Date : 25.06.2021 UDIN : 21300388AAAACZ1866

ANNEXURE- B TO THE INDEPENDENT AUDITOR'S REPORT

To the Members of RDB RASAYANS LIMITED

[Referred to in paragraph 18 (f) of the Independent Auditor's Report of even date]

Report on the Internal Financial Control under Clause (i) of Sub -sections 3 of Section143 of the Companies Act 2013("the Act")

1. We have audited the internal financial controls over financial reporting of RDBRASAYANS LIMITED ("the Company") as of 31st March 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Control

2. The Company's management is responsible for establishing and maintaining internalfinancial control 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Companies Act 2013.

Auditors' Responsibility

3. 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" and the Standard on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includesobtaining an understanding of internal financial control over financial reportingassessing the risk that a material Weakness exists and testing and evaluating the designand operating effectiveness of internal controls based on the assessed risk. The procedureselected depends on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the financial statement whether due to fraud or error.

5. 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 Control over Financial Reporting

6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that

1) Pertains to the maintenance of the records that in reasonable detail accuratelyand fairly reflect the transactions and dispositions of the assets of the company;

2) Provide reasonable assurance that the transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditure of the Company are being madeonly in accordance with authorization of management and directors of company; and

3) Provide reasonable assurance 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 Control over Financial Reporting

7. Because of inherent limitation of internal financial control over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to errors or fraud may occur and not be detected.Also projections of any evaluations of the internal financial control 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.

Opinion

8. In our opinion and based on audit tests performed in our audit of the financialstatements for the year ended 31st March 2021 the Company has in all material respectan adequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31st March2021. The Company had established informal practices which are effective in having aproper internal control over financial reporting. A formal system of internal control overfinancial reporting criteria needs to be established by the Company considering theessential components of internal control as stated in the Guidance Note on Audit ofInternal Financial Control over Financial Reporting issued by the Institute of CharteredAccountants of India.

9. We have considered the material weakness identified and reported above indetermining the nature timing and extent of audit tests applied in our audit of the 31stMarch 2021 financial statements of the Company and these material weakness does notaffect our opinion on the financial statements of the Company.

For L.B. Jha & Co.
Chartered Accountants
Firm Registration No : 301088E
(S. Tibrewal)
Partner
Place : Kolkata (Membership number 300388)
Date : 25.06.2021 UDIN : 21300388AAAACZ1866

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