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Resonance Specialities Ltd.

BSE: 524218 Sector: Industrials
NSE: N.A. ISIN Code: INE486D01017
BSE 00:00 | 27 Sep 227.20 12.50
(5.82%)
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NSE 05:30 | 01 Jan Resonance Specialities Ltd
OPEN 219.00
PREVIOUS CLOSE 214.70
VOLUME 27877
52-Week high 254.95
52-Week low 42.50
P/E 19.79
Mkt Cap.(Rs cr) 262
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 219.00
CLOSE 214.70
VOLUME 27877
52-Week high 254.95
52-Week low 42.50
P/E 19.79
Mkt Cap.(Rs cr) 262
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Resonance Specialities Ltd. (RESONANCESPECI) - Auditors Report

Company auditors report

To The Members of

RESONANCE SPECIALTIES LIMITED

Report on the audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of RESONANCE SPECIALTIESLIMITED ("the Company") which comprise the Balance Sheet as at March312021 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended anda summary of the significant accounting policies and other explanatory information(hereinafter referred to as "the financial statements").

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 Standards prescribed under section 133 of theAct read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its profit (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key Audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

We have determined that matters described below to be the key audit matters to becommunicated in our report.

Information Other than the Financial Statements and Auditor's Report Thereon

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 Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained 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.

Management's Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance total comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS) andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

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 are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility

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 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)(1)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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.

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.

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.

Other Matters

Further to the continuous spreading of COVID -19 across India the State Government ofMaharashtra announced a 15-day lockdown on April 05 2021 across Maharashtra to containthe spread of the virus. This has resulted in restrictions on a physical visit to theclient locations and the need for carrying out alternative audit procedures as per theStandards on Auditing prescribed by the Institute of Chartered Accountants of India(ICAI).

As a result of the above the entire audit was carried out based on remote access ofthe data as provided by the management. We have been represented by the management thatthe data provided for our audit purposes is correct complete reliable and are directlygenerated by the accounting system of the Company without any further manualmodifications.

We bring to the attention of the users that the audit of the financial statements hasbeen performed in the aforesaid conditions.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by ‘the Companies (Auditor's Report) Order 2016 ("theorder") issued by the Central Government of India in term of sub- section (11) of thesection 143 of the Act we give in the ‘Annexure A' a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account

d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act read with Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors of theCompany as on March 312021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 312021 from being appointed as a director in termsof Section 164(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 Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 its financialposition in its financial statements - refer note no. 44 to the statements.

ii. The Company has made provision as required under the applicable law or Indianaccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts.

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

For V.R. BHABHRA & CO.
Chartered Accountants
FRN: 112861W
VIMAL R. BHABHRA
Partner
(Membership No. 046043)
UDIN Number: 21046043AAAACE9263
Place: Mumbai.
Date : 03rd June 2021

Annexure A to the Independent Auditors' Report

(Referred to paragraph (9) under ‘Report on other legal and regulatoryrequirements' of our report of even date to the member of Resonance specialties limited onthe Ind AS financial statements for the year ended March31 2021)

i. In respect of Fixed Assets :

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the management in a phased mannerdesigned to cover all items over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its business.Pursuant to the program a portion of fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed asset have been noticed.

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

ii. In respect of Inventories :

a. We are informed that the inventory has been physically verified by the managementduring the year. In our opinion the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to size of the Company and nature of its business.

c. On the basis of our examination of the records of inventory we are of the opinionthat the Company is maintaining proper records of inventory. We are informed that thediscrepancies noticed on verification between the physical stocks and the book recordswere not material in relation to the operations of the Company.

iii. The company has not granted any loans secured or unsecured to companies firmsor other Parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly the provisions of clause 3(iii) (a) to (c) of the order are notapplicable to the company and hence not commented upon.

iv. In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of Section 185 and 186 of the companies act 2013in respect of loan investments guarantees and security.

v. According to the information and explanations given to us the company has notaccepted any deposits from the public and hence the directives issued by the Reserve bankof India and the provisions of Section 73 to 76 or any other relevant provisions of theAct and Companies (Acceptance of deposit) Rule 2015 with regard to the deposits acceptedfrom the public are not applicable.

vi. We have broadly reviewed the books of account and records maintained by the Companypursuant to the rules prescribed by the Central Government of India the company isrequired to maintain cost records as specified under section 148(1) of the Companies Act2013 in respect of its products. We have broadly reviewed the same and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Thecontents of these accounts and records have not been examined by us.

vii. In respect of statutory dues:

a) As informed to us the maintenance of the cost records under the sub-section (1) ofsection 148 of the Companies Act 2013 has been prescribed and we are of the opinion thatprima facie the prescribed accounts and records have been maintained. We have nothowever carried out a detailed examination of the records to ascertain whether they areaccurate or complete.

b) According to the information and explanations given to us there are no dues ofSales Tax Income Tax Goods and Service Tax Duty of Customs or Duty of Excise or ValueAdded Tax which have not been deposited on account of any dispute except as given below:

Name of statute Nature of dues Amount (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Order under section 143(3) r/w section 147 17.30 2016-17 CIT (Appeals)
Income Tax Act 1961 TDS 133 Various Financial Years Demand as per Traces

viii. According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not defaulted in repayment of duesto the financial institution or banks. Further the company has not obtained anyborrowings by way of debentures.

ix. The company has not raised any money by way of public issue/follow-on offer(including debt instruments). On the basis of the documents submitted to the bankers andthe other records perused by us we have to state that the term loan for purchase of fixedassets taken during the year have been applied for the purpose for which the loan wasobtained.

x. According to the information and explanations given to us and to the best of ourknowledge and belief no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid and provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovision of Section 197 read with schedule V to the companies act

xii. The Company is not a Nidhi Company. Hence clause 3(xii) of Companies (AuditorsReport) Order 2016 is not applicable to the Company.

Xiii. All transactions with the related parties are in compliance with sections 177 and188 of the Companies Act 2013 in so far as our examination of the proceedings of themeetings of the Audit

Committee and Board of Directors are concerned. The details of related partytransactions have been disclosed in the Financial Statements as required by the applicableAccounting Standard.

xiv. The company has not made any preferential allotment/private placement of shares orfully or partly convertible debentures during the year under review and hence the clause3(xiv) of the Companies (Auditors Report) Order 2016 is not applicable to the Company.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with him and hence the clause 3(xv) of the Companies (Auditors Report)Order 2016 is not applicable to the Company

xvi. The nature of business and the activities of the Company are such that the Companyis not required to obtain registration under section 45-IA of the Reserve Bank of IndiaAct 1934.

For V.R. BHABHRA & CO.
Chartered Accountants
FRN: 112861W
VIMAL R. BHABHRA
Partner
(Membership No. 046043)
UDIN Number: 21046043AAAACE9263
Place: Mumbai.
Date : 03rd June 2021

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 5(f) of the Independent Auditors' Report of even date to themembers of Resonance Specialties Limited on the financial statements for the year endedMarch 312021)

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of ResonanceSpecialties Ltd. ("the Company") as of March 312021 in conjunction with ouraudit 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 over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). 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 companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V.R. BHABHRA & CO.
Chartered Accountants
FRN: 112861W
VIMAL R. BHABHRA
Partner
(Membership No. 046043)
UDIN Number: 21046043AAAACE9263
Place: Mumbai.
Date : 03rd June 2021

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