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Revati Organics Ltd.

BSE: 524504 Sector: Industrials
NSE: N.A. ISIN Code: INE270D01015
BSE 05:30 | 01 Jan Revati Organics Ltd
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Revati Organics Ltd. (REVATIORGANICS) - Auditors Report

Company auditors report

To the Members of REVATI ORGANICS LIMITED CIN:- L24110MH1993PLC072194 Report on theIndAS Financial Statements

1) We have audited the accompanying standalone Ind AS financial statements of REVATIORGANICS LIMITED ("the Company") which comprise the Balance Sheet as at March31' 2021 the Statement of Profit and Loss and Cash Flow for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2) The management and Board of Directors of the Company are responsible for the mattersstated in 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 and Cash Flow of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with rule 7 of Companies(Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules 2015 asamended. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

3) Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit in accordance with the Standards on Auditing specified under Section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

4) An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's management and Board of Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements

5) We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

6) In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2021 its Profit and Cash Flow for the year ended on that date;

Report On Other Legal and Regulatory Requirements

7) 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 inparagraphs 3 and 4 of the Order.

8) As required by section 143(3) of the Act we further 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 purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c) the Balance Sheet Statement of Profit and Loss and Cash Flow dealt with by thisReport are in agreement with the books of account;

d) in our opinion the aforesaid standalone Ind AS financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014 Companies (Indian Accounting Standards) Rules2015 as amended;

e) on the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164(2) of theAct

f) with respect to adequacy of the internal controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B".

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

i. The Company does not have any pending litigations which would impact its financialposition

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

For Gonsalves & Associates

Chartered Accountants

FRN-103293W

Glen J.P. Gonsalves : Proprietor

Membership No. : 043150

Firm Reg. No. : 103293W

Place : Mumbai

Date : 21/04/2021

UDIN : 21043150AAAANM2784

Annexure A referred to in paragraph 7 Our Report of even date to the members of REVATIORGANICS LIMITED on the accounts of the company for the year ended 31st March 2021.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:-

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

(b) Since the FAs are taken over by MSFC the Company has not verified the same.

(c) According to the information and explanations given to us the records examined byus since the FAs are taken over by MSFC the we have not verified the conveyance deeds andwe cannot report that the title deeds comprising all the immovable properties of landand buildings which are freehold are held in the name of the Company as at the balancesheet date.

ii. The Company's inventory consists of intangible rights and Shares & properrecords of the same have been maintained by the management. In our opinion and accordingto the information and explanations given to us the procedures of physical verificationof inventories followed by the management are reasonable and adequate in relation to thesize of the Company and nature of its business. In our opinion and according to theinformation and explanation given to us the Company has maintained proper records ofinventories. As explained to us there was no material discrepancies noticed on physicalverification of inventory as compared to the book records.

iii. The company has granted loans secured or unsecured to Companies Firms LimitedLiability Partnerships or other parties covered in the Register maintained under section189 of the Companies Act 2013.

iv. According to the information and explanations given to us and based on the recordsof Company examined by us we report that Company has given loan and made investmentswithin prescribed limits of section 185 and 186 of the Companies Act thereof.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

vi. Cost accounts and records to be made and maintained as specified by the CentralGovernment under sub-section (1) of section 148 of the Companies Act 2013 are notapplicable to Company.

vii. a) According to the information and explanations given to us and based on therecords of Company examined by us Company is regular in depositing the undisputedstatutory dues Income-tax Sales-tax and other material statutory dues as applicablewith the appropriate authorities in India;

(b) Based on the records of Company examined by us there are no statutory duesmentioned in sub clause vii (b) on account of any dispute except Income Tax liability ofRs. 122 lakhs for the A.Y. 01/04/88 to 30/06/98 which are outstanding as appeal is ongoingwith CIT/Appellate Tribunal under the Income Tax Act 1961.

viii. According to the records of the Company examined by us and as per the informationand explanations given to us we are of the opinion that the Company has defaulted inrepayment of principal amount and interest of the loans taken from financial institution.Company has taken loan from MSFC. MSFC term Loan account become NPA in 1997-98 and sinceMSFC was having the Fist Charge on the Fixed Assets over land & factory buildingPlant & Machinery and equipment worth much more than their dues. The MSFC in exerciseof provisions under section 29 of SFC Act took over the entire plant vide letter dated18.11.1998 against principle amount of Rs 59.35 Lac only. After taking over of the entirePlant the rest of the procedure like Public Notice bidding etc has not been done tilldate & settlement with them pending till date and hence we have to keep the fixedassets and their secured loan in our Books of Accounts. No provision has been made in theaccounts for balance of loan and interest if any No provision has been made fordepreciation in view note no. 1.3 to accounts and note in Fixed Assets schedule. In viewof the confirmation of the balance received and Management perception about the samerealizable no provision is made for debts Loans and Advances given which have remainedoutstanding for long.

ix. Based upon the audit procedures performed and the information and explanationsgiven to us Company has not raised any money by way of initial public offer or furtherpublic offer including debt instruments and term loans during the year. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. According to the information and explanations given to us and based on the recordsof Company examined by us no fraud by Company or any fraud on Company by its officers oremployees has been noticed during the year.

xi. According to the information and explanations given to us Company has not paid ormade any provisions for managerial remuneration during the year except as under:-

Mr. Harshad Sarvaiya CFO - Rs. 148065/- Ms. Vanita Jain CS - Rs. 105806/- Mr. AnilNate Manager - Rs. 375000/-

xii. In our opinion the Company is not a Nidhi Company. Accordinglythis clause is notapplicable to Company

xiii. According to the information and explanations given to us and based on therecords of Company examined by us all transactions with the related parties are incompliance with the Section 177 and 188 of the Companies Act and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on the recordsof Company examined by us Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

xv. According to the information and explanations given to us and based on the recordsof Company examined by us Company has not entered into any non- cash transactions withdirectors or persons connected with them.

xvi. According to the information and explanations given to us it has been observedthat the Company is not a NBFC and therefore the Company is not required to getregistered under section 45-IA of the Reserve Bank of India Act 1934.

For Gonsalves & Associates Chartered Accountants

FRN-103293W

Glen J.P. Gonsalves : Proprietor

Membership No. : 043150

Firm Reg. No. : 103293W

Place : Mumbai

Date : 21/04/2021

UDIN : 21043150AAAANM2784

Annexure B referred to in paragraph 8 Our Report of even date to the members of REVATIORGANICS LIMITED on the accounts of the Company for the year ended 31st March 2021.

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

We have audited the internal financial controls over financial reporting of REVATIORGANICS LIMITED("Company") as of March 31 2021 in conjunction with our auditof the standalone Ind AS financial statements of Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

Company's management is responsible for establishing and maintaining internal financialcontrols in accordance with Rule 8 (5) (viii) of the Companies (Accounts) Rule 2014 andessential components of internal control stated in the guidance Note on Audit of InternalFinancial Controls over Financial reporting issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance withclause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing to the extent applicable to an audit ofinternal financial controls both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgment 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 Company's internal financial controls system overfinancial 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 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 Company are being made only inaccordance with authorizations of management and directors of Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of 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 Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2021 based on the internalcontrol over financial reporting criteria established by Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Gonsalves & Associates Chartered Accountants

FRN-103293W

Glen J.P. Gonsalves : Proprietor

Membership No. : 043150

Firm Reg. No. : 103293W

Place : Mumbai

Date : 21/04/2021

UDIN : 21043150AAAANM2784

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