TO THE MEMBERS OF RISHABH DIGHA STEEL AND ALLIED PRODUCTS LIMITED
REPORT TO THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements Rishabh Digha Steel And AlliedProducts Limited (the Company) which comprise the Balance Sheet as at March 31 2020the Statement of Profit and Loss for the year ended and a summary of significantaccounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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 are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by
Company's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on 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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India :
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2020;
(b) In the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date; and
(c) In the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
Due to COVID-19 the company was under lockdown during the months of April 2020 &May 2020. On 01st June 2020 the company resumed its commercial activities abiding by theguidelines provided by the Government. The sales is highly affected due to lockdowns andwill remain affected in future as well which would result into losses and make businessunviable. The said circumstances may force the management to cease the business operationsin future. Even if the management ceases business operations the total assets of thecompany are sufficient to meet the liabilities of the company this will not affect thegoing concern of the company.
EMPHASIS OF MATTERS
There are no matters to be emphasized as there are no litigations against the companyThe impact of COVID-19 has been addressed in the Para : Material Uncertainty Related ToGoing Concern mentioned above.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies(Auditor's Report)Order 2017 ("the Order")issuedby the Central Government of India in term of sub section (11) of section 143 of the Actas the same is applicable we do give in the Annexure A statement on matters specified inParagraph 3 and 4 of the Order.
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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report 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) With respect to the adequacy of internal financial control over the financialreporting of the company and the operating effectiveness of such controls refer to ourSeparate report in Annexure B..
f) On the basis of written representations received from the directors as on 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.
g) With respect to the other matters included in the Auditor's Report in accordancewith rule 11 of the Companies
(Audit and Auditors) Rule2014in our opinion and to our best of our information andaccording to the explanations given to us :
i. The Company does not have any pending litigation which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there can be any material foreseeable losses.
iii. The sum of Rs. 78963/- were transferred to the Investor Education and ProtectionFund by the company on 31st October 2019 as unclaimed dividend for the FY2011-2012
Annexure A to the Auditors' Report
The Annexure referred to in our report to the members of Rishabh Digha Steel &Allied Products Limited for the year Ended on 31st March2020. We report that:
i) a) The company has not maintained proper records showing full particulars includingquantitative details and situation of fixed assets but is in the process of doing the same.
i) b) The Fixed Assets have been physically verified by the management during the yearand no material discrepancies between the books records and the physical fixed assets havebeen noticed.
i) c) The Company has satisfactory title to all the assets.
ii)a) The company by itself does not hold any inventory as company is basically engagedin the Job Work Activity. The inventory held on behalf of the customers has beenphysically verified by the management during the year. In our opinion the frequency ofverification is reasonable.
iii) The company has not granted any loans secured or unsecured to companies firmsLimited liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act. Therefore the provision of clause iii of the Companies(Auditors Report) Order 2003 is not applicable
a) Not Applicable b) Not Applicable c) Not Applicable
iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of loans investments guarantees and security given.
v) The company has not accepted deposits so the directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act and the rules framed there under is not applicable. Therefore the provisionof clause v of the Companies (Auditors Report) Order 2003 is not applicable
vi) The maintenance of cost records as specified by the Central Government undersub-section (1) of section 148 of the Companies Act are not applicable. Hence the saidclause is not applicable.
vii) a) According to the information and explanation given to us company is generallyregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax GST and any other statutory dues with the appropriate authorities.However there are no arrears of outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable
b) According to the information and explanation given to us there are no dues of incometax or sales tax or service tax or duty of customs or GST or duty of excise or value addedtax or cess which have not been deposited on account of any dispute.
viii) According to the information and explanation given to us company has availed aBank Overdraft Facility of Rs. 9900000/- from the Bank of Baroda against the FixedDeposits amounting to Rs. 11000000/- so made in the same bank and has not defaulted inrepayment of dues including interest.
ix) In our opinion and according to the information and explanations to us the companyhas not raised money by way of initial public offer or further public offer (includingdebt instruments). Therefore the provision of clause ix of the Companies (AuditorsReport) Order 2003 is not applicable.
x) According to the information and explanation given to us no fraud by the company andon the company by its officers has been noticed or reported during the year. Thereforethe provision of clause x of the Companies (Auditors Report) Order 2003 is notapplicable.
xi) Sec197 deals with Managerial remuneration which is applicable to the Company.According to the information and explanation given to us The managing Directors and theWhole time Directors have withdrawn remuneration from the company which are in line of therules specified under Section III of the Part II of the Schedule V of the Companies Act 2013 and no further approval from the Central Government is required for the same. xii) Inour opinion the Company is not Nidhi Company. Therefore the provision of clause xii ofthe Companies (Auditors Report) Order 2003 is not applicable.
xiii) All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 and the details have been disclosed in the Financial Statementsas required by the applicable accounting standards. Related Party transaction are as perNote No. 21 forming part of the financial statements.
xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause xiv of paragraph 3 of the Order are not applicable to the company.
xv) In our opinion and according to the information and explanations to us the companyhas not entered into any non-cash transactions with directors or persons connected withhim. Accordingly the provisions of clause xv of Paragraph 3 of the Order are notapplicable to the company.
xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 16 of paragraph 3 of theOrder are not applicable to the Company.
"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements of Rishabh Digha Steel And Allied Products Limited
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 RishabhDigha Steel And Allied Products Limited as of March 31 2020 in Conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls. The internal control over financial reporting criteria establishedby the company considering the essential component of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 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 both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence 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 risk 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 purpose 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.
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 effectively as at March 31 2020 based on internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Reporting issued by the Institute of Chartered Accountants of India.