Rishab Special Yarns Limited laipur
Report on the Financial Statements:
We have audited the accompanying financial statements of Rishab Special Yarns Limited("the Company'') which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss the Statement of Cash Flows and tire Statement of Changes inEquity for the year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred toas "IndASFinancialStatements")
Management's Responsibility for the Financial Statements:
The Company's Board of Directors is responsible for the matters specified in section134(5] of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance and cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended and other accountingprinciples generally accepted in India.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in theauditreport underthe provisions of theAct and the Rules made there under. We conducted our auditof the IndAS financial statements 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 aboutwhetherthe financialstatementsare 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 Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation andfair presentation of the Ind AS financial statements in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls.
An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by Company's Directors as well asevaluating the overall presentation of the ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
ln our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the companyas at 31st March 2018 .its Cash Flow its changes in Equity and its Losses for the yearended on that date.
Emphasis of Matters
(a) Para 1 of Note 2 of Notes on Accounts which states that due to incurrence ofcontinuous losses year after year the Company discontinued its business operations duringthe year2005-06 and since then the Company could not revive the business. Added to thissituation as per financial statements Company's net worth has alreadyfully eroded.
(b) Para 2 of Note 2 of Notes on Accounts which describes the uncertainty related tothe outcome of the legal suits filed by the company against the demand raised by theTextile Committee.
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in paragraphs 3 and4 of the Order.
2. As required by section 143(3) of theAct we report that:
a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary forthepurposeofour 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 ofthose books;
c) the Balance Sheet Statement of Profit and Loss Statement of changes in Equity andStatement ofCash Flow deal t with by this Report are in agreement with the books ofaccount;
d) in our opinion the Balance Sheet Statement of Profit and Loss Statement ofChanges in Equity and the statement of Cash Flow comply with the Accounting Standardsspecified under Section 133 of the Companies Act 2013 read with Rules of theCompanies(Indian Accounting Standards) Rules 2015;.
e) on the basis of written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 from being appointed as a director in terms ofSection164(2) of theAct;
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 & Auditors) Rules 2014 in our opinionand according to the information and explanations given to us.
(i) The Company has disclosed the possible impact of pending litigations on itsfinancial position in its financial statements - Refer Note 2 of "Notes onAccounts" to the financial statements.
(ii) The company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There was no amount which was required to be transferred to the InvestorEducation and Protection Fund.
| ||For Jain Shrimal & Co. |
| ||Chartered Accountants |
| ||(FRN. 001704C) |
| ||(S.K. Jain) |
|Place: Jaipur ||Partner |
|Dated: 30.05.2018 ||M. No. 10145 |
Re: Rishab Special Yarns Ltd.
Annexure "A" attached to the Independent Auditors' Report dated 30.05.2018
Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section
(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) The company has physically verified these fixed assets as per its programme ofphysical verification that covers every item of fixed assets over a period of three years.N o material discrepancies were noticed on such verification;
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.
(ii) Since there is no closing stock of inventory physical verification of inventoryis not required.
(iii) The company has not granted loans secured or unsecured to companies firms andlimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore sub - clauses (iii) (a) (iii) (b) &(iii) (c) of the Order are not applicable;
(iv) According to the information and explanations given to us there are no loansinstruments guarantees and securities for which compliance with the provisions ofsection185 and 186 of theActmay becalledfor.
(v) As per information and explanations provided to us the company has not acceptedany public deposits during the year. Further we have not come across any such deposits)nor the management has reported any such deposit(s) therefore the directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are notapplicable.
(vi) According to the information and explanations given to us in view of no businessactivities carried on by the company during the year under audit clause regardingmaintenance of cost records under sub-section (1) of Section 148 of the Companies Act2013 isnotapplicable to the company.
(vii) (a) The company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities. There are no arrears of outstanding statutory dues as at the lastday of the financial year concerned fora period of more thansix months from the date theybecame payable.
(b) There are no dues of income tax or sales tax or service tax or duty of customs orvalue added tax which have not been deposited on account of any dispute:
(viii) As per information & explanations given to us there are no outstanding ofloans or borrowings from financial institutions banks governments or dues to debentureholders and hence question of default in repaymentthere-ofdoes notarise.
(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. No Term loan has been obtainedby the Company during the year.
(x) Accordingto the information and explanations given to us no fraud by the companyor fraud on the company by its officers or employees has been noticed or reported duringthe year;
(xi) No Managerial Remuneration has been paid orprovided for during the yearby thecompany
(xii) The company is not a Nidhi Company hence clause (xii) ofpara 3 of the Orderisnotapplicable to the company.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as requiredby the applicableaccounting standards;
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under audit.
(xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly clause (xv)ofpara 3 of the Order is notapplicable;
(xvi) The Company is not required to be registered undersection 45-1A of the ReserveBank of India Act 1934.
| ||For Jain Shrimal & Co. |
| ||Chartered Accountants |
| ||FRN 001704C |
| ||(S.K. Jain) |
|Place: Jaipur ||Partner |
|Dated: 30.05.2018 ||M.No.010145 |
Anncxurc "B" attached to the Independent Auditor's Report dated 30.08.2018Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143of the Companies Act 2013 ["the Act") as referred to in paragraph 2 (f) of'Report on Other Legal and Regulatory Requirements' section
We have audited the internal Financial controls over financial reporting of company asof 31st March 2018 in conjunction with our audit of the financial statements of thecompany 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating 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 ofreliable financial information as required undertheCompanies 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 accordance with the Guidance Note on Audit ofinternalFinancial Controls Over Financial Reporting [the "Guidance Note") and theStandards on Auditing issued by 1CAI and deemed to be prescribed under section 143 (10)of the Companies Act 2013 to the extent applicable to an audit ofinternal financialcontrols both applicable to an audit ofinternal Financial Controls and both issued bythe institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe interna! financial controls system over financial reporting and their operatingeffectiveness.
Our audit ofinternal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness ofinternal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whetherdue 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 ofinternal 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 policiesand procedures that:
a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
b) 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
c) Provide reasonable assurance regarding prevention or limely detection ofunauthorized acquisition use or disposition of the company'sassets that could haveamaterial effect on the financial statements.
Inherent Limitations ofinternal Financial Controls Over Financial Reporting;
Because of the inherent limitations ofinternal financial controls over financialreporting including the possibility of collusion or in proper 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 internaI financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deterion rate.
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 2018 based on theinternal control aver 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 Jain Shrimal & Co. |
| ||Chartered Accountant |
| ||FRN001704C |
| ||(S.K Jain) |
|Place; Jaipur ||Partner |
|Dated: 30.052018 ||M.No: 010145 |