Rishab Special Yarns Limited
Report on the Audit of 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 2019 and theStatement of Profit and Loss Statement of Change in equity Cash Flow Statement and notesto the Financial Statements including a summary of significant accounting policies andother explanatory information for the year then ended.
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 of the state of affairs of the company as at 31stMarch 2019 and its Profit Changes in equity and its Cash Flow for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 together with the ethical requirements that are relevant to our audit of thefinancial Statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
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.
Management's Responsibility for the Financial Statements
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 of theseFinancial Statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in 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 Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the financic:11 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 is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
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. misstatement can arise fromfraud or error and are considered material if individually or in the aggregatethey could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial Statements.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditor's Report) Order 2016 ('the Order'') issuedby the Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the "Annexure A" Statements 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 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 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 Changes in statement of equity andCash Flow Statement dealt with by this Report are in agreement with the books of account ;
d) in our opinion the Balance Sheet Statements of Profit and Loss and Cash FlowStatements comply with the Accounting Standards specified under Section 133 of theCompanies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014;.
e) on the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(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 in 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: 30.05.2019 ||M. No. 010145 |