You are here » Home » Companies » Company Overview » Ritesh International Ltd

Ritesh International Ltd.

BSE: 519097 Sector: Industrials
NSE: N.A. ISIN Code: INE534D01014
BSE 00:00 | 28 Sep 13.16 0.25
(1.94%)
OPEN

12.66

HIGH

13.16

LOW

12.66

NSE 05:30 | 01 Jan Ritesh International Ltd
OPEN 12.66
PREVIOUS CLOSE 12.91
VOLUME 3676
52-Week high 13.43
52-Week low 3.10
P/E 14.62
Mkt Cap.(Rs cr) 11
Buy Price 13.16
Buy Qty 2.00
Sell Price 13.16
Sell Qty 48.00
OPEN 12.66
CLOSE 12.91
VOLUME 3676
52-Week high 13.43
52-Week low 3.10
P/E 14.62
Mkt Cap.(Rs cr) 11
Buy Price 13.16
Buy Qty 2.00
Sell Price 13.16
Sell Qty 48.00

Ritesh International Ltd. (RITESHINTL) - Auditors Report

Company auditors report

To

The Members of Ritesh International Ltd

Report on Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of RiteshInternational Ltd("the company") which comprise the Balance Sheet as at 31March 2020 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information. In ouropinion and to the best of our information and according to the explanations given to usthe aforesaid standalone Ind AS financial statements give the information required by theCompanies Act 2013 as amended ("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 its profit includingother comprehensive income its cash flow and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor sResponsibilities for the Audit of the standalone Ind AS financial statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone Ind AS financial statements under theprovisions of the Act and Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

Emphasis of Matter

We draw attention to Note No. 36 to the Standalone Ind AS Financial Statements whichdescribes the uncertainties and the impact of Covid-19 pandemic on the company s operationand results as assessed by the management. Our opinion is not modified in respect of thismatter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2020. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context. We havedetermined the matters described below to be the key audit matters to be communicated inour report. We have fulfilled the responsibilities described in the Auditor sresponsibilities for the audit of the standalone Ind AS financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone Ind AS financial statements. The results of our auditprocedures including the procedures performed to address the matters below provide thebasis for our audit opinion on the accompanying standalone Ind AS financial statements.

Key Audit matters How our audit addressed the key audit matter
Revenue from sale of products(As described in Note 2(b) of the Standalone Ind AS financial statements)
The Company recognizes revenues when control of the goods is transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for theses goods. Following procedures have been performed to address this key audit matter:
Considered the company s revenue recognition policy and its compliance in terms of Ind AS 115 Revenue from the Customers .
The terms of sales arrangement including the timing of transfer of control delivery specifications and judgment in determining timing of the sales revenue. Assessed the design and tested the operating effectiveness of internal control related to revenue recognition.
Accordingly due to risk associated with revenue recognition it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements Selected samples of sales transactions made pre and post year end agreed the period of revenue recognition to underlying documents.
Assessed the relevant disclosures made within the standalone Ind AS financial statements.

Other Information

The Company s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone Ind AS financial matters and our auditor s report thereon.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone Ind AS financial statements our responsibility is toread the other information and in doing so consider whether such other information ismaterially inconsistent with the standalone Ind AS financial statements or our knowledgeobtained during the course of audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management for the Standalone Ind AS Financial Statements

The company s Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Ind AS nancial statements thatgive a true and fair view of the nancial position nancial performance including othercomprehensive income cash ows and changes in equity of the company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) speci ed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 the design implementationand maintenance of adequate internal nancial controls that were operating e ectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS nancial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error. Inpreparing the standalone Ind AS financial statements management is responsible forassessing the company s ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those charged with Governance are also responsible foroverseeing the Company s financial reporting process.

Auditor s Responsibility for the Audit of the

Standalone Ind AS Financial Statements

Our objective are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor s report that include our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatement can arisefrom fraud 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 standalone Ind AS financial statements. As part of an audit in accordancewith SAs we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• 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)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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 standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the under lying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring 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 standalone Ind AS financialstatements for the financial year ended March 31 2020and are therefore the key auditmatters. We describe these matters in our auditor s report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other legal and Regulatory Requirements

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 1" a statement on the matters specified inparagraphs 3 and 4 of the order.

2) As required by section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour 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;

the Balance Sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

in our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

on the basis of written representations received from the directors as on 31st March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2020 from being appointed as a director in terms of section164(2) of theAct;

With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure-2"to this report.

In our opinion the managerial remuneration for the year ended March 31 2020 has beenpaid/provided by the Company to its directors in accordance with the provisions of section197 read with Schedule V to the Act;

With respect to the other matters to be included in the Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinionand to the best of our information and according to the explanations given to us:

i. The company has disclosed the impact of pending litigation on its financial positionin its standalone Ind AS financial statements.

ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company.

For Bhushan Aggarwal & Co.

(FRN No.005362N)

Chartered Accountants

(Shashi Bhushan)

Prop

M.No.084005

UDIN: 20084005AAAAAH1426

Place : Ludhiana

Date : 26.06.2020

ANNEXURES TO THE INDEPENDENT AUDITORS REPORT

Annexure 1 referred to in paragraph 1 under the heading gReport on Other Legaland Regulatory Requirementsh of our report of even date on the standalone Ind ASfinancial statements of Ritesh International Limited.

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment. On 13.02.2005 therewas a fire in the office premises in which some of the records of the company maintainedup to 31.03.2004 have been destroyed including the fixed assets register.

(b) Property plant and equipment s were physically verified during the year by theManagement in accordance with a phased programme of verification which in our opinion isreasonable having regard to the size of the Company nature and value of its assets. Nomaterial discrepancies were noticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting of the trueand fair view of the financial statements and according to the information andexplanations given by the management the title deeds of immovable properties included inproperty plant and equipment are held in the name of the company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on physical verification. Inventories lying with third parties have been confirmedby them as at year end and no material discrepancies were noticed in respect of suchconfirmations.

(iii) The company has granted loans to one body corporate covered in the registermaintained under section 189 of the Companies Act 2013( the Act )

(a) In our opinion the rate of interest and other terms and conditions on which theloan had been granted to the bodies corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company

(b) In the case of the loan granted to the bodies corporate listed in the registermaintained under section 189 of the Act the borrowers have been regular in the payment ofthe principal and interest as stipulated.

(c) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended).

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 related to the manufacture of Company sproducts and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the same.

(vii) (a) The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income tax Service tax GST ValueAdded Tax and any other statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund Employees State Insurance income tax GST valueadded tax service tax and other statutory dues were in arrears as at 31 March 2020 for aperiod of more than six months from the date they became payable.

(viii) In our opinion and according to information and explanations given by themanagement the Company has not defaulted in repayment of dues to any bank. Further theCompany does not have any outstanding debentures and loan from financial institution orgovernment.

(ix) The Company has not raised any money by way of initial public offer / furtherpublic offer / debt instruments and term loans during the year and hence not commentedupon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or on the company by theofficers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.

(xii) The Company is not a nidhi company and hence reporting under clause (xii) ofOrder is not applicable.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe standalone Ind AS financial statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause (xiv) of Order is notapplicable.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For Bhushan Aggarwal& Co.

(FRN No.005362N)

Chartered Accountants

(Shashi Bhushan)

Prop

M.No.084005

UDIN:20084005AAAAAH1426

Date : 26.06.2020

Place: Ludhiana

ANNEXURE 2 to the Independent Auditor s Report of even date on the Standalone Ind AsFinancial Statements of Ritesh International 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 RiteshInternational Limited ("the Company") as of March 31 2020 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 the 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 Act.

Auditor s Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") issued by ICAI and the Standards on Auditing as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. 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 with reference tothese standalone Ind AS financial statements 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 with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor s judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company s internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements

Meaning of Internal Financial Controls over Financial Reporting with reference to thesestandalone Ind AS financial statements

A Company s internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company s internal financial control over financial reportingwith reference to these standalone Ind AS financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company s assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these standalone Ind AS financial statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312020based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Bhushan Aggarwal & Co.

(FRN No.005362N)

Chartered Accountants

(Shashi Bhushan)

Prop

M.No.084005

UDIN:20084005AAAAAH1426

Place : Ludhiana

Date : 26.06.2020