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Roopa Industries Ltd.

BSE: 530991 Sector: Health care
NSE: N.A. ISIN Code: INE443C01010
BSE 00:00 | 02 Dec 60.05 -0.35
(-0.58%)
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NSE 05:30 | 01 Jan Roopa Industries Ltd
OPEN 57.65
PREVIOUS CLOSE 60.40
VOLUME 3592
52-Week high 92.75
52-Week low 16.40
P/E 33.18
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 57.65
CLOSE 60.40
VOLUME 3592
52-Week high 92.75
52-Week low 16.40
P/E 33.18
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Roopa Industries Ltd. (ROOPAINDUSTRIES) - Auditors Report

Company auditors report

To the Members of

ROOPA INDUSTRIES LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Roopa Industries Limited(‘the Company') which comprise the Balance Sheet as at March 31 2022 the Statementof Profit and Loss (including Other Comprehensive Income) the Statement of Changes inEquity and the Statement of Cash Flows for the year ended on that date and a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as ‘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 theCompanies Act 2013 (‘the Act') in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(‘Ind AS') and other accounting principles generally accepted in India of the stateof affairs of the Company as at March 31 2022 the profit and total comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Auditor's Response
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 'Revenue from Contracts with Customers' (new Indian Accounting Standard on revenue) Auditor's Response Principal Audit Procedures We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows :
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
Refer to Notes 2.9 to the Financial Statements Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
Selected a sample of continuing and new contracts and performed the following procedures :
- Read analysed and identified the distinct performance obligations in these contracts.
- Compared these performance obligations with that identified and recorded by the Company.
- Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
- Samples in respect of revenue recorded for time and material contracts were tested using a combination of approved time sheets including customer acceptances subsequent invoicing and historical trend of collections and disputes.
- Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
- In respect of samples relating to fixed-price contracts progress towards satisfaction of performance obligation used to compute recorded revenue was verified with actual and estimated efforts from the time recording and budgeting systems. We also tested the access and change management controls relating to these systems.
- Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
- Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
- We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the 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 financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the IndianAccounting Standards (Ind AS) and other accounting principles generally accepted in Indiaincluding Ind AS specified under section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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 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 financial 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 are responsible for overseeing the Company's financial reportingprocess.

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. Misstatements can arise fromfraud 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 financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also :

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal controls.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and reasonableness ofaccounting 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 (‘the Order')issued by the Central Government in terms of Section 143 (11) of the Act we give inAnnexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act based on our audit 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 it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialstatements.

3. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous :

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial

ii. The Company did not have any long-term contracts including derivative contracts; assuch there were no material foreseeable losses thereon;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

iv. a) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentity ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The company is not required to comply with the provisions of section 123 of theCompanies Act2013 as no dividends have been declared or paid by the company during theyear.

4. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of amendments to section 197(16) of the Act:

In our opinion and to the best of our information and according to the explanationsgiven to us the managerial remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

Place : Hyderabad
Date : 30-05-2022 ICAI UDIN: 22015635AJXLHH7792

Annexure A to the Independent Auditors' Report

With reference to Annexure A as referred to in paragraph 1 under ‘Report on OtherLegal and Regulatory Requirements' section of our report to the Members of the company onthe financial statement for the year ended 31 March 2022 we report the following:

Sl. No. Ref.to CARO Report by Independent Auditors
1 3(i) Fixed Assets
3(i)(a) A The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information. However updation of the data for the current year is under process.
3(i)(a) B The Company has no intangible assets accordingly provisions of clause 3(i)(a)(B) are not applicable to the company for the period under review.
3(i)(b) The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified on annual basis in our opinion the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program all fixed assets were physically verified during the year. According to the information and explanation given to us no material discrepancies were noticed on such verification.
2 3(i)(c) According to the information and explanations given to us and the records examined by us and based on the examination of sale deeds conveyance deeds encumbrance certificates verified by us we report that the title deeds comprising all the immovable properties of lands buildings which are free hold are in the name of the company as at the balance sheet date.
3(i)(d) According to the information and explanation given to us and on the basis of our examination of the records of the Company the Company has not revalued any of its Property Plant and Equipment (including right-of-use assets) and intangible assets during the year. Accordingly the reporting under clause 3(i)(d) is not applicable to the company for the period under review.
3(i)(e) According to the information and explanation given to us and on the basis of our examination of the records of the Company no Proceeding have been initiated during the year or are pending against the Company as at 31 March 2022 for holding any benami property under the Benami Transactions (Prohibition) Act 1988( 45 of 1988 as amended in 2016) and rules made thereunder.
3(ii) Inventories
As explained to us the inventories has been physically verified by the management during the year. In our opinion the frequency of such verification is reasonable. The Company has maintained proper records of inventory. There were no material discrepancies noticed on verification between the physical stock and the book records. Discrepancy of 10% or more were not noticed on such physical verification.
3 3(iii) Loans to parties covered by Sec.189 of the Companies Act 2013 (‘the Act' )
According to the information and explanation given to us the Company has not granted any loans secured or unsecured to body corporate firms Limited Liability Firms or other parties covered in the register required to be maintained under section 189 of the Act. Accordingly the provisions of the clause 3 (iii) (a) to (f) of the Order are not applicable to the Company for the year under review.
4 3(iv) Loans guarantees securities to and investments in other companies
According to the information and explanation given to us and on the basis of our examination of the records of the Company the company has no transaction to be complied with provisions of section 185 and the Company has complied with the provisions of Section 186 of the Act in relation to loans given and investments made.
5 3(v) Acceptance of deposits
In our opinion and according to the information and explanations given to us the Company has not accepted any deposits during the year as per provisions of Section 73 or 76 of the Act or any other relevant provisions of the Act and the relevant Rules framed thereunder. Accordingly the provisions of the Para 3 (v) of the Order are not applicable to the Company for the year under review.
6 3(vi) Maintenance of cost records
According to the information and explanations given us the maintenance of cost records prescribed by the Central Government under section 148(1) of the Act read with Rule 3 of the Cost Audit Rules is not applicable to the company. Accordingly cost audit under Sec. 148(2) of the Act read with Rule 4 of the Cost Audit Rules under Para 3(vi) of the Order is not applicable to the Company for the year under review.
7 3(vii) Statutory Dues
3(vii)(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund Employee's State insurance Income Tax Goods and Service Tax duty of Customs Cess and other material statutory dues have been generally deposited during the year by the Company with the appropriate authorities except some delays on certain occasions. According to the information and explanations given to us no undisputed amounts payable in respect of Provident Fund Employees' State Insurance Income tax Goods and Service Tax duty of Customs Cess and other material statutory dues in arrears as at March 31 2022 for a period of more than six months from the date they became payable except in case of Income Tax deduction at source amounting to Rs.1.73 lakhs.
3(vii)(b) According to the information and explanation given to us there are no dues of statutory payments in respect of Income tax sales tax Service tax Goods and Service tax Customs duty Excise duty Value added tax cess and other dues that have not been deposited by the Company on account of any disputes.

 

Sl. No. Name of the Statute Nature of dues Total Amount Rs. Period to which the amt.relates Forum where dispute is pending
1 The Income Tax Act1961 Disallowance of Depreciation 13.08 Lakhs 1996 Appeal filed by the Department and pending before A P High court.
2 The Income Tax Act1961 Appeal to CIT (A) 9.77 lakhs 2017 Appeal filed and pending before CIT (A)

 

Sl. No. Ref.to CARO Report by Independent Auditors
8 3(viii) According to the information and explanation given to us and on the basis of our examination of the records of the Company there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act 1961(43 of 1961). Accordingly provisions of clause 3 (viii) of the Order are not applicable to the Company for the year under review.
9 3(ix) Defaults in repayments to Financial Institutions/Banks/Debenture holders
3(ix)(a) According to the information and explanation given to us and on the basis of our examination of the records of the Company the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year. Accordingly provisions of clause 3 (ix)(a) of the Order are not applicable to the Company for the year under review.
3(ix)(b) According to the information and explanation given to us and on the basis of our audit proceedings we report that the Company has not been declared a wilful defaulter by any banker financial institution or government or government authority. Accordingly provisions of clause 3 (ix)(b) of the Order are not applicable to the Company for the year under review.
3(ix)(c) According to the information and explanation given to us by the management the term loans have been applied on overall basis for the purpose for which they were obtained.
3(ix)(d) According to the information and explanation given to us and on an examination of the balance sheet of the Company and we report that no funds raised on short-term basis have been utilized for long term purposes by the Company. Accordingly provisions of clause 3 (ix)(d) of the Order are not applicable to the Company for the year under review.
3(ix)(e) According to the information and explanation given to us and on an examination of the financial statements of the Company we report that the Company has no subsidiaries associates or joint ventures and hence raising loans to meet obligations of subsidiaries associates or joint ventures does not arise. Accordingly provisions of clause 3 (ix)(e) of the Order are not applicable to the Company for the year under review.
3(ix)(f) According to the information and explanation given to us and on an examination of the financial statements of the Company we report that the Company has no subsidiaries associates or joint ventures. Hence pledging of securities held in subsidiaries associates or joint ventures does not arise. Accordingly clause 3(ix)(f) of the Order is not applicable for the period under review.
10 3(x) Initial public offer/further offer
3(x) (a) The Company has not raised moneys by way of initial public offer (including debt instruments) during the year. Accordingly provisions of clause 3 (x)(a) of the Order are not applicable to the Company for the year under review.
3(x) (b) According to the information and explanation given to us and on the basis of our examination of the records of the Company the Company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year. Accordingly provisions of clause 3 (x)(b) of the Order are not applicable to the Company for the year under review.
11 3(xi) Frauds by or on the company
3(xi) (a) During the course of our examination of the books and records of the company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us we have neither come across any instance of material fraud by the company or on the company noticed or reported during the year nor have we been informed of any such case by the management.
3(xi) (b) According to the information and explanations given to us no report under sub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014 with the Central Government.
3(xi) (c) According to the information and explanation given to us The company has not received any whistle blower complaints during the year. Accordingly provisions of clause 3 (xi)(c) of the Order are not applicable to the Company for the year under review.
12 3(xii) Nidhi company
In our opinion and according to the information and explanation given to us the company is not a Nidhi Company as prescribed under Section 406 of the Act and hence paragraph 3(xii) of the Order is not applicable to the company.
13 3(xiii) Transactions with Related parties
In our opinion and according to the information and explanation given to us and based on our examination of the records of the Company all transactions with related parties are in compliance with provisions of section 177 and section 188 of the Act where applicable and the details of such transactions have been disclosed in the financial statements as required by the applicable Indian Accounting Standards.
14 3(xiv) Internal Audit System
3(xiv)(a) Based on information and explanations provided to us and our audit procedures In our opinion the Company has an internal audit system which is to be made more effective to commensurate with the size and the nature of its business.
3(xiv)(b) We have not considered the internal audit report for the year issued to the Company during the year and till date in determining the nature timing and extent of our audit procedure.
15 3(xv) Non-cash transactions with directors u/s 192 of the Act
In our opinion and according to the information and explanation given to us the company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Sec 192 of the Act are not applicable to the Company for the year.
16 3(xvi) Registration u/s 45-IA of RBI Act1934
3(xvi)(a) According to the information and explanation given to us the company is not required to be registered under section 45-IA of the Reserve bank of India Act 1934. Accordingly clause 3(xvi) of the Order is not applicable for the year under review.
3(xvi)(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934 Accordingly clause 3(xvi) of the Order is not applicable.
3(xvi)(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is not applicable.
3(xvi)(d) According to the information and explanation provided to us during the course of audit. the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d) are not applicable.
17 3(xvii) Cash losses
The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding the financial year.
18 3(xviii) Resignation of the statutory auditors
There has been no instance of resignation of the statutory auditors of the Company during the year
19 3(xix) According to the information and explanations given to us and on the basis of the financial ratios ageing and expected dates of realisation of financial assets and payment of financial liabilities other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions nothing has come to our attention which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We however state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date will get discharged by the Company as and when they fall due.
20 3(xx)(a) The profit made by the company during the year does not attract the provisions as required u/s 135(5) of the Act. Accordingly provisions of clause 3 (xx) (a) of the Order are not applicable to the Company for the year under review.
3(xx)(b) According to the information and explanation given to us and examination of records we are of the opinion that the provisions of section 135 (5) of the Act for transferring unspent amount on a ongoing project is not applicable to the company for the period under review. Accordingly reporting under clause 3(xx)(b) of the Order is not applicable
21 3(xxi) The company is not required to prepare standalone and consolidated financial statements as it has no subsidiary associate or joint venture. Hence reporting under Clause 3(xxi) of the Order is not applicable in respect of audit of financial statements. Accordingly no comment in respect of the said clause 3(xxi) has
Place : Hyderabad
Date : 30-05-2022 ICAI UDIN: 22015635AJXLHH7792

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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 with reference to financial statementsof Roopa Industries Limited ("the Company") as of 31 March 2022 in conjunctionwith our audit of the financial statements of the Company 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the Orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements 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 internal financial control system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlsover to financial reporting 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 judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the criteria forinternal financial control over financial reporting 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 ICAI.

Place : Hyderabad
Date : 30-05-2022 ICAI UDIN: 22015635AJXLHH7792

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