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RRIL Ltd.

BSE: 531307 Sector: Industrials
NSE: N.A. ISIN Code: INE951M01037
BSE 00:00 | 05 Dec 16.95 0.15
(0.89%)
OPEN

16.80

HIGH

17.50

LOW

16.25

NSE 05:30 | 01 Jan RRIL Ltd
OPEN 16.80
PREVIOUS CLOSE 16.80
VOLUME 84599
52-Week high 19.80
52-Week low 10.05
P/E 33.24
Mkt Cap.(Rs cr) 205
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.80
CLOSE 16.80
VOLUME 84599
52-Week high 19.80
52-Week low 10.05
P/E 33.24
Mkt Cap.(Rs cr) 205
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

RRIL Ltd. (RRIL) - Auditors Report

Company auditors report

To the Members of RRIL Limited

Report on the Standalone Ind AS Financial Statements Opinion

We have audited the accompanying standalone Ind AS financial statements of RRILLimited. ("the Company) which comprise the Balance Sheet as on 31stMarch 2022 the Statement of Profit and Loss and Cash Flow Statement for the year endedand a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the ‘Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Indian Accounting Standards (‘Ind AS') specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31 March 2022 andits Profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act.

Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (‘ICAI') together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis of Matter

a. Refer to note no. 33(10) to the standalone financial results regarding Merger ofKRKumar Industries Limited as per Scheme of Merger by Absorption and its respectiveaccounting entries passed and recognition of goodwill.

b. We draw your attention to Note 33(11) to the standalone financial results regardingthe amortization of goodwill till last year and testing for impairment w.e.f. 01/04/2021.We have not modified our opinion on the said matter.

c. We draw your attention to Note 33(16) to the standalone financial results whichexplains the uncertainties and the management's assessment of the financial impact due tothe lockdown and other restrictions imposed by the government and conditions related toCOVID-19 pandemic situation for which a definitive assessment of the impact is highlydependent upon the circumstances as they evolve in the subsequent period. Our opinion isnot modified in the respect of this matter.

Other Matters

Due to the COVID-19 pandemic and the lockdown and other restrictions imposed by theGovernment and the local administration the audit processes were carried out based on theremote access to the extent available/feasible and necessary records made available by themanagement through digital medium. Our opinion is not modified in respect of the abovematter.

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 standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Management and Board of Directors of the Company are responsible for the mattersstated in section 134(5) of the Companies Act 2013 (‘the act') with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards (Ind AS) specified under Section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2015 (as amended).

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgement and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements Ind AS that give a true and fair view and are free from material misstatementwhether 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.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism 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 control.

• 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 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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

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

Further to our comments in Annexure A as required by section 143(3) of the Act wefurther 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 and cash flow statement dealt withby this Report are in agreement with the books of account;

d) in our opinion the aforesaid standalone financial statement comply with theapplicable Accounting Standards specified under section 133 of the Act read with the rule7 of the Companies (Accounts) Rules 2015 (as amended).

e) On the basis of written representations received from the directors as on 31stMarch 2022 and taken on record by the Board of Directors none of the directors isdisqualified ason 31st March 2022 from being appointed as a director in termsof section 164(2) of the Act.

f) We have also audited the internal financial controls over financial reporting(IFCOFR) of the Company as on 31st March 2022 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended ason that date andour report as per "Annexure B" expressed an unmodified opinion.

g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect

to other matters to be included in the Auditor's Report in accordance with the Rule 11of the Companies (Audit and Auditors)

Rules 2015 (as amended):

i. The Company does not have any pending litigations which would impact on itsfinancial position in its standalone Ind AS financial statements.

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii. During the year 2021-2022 the Company was not required to transfer to the InvestorEducation and Protection Fund.

iv. (a) The management has represented that to the best of it's knowledge and beliefother than as disclosed in the notes to the accounts no funds 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(s) or entity(ies) includingforeign entities ("intermediaries") with the understanding whether recorded inwriting or otherwise that the intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("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 it's knowledge and beliefother than as disclosed in the notes to the accounts no funds have been received by thecompany from any person(s) or entity(ies) including foreign entities ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the Finding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

(c) Based on audit procedures which we considered reasonable and appropriate in thecircumstances nothing has come to their notice that has caused them to believe that therepresentations under sub-clause (a) and (b) contain any material mis-statement.

(d) The company has not declared or not paid any dividend during the year incontravention of the provisions of section 123 of the Companies Act 2013.

h) As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in

accordance with the provisions of and limits laid down under Section 197 read withSchedule V to the Act.

For Subramaniam Bengali & Associates
Chartered Accountant
FRN 127499W
CA Rajiv B. Bengali
Partner
Place: Mumbai Mem. No. 043998
Dated: 30.05.2022 UDIN No.: 22043998AJXBTP5138

"ANNEXURE A" TO INDEPENDENT AUDITORS’ REPORT OF EVEN DATE TO THE MEMBERSOF RRIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

i. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. As explained to us all the assetshave been physically verified by the management during the year.

No material discrepancies in the assets have been noticed on such verification.

The title deed of immovable properties as disclosed in Note 1 on fixed assets to thefinancial statement are held in the name of the Company.

In our opinion and according to the information and explanations given to us noProceedings have been initiated or there are no case pending against the company forholding any benami property under the Benami Transactions act 1988.

ii. The inventory has been physically verified during the year by the management. InOur opinion the frequency of verification is reasonable.

In our opinion and according to the information and explanations given to us theprocedure of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

On the basis of our examination of the records of inventory we are of the opinion thatthe company is generally maintaining proper records of inventory. The discrepanciesnoticed on verification between the physical stocks and the books records were notmaterial and the same have been properly dealt with in the books of account.

iii. In our opinion and according to the information and explanations given to us TheCompany has granted unsecured loans to any

parties as covered in the register under section 189 of the Act.

Sr. No. Particulars Loans (in Lacs)
1 Aggregate amount granted / provided during the year: Related party 217.61
2 Balance outstanding as at balance sheet date in respect of above cases: To Related party 917.61

iv. According to the information and explanations given to us the company has madeinvestment in companies during the year and the provision of the section 186 of thecompanies Act 2013 have been complied with.

Sr. No. Particulars Investment (in Lacs)
Aggregate amount of investment made during the year: Subsidiaries (wholly owned) (Acquired Pursuant to Scheme of Merger by absorption of KRKumar Industries Limited) 353.33
Related party Nil
Balance outstanding as at balance sheet date in respect of above cases:
Subsidiaries (wholly owned) 2450.46
Related party 115.00

v. The Company has not accepted deposits from the public. Hence the question ofcomplying with the directives issued by the Reserve Bank of India and the provisions ofSection 73 to 76 or other relevant provisions of the Companies Act 2013 and rules framedthere under are not applicable to the Company

vi. Based on the information & explanation provided to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148 (1) of the companiesAct 2013 for any products of the company.

vii. (a) According to the information and explanations given to us no undisputedamounts payable in respect of applicable

statutory dues were in arrears for a period exceeding six months as at the end of thefinancial year from the date they became payable.

(b) According to the information and explanations given to us except Income Tax duesthere are no other statutory dues that have not been deposited with appropriateauthorities on account of any dispute. Details of dues towards Income Tax that have notbeen deposited on account of dispute are as stated below.

Name of Statute Nature of Dues Amount (Rs. In lacs)) Period to which it relate Forum where dispute is pending
Income Tax Act 1961 Interest wrongly charged 0.43 A.Y 2008-09 CPC
Income Tax Act 1961 Interest wrongly charged 0.02 A.Y. 2010-11 CPC

viii. According to the information and explanations given to us the Company has no suchtransaction which are not recorded in the books of account and have surrendered ordisclosed as income during the year in the assessment under the Income Tax Act 1961

ix. According to the information and explanations give to us the Company have nottaken loan or borrowing from financial institution during the year except car loan forwhich the company has been regular in paying the interest and principal amount asstipulated.

x. The Company did not raised any money by way of initial public offer further publicoffer (including debt instruments) and Preferential allotment or private placement termsloans during the year. Accordingly paragraph 3(x) of the order is not applicable to theCompany.

xi. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xii. In our opinion and according to the information and explanation given to us thecompany is not a Nidhi company. Hence the provision of clause 3(xii) of the order are notapplicable 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 Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv. a. The company has an internal Audit system Commensurate with the size and Natureof its Business;

b. The report of internal auditors for the period under audit were considered by thestatutory auditor;

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 him. Hence the provision of clause3(xv) of the order are not applicable to the company.

xvi. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India 1934.

xvii. According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not incurred any cash loses inthe financial year and in the immediately preceding financial year.

xviii. According to the information and explanations given to us there is noresignation of the statutory auditors during the financial year.

xix. In our opinion and according to the information and explanations given to us thefinancial ratios ageing and expected dates of financials assets and payment of financialsliabilities other information's accompanying the financials statement In our opinion andaccording to the information and explanation given to us the board of directors andmanagement plans there is no material uncertainty exits as on the date of audit reportthat the company is capable of meeting its liabilities existing at the date of Balancesheet as and when they fall due within period of one year from the balance sheet date.

xx. In our opinion and according to the information and explanations given to us theCompany is not being covered u/s 135(1) during FY 2021-22 and accordingly said clause3(xx) of Order is not applicable

xxi. In our opinion and as per information given to us there are no qualification oradverse remark by the respective auditors in the CARO report of the Company included inconsolidated financial statements.

For Subramaniam Bengali & Associates
Chartered Accountant
FRN 127499W
CA Rajiv B. Bengali
Partner
Place: Mumbai Mem. No. 043998
Dated: 30.05.2022 UDIN No.: 22043998AJXBTP5138

"ANNEXURE B" TO INDEPENDENT AUDITORS’ REPORT OF EVEN DATE TO THE MEMBERSOF RRIL LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 internalfinancial controls over financial reporting of RRIL Limited ("the Company") asof March 31 2022 in conjunction with our audit of the standalone financial statements ofthe 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 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the

assets of the company; (2) provide reasonable assurance that transactions are recordedas necessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to you the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2022 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Subramaniam Bengali & Associates
Chartered Accountant
FRN 127499W
CA Rajiv B. Bengali
Partner
Place: Mumbai Mem. No. 043998
Dated: 30.05.2022 UDIN No.: 22043998AJXBTP5138

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