You are here » Home » Companies » Company Overview » Rushil Decor Ltd

Rushil Decor Ltd.

BSE: 533470 Sector: Others
NSE: RUSHIL ISIN Code: INE573K01017
BSE 00:00 | 25 Nov 379.50 -2.45
(-0.64%)
OPEN

385.00

HIGH

387.00

LOW

377.95

NSE 00:00 | 25 Nov 379.20 -2.30
(-0.60%)
OPEN

384.35

HIGH

385.70

LOW

377.80

OPEN 385.00
PREVIOUS CLOSE 381.95
VOLUME 11331
52-Week high 675.00
52-Week low 302.40
P/E 9.86
Mkt Cap.(Rs cr) 756
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 385.00
CLOSE 381.95
VOLUME 11331
52-Week high 675.00
52-Week low 302.40
P/E 9.86
Mkt Cap.(Rs cr) 756
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rushil Decor Ltd. (RUSHIL) - Auditors Report

Company auditors report

TO THE MEMBERS OF RUSHIL DCOR LIMITED

REPORT ON THE AUDIT OF THE STANDALONE IND AS FINANCIAL STATEMENTS OPINION

We have audited the accompanying standalone Ind AS financial statements of M/sRUSHIL DcoR LIMITED (‘'the Company") which comprise the standalonebalance sheet as at 31st March 2021 and the standalone statement of profitand loss (including other comprehensive income) standalone statement of changes in equityand standalone statement of cash flows for the year then ended and notes to thestandalone financial statements including accounting summary policies and other ofsignificant explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (the Act) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies [Indian Accounting Standards] Rules 2015 asamended ("Ind AS" and other accounting principles generally accepted in Indiaof the state of affairs (financial Position )of the Company as at 31st March2021 and its Profits (financial performance including other comprehensive income) itsCash flows and changes in equity 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 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 (ICAI) together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the 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 sufficientand appropriate to provide a basisfor our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.

These matters were addressed in the context of our audit of the financial statements asa whole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Key Audit Matter:

1. Revenue Recognition

Refer Note 46 to the standalone Ind AS financial statements

Description of Key audit Matter our response and results
Revenue of the Company comprises of sale of industrial and decorative laminates and sale of medium density fiber boards (plane and pre laminated) to its domestic and international customers. The Company sells its products through a network of distributors and dealers in the relevant markets and a part of the sales is also made as institutional sales/project sales directly to the end use customers. Our key audit procedures to assess the recognition of revenue on sale of goods included the following:
Revenue recognition significantaudit risk is across the Company. Specifically there is a risk that revenue is recognised on sale of goods before the control in the goods is transferred. We assessed the appropriateness of the Company's revenue recognition policies including those related to discounts and incentives;
We obtained an understanding of process and assessed the design implementation and operating effectiveness of management's key internal controls in relation to revenue recognition from sale of goods. We also tested the Company's controls over timing of revenue recognition;
We also tested on a sample basis whether specific revenue transactions around the year end had been recognised in the appropriate period on the basis of the terms of sale of the contract particularly with reference to the transfer of control in the goods in question with regard to the year end transactions.
We inspected key customer contracts/ purchase orders to identify terms and conditions related to acceptance of goods and the right to return and assessing the Company's revenue recognition policies with reference to the requirements of the prevailing accounting standards;

Information other than the financial Statements and Auditor's Report thereon

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 statements 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 connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone

Ind AS financial statements or our knowledge obtained in the audit or otherwise appearsto be materially misstated. If based on the work we have performed we conclude thatthere is a material misstatement of this other information we are required to report thatfact. We have nothing to report in this regard.

Responsibilities of Management and Those charged with Governance for the Standalone IndAS 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 standalone Ind AS financialstatements that give a true and fair view of the state of affairs

(financial position)Profit or loss(financial performance including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(‘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 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 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 standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due. to fraud orerror.

In preparing 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 Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS financial Statements

Our objectives 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 includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards 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 standalone Ind AS financial statements As part of anaudit in accordance with Standards on Auditing we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assessthe risks of material misstatement of the standalone Ind AS financial statements whetherdue to fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control. Obtain anunderstanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under section

143(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 reasonableness ofaccounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may significantdoubt on the cast

Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone Ind AS financial statement or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone Ind ASfinancial statements including the disclosures and whether the standalone

Ind AS financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the significantaudit findingsand deficiencies in anyinternal control that we significant 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 Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public such communication interestbenefits.

Report on other Legal and Regulatory Requirements

1. 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 andlimits laid down under section 197 read with schedule V to the Act. The remuneration paidto any director is not in excess of the limit laid down under section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section

197(16) which are required to be commented upon by us.

2. 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 of the Act we give inthe "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

3. As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the 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 including books

c. The standalone Balance Sheet the standalone

Statement of Profit and Loss including other

Comprehensive Income standalone Statement of Changes in Equity and the standaloneStatement of Cash Flow dealt with by this Report are in agreement with the books ofaccount.

d. In our opinion the aforesaid standalone Ind

AS financial statements comply with the Indian Accounting Standards specified undersection 133 of the Act.

e. On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the

Directors is disqualified as on 31 st March 2021 from being appointed as adirector in terms of Section 164(2) of the Act.

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 our separate Reportin "Annexure

B". Our report expresses an unmodified opinion on the adequacy and operatingeffectiveness of the Company's internal financial control over financial reporting.

g. 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

2014as amended in our opinion and to the best of our information and according to theexplanations given to us:

I. The Company has disclosed the impact of pending litigations on its financialposition in the standalone Ind AS Financial Statements (Refer Note No 36 to the

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. During the year there has been no delay in transferring amounts required to betransferred to the Investor

Education and Protection Fund by the Company.

AnnEXURE A

TO THE INDEPENDENT AUDIT REPORTOF EVEN DATE TO THE MEMBERS OF RUSHIL DCOR LTD: ON THESTANDALONE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2021

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) According to the information and explanations given to us the property plant andequipment. are verified in a phased manner by the management during the year which inour opinion is reasonable having regard to the size of the Company and nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As explained to us the inventories have been physically verified by themanagement at reasonable intervals during the year. The discrepancies noticed on betweenphysical stocks and the books of verification accounts were not material.

(iii) The Company has not granted any loans secured or unsecured loans to Companiesfirms Limited Liability Partnership or other parties covered in the register maintainedunder section 189 of the Companies Act

2013 (the Act). Accordingly the provisions of clause 3(iii) (a) (b) and (c) of theOrder are not applicable to the Company.

(iv). According to the information and explanations given to us the Company has notmade any investment or given loans during the year. Accordingly paragraph 3(iv) of theorder is not applicable.

(v) The Company has not accepted any deposits from the public during the year underreview.

(vi). As explained to us the Central Government has not prescribed the maintenance ofCost records under sub section (1) of section 148 of the companies Act 2013.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-tax dutyof customs Goods and Service Tax cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company did not have any dues on account of employees' stateinsurance.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax duty of customs Goods and Service Taxcess and other material statutory dues were in arrears as at 31st March 2021for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us there are no materialdues of Goods and Service Tax & Income tax which have not been deposited with theappropriate authorities on account of any dispute However according to information andexplanations given to us the following dues of duties of Custom Duty of Excise andSales Tax/ Value Added Tax have not been deposited by the Company on account of Dispute:

nature of Statues nature of Dues Amount (In `) (net of payments) period to which the amount relates forum where dispute is pending
Central Excise Act1944 Excise Duty Interest& Penalty 7212185/- up to Sept-2012 Custom Excise & Service Tax Appellate Tribunal Ahmedabad
The Customs Act 1962 Custom Duty with Interest & Penalty 2255536/- with Interest 500000/- Penalty FY 2014-15 Custom Excise & Service Tax Appellate Tribunal Ahmedabad
Karnataka Value Added Tax Act 2003 Value Added Tax 1581489/- FY 2016-17 Assistant Commissioner of Commercial Taxes Shimoga

(viii) According to information & explanations given to us the Company has notdefaulted in repayment of its dues to Banks or Financial institutions or Government. TheCompany does not have any borrowings from debenture holders.

(ix) In our opinion and according to the information & explanations given to usthe moneys raised by way of further public offer (rights issue) and term loans during theyear have been applied for the purposes for which they were raised.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by been noticed or reported its during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable Ind AS.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(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. Accordingly paragraph 3(xv) ofthe Order is not applicable. (xvi) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE B

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF RUSHIL DCORLIMITED ON THE STANDALONE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31STMARCH 2021

Independent Auditor's Report on the Internal financial controls under clause (i) ofSub-section 3 of Section 143 of the companies Act 2013 ("the Act")

In conjunction with our audit of the standalone Ind AS financial statements of M/sRUSHIL DeCOR LIMITED

("the Company") as at and for the year ended 31st March

2021 We have audited the internal financial controls over financial reporting of theCompany as of that date.

Management's Responsibility for Internal financial controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of the Company's business including adherence to 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 over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsover financial reporting and the Guidance Note issued by

ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an internal financial controls over financial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements 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 reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial reportingincludes those policies procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the Company; (2) provide reasonable assurance that transactions are recorded asnecessary 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the Companyconsideringof the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For parikh & Majmudar

Chartered Accountants FR No. 107525W

UDIN: 21040230AAAAGT2688
(c.A (Dr) Hiten M. parikh)
Place: Ahmedabad Partner
Date: 24th June 2021 Membership No. 040230

.