To The Members of
Shree Rajasthan Syntex Limited
Report on the Audit of the Financial Statements
We have audited the financial statements of Shree Rajasthan Syntex Limited ("theCompany") which comprise the Balance Sheet as at 31 March 2022 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred 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 andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 the loss and total comprehensiveloss changes in equity 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 (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note no. 41 to the financial statement regarding preparation ofthe financial results on going Concern basis. The Company has accumulated losses as onMarch 31 2022 its current liabilities are substantially higher than current assets andhas defaulted in repayment of borrowings. These conditions indicate the existence of amaterial uncertainty on the Company's ability to continue as going concern. Theappropriateness of assumption of going concern and evaluation of recoverable value of itsnon-current assets is critically dependent upon the successful outcome of the discussionwith its lenders for a financial resolution the Company's ability to raise finance /generate cash flows in future to meet its obligations. The Company is also of the viewthat no impairment of its non-current assets is required. Further Bank of Baroda thefinancial creditor (Member of Consortium arrangement) has filed petition u/s 7 ofInsolvency Bankruptcy Code 2016 before National Company Law Tribunal (NCLT Jaipur) dated4th May 2022.
Further the company is in process of filing of an application for Pre-Packaged Schemeu/s 54A read with section 10 of Insolvency Bankruptcy Code 2016. In view of themanagement's expectation of a successful outcome in future years the Statement has beenprepared on going concern basis.
Our conclusion is not modified in respect of this matter.
Emphasis of matter
We draw attention to Note no. 41 to the financial statements the company has not madeany provision for amount towards penal interest penalty etc. as may be charged by thelenders. Further the company has recognised interest expense on estimated basis takingreference of the last sanctioned interest rates charged by the banks in the absence ofstatements of accounts from banks.
Our conclusion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March31 2022. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. In addition to the matter described in the"Material Uncertainty Related to Going Concern" section we have determined thematters described below to be the key audit matters to be communicated in our report. Foreach matter below our description of how our audit addressed the matter is provided inthat context.
We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the financial statements section of our report including in relation tothese matters. Accordingly our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatement of the financialstatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our audit opinion on the accompanyingfinancial statements.
|Key audit matters ||How our audit addressed the key audit matter |
|Litigation claims and other contingencies (as described in note 40 of the financial statements) |
|As indicated in Note 40 the Company is involved in various litigations and claims. ||Our audit procedures included the following: |
| Obtained an understanding of identification process relating to litigations and claims and contingent liabilities and evaluated the design and tested the operating effectiveness of controls in respect of process |
|This risk of litigations and claims would have a significant financial impact if the potential exposures were to materialize. |
|The amounts of claims may be significant and estimates of the amounts of provisions or contingent liabilities are subject to significant management judgement. |
| Assessed the progress of all significant contingencies consideration of any evidence of legal disputes. |
|This matter has been determined to be a key matter since the aforementioned cases requires significant judgements by management including that obtained from its legal advisors. || Evaluated management's assessment of the likely outcome and potential exposures arising from significant contingencies subject to ongoing court and arbitration proceedings and considered the requirements for any provision. |
| Inquired with both legal and finance personnel in respect of ongoing litigations or claims proceedings inspected relevant correspondence and requested a confirmation letter from the Company's in-house legal counsel. Also obtained legal confirmation letters on sample basis from external legal counsels. |
| ||Based on the above procedures we found that the Management's assessment to be reasonable. |
We have determined that there are no other key audit matters to communicate in ourreport.
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 Company's annual report but doesnot include the financial statements and our auditors' 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 in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Management's Responsibilities 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 (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
In preparing the financial statements the Company's management is responsible forassessing the ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. 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 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the 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 ourauditors' 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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the 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) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the 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 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 from being appointed as a director in terms of Section164(2) of the Act;
f. The going concern matter described in the "Material Uncertainty Related toGoing Concern" Section above in our opinion may have an adverse effect on thefunctioning of the Company.
g. With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to financial statements and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B".Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting;
h. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 of the act as amended. In our opinionthe managerial remuneration for the year ended March 31 2022 has been paid / provided bythe Company to its directors in accordance with the provisions of section 197 read withSchedule V to the Act;
i. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 40 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
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 beliefno funds (which are material either individually or in the aggregate) have been advancedor loaned 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 writing or otherwise that the Intermediary shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like 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.
For Doogar & Associates
Firm Registration No. 000561N
Membership No. 517347
Date: May 25 2022
Place: New Delhi
Annexure "A" to the Independent Auditor's Report
(Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Shree Rajasthan Syntex Limited ofeven date)
Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2020 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act")
i. In respect of the Company's Property Plant and Equipment and Intangible Assets: -
a. (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and Equipment and relevant detailsof right-of-use assets.
(B) The company has maintained proper records showing full particulars of intangibleassets.
b. The Company has a program of physical verification of Property Plant and Equipmentand right-to- use assets to cover all the assets once every three year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain plants and machinery were physically verified bythe management during the year. According to the information and explanations given to usno material discrepancies were noticed on such verification. Other Plant and equipmentswere not verified during the year.
c. Title deeds of all immovable properties (other than properties where the documentsare with lending banks as equitable mortgage for which we have not received anyconfirmation letter from the banks) disclosed in the financial statements included underProperty Plant and Equipment are held in the name of the Company as at the balance sheetdate.
d. The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.
e. No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
ii. (a) The physical verification of inventory has been conducted at reasonableintervals by the Management during the year and in our opinion the coverage andprocedure of such verification by the Management is appropriate. The discrepancies noticedon physical verification of inventory as compared to book records were not 10% or more inaggregate for each class of inventory and have been properly dealt with in the books ofaccounts.
(b) The Company has not been sanctioned/renewed working capital limits during the year.Since the accounts are NPA the banks have freezed working capital limits sanctioned inearlier years. No quarterly returns or statements has been filed with the Banks.
iii. According to the information and explanations given to us
(a) The Company has not made investments in nor provided any guarantee or security orgranted any loan and advances in nature of loans secured or unsecured to companiesfirms Limited Liability Partnerships or any other parties during the year.
(b) The terms and conditions of the grant of such loan in earlier years are in ouropinion prima facie not prejudicial to the Company's interest.
(c) The schedule of repayment of principal and payment of interest has been stipulatedthe repayments of principal amount was regular as per stipulations but receipt of interestis not regular;
(d) There is an overdue interest amount of Rs. 31.77 Lakhs receivable as at theyear-end. No steps have been taken by the company for the recovery of interest.
(e) The Company has not renewed or extended or fresh loan granted to settle the overdueof existing loan during the year.
(f) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment during theyear hence reporting under clause 3(iii)(f) is not applicable.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.
v. According to the information and explanations given to us the Company has acceptedand complied with provisions within the meaning of Sections 73 to 76 of the Act and theCompanies (Acceptance of Deposits) Rules 2014 (as amended) for the deposits accepted inearlier year.
vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.
vii. In respect of statutory dues:
(a) In our opinion the company has been regular in depositing the Undisputed statutorydues including provident fund employees' state insurance income-tax sales-tax servicetax duty of custom value added tax goods and service tax cess and other statutory duesby the due dates with appropriate authorities.
There were no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income-Tax Service Tax Sales Tax Goods and Services Tax Duty of CustomDuty of Excise Value Added Tax Cess and Other Statutory Dues at the year end for aperiod of more than six months from the date they become payable.
(b) Details of statutory dues referred to sub-clause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below:
|SI. No. ||Name of the Statue ||Nature of the dues ||Forum where dispute is pending || |
Period to which the amount relates (F.Y.)
Amount (Rs. In lakhs)
|Deposited under protest |
|1 ||Rajasthan Stamp Act ||Stamp Duty ||Tax Board Ajmer || |
|2 ||Rajasthan Tax into entry of goods into local area Act1999 ||Entry tax and interest ||High Court || |
2001-02 to 2005-06
|3 ||Rajasthan Tax into entry of goods into local area Act1999 ||Entry tax and interest ||High Court || |
2006-07 to 2014-15
|4 ||Central Excise Act 1994 ||Excise Duty and Custom Duty ||Dy Commissioner / Asst. Commissioner ||1997 & onwards || |
|5 ||Central Excise Act 1994 ||Excise Duty and Custom Duty ||Commissioner Appeals ||1994-95 & 1995-96 || |
|6 ||Service Tax ||Service Tax ||Dy Commissioner / Asst. Commissioner ||1998- 99 to 1999- 2000 || |
|7 ||Service Tax ||Service Tax ||Commissioner Appeals ||2007 & onwards || |
|8 ||Service Tax ||Service Tax ||CESTAT ||2007 & onwards || |
|9 ||Rajasthan Value Added Tax 2003 ||Value added tax with RIPS ||High Court ||2007-08 to 2015-16 || |
|10 ||Central Goods and Service Act 2017 ||Penalty on E-Ways Bills ||Commissioner Appeals ||2020-21 || |
viii. According to the information and explanation given to us and the records of theCompany examined by us there is no income surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act 1961 that has not been recorded inthe books of account.
(a) The Company has defaulted in repayment of loans other borrowings and interestthereon as follows:
|Nature of borrowings ||Name of lender ||Amount not paid on due date (Rs. in Lakhs) ||Whether Principal or interest ||No. of days delay or unpaid ||Remarks if any |
|Term Loan ||State Bank of India ||1360.68 ||Principal and Interest || ||Accounts freeze no transaction since July 2017 |
|Term Loan ||Bank of Baroda ||2474.72 ||Principal and Interest || ||Accounts freeze no transaction since April 2017 |
|Term Loan ||IDBI Bank ||1681.44 ||Principal and Interest || ||Accounts freeze no transaction since February 2019 |
|Cash credit ||State Bank of India ||6468.15 ||Principal and Interest || ||Accounts freeze no transaction since July 2017 |
|Cash credit ||Bank of Baroda ||1500.40 ||Principal and Interest || ||Accounts freeze no transaction since October 2017 |
|Cash credit ||IDBI Bank ||1394.65 ||Principal and Interest || ||Accounts freeze no transaction since October 2019 |
|Bill Discounting ||IDBI Bank ||1779.71 ||Principal and Interest || ||Accounts freeze no transaction since October 2017 |
| || ||16659.75 || || || |
*These Outstanding amounts are subject to reconciliation with the Financial Lenders.
(b) According to the information and explanation given to us and on the basis of ouraudit procedures we report that the Company has not been declared wilful defaulter by anybank or financial institution or government or any government authority.
(c) No term loans obtained during the years hence reporting under clause 3(ix)(c) ofthe order not applicable.
(d) On the overall examination of the financial statements of the Company no fundsraised on the short term basis have been used for long-term purposes by the CompanyClause 3(ix)(d) is not applicable .
(e) There is no subsidiary of the Company. Accordingly the reporting under Clause3(ix)(e) of the Order are not applicable to the Company.
(f) There is no subsidiary joint venture or associate of the company. Accordingly thereporting under Clause 3 (ix) (f) of the Order are not applicable to the Company.
x. (a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly the reportingunder Clause 3(x)(a) of the Order are not applicable to the Company.
(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or convertible debenture (fullypartially or optionally convertible) during the year.
xi. (a) During the course of the examination of the books and records of the Companywe have neither come across any instance of material fraud by the Company or on theCompany noticed or reported during the year nor have been informed of any such case bythe Management.
(b) No report under section 143(12) of the Act in Form ADT-4 was not required to befiled. Accordingly the reporting under Clause 3(xi)(b) of the Order are not applicable tothe Company.
(c) According to the information and explanations given to us and as represented to usby the management no whistle blower complaints have been received during the year andupto the date of this report by the Company.
xii. The Company is not a Nidhi Company. Accordingly the reporting under Clause 3(xii)of the Order are not applicable.
xiii. According to the information and explanation and records made available by thecompany the Company has complied with the provision of Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal audit system commensuratewith the size and the nature of its business.
(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.
xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him. Accordingly reporting under Clause 3(xv) of theOrder are not applicable.
xvi. (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Accordingly reporting under Clause 3(xvi)of the Order are not applicable.
(b) Based on the information and explanations provided by the management of theCompany there is no Core Investment Company as the part of the Group.
xvii. The Company has incurred cash losses of Rs. 3205.09 Lakhs during the financialyear covered by our audit and Rs. 1975.97 Lakhs in the immediately preceding financialyear.
xviii. There has been no resignation of the statutory auditors of the Company duringthe year.
xix. As referred to in Material uncertainty related to Going concern' paragraphin our main audit report and as disclosed in Note 65 to the financial statements whichincludes the financial ratios and ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions there exists a materialuncertainty that the Company may not be capable of meeting its liabilities existing atthe date of balance sheet as and when they fall due within a period of one year from thebalance sheet date.
xx. The company is not required to spend CSR Expenditure as required by section 135 ofthe Companies Act 2013 as the company is incurring losses hence reporting underparagraph 3(xiv) of the Order is not applicable.
For Doogar & Associates
Firm Registration No. 000561N
Membership No. 517347
Date: May 25 2022
Place: New Delhi
Annexure B to the Independent Auditors' Report
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report to the members of Shree Rajasthan Syntex Limited ofeven date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ShreeRajasthan Syntex Limited as of 31 March 2022 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors are responsible for establishing and maintaining internalfinancial controls based on the internal financial controls 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 ("the GuidanceNote"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols. 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 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 controls over financial reporting with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlsover financial reporting included obtaining an understanding of such internal financialcontrols over 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 judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with Reference toFinancial Statements
A company's internal financial controls over financial reporting with reference tofinancial statements are a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls over financial reporting with reference to financialstatements include those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the
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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting withReference to Financial Statements
Because of the inherent limitations of internal financial controls over financialreporting with reference to financial statements including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls over financial reporting with reference to financial statements tofuture periods are subject to the risk that the internal financial controls may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
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 internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
For Doogar & Associates
Chartered Accountants Firm Registration No. 000561N
Membership No. 517347
Date: May 25 2022 Place: New Delhi