You are here » Home » Companies » Company Overview » Shree Rama Newsprint Ltd

Shree Rama Newsprint Ltd.

BSE: 500356 Sector: Industrials
NSE: RAMANEWS ISIN Code: INE278B01020
BSE 00:00 | 08 Dec 20.35 1.55
(8.24%)
OPEN

18.70

HIGH

21.05

LOW

18.70

NSE 00:00 | 08 Dec 20.35 1.55
(8.24%)
OPEN

18.85

HIGH

21.20

LOW

18.75

OPEN 18.70
PREVIOUS CLOSE 18.80
VOLUME 58857
52-Week high 27.60
52-Week low 13.85
P/E
Mkt Cap.(Rs cr) 300
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.70
CLOSE 18.80
VOLUME 58857
52-Week high 27.60
52-Week low 13.85
P/E
Mkt Cap.(Rs cr) 300
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Rama Newsprint Ltd. (RAMANEWS) - Auditors Report

Company auditors report

To the Members of Shree Rama Newsprint Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Shree RamaNewsprint Limited ("the Company") which comprise the Balance Sheet as at March31 2021 and the statement of Profit and Loss (statement of changes in equity) andstatement of Cash Flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and loss (changes in equity) and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditors' Responsibilities for theaudit of the Financial Statements section of our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Emphasis of Matter Paragraph

We refer note no. 34 to the Standalone Financial Statements of theCompany wherein financial impact of COVID-19 on the operations of the Company has beendisclosed and the statement describes Management's assessment of impairment of carryingvalues of its Property Plant & Equipment. Based on such assessment Management expectsthe carrying amount of Property plant and Equipment as at March 31 2021 will berecovered. Future operations of the Company will be subject to developments on COVID-19front together with stability in the economy which are currently uncertain.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

No. Key Audit Matter Auditors' Response
1 Impairment of assets - Shree Rama News Print Limited (Refer to Note 34 in the financial statements) Auditor of Shree Rama News Print Limited has carried out the following procedures in respect of this matter:
The Management's assessment of impairment of carrying values of its Property Plant & Equipment (PPEs) whereby based on such assessment Management expects that the carrying amount of Property plant and Equipment as at March 312021 will be recovered. Obtained an understanding of Management's evaluation for formal estimate of recoverable amounts and identification of indicators for assets that may be impaired in accordance with Ind AS.
Tested the design implementation and operating effectiveness of the relevant controls related to management review of impairment of PPEs.
Considering the materiality of the amounts and management estimate involved this matter has been identified as a key audit matter for the current year audit.
Assessed the external and internal sources of information such as decline in Market Value significant changes with adverse effect obsolescence or physical damage etc and future cash flow projections to derive Value in use for Property Plant and Equipment.
Analysed the recoverable amount of Property Plant and Equipment with respect to carrying amount of the assets.

Information other than the Financial Statements and Auditors' Reportthereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the AnnualReport but does not include the financial statements and our auditors' report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact.

We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance (changes in equity) and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing these 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.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditors' report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

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

2. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by Management.

4. Conclude on the appropriateness of Management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors' report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors' report. However future events or conditions may cause the Companyto cease to continue as a going concern.

5. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' 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 interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

1. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

2. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books and properreturns adequate for the purposes of our audit have been received from the branches notvisited by us.

3. The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of accounts.

4. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

5. On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164 (2) of the Act.

6. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

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

• The Company has disclosed the impact of pending litigations onits financial position in its financial statements - Refer Note 28 to the financialstatements

• The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

• There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.

Other Matter

Due to COVID-19 related lockdown we were not able to participate inphysical verification of cash and inventory that was carried out by Management subsequentto the year end. Consequently we have performed alternate audit procedures to audit theexistence of cash and inventory as per the guidance provided in SA 501 "AuditEvidence- Specific Consideration for selected items" and have obtained sufficientappropriate audit evidence to issue our unmodified opinion on these standalone financialresults.

For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Parag Hangekar
Partner
Place: Mumbai Membership No. 110096
Date: May 28 2021 UDIN: 21110096AAAACN7604

The Annexure A referred to in Independent Auditors' Report to themembers of the Company on the financial statements for the year ended March 31 2021 wereport that:

(i) a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) As explained to us the fixed assets have been physically verifiedby management at reasonable intervals under a phased programme of verification. Inaccordance with this program a portion of the fixed assets has been physically verifiedby the management during the year and no material discrepancies have been noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of company and nature of its assets.

c) The title deeds of the immovable properties as disclosed in scheduleof fixed assets to the financial statements are held in the name of the Company.

(ii) The physical verification of inventory has been conducted atreasonable intervals by the Management during the year. In respect of inventory lying withthird parties these have substantially been confirmed by them. In our opinion thefrequency of verification is reasonable. No material discrepancies have been noticed onsuch verification.

Due to COVID-19 related lockdown we were not able to participate inphysical verification of inventory that was carried out by Management subsequent to theyear end. Consequently we have performed alternate audit procedures to audit theexistence of inventory as per the guidance provided in SA 501 "Audit Evidence-Specific Consideration for selected items"

(iii) In our opinion and according to the information and explanationgiven to us the Company has not granted any loans secured or unsecured to companiesfirms Limited Liability Partnership or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly paragraph 3 (iii) (a) 3 (iii) (b) and 3 (iii)(c) of the order are not applicable to the Company.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantees or securityin respect of any loans to any party covered under Section 185 of the Act. The Company hasmade no investments which are covered under provision of Section 186 of the Act. Hence theclause is not applicable.

(v) The Company has not accepted any deposits from the public withinthe meaning of Section 73 to 76 of the Act and Rules framed there under to extentnotified.

(vi) We have broadly reviewed the books of accounts maintained by thecompany pursuant to the order made by the Central Government for maintenance of costrecords prescribed under sub-section 1 of section 148 of the Act and are of the opinionthat prima facie the prescribed accounts and records have been made and maintained. Wehave however not made a detailed examination of the said records with a view to determinewhether they are accurate or complete.

(vii) According to the information and explanations given to us and therecords of the Company examined by us in our opinion

a) the Company is generally regular in depositing the undisputedstatutory dues including provident fund employee state insurance income tax sales taxservice tax GST duty of customs duty of excise value added tax cess and any othermaterial statutory dues as applicable with the appropriate authorities.

Further no undisputed amounts payable in respect of provident fundemployee state insurance income tax sales tax service tax GST duty of customs dutyof excise value added tax cess and any other material statutory dues were in arrears asat March 31 2021 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and therecords of the company examined by us the dues in respect of sales tax income-tax dutyof customs service tax GST entry tax value added tax central sales tax duty ofexcise which have not been deposited with the appropriate authority on account of anydisputes are as under:

(Rs. in Lakhs)
Name of the Statute Nature of the dues Amount Period Forum where dispute is pending
Central Excise Act Excise Duty 470.72 Various years Commissioner of excise and Customs
Bombay Stamp Act Stamp duty and registration fees including penalty 130.75 2000-01 High Court (Gujarat)
Sales Tax Act GVAT 151.25 Various years Joint Commissioner of Commercial Taxes (Appeal) Gujarat

(viii) According to the records of the company examined by us and theinformation and explanation given to us the company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government as at the Balancesheet date.

(ix) The Company did not raise any moneys by way of initial publicoffer or further public offer (including debt instruments) nor has obtained any term loansduring the year hence paragraph 3 (ix) of the order is not applicable to the Company.

(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanation given to us we have neither comeacross any instances of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

(xi) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredunder Ind AS and Companies Act 2013.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Therefore paragraph 3(xiv) of the order is not applicable tothe Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of theorder are not applicable to the Company.

For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Parag Hangekar
Partner
Place: Mumbai Membership No. 110096
Date: May 28 2021 UDIN: 21110096AAAACN7604

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Shree Rama Newsprint Limited ("the Company") as of 31 March 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India('ICAI').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 company's policiesthe safeguarding 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgement including the assessment of therisks of material 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 aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper Managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and to the best of our information & according tothe explanations given to us the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Batliboi & Purohit
Chartered Accountants
Firm Registration Number:101048W
Parag Hangekar
Partner
Place: Mumbai Membership No. 110096
Date: May 28 2021 UDIN: 21110096AAAACN7604

.