Raaj Medisafe India Ltd.
|BSE: 524502||Sector: Health care|
|NSE: N.A.||ISIN Code: INE548H01015|
|BSE 00:00 | 06 Dec||Raaj Medisafe India Ltd|
|NSE 05:30 | 01 Jan||Raaj Medisafe India Ltd|
|BSE: 524502||Sector: Health care|
|NSE: N.A.||ISIN Code: INE548H01015|
|BSE 00:00 | 06 Dec||Raaj Medisafe India Ltd|
|NSE 05:30 | 01 Jan||Raaj Medisafe India Ltd|
To the Members of
RAAJ MEDISAFE INDIA LTD.
CIN - L33112MP1985PLC003039
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of RAAJMEDISAFE INDIA LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2019 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the statement of changes in equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the standalone 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 Standard) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 and its loss totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under 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 audit 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 financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
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 Management Discussion and Analysis Board's Report includingAnnexure to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the standalone financial statements andour auditor 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 Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in sub-section(5) of section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Ind AS Financial Statements including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including Indian Accounting Standards (Ind AS)specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company 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 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 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 audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financialstatements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143 (11) of the CompaniesAct 2013 we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Companies Act 2013 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 Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the statement of changes in equity dealt with by thisReport are in agreement with the books of accounts.
(d) In our opinion the Balance Sheet Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the statement of changes in equitycomply with the Indian Accounting Standards specified in section 133 of the Act read withRule 7 of the Companies (Indian Accounting Standards) Rules 2015 as amended.
(e) No matters found during the audit which have adverse effect on the functioning ofthe company except continuous generation of cash loss to the company which in the opinionof the board the company will now be able to recover gradually with the ongoingproduction and Sales.
(f) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofsub-section (2) of section 164 of the Act.
(g) In our opinion and on the basis of audit procedures adopted there are adequateand effectively operational internal financial control with regard to financial reportingof the company commensurate with the size of the company and the nature of its business. (ReferAnnexure - "B")
With respect to the other matters in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to the bestof 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 standalone financial statements. Refer Note - 38 to standalonefinancial statement.
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
3. With respect to the matter to be included in the Auditors' Report under section197(16):
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date for the year ended as on31.03.2019)
01. In respect of Company's fixed assets:
a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
b) The management at reasonable interval during the year has physically verified FixedAssets of the company based on phased program of verifying all the assets over a period ofthree years which in our opinion is reasonable having regard to the size of the companyand nature of assets and business. Further no Material discrepancies were observed duringthe process of physical verification.
c) All the title deeds of immovable properties are held in the name of the company.
02. The Inventory/stock have been physically verified by the Management at reasonableInterval during the year and as informed to us no material discrepancies were noticed onphysical verification of inventory.
03. The company has not granted any loans secured or unsecured to the companiesfirms LLPs and other parties covered in the register maintained under section 189 of theCompanies Act 2013.
04. In our opinion and according to the information and explanations given to us thecompany has not granted any loan to its directors or any other person in whom thedirectors are interested neither given any guarantee nor provide security to them.Subscription/purchase of securities of body corporate if any is within the limitsprescribed under section 186 of Companies Act 2013.
05. The company has not accepted any deposits from the public and does not have anyunclaimed deposits as at March 312019 and therefore the provisions of clause 3(v) of theorder are not applicable to the Company.
06. Based on the review of the books of accounts maintained by the company andexplanations and information provided to us we are of the opinion that provisions ofMaintenance of cost records under Section 148(1) of the Companies Act 2013 read withRule 3 to The Companies (Cost Records and Audit) Rule 2014 are not required on theactivity (operations) being carried out by the company and accordingly the company is notrequired statutorily to include cost records in its books of accounts.
07. According to the information and explanations given to us in respect of statutorydues:
(a) The company is regular except delay in few cases which are less than six monthsin depositing the Undisputed Statutory dues including Provident Fund Employees' StateInsurance Income Tax Goods and Service Tax Cess Customs Duty and other statutory dueswith the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears as at March 312019 for a period of more than six months fromthe date they became payable.
(c) Details of statutory dues which have not been deposited as at March 312019 onaccount of dispute are given below:-
(Rs. in '000)
08. According to the records of the company examined by us and the information andexplanations given to us we are of the opinion that the company has not defaulted inrepayment of dues to any financial institution bank and government. Further the companyhas not issued any Debenture during any of the preceding years.
09. The company has not raised any money by further public offer (including debtinstruments) during the period under audit. Also in our opinion the company during thefinancial year has applied the term loan for the purpose for which it was raised.
10. Based upon the audit procedures performed by us and according to the informationand explanations given by management no fraud by the Company or no material fraud on theCompany by its officers & employees has been noticed or reported during the year underaudit.
11. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule-V of the CompaniesAct 2013.
12. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the company.
13. In our opinion and according to the information and explanations given to us theCompany is in compliance with section 177 and 188 of Companies Act 2013 where applicablefor all the transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by IndAS 24 - "Related Party Disclosures".
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations provided to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the RBI Act1934.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2(g) of the Independent Auditors' Report of even date to themembers of Raaj Medisafe India Limited on the standalone Ind AS financialstatements for the year ended March 312019)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013
We have audited the internal financial controls over financial reporting of RaajMedisafe India Limited as of 31st March 2019 in conjunction with our audit ofthe Standalone Ind AS financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of the reliable financial information as requiredunder the Companies Act 2013.
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 Financial Controls over Financial Reporting and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.
Our audit involves performing procedure 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 reportingincluding 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 the internal control based on the assessed risk.The procedures selected depend on the auditor's judgment including the assessment of therisks of the material misstatement of the financial statements whether due to fraud anderror.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide the basis for our audit opinion on the Company's internal financial controlssystem over 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 the financial reporting andthe preparation 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorization of management and Directors of Company;
3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 internal financial limitations of the internal financial control 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 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.
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 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit onInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.