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Raaj Medisafe India Ltd.

BSE: 524502 Sector: Industrials
NSE: N.A. ISIN Code: INE548H01015
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NSE 05:30 | 01 Jan Raaj Medisafe India Ltd
OPEN 29.10
PREVIOUS CLOSE 29.00
VOLUME 1000
52-Week high 72.50
52-Week low 26.15
P/E 10.55
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 29.10
CLOSE 29.00
VOLUME 1000
52-Week high 72.50
52-Week low 26.15
P/E 10.55
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Raaj Medisafe India Ltd. (RAAJMEDISAFE) - Auditors Report

Company auditors report

To

The Members of

Raaj Medisafe India Limited

Report on the audit of the IND AS Financial Statements

Opinion

We have audited the accompanying IND AS Financial Statements of Raaj Medisafe IndiaLimited ("the Company") which comprise the balance sheet as at March 312021 and the Statement of Profit and Loss and Statement of Cash flows and notes tothe IND AS Financial Statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IND AS Financial Statements give the information required bythe Companies Act 2013 (‘Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its Profit and Cash flowsfor 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 Companies Act 2013. Our responsibilities under those Standardsare further described in the auditor's responsibilities for the audit of the IND ASFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of the IND ASFinancial Statements under the provisions of the Act and the rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone IND AS Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the IND AS FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

The Key Audit Matter How the matter was addressed in our audit
As disclosed in note 32 to the IND AS Financial Statements on 1 April 2020 the Company M/s Padma Polytex (India) Pvt. Ltd. amalgamate under a scheme of amalgamation. Our audit procedures included underlying and procedure as per scheme of amalgamtion:
Pursuant to the scheme of Amalgamation as aforesaid Raaj Medisafe India Limited has issued and allotted the equity shares to the shareholders of Padma Polytex India Pvt. Ltd. in the ratio of 5.90 fully paid up equity shares of Rs.10 each for every one equity shares held by the shareholders of Padma Polytex India Pvt. Ltd. as on March 24 2021 Accounting for the amalgamation involves judgment in order to: Understanding the process followed by the Company to determine the amount of accrual for discounts and rebates.
Identify and measure the carrying amount of the identifiable assets (tangible and intangible) acquired and liabilities assumed including the contingent liabilities. Evaluating the design and implementation and testing operating effectiveness of Company's general IT controls and key manual.
Allocate the consideration transferred between identifiable assets and liability and security premium. Assessing the Company's revenue recognition policies with reference to the requirements of the applicable accounting standards.
This was a material acquisition for the Company and given the level of estimation and judgment required we considered it to be a key audit matter. Performing substantive testing by selecting samples of discounts and rebates transactions recorded during the year as well as period end discounts and rebates accruals
and matching the parameters used in the computation with the relevant source documents.
Checking completeness and accuracy of the data used by the Company.
Testing actualization of estimated accruals on a sample basis.
Assessing entries posted to revenue on a sample basis to identify unusual items and examining the underlying documentation

Information other than the IND AS Financial Statements and auditors' report thereon

The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Director'sReport and other company related information but does not include the standalone IND ASFinancial Statements and our auditor's report thereon.

Our opinion on the IND AS Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the IND AS Financial Statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the IND AS Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's responsibility for the IND AS Financial Statements

The Company's board of directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these IND AS Financial Statements thatgive a true and fair view of the financial position and financial performance and Cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the accounting standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the IND AS Financial Statements management is responsible for assessingthe Company'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.

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

Auditor's responsibilities for the audit of the IND AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the IND AS 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 IND AS 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 IND AS 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 to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the Company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 IND AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the IND AS FinancialStatements including the disclosures and whether the IND AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Other Matters

 

Modified Audit Procedures necessitated pursuant to outbreak of COVID-19 pandemic

Due to spread of COVID-19 pandemic and Sate/Nation-wide lockdown/ travel restrictionsimposed by Central / State Government/ Local Authorities extended from time to timecommencing from the first fortnight of April 2021 the audit could not be carried byvisiting the Office of the company. Accordingly this extraordinary situation due toCovid-19 has necessitated modification of our audit procedures so as to carry out theaudit remotely through online access/receipt of digital documents.

Accordingly we modified our audit procedures as follows:

a. The company has provided/shared with us the necessary books of accounts recordsscanned copy of documents etc. through digital medium such as emails access to Tally ERPAccounting Software. To this extent the audit processes were carried out on the basis ofverification of such books of accounts records scanned copy of documents etc. madeavailable to us through digital medium as above which were relied upon as audit evidencefor conducting the audit and reporting for the current period.

b. We have made enquiries and gathered necessary audit evidence including resolution ofour audit observations through digital medium dialogues and discussions over phone callsemails and similar communication channels instead of a face-to-face interaction with thedesignated-officials.

c. We have also relied upon and performed our audit procedures in accordance with theAdvisories and Key considerations issued by the Institute of Chartered Accountants ofIndia on the various Accounting and Auditing aspects impacted by COVID-19.

Our audit opinion is not modified in respect of the above.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

(d) In our opinion the aforesaid IND AS Financial Statements comply with theaccounting standards specified under section 133 of the Act read with rule 7 of the Companies(Accounts) Rules 2014 except for IND AS-109 re. Financial Instruments and IND AS 107re. Financial Instruments Disclosures;

(e) On the basis of the written representations received from the directors as on March31 2021 taken on record by the board of directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director

in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference toIND AS Financial Statements of the Company and its joint operations which are companiesincorporated in India and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(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 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 the pending litigations on its financialposition in its IND AS Financial Statements- Refer Note No. 32 to the IND AS FinancialStatements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

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 Raaj Medisafe India Limitedon the accounts of the company for the year ended 31st March 2021)

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

I. In respect of the Company's fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable having regardto the size of the Company and nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us the records examined byus and based on the examination of records provided to us we report that in respect ofimmovable properties of land that have been taken on lease and disclosed as fixed assetsin the IND AS Financial Statements the lease agreements are in the name of the Company.

ii. As explained to us the inventories were physically verified during the year by theManagement. In our opinion the frequency of verification is reasonable. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

iii. According the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clause 3 (iii) (a) to (c) of the order are not applicableto the Company.

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 Act2013in respect of grant of loans or investment made or providing any guarantees or securityas applicable.

v. As per the information and explanations given to us the Company has not accepteddeposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptanceof Deposits) Rules 2014 (as amended). Accordingly the provisions of Companies Act 2013and the rules framed there under are not applicable.

vi. The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii. According to the information and explanations given to us in respect of statutorydues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.

b) According to the information and explanation given to us there are no dues of IncomeTax Goods and Service

Tax VAT sales tax which have not been deposited by the Company on account of disputesexcept of the following:-

Amount (in lacs)
Income Tax Income Tax 5.68 2018-19 Commissioner of Income Tax (Appeal) Bhopal
Income Tax Income Tax 1.79 2019-20 Centralized Processing Center Department Banglore

c) There were no disputed amounts payable in respect of Income Tax Sales Tax ServiceTax Excise Duty Customs Duty and Value Added Tax and cess as at March 31st 2021.

viii. In our opinion and according to the information and explanations given by themanagement generally the Company has not defaulted in repayment of loans or borrowing toa financial institution bank or government. The Company has not issued any debentures.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud on or by the Company has been noticed or reported during course of ouraudit.

xi. 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 to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed by the management in the IND AS Financial Statements&notes to accounts as required by the applicable accounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly paid convertible debentures during the year and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company and not commented upon.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provision of clause 3(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

ANNEXURE- B TO INDEPENDENT AUDITORS' REPORT

Report on the internal financial controls with reference to the aforesaid Ind ASfinancial statements under Section 143(3)(I) of the Companies Act 2013

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

We have audited the internal financial controls with reference to Standalone Ind ASfinancial statements over financial reporting of Raaj Medisafe (India) Limited ("theCompany") as of 31stMarch 2021 in conjunction with our audit of the Ind AS financialstatements 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 with reference to Ind AS financial statements based on the internalcontrols over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by The Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to Ind AS financial statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to Ind AS financial statements was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system with reference to Standalone Ind AS financialstatements and their operating effectiveness. Our audit of internal financial control withreference to Ind AS financial statements included obtaining an understanding of internalfinancial control with reference to Ind AS financial statements assessing the risk that amaterial 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 Ind AS 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 systemwith reference to Ind AS financial statements.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of the Management and directors of the Company; and

(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 Ind AS 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 internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were needs to be strengthen as at 31st March 2021 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 ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V.K. Ladha & Associates
Chartered Accountants
(Firm Reg. No. 002301C)
Sd/-
CA. V. K. Ladha
UDIN: 2171501AAAABE5333 Partner
Ujjain June 21 2021 M.No. 071501

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