On the Standalone Financial Statements of Radha Madhav Corporation Limited
The Members of
Radha Madhav Corporation Limited
Report on the Financial Statements
We have audited the standalone nancial statements of Radha Madhav Corporation Limited(the Company) which comprise the balance sheet as at 31st March 2019 and the statementof Prot and Loss (including Other Comprehensive Income) the Statement of Changes inEquity and the statement of cash ows for the year then ended and notes to the nancialstatements including a summary of signicant accounting policies and other explanatoryinformation (herein after referred to as 'the nancial statement').
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone nancial statements give the information required bythe Companies Act 2013 (the Act) in the manner so required and give a true and fair viewin conformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards ) Rules 2015 as amended in Indiaof the state of aairs of the Company as at March 31 2019 and the prot and total (changes in equity)4 and its cash ows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the Standards on Auditing (SAs) specied undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the nancial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fullled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sucient and appropriate toprovide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgment were of mostsignicance in our audit of the nancial statements of the current period. These matterswere addressed in the context of our audit of the nancial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (the Act) with respect to the preparation of thesestandalone nancial statements that give a true and fair view of the nancial positionnancial performance (changes in equity) and cash ows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecied under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal nancial controls that were operating eectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the nancial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.
In preparing the nancial 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 nancialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the nancial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to inuence the economic decisions of users taken on the basis ofthese nancial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit.
a) Identify and assess the risks of material misstatement of the nancial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sucient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal
b) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal nancial controls system in place and the operatingeectiveness of such
c) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by:
d) 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 signicant 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 nancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions 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 Evaluate the overall presentation structure and content content of the nancialstatements including the disclosures and whether the nancial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signicant audit ndings including any signicantdeciencies 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 signicance in the audit of the nancial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benets of such communication.
The Outstanding balances as at the end under consideration in respect of sundrydebtors loans & advances and sundry creditors are subject to con rmation fromrespective parties and consequential reconciliation and adjustments arising there from ifany. Consequential impact thereof on the nancial results is not ascertainable. Company isin process of obtaining such con rmation.
Company has not maintained proper records of inventory of trading goods and itsphysical veri cation lying at the premises of various Franchises / Depots / warehouseslocated across India.
Our opinion is not modied in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by theCentral Government of India in terms of sub-section (11) of section 143 of the CompaniesAct 2013 we give in the Annexure a statement on the matters specied in paragraphs 3 and4 of the Order to the extent applicable.
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 prot and loss and the cash ow statement dealtwith by this Report are in agreement with the books of account;
(d) in our opinion the aforesaid standalone nancial statements comply with theAccounting Standards specied under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended; except as stated in Para b under the headingbasis for qualied opinion.
(e) on the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of
(f) With respect to the adequacy of the internal nancial controls over nancialreporting of the Company and the operating eectiveness of such controls refer to ourseparate Report in QAnnexure 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) TheCompany has disclosed the impact of pending litigations on its nancial position in itsnancial statements (ii) The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts and (iii) There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany.
To the Independent Auditor's Report of even date on the Standalone Financial Statementsof Radha Madhav Corporation Limited
On the basis of checks as considered appropriate and in terms of the information andexplanations given to us we report as under:
1. FIXED ASSETS:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As per the information and explanations given to us physical verication o f fixedassets has been carried out and no material discrepancies were noticed on such verication.In our opinion the frequency of verication is reasonable having regard to the size of theCompany and nature of its business.
As per the information furnished the inventories have been physically veried duringthe year by the management. In our opinion having regard to the nature and location ofstocks the frequency of the physical verication is reasonable and maintaining properrecords of inventory except for not maintaining proper records of inventory of tradinggoods and its physical verication lying at the premises of various Franchises/ Depots/warehouses located across India.
As per the information furnished the Company has not granted any loans secured orunsecured to companies firms Limited liability partnership or other parties covered inthe register maintained under Section 189 of the Companies Act.
(b) As the Company has not granted any loans secured or unsecured to companies rms orother parties covered in the register maintained under section 189 of the Companies Actthe Clause (iii)(a) (iii)(b) and (iii)(c) are not applicable.
4. LOANS INVESTMENT GUARANTEES AND SECURITY :
The company has not given any loans investments guarantees and security hence theprovisions of section 185 and 186 of the Companies Act 2013 are not applicable .
5. PUBLIC DEPOSITS:
The Company has not accepted any deposits during the period from the public within themeaning of the provision of Section 73 to 76 or any other relevant provisions of theCompanies Act and rules made there under. No order has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any court or otherTribunal.
6. COST RECORDS:
According to the information and explanations given to us the Central Government hasnot prescribed the maintenance of Cost Records Under Section 148 (1) of the Companies Act2003 in respect of the Companys pr oducts.
7. STATUTORY DUES:
(a) According to the information and explanations given to us and the records examinedby us the Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund investor education and protection fundcontribution to employees state insurance income-tax sales-tax wealth-tax service taxcustoms duty excise-duty cess and other statutory dues wherever applicable. There wereno undisputed amounts payable in respect of the aforesaid statutory dues in arrears as atMarch 31 2018 for a period of more than six months from the date they became payable.
(b) According to the records of the Company no dues of sales tax income- taxcustoms wealth-tax service tax excise duty cess which have not been deposited onaccount of disputes except as mentioned below;
|Nature of dues ||Disputed liability ||Unpaid disputed liability ||Authority where dispute is pending |
| ||(in millions) ||(in millions) || |
|Excise & Service Tax ||14.45 ||11.45 ||High Court |
|Excise & Service Tax ||6.97 ||6.71 ||Commissioner (Appeal)Central Excise & Customsl |
|Sales Tax ||20.97 ||20.97 ||Deputy Commissioner commercial Tax o ce |
|Provident Fund ||12.28 ||8.59 ||Employee's Provident Fund Appellate Tribunal |
(c) According to the information and explanations given to us no amount required to betransferred to investor education and protection fund in accordance with the relevantprovision of the Companies Act 2013 and rule made there under has been transferred tosuch fund.
8. REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:
Based on our Audit procedures and the information and explanation given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto Financial Institutions/ ARC as on 31.03.2019.
9. END USE OF FUND :
Since the company has not raised moneys by way of initial public o er or further publico er (including debt instrument) and term loans this clause is not applicable.
10. FRAUD ON OR BY THE COMPANY:
As per the information and explanations given to us no fraud on or by the Company hasbeen noticed or reported during this period.
11. MANAGERIAL REMUNERATION:
No Managerial remuneration has been paid or provided this clause is not applicable
12. NIDHI COMPANY :
The company is not a Nidhi Company hence this clause is not applicable
13. RELATED PARTIES TRANSACTION:
Based upon the audit procedures performed and according to the information andexplanations given to us All transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial statements etc. as required by the applicable accountingstandards.
14. PREFERENTIAL ALLO TMENT:
During the year company has converted outstanding warrant issued on preferential basisin 2016-17 in to Equity Share and the requirement of Section 42 of Companies Act 2013have been complied with and the amount raised has been used for the purpose for which thefunds were raised.
15. NON CASH TRANSA CTION
The company has not entered into any non-cash transactions with directors or personsconnected with him.
16 REGISTRATION UNDER RBI ACT
The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
To the Independent Auditor's Report of even date on the Standalone Financial Statementsof Radha Madhav Corporation Limited (Referred to in paragraph 1 (f) under 'Report on OtherLegal and Regulatory Requirements' of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013. ( THE ACT)
We were engaged to audit the internal nancial controls over nancial reporting of RadhaMadhav Corporation Limited (the Company) as of March 31 2019 in conjunction with ouraudit of the standalone nancial statements of the Company for the year ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is r esponsible for establishing and maintaining internalnancial controls based on the internal control over nancial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal nancial controls that wereoperating eectively for ensuring the orderly and ecient conduct of its business includingadherence to companys policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable nancial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Companys internal nancial controlsover nancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal nancial controls both applicable to an audit of Internal Financial Controls andboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal nancial controls overnancial reporting was established and maintained and if such controls operated eectivelyin all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operating eectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating eectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgement including the assessment of the risks ofmaterial misstatement of the nancial statements whether due to fraud or err or.
We believe that the audit evidence we have obtained is sucient and appropriate toprovide a basis for our audit opinion on the Companys internal nancial controls systemover nancial r eporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of nancial statements for external purposes in accordance with generallyaccepted accounting principles. A companys internal nancial control over nancial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reect the transactions and dispositionsof the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of nancial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the companys assets thatcould have a material eect on the nancial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company need to further improve the Internal Financial control in all materialrespects an adequate internal nancial controls system over nancial reporting and suchinternal nancial controls over nancial reporting as at March 31 2018 based on theinternal control over nancial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note. except for notmaintaining proper records of inventory of trading goods and its physical veri cationlying at the premises of various Franchises/Depots/warehouses located across India.
| ||For KARTIK JOSHI & ASSOCIATES |
| ||FRN No.132326W |
| ||(KARTIK JOSHI) |
| ||Partner |
|Place:- Vapi ||Chartered Accountants |
|Date:- May 30 2019 ||Membership No.138152 |