The Members of
RAGHAV PRODUCTIVITY ENHANCERS LIMITED
We have audited the accompanying Standalone Ind AS Financial Statementsof Raghav Productivity Enhancers Limited ("the Company") which comprise theBalance Sheet as at March 312021 and the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Change in Equity and Statement of Cash Flow for theyear then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Standalone Financial Statements").
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 Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2021and profit (including other comprehensive income) changes in equity and its cash flowsfor 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 Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial 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 thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|The Key Audit Matter ||How was the matter addressed in our audit |
|Revenue Recognition || |
|Revenue is one of the key profit drivers. Cut-off is the key assertion insofar as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of results for the year. ||Our audit procedures with regard to revenue recognition included testing controls around dispatches/ deliveries inventory reconciliations and substantive testing for cut-offs and analytical review procedures. |
Emphasis of Matter Paragraph
We invite attention to Note no-44 to the financial statements regardinguncertainties associated with the COVID-19 pandemic and impact assessment made by thecompany on its business and financial statements for the year ended 31st March2021 the said assessment made by the management is highly dependent upon how thecircumstances evolve in subsequent periods.
Our Opinion is not modified on the above matters.
Information Other than the Financial Statements and Auditor's ReportThereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management's Responsibilities for the Standalone FinancialStatements
The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation of these Standalone Financial Statements that give a true andfair view of the financial position state of affairs profit (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules2015 as amended. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding 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 the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
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 auditor's 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:
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.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances butnot for the purpose of expressing a opinion on whether the company has adequate internalfinancial control with reference to financial statement in place and operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
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 auditor's 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 auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
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.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results ofour work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
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 standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 sub-section(11) of section 143 of the Act we give in the Annexure I a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act based on our audit wereport that:
a) 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.
b) I n our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flows dealtwith by this Report are in agreement with the books of accounts.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164(2) of the Act.
f) 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 II". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
i. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
ii. The Company has disclosed the impact of pending litigations as at31st March 2021 on its financial position in its standalone financialstatements.
iii. 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;
iv. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
|For A. Bafna& Co. |
|Chartered Accountants |
|FRN : 003660C |
|(Vivek Gupta) |
|M.No. 400543 |
|UDIN: - |
|Place: Jaipur |
Annexure I to the Independent Auditors' Report
With reference to the Annexure I referred to in the IndependentAuditors' Report to the members of the Raghav Productivity Enhancers Limited on theStandalone Financial Statements for the year ended 31 March 2021 we report the following:
(i) (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the managementduring the year and there is a regular program of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets nomaterial discrepancies were noticed on such verification.
(c) According to the information and explanation given to us and on thebasis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the company.
(ii) (a) The inventory has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.
(b) The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been properly dealt with in the booksof accounts.
(c) In our opinion and according to the information and explanationgiven to us and on the basis of our examination of the records of inventory the companyis maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material and have beenproperly dealt with in the books of accounts.
(iii) According to the information and explanations given to us theCompany has granted unsecured loan to its wholly owned subsidiary company covered in theregister maintained under section 189 of the Companies Act 2013(the Act') inrespect of which:
a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.
b) The schedule of repayment of principal and payment of interest hasbeen stipulated and repayments or receipts of principal amounts and interest have beenregular as per stipulations.
c) There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanationsgiven to us the company has complied with the provisions of section 185 and I86 of theCompanies Act 2013 In respect of loans investments guarantees and securities given.
(v) The Company has not accepted any deposits from the Public withinthe meaning of the directives issued by the Reserve Bank of India Provisions of Section73 to 76 of the Act any other relevant provisions of the Act and the relevant rulesframed thereunder.
(vi) According to the information & explanation given to us theCentral Government has not prescribed the maintenance of cost records under Section 148(1)of the Companies Act 2013 in respect of manufacture of its products by the company.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and onthe basis of our examination of the records of the Company amounts deducted / accrued inthe books of account in respect of undisputed statutory dues including Provident fundEmployees' State Insurance Income-tax Goods and Services tax duty of Customs Cess andother material statutory dues have generally been regularly deposited during the year bythe Company with the appropriate authorities except for a few delays.
According to the information and explanations given to us noundisputed amount payable in respect of the aforesaid due were outstanding as at March 3121 for a period of more than six months from the date of becoming payable.
(b) According to the information and explanation given to us there areno pending dues of Provident fund Employees' State Insurance Income-tax Goods andServices tax duty of Customs Cess and other material statutory dues which are notdeposited on account of dispute.
(viii) According to information and explanation given to us by themanagement as on balance sheet date the company is not in default w.r.t. repayment ofloans and borrowings to a financial institutions banks or government further the companyhas not issued any debentures.
(ix) Based upon the audit procedures performed and the information andexplanations given by the management during the year under review the company did notraised moneys by way of initial public offer or further public offer including debtinstruments. To the best of our knowledge and belief and according to the Information andExplanation given to us term loans availed by the company were prima facie applied by thecompany during the year for the purpose for which the loan were Obtained.
(x) To the best of our knowledge and according to the information andexplanations given to us no material fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanationsgiven to us and based on examination of the records of the Company the Company has paid /provided managerial remuneration in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Act.
(xii) According to information and explanations given to us in ouropinion the Company is not a Nidhi Company as prescribed in Section 406 of the Act.Therefore the provisions of clause 4 (xii) of the Order are not applicable to theCompany.
(xiii) According to information and explanations given to us and basedon examination of the records of the company all transactions with the related partiesare in compliance with section 177 and 188 of the Act and the details of suchtransactions have been disclosed in the Financial Statements as required by the applicableaccounting standards.
(xiv) Based upon the audit procedures performed and the information andexplanations given by the management the company has made preferential allotment and therequirement of section 42 of the Companies Act 2013 have been complied with and theamount raised have been used for the purposes for which the funds were raised.
(xv) According to information and explanations given to us and based onexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly the provisions ofclause
3 (xv) of the Order are not applicable to the Company and hence notcommented upon.
(xvi) According to information and explanations given to us thecompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order are notapplicable to the Company and hence not commented upon.
|For A. Bafna& Co. |
|Chartered Accountants |
|FRN : 003660C |
|(Vivek Gupta) |
|M.No. 400543 |
|UDIN: 21400543AAAAEQ9948 |
|Place: Jaipur |
Annexure II to the Independent Auditors' Report
Referred to in paragraph 1(A)(f) under Report on Other Legal andRegulatory Requirements' section of our report of even date to the members of RaghavProductivity Enhancers Limited.
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
In conjunction with our audit of the Standalone financial statements ofthe Company as of and for the year ended March 31 2021 We have audited the internalfinancial controls over financial reporting RAGHAV PRODUCTIVITY ENHANCERS LTD. ("theCompany") as of March 31 2021 in conjunction with our audit of the financialstatements of the Company for the year ended on that date
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company is responsible for establishingand maintaining internal financial controls based on "the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia". 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.
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 auditor's 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 andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould 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.
In our opinion and to the best of our information and according to theexplanations given to us the company has maintained in all material respects adequateinternal financial control over financial reporting and such internal financial controlsover financial reporting were operating effectively as of March 31 2021 based on"the 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 A. Bafna& Co. |
|Chartered Accountants |
|FRN : 003660C |
|(Vivek Gupta) |
|M.No. 400543 |
|UDIN: 21400543AAAAEQ9948 |
|Place: Jaipur |