RAJESH SOLVEX LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RAJESHSOLVEX LIMITED("the company") which comprises the Balance Sheet as at 31 March 2018 theStatement of Profit and Loss (including other comprehensive income) and cash flowstatement and Statement of Changes in equity for the year ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position and financial performance including other comprehensive incomecash flows and statement of changes in equity of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (IND AS) specified under Section 133 of the Act. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionof the Act for safeguarding of the assets of the Company and for preventing and detectingthe frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordancewith the Standards onAuditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to.obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures inthe financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company'spreparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also _ includes evaluating the appropriatenessof accounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
\r\ our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including INDAS specified undersection 133 of the Act
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2018; b) In the case of the Statement of Profit and Loss of the loss for the yearended on that date; and
c) Cash Flow statement of the Company '
Emphasis on Other Matter
1. The company has accumulated losses of Rs.786192827- at the end of the currentFinancial Year which exceeds its Paid Up capital of Rs.54999000/-
2. The audited financial statement for the year ended 31 Mar 2017 was carried out andreported by K C Moondra and Company vide their unmodified audit report dated 23-05-2017whose report has been furnished to us by the management and which has been relied upon byus for the purpose of our audit of financial statement. Our audit report is not qualifiedin respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub section 11 of section 143 of the Act and on the basisof such checks of the books and records of the company as we considered appropriate andaccording to the information and explanations given to us during the course of audit wegive in the AnnexureA a statement on the matters specified in the paragraph 3 and 4 of theorder.
2. Further to our comments in Annexure A as required by section 143(3) of the Act wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessaryfor 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 appears from our examination of those books
c) the Balance Sheet and the Statement of Profit and Loss dealt with by this Report arein agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the Ind AS asspecified under Section 133 of the Act except INDAS 12 of INCOME TAXESand INDAS 19 forEMPLOYEE BENEFITS which are accounted for on cash basis.
e) There is nothing to disclose which is having adverse effect on the functioning ofthe company.
f) Onthe basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.
g)- With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such control refer to ourseparate report in Annexure 'B'.
h) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rule 2014 in our opinion and to thebest of our information and according to the explanations given to us:
)i or the Company does not have any pending litigations which would impact itsfinancial position
ii) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) there were no amount which were required to be transferred to the InvestorEducation and Protection Fund by the company.
| ||FOR S K KABRA ANDCOMPANY |
| ||CHARTEREDACCOUNTANTS |
| ||ICAI FRN:- 104508W |
| ||CA SUSHIL KUMAR KABRA |
|PLACE :SURAT ||PARTNE R |
|DATE : 30.06.2018 ||M.NO . 132975 |
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 RAJESHSOLVEX LIMITED ("the Company") as of March 312018 in conjunction with my/ ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal FinancialControls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on "ttie internal control over financial reporting criteriaestablished bythe Company considering the essential components of internalcontrolstatedinthe Guidance Noteon Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India'. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding of Usassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based ORour audit We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards onAuditing issued by ICAI anddeemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinaneiat Controls and; both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with etttfcal requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in aH material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe intemat financial controls system over financial reporting and their-operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of intemat financial controls over financial reportingassessing the risk that a material weakness exists andtesting and evaluating tie designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud orerror.
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 controlssystemover 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 financial reporting and thepreparation 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) pertainsto the maintenance of recordsthat in reasonable detail accurately andfairly reflectthe 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 madeonly inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of thecompany's assets that could have amaterial effect on the 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 ofthe internal financial controls over financialreporting to future periods are subject to the risk that the internal financialcontrolover financial reporting may become inadequate because of changes in conditions orthat the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financialcontrolsover financial reporting were operating effectivelyas at March 31 2018 based on"the internal controlover financial reporting criteria established bythe Companyconsidering the essential components of internal controlstated in the Guidance Note onAuditof Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India"].
| ||FOR S K KABRA AND COMPANY |
| ||CHARTERED ACCOUNTANTS |
| ||ICAI FRN: 104508W |
| ||CA SUSHIL KUMAR KABRA |
|PLACE :SURAT ||PARTNE R |
|DATE : 30.06.2018 ||M.NO . 132975 |
Annexure referred to in paragraph titled as "Report on other Legal and RegulatoryRequirements" of Auditors'report to the members of RAJESH SOLVEX LIMITED.
(i) (a) The company is maintaining general records showing full particulars includingquantitative details and situation of fixed assets
(b) As explained to us these fixed assets have been physically verified by themanagement at reasonable intervals; as informed and explained to us no materialdiscrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management and no material discrepancies werenoticed.
(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
(a) Not Applicable
(b) Not Applicable '
(iv) in respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with.
(v) the company has not accepted any deposits. The deposits from directors and theirrelatives and body corporate are not covered under deposits. Since the directives issuedby the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder are not applicablehence the same has not been commented.
(vi) As explained to us maintenance of cost records has not been specified by theCentral Government under sub-section (1) of section 148 of the CompaniesAct 2013. Howeverwe have not verified those records.
(vii) (a) the company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-. tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities.
(b) According to information and explanation given to us the no dues of income tax orsales tax or service tax or duty of customs or duty of excise or value added tax arepending on account of dispute.
(viii) The company has not defaulted in repayment of principal of loans or borrowing toa financial institution bank Government or dues to debenture holders.
(ix) As explained to us no moneys were raised by way of initial public offer or furtherpublic offer (including debt instruments) and term loans. (x) According to information andexplanation given to us no fraud by the company or any fraud on the Company by itsofficers or employees has been noticed or reported during the year.
(xi) No managerial remuneration was paid during the year.
(xii) Not Applicable '
(xiii) According to the information and explanation given All transactions with therelated parties are in compliance with sections 177 and 188 of CompaniesAct 2013 whereapplicable and the detail? have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards; (xiv) the company has not madepreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
(xv) the company has not entered into any non-cash transactions with directors orpersons connected with him.
(xvi) the company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.