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Raw Edge Industrial Solutions Ltd.

BSE: 541634 Sector: Others
NSE: N.A. ISIN Code: INE960Z01014
BSE 00:00 | 17 Jun 32.50 0
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NSE 05:30 | 01 Jan Raw Edge Industrial Solutions Ltd
OPEN 32.75
PREVIOUS CLOSE 32.50
VOLUME 11520
52-Week high 59.17
52-Week low 26.21
P/E 33.85
Mkt Cap.(Rs cr) 33
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 32.75
CLOSE 32.50
VOLUME 11520
52-Week high 59.17
52-Week low 26.21
P/E 33.85
Mkt Cap.(Rs cr) 33
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Raw Edge Industrial Solutions Ltd. (RAWEDGEINDUST) - Auditors Report

Company auditors report

The Members

Raw Edge Industrial Solutions Ltd.

Report on the Standalone Financial Statements

Opinion

I have audited the accompanying standalone financial statements of RAW EDGE INDUSTRIALSOLUTIONS LIMITED ('the Company') which comprise the balance sheet as at 31st March 2020the statement of profit and loss the statement of changes in equity and cash flowstatement for the year then ended and notes to the financial statements including asummary of significant accounting policies and other explanatory information.

In my opinion and to the best of our information and according to the explanationsgiven to me the aforesaid standalone financial statements give information required bythe companies Act2013 ("the act") in the manner so required and give a true andfair view in confirmity with accounting principles generally accepted in India of thestate of affairs of the company as at March 312020 and its profit and loss changes inEquity and its cashflows for the year ended on that date.

Basis of opinion

I have conducted my audit in accordance with standards on Auditing specified undersection 143(10) of the Act. My responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial statemementssection of my report. I am independent of the company in accordance with the code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together withethical requirements that are relevant to my audit of financial statements under theprovisions of the companies Act 2013 and the rules thereunder and I have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics I believe that the audit evidence which I have obtained is sufficient andappropriate to provide a basis for my opinion.

Key Audit Matters

I have determined that there are no key audit matters to communicate in my report.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. 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 design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In Preparing the financial statements the Board of Directors is responsible forassessing the company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the company or to cease operations orhas no realistic alternative but to do so.

The board of Directors are also responsible for overseeing the company's financialreporting process. Auditor's Responsibility:

My objective is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my 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 influence the economic decisions of users taken on the basis oftheir financial statements.

As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 my 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 the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 I am also responsible for expressing my opinion on whether thecompany 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 ability ofthe Group and its associates and jointly controlled entities to continue as a goingconcern. If I conclude that a material uncertainty exists I am required to draw attentionin my auditor's report to the related disclosures in the consolidated financial statementsor if such disclosures are inadequate to modify my opinion. My conclusions is based onthe audit evidence obtained up to the date of my auditor's report. However future eventsor conditions may cause the Group and its associates and jointly controlled entities tocease to continue as a going concern.

• Evaluate the overall presentation structure and content of the consolidatedfinancial statements including the disclosures and whether the consolidated financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

I 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 I identify during our audit.

I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on my independenceand where applicable related safeguards.

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 ofthe Act I give in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the order to the extend applicable.

2. As required by section 143(3) of the Act I report that :

(a) I have sought and obtained all the information and explanations which to the bestof my knowledge and belief were necessary for the purposes of my audit.

(b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books;

(c) The balance sheet the statement of profit and loss Statement of changes in Equityand the Cash flow statement dealt with by this Report are in agreement with the relevantbooks of account;

(d) In my opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate 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 my opinionand to the best of my information and according to the explanations given to me:

i. The Company has no pending litigation which would impact its financial position.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

For SHIVANGI PAREKH & CO.
CHARTERED ACCOUNTANTS
Sd/-
Shivangi Mehta
Proprietor
M. No. 118936
Place : Surat Firm Reg. No.:131449W
Date : 30-06-2020 UDIN: 20118936AAAAAY9013

Raw Edge Industrial Solutions Ltd.

Address: Office No. A-9 B-1/04-05 Ground Floor B Wing Boomerang Chandivali FarmRoad Andheri East Mumbai - 400072

Email ID- info@rawedge.in Website- www.rawedge.in CIN: L14219MH2005PLC240892

As required by the Companies (Auditor's Report) Order 2016 and according to theinformation and explanations given to us during the course of audit and on the basis ofsuch checks as were considered appropriate We report that :

ANNEXURE "A" TO THE AUDITORS REPORT

Sr. No. Particulars Auditors Remark
(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed The Company has maintained proper records showing full particulars including quantitative details and situation of fixed
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; According to the information and explanations given to us the fixed assets have been physically verified by the management during the year at reasonable intervals. As explained to us no material discrepancies were noticed as compared to the books
(c) Whether title deeds of immovable properties are held in the name of the company. If not provide details thereof. According to the information and explanations given to us all the immovable properties are in the name of the company.
(ii) Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so how they have been dealt with in the books of account; As explained to us inventory of the Company has been physically verified during the year by the management at regular intervals. No material discrepancies were noticed as compared to the books records on such physical verification.
(iii) Whether the company has granted any loans secured or unsecured to companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013. If so As per the information and explantions given to us during the year the company has not granted loans secured or unsecured to companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013.
(a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest; Not Applicable
(b) Whether receipt of the principal amount and interest are regular. If not provide details thereof; and Not Applicable
(c) if the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest. Not Applicable
(iv) In respect of loans investments and guarantees whether provisions of Section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof. As per the information and explanations given to us the company has complied provisions of Sec-185 & Sec-186 of the Companies Act 2013.
(v) In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? According to the information and explanations given to us the Company has not accepted deposits from the public and the other security deposits accepted are not considered as deposits as per section 73 to 76. Accordingly the provisions of Section 73 to 76 of the Companies Act 2013 and rules framed thereunder have been complied with.
(vi) Whether maintenance of cost records has been specified by the Central Government under subsection (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained; According to the information & explanation given to us cost records has been maintained by the company as prescribed under sub section (1) of section 148 of the Companies Act 2013.
(vii) (a) whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-Tax service tax duty of customs duty of excise value added tax and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. According to the information and explanations given to us and according to the records the Company has generally been regular in depositing undisputed statutory dues during the year.
(b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute). According to the information and explanations given to us and the statutory examination of the records there is no disputed dues of the company except under Income Tax. Details of dues of Income Tax which have not been deposited as at March 31 2020 on account of dispute are given below: (a) Rs. 6850 of A.Y. 2018-19 under section 1431a before CPC; (b) Rs. 8820 of A.Y. 2019-20 under section 1431a before CPC.
(viii) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported (in case of banks and financial institutions lender wise details to be provided). In our opinion and according to the information and explanation given to us the Company has not defaulted in repayment of dues to the bank or financial institutions during the year. However Company has opted for Moratorium of Loan from March to August 2020.
(ix) Whether moneys raised by way of public issue/ follow-on offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays / default and subsequent rectification if any as may be applicable be reported; According to the information and explanations given to us the moneys raised by company by way of Initial Public offering at SME platform are applied for the purpose for which those are raised.
(x) Whether any fraud by the company or any fraud on the Company by its officers/ employees has been noticed or reported during the year; if yes the nature and the amount involved be indicated. According to the information and explanations given to us no fraud has been noticed or reported during the year by the company or on the company.
(xi) Whether managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same. According to the information given to us Managerial Remuneration has been paid/ Provided in accordance with provisions of section 197 and under other rules.
(xii) Whether the Nidhi Company has complied with the Net Owned Fund in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining 10% liquid assets to meet out the unencumbered liability. Not Applicable
(xiii) Whether all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act 2013. According to the information given to us all transactions with the related parties are in compliance with Section 188 and 177. However all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) Whether the company has made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of Section 42 of the Companies Act 2013 have been complied and the amount raised have been used for the purposes for which the funds were raised. If not provide details thereof. Not Applicable
(xv) Whether the company has entered into any non cash transactions with directors or persons connected with him and if so whether provisions of Section 192 of Companies Act 2013 have been complied with. According to the information and explanations given to us and according to the records the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so whether paragraph 3(xvi) of the Order have been complied with. Not Applicable

 

For SHIVANGI PAREKH & CO.
CHARTERED ACCOUNTANTS
Sd/-
Shivangi Mehta
Proprietor
M. No. 118936
Place : Surat Firm Reg. No.:131449W
Date : 30-06-2020 UDIN: 20118936AAAAAY9013

Raw Edge Industrial Solutions Ltd.

Report on the Internal Financial Controls under Clamee (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

Annexure - B to the Auditors' Report

I have audited the internal financial controls over financial reporting of Raw EdgeIndmetrial Solutions Limited ("the Company") as of 31st March 2020 inconjunction with my audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of the Directors of the company is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that Ire operating effectively for ensuring the orderly and efficientconduct of its bmeiness including adherence to respective company's policies thesafeguarding 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.

Auditors' Responsibility

My responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on my audit. I conducted my audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by Institute of Chartered Accountants of India andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that I comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material Iakness exists and testing and evaluating the 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 or error.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the internal financial controls system overfinancial reporting of the company.

Annexure - B to the Auditors' Report Meaning of Internal Financial Controls overFinancial 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 generall yaccepte d accounting principles. A compan y's inter nal financial control over financialreporting includes those policies and procedures th at

(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 authorisations of management an d directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition mee 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 t he inherent limitations of internal financial con trols ove r financialrepo rting includi ng the possibility of col lmei on or improper management override ofcontrols material missta tements due to e rror 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 inadeq uate becamee of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion to the best of my information and according to the explanations given byme the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting Ire operating effectively as at 31st March 2020 based on the internal controlover financial 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.

For SHIVANGI PAREKH & CO.
CHARTERED ACCOUNTANTS
Sd/-
Shivangi Mehta
Proprietor M.
No.118936
Place: Surat Firm Reg.No.:131449W
Date: 30-06-2020 UDIN: 20118936AAAAAY9013