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Raw Edge Industrial Solutions Ltd.

BSE: 541634 Sector: Others
NSE: N.A. ISIN Code: INE960Z01014
BSE 13:51 | 10 Aug 49.60 1.70
(3.55%)
OPEN

45.80

HIGH

49.90

LOW

45.80

NSE 05:30 | 01 Jan Raw Edge Industrial Solutions Ltd
OPEN 45.80
PREVIOUS CLOSE 47.90
VOLUME 33
52-Week high 55.00
52-Week low 21.05
P/E
Mkt Cap.(Rs cr) 50
Buy Price 45.90
Buy Qty 217.00
Sell Price 49.85
Sell Qty 495.00
OPEN 45.80
CLOSE 47.90
VOLUME 33
52-Week high 55.00
52-Week low 21.05
P/E
Mkt Cap.(Rs cr) 50
Buy Price 45.90
Buy Qty 217.00
Sell Price 49.85
Sell Qty 495.00

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

Company auditors report

To the Members of

Raw Edge Industrial Solution Limited

Report on the Audit of 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 March2021 the statement of profit and loss and cash flow statement for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In my opinion and to the best of my information and according to the explanations givento me the aforesaid standalone financial statements give information required by thecompanies 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 312021 and its profit and loss and itscashflows 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 and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 mistatement whether due to fraud or error and to issuean auditor's report that includes my opinion. Reasonable assurance is a high level ofassurance 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 ofthere 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

• 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 attention in myauditor's report to the related disclosures in the consolidated financial statements orif such disclosures are inadequate to modify my opinion. My conclusions is based on theaudit evidence obtained up to the date of my auditor's report. However future events orconditions may cause the Group and its associates and jointly controlled entities to ceaseto 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 my 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 and the Cash flow statementdealt with by this Report are in agreement with the relevant books 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 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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.

ANNEXURE "A" TO THE AUDITORS REPORT

1 Property Plant & Equipments

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property. Plant & Equipments.

b) According to the information and explanations given to me the Property Plant &Equipments have been physically verified by the management during the year at reasonableintervals. As explained to me. no material discrepancies were noticed as compared to thebooks records on such physical verification.

c) According to the information and explanations given to me. all the immovableproperties are in the name of the company.

2 Inventory

a) According to infirmation and explanation given to me inventory of the company hasbeen physically verified during the year by the management at regular intervals.

b) In my opinion and according to the information and explanation given to me theprocedures of physical verification of inventory followed by the management is reasonableand adequate in relation to the size of the company and nature of its business.

c) In my opinion and according to the information and explaination given to me thecompany is maintaning proper records of the inventory and no material discrepancies werenoticed on physical verification.

3 Loans & Advances

As per the information and explantions given to me during the year the company has notgranted loans secured or unsecured to companies firms or other parties covered byclause (76) of Section 2 of the Companies Act 2013.

4 Compliance with provisions of Section 185 and 186 of the Act

In my opinion and according to the information and explanations given to me theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5 Public Deposits

According to the information and explanations given to me the company has not acceptedany deposits from the public and consequently the directives issued by the Reserve Bankof India provisions of Section 73 to 76 or any other relevant provisions of the CompaniesAct and the rules framed thereunder where applicable with regard to the acceptance ofdeposit are not applicable.

6 Cost Records

The company has maintained the proper cost records as/cost audit required under Section148(1) of the Companies Act 2013 for the products of the Company.

7 Statutory Dues:

a) According to the information and explanation given to me and according to recordsthe company is generally regular in depositing undisputed statutory dues.

b) According to the information and explanations given to me and the statutoryexamination of the records there is no disputed dues of the company except under IncomeTax. Details of dues of Income Tax which have not been deposited as at March 31 2021 onaccount of dispute are given below:

(a) Rs. 5850 of AY 2018-19 under section 143(la) before CPC;

(b) Rs. 3320 of AY. 2019-20 under section 143(la) before CPC.

8 Repayment of financial dues

Based on my audit procedured and according to the information and explanations given tome I have of the opinion that the compnay has not defaulted in repayment of dues to afinancial institutions or banks or debenture holders.

9 Utilization of moneys raised by way of public issue/ follow-on offer and term loans

According to the information and explanations given to me the moneys raised by companyare applied for the purpose for which those are raised

10 Fraud noticed or Reported

In my opinion and according to the information and explanation given to me no fraud bythe Company and no material fraud on the company has been noticed or reported during theyear.

11 Managerial Remuneration

According to the information given to me managerial remuneration has been paid/provided in accordance with provisions of section 197 and under other rules.

12 The Provision relating to Nidhi Company

In my opinion and according to the information and explanations given to me theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13 Transactions with the Related Parties

According to the information and explanations given to me and based on my examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

Preferential Allotment or Private Placement of Shares or Convertible debentures (fullyor partly)

According to the information and explanations given to me and based on my examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

15 Non-Cash transactions:

According to the information and explanations given to me and based on my examinationof the records of the Company the Company has not entered into any non-cash transactionswith directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable.

16 Registration u/s. 45-IA of the Reserve Bank of India Act 1934.:

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934. and Accordingly paragraph 3(xvi) of the Order is not applicable.

ANNEXURE "B" TO THE AUDITORS REPORT

I have audited the internal financial controls over financial reporting of Raw EdgeIndustrial Solutions Limited ("the Company") as of 31st March 2021 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 1 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.

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) 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 and 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 the inherent limitations of internal financial controls over financialreporting including the possibility ofcollmeion 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 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 2021 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 Finn Reg. No.:131449W
Date: 29-06-2021 UDEN: 2111893GAAAABU4742

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