To the Members of Rich Universe Network Limited Kanpur.
(Previously known as Rich Capital & Financial Services Limited)
Report on the Financial Statements
We have audited the accompanying Financial Statements of M/s Rich Universe NetworkLimited 7/125 (C-2) IInd Floor Swaroop Nagar Kanpur which comprise theBalance Sheet as at 31st March 2020 and the statement of Profit and Loss andCash Flow Statement for the year then ended and a summary of significant AccountingPolicies 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 of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting 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.
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 accordance with the Standards on Auditing 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 in the financial statements. The procedures selected depend on our judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments we considersinternal financial control relevant to the Company's preparation 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 appropriateness ofaccounting 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;
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 section 143(11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.
2. 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 appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.
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 ourseparate Report in "Annexure B".
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i) The Company has disclosed the impact of pending litigations on its financialposition in
its financial statements.
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii) As informed by the company there were no amounts which required to be transferredby the Company to the Investor Education and Protection Fund.
"Annexure A" to the Independent Auditors' Report
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements of the Company for the year ended March 31 2020:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(c) No immovable properties are held by the Company so this clause of the Order is notapplicable.
(ii) In respect of its inventory:
(a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at regular intervals/ (at the endof the year) by the Management. In case of inventories lying with third partiescertificates of stocks holding have been received. In our opinion and according to theinformation and explanation given to us the procedures of physical verification ofinventories followed by the Management were reasonable and adequate in relation to thesize of the Company and the nature of its business. In our opinion and according to theinformation and explanations given to us no material discrepancies were noticed onphysical verification of stocks as compared to book records.
(iii) In respect of loans secured or unsecured granted to the parties covered inregister maintained under section 189 of the Companies Act 2013:
According to the information and explanations given to us the Company has not grantedany loans to companies firms or other parties covered in the Register maintained underSection 189 of the Companies Act 2013; and therefore paragraph 3(iii) of the Order is notapplicable.
(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the requirements of section 185 and section 186 of the CompaniesAct 2013.
(v) The company has not received any public deposits during the year.
(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.
(vii)In respect of statutory dues:
(a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund employees state insurance (ESI) Investor Education andProtection Fund Income-tax Tax deducted at sources. Tax collected at sourceProfessional Tax Sales Tax value added tax (VAT) Wealth Tax Service Tax Custom DutyExcise Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.
(b) According to the information and explanations given to us the disputed statutorydues in respect of Income-tax Wealth Tax Custom Duty Excise Duty sales tax VAT Cessand other material statutory dues that have not been deposited on account of matterspending before appropriate authorities are as follows:
|Nature of dues / Payments ||Amount due (Rs. In Lacs) ||Period of which the amount Relates ||Forum where amount is pending |
|Income Tax ||15.04 ||A.Y.2010-11 ||I.T. DEPT. |
|Income Tax ||14.69 ||A.Y.2011-12 ||I.T. DEPT. |
|Income Tax ||2.50 ||A.Y.2012-13 ||I.T. DEPT. |
|Income Tax ||21.67 ||A.Y.2013-14 ||I.T. DEPT. |
|Income Tax ||16.47 ||A.Y.2014-15 ||I.T. DEPT. |
|Income Tax ||13.64 ||A.Y.2015-16 ||I.T. DEPT. |
|Income Tax ||12.13 ||A.Y.2016-17 ||I.T. DEPT. |
|Income Tax ||216.59 ||A.Y.2002-03 ||High Court* |
|Income Tax ||41.55 ||A.Y2001-02 ||-do-* |
|Income Tax ||114.99 ||A.Y.2000-01 ||-do-* |
|Income Tax ||67.88 ||A.Y. 1999-00 ||-do-* |
|Income Tax ||0.49 ||A.Y. 1993-94 ||-do-* |
|Income Tax ||0.64 ||A.Y. 1994-95 ||-do-* |
|Income Tax ||2.45 ||A.Y. 1995-96 ||-do-* |
|Amount Paid(I.Tax) ||27.72 ||EARLIER YEARS ||I.T. DEPT. |
|SEBI ||12.50 ||EARLIER YEARS ||SEBI |
|Service Tax ||3.20 ||A.Y. 2011-12 ||S.TAX DEPT. |
* the above has not been acknowledged as debt as on 25.06.2020.
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions banksand debenture holders.
(ix) The company has not raised any money by way of initial public offer or furtherpublic offer and has not obtained any term loans during the year so this para of theOrder is not applicable.
(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid and provided the managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.
(xii) The Company is not a Nidhi Company so this para of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with section 177 and section 188of the Companies Act 2013 and all details have been disclosed in the Financial Statementsas required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fullyconvertible debentures during the year under review so this para of the Order is notapplicable.
(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transaction with directors or person connectedwith him so this para of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.
"Annexure B" to the Independent Auditor's Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of RICHUNIVERSE NETWORK LIMITED ("the Company") as of March 31 2020 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on 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 financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our 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 on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness 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.
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 controls systemover 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) 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 authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use 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 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 financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".