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Richa Info Systems Ltd.

BSE: 535433 Sector: Consumer
NSE: RICHA ISIN Code: INE0J1P01015
BSE 05:30 | 01 Jan Richa Info Systems Ltd
NSE 05:30 | 01 Jan Richa Info Systems Ltd

Richa Info Systems Ltd. (RICHA) - Auditors Report

Company auditors report

(As required by Section 26 of Companies Act 2013 read with Rule 4 of Companies(Prospectus and Allotment of

Securities) Rules 2014)

To

The Board of Directors

Richa Infosystems Limited

Dear Sir

We have examined the attached Restated Audited Financial Information of Richa Infosystems Limited comprising the Restated Audited Statement of Assets and Liabilities as atJune 30 2021 March 31 2021 & March 31 2020 the Restated Audited Statement ofProfit & Loss the Restated Audited Cash Flow Statement for stub period ended on June30 2021 and for the financial year ended March 31 2021 March 31 2020 & March 312019 the Summary statement of Significant Accounting Policies and other explanatoryInformation (Collectively the Restated Financial Information) as approved by the Board ofDirectors in their meeting held on November 18 2021 for the purpose of inclusion in theOffer Document prepared by the Company in connection with its Initial Public Offer ofEquity Shares (IPO) and prepared in terms of the requirement of:-

a) Section 26 of Part I of Chapter III of the Companies Act 2013 as amended (the"Act");;

b) The Securities and Exchange Board of India (Issue of Capital and DisclosureRequirements) Regulations 2018 ("ICDR Regulations") as amended (ICDRRegulations"); and related amendments / clarifications from time to time issued bythe Securities and Exchange Board of India ("SEBI");

c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by theInstitute of Chartered Accountants of India as amended from time to time. ("TheGuidance Note").

The Company's Board of Directors is responsible for the preparation of the RestatedFinancial Information for the purpose of inclusion in the offer document to be filed withStock Exchange Securities and Exchange Board of India and Registrar of CompaniesMaharashtra in connection with the proposed IPO. The Restated Financial Information havebeen prepared by the management of the Company for the stub period ended on June 302021on the basis of preparation stated in ANNEXURE - IV to the Restated Financial Information.The Board of Directors of the company's responsibility includes designing implementingand maintaining adequate internal control relevant to the preparation and presentation ofthe Restated Financial Information. The board of directors are also responsible foridentifying and ensuring that the Company complies with the Act ICDR Regulations and theGuidance Note.

We have examined such Restated Financial Information taking into consideration:

a) The terms of reference and terms of our engagement agreed upon with you inaccordance with our engagement letter dated November 15 2021 in connection with theproposed IPO of equity shares of the Company;

b) The Guidance Note also requires that we comply with the ethical requirements of theCode of Ethics issued by the ICAI;

c) Concepts of test checks and materiality to obtain reasonable assurance based onverification of evidence supporting the Restated Financial Information; and

d) The requirements of Section 26 of the Act and the ICDR Regulations. Our work wasperformed solely to assist you in meeting your responsibilities in relation to yourcompliance with the Act the ICDR Regulations and the Guidance Note in connection with theIPO.

These Restated Financial Information have been compiled by the management from:

a) Audited financial statements of company as at and for the period ended stub periodended on June 30 2021 and for the financial year ended March 31 2020 March 31 2019& March 31 2018 prepared in accordance with the Accounting Standards as prescribedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 asamended and other accounting principles generally accepted in India.

For the purpose of our examination we have relied on:

a) Auditors' Report issued by the Previous Auditor i.e. M/s G.C. Patel & Companydated & us dated November 01 2021 for the stub period ended on June 30 2021 &Auditors' Report issued by the Previous Auditor i.e. M/s G.C. Patel & Company datedJuly 05 2021 September 11 2020 & June 21 2019 for the Financial year ended 31stMarch 2021 31st March 2020 & 31st March 2019 respectively.

b) The audit were conducted by the Company's previous statutory auditor andaccordingly reliance has been placed on the statement of assets and liabilities andstatements of profit and loss the Significant Accounting Policies and other explanatoryinformation and (collectively the Audited Financial Statement") examined by them forthe said years.

The modification in restated financials were carried out based on the modified reportsif any issued by Previous auditor which is giving rise to modifications on the financialstatements as at and for the years ended March 31 2021 March 31 2020 and March 312019. There is no qualification of previous auditor for the Financial Statement of 31stMarch 2021 2020 and 2019.

The audit reports on the financial statements were modified and included followingmatter(s) giving rise to modifications on the financial statements as at and for theperiod ended on June 30 2021 March 31 2021 2020 & 2019.:-

a) The Restated Financial Information or Restated Summary Financial Statement have beenmade after incorporating adjustments for the changes in accounting policiesretrospectively in respective financial period/years to reflect the same accountingtreatment as per the changed accounting policy for all reporting periods if any;

b) The Restated Financial Information or Restated Summary Financial Statement have beenmade after incorporating adjustments for prior period and other material amounts in therespective financial years/period to which they relate and there are no qualificationswhich require adjustments;

c) Extra-ordinary items that needs to be disclosed separately in the accounts has beendisclosed wherever required;

d) There were no qualifications in the Audit Reports issued by usjointly with M/s G.CPatel & Company for the stub Period Ended on June 30 2021 and the Previous Auditorsfor the Financial Year Ended March 31 2021 2020 and 2019 which would require adjustmentsin this Restated Financial Statements of the Company;

e) Profits and losses have been arrived at after charging all expenses includingdepreciation and after making such adjustments/restatements and regroupings as in ouropinion are appropriate and are to be read in accordance with the Significant AccountingPolices and Notes to Accounts as set out in ANNEXURE - D to this report;

f) Adjustments in Restated Financial Information or Restated Summary FinancialStatement have been made in accordance with the correct accounting policies

g) There was no change in accounting policies which needs to be adjusted in theRestated Financial Information or Restated Summary Financial Statement;

h) There are no revaluation reserves which need to be disclosed separately in theRestated Financial Information or Restated Summary Financial Statement

i) The Company has not paid any dividend since its incorporation.

In accordance with the requirements of Part I of Chapter III of Act including rulesmade there under ICDR Regulations Guidance Note and Engagement Letter we report that:

a) The "Restated Statement of Assets and Liabilities" as set out in ANNEXURE- A to this report of the Company as at Stub Period Ended on June 30 2021 &Financial Year Ended March 31 2021 2020 and 2019 is prepared by the Company and approvedby the Board of Directors. These Restated Summary Statement of Assets and Liabilitieshave been arrived at after making such adjustments and regroupings to the individualfinancial statements of the Company as in our opinion were appropriate and more fullydescribed in Significant Accounting Policies and Notes to Accounts as set out in ANNEXURE- D to this Report.

b) The "Restated Statement of Profit and Loss" as set out in ANNEXURE - B tothis report of the Company for Stub Period Ended on June 30 2021 & Financial YearEnded March 31 2021 2020 and 2019 is prepared by the Company and approved by the Boardof Directors. These Restated Summary Statement of Profit and Loss have been arrived atafter making such adjustments and regroupings to the individual financial statements ofthe Company as in our opinion were appropriate and more fully described in SignificantAccounting Policies and Notes to Accounts as set out in ANNEXURE - D to this Report.

c) The "Restated Statement of Cash Flow" as set out in ANNEXURE - C to thisreport of the Company Stub Period Ended on June 30 2021 & Financial Year Ended March31 2021 2020 and 2019 is prepared by the Company and approved by the Board of Directors.These Statement of Cash Flow as restated have been arrived at after making suchadjustments and regroupings to the individual financial statements of the Company as inour opinion were appropriate and more fully described in Significant Accounting Policiesand Notes to Accounts as set out in ANNEXURE - D to this Report.

Audit for the financial year ended on March 31 20212020 & 2019 was conducted byG.C. Patel & Company & Accordingly reliance has been placed on the financialstatement examined by them for the said years. Financial Reports included for said yearsare solely based on report submitted by them.

We have also examined the following other financial information relating to the Companyprepared by the Management and as approved by the Board of Directors of the Company andannexed to this report relating to the Company for the Stub Period Ended on June 302021& Financial Year Ended March 3120212020 and 2019 proposed to be included in theDraft Prospectus / Prospectus ("Offer Document") for the proposed IPO.

Restated Statement of Share Capital Reserves And Surplus Annexure - A.l & Annexure - A.2
Restated Statement of Long Term Borrowing Annexure - A. 3
Restated Statement of Deferred Tax (Assets) / Liabilities Annexure - A. 9
Restated Statement of Short Term Borrowing Annexure - A. 4
Restated Statement of Trade Payables Annexure - A. 5
Restated Statement of Other Current Liabilities And Short Term Provisions Annexure - A.6 & Annexure - A.7
Restated Statement of Fixed Assets Annexure - A. 8
Restated Statement of Other Non Current Assets Annexure - A.10
Restated Statement of Inventories Annexure - A.l 1
Restated Statement of Trade Receivables Annexure - A.l2
Restated Statement of Cash & Cash Equivalents Annexure - A.l3
Restated Statement of Short Term Loans & Advances Annexure - A.l4
Restated Statement of Other Current Assets Annexure - A.l5
Restated Statement of Revenue from Operations Annexure -B.l
Restated Statement of Other Income Annexure -B. 2
Restated Statement of Cost of Material Consumed Annexure - B.3
Restated Statement of Change in Inventories of WIP Finished Goods & Stock in Trade Annexure - B.4
Restated Statement of Employee Benefit Expenses Annexure - B.5
Restated Statement of Finance Cost Annexure - B.5
Restated Statement of Depreciation & Amortisation Annexure - B.7
Restated Statement of Other Expenses Annexure - II.8
Restated Statement of Deferred Tax Asset / Liabilities Annexure - II.9
Material Adjustment to the Restated Financial Annexure - E
Restated Statement of Tax shelter Annexure - F
Restated Statement of Capitalization Annexure - G
Restated Statement of Contingent Liabilities Annexure - H
Restated Statement of Accounting Ratios Annexure -1
1 Restated statement of related party transaction 1 Annexure - J

In our opinion and to the best of information and explanation provided to us theRestated Financial Information of the Company read with significant accounting policiesand notes to accounts as appearing in ANNEXURE - D are prepared after providingappropriate adjustments and regroupings as considered appropriate.

We M/s. AY& Company Chartered Accountants have been subjected to the peer reviewprocess of the Institute of Chartered Accountants of India ("ICAI") and hold avalid peer review certificate issued by the "Peer Review Board" of the ICAI.

The preparation and presentation of the Financial Statements referred to above arebased on the Audited financial statements of the Company and are in accordance with theprovisions of the Act and ICDR Regulations. The Financial Statements and informationreferred to above is the responsibility of the management of the Company.

The report should not in any way be construed as a re-issuance or re-dating of any ofthe previous audit reports issued by any other Firm of Chartered Accountants nor shouldthis report be construed as a new opinion on any of the financial statements referred totherein.

We have no responsibility to update our report for events and circumstances occurringafter the date of the report.

In our opinion the above financial information contained in ANNEXURE - A to J of thisreport read with the respective Significant Accounting Polices and Notes to Accounts asset out in ANNEXURE - D are prepared after making adjustments and regrouping as consideredappropriate and have been prepared in accordance with the Companies Act ICDR RegulationsEngagement Letter and Guidance Note.

Our report is intended solely for use of the management and for inclusion in the OfferDocument in connection with the IPO- SME for Proposed Issue of Equity Shares of theCompany and our report should not be used referred to or distributed for any otherpurpose without our prior consent in writing.

For M/s A Y & CO.
Chartered Accountants
Firm Registration Number: - 020829C
Peer Review No. -013225
CA Arpit Gupta
(Partner)
Membership No.421544
UDIN - 21421544AAAADN9781
Date: November 182021
Place: Gandhinagar

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