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Richirich Inventures Ltd.

BSE: 519230 Sector: Industrials
NSE: N.A. ISIN Code: INE102C01020
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NSE 05:30 | 01 Jan Richirich Inventures Ltd
OPEN 4.07
PREVIOUS CLOSE 4.07
VOLUME 500
52-Week high 4.90
52-Week low 2.20
P/E 135.67
Mkt Cap.(Rs cr) 2
Buy Price 4.00
Buy Qty 1.00
Sell Price 4.07
Sell Qty 250.00
OPEN 4.07
CLOSE 4.07
VOLUME 500
52-Week high 4.90
52-Week low 2.20
P/E 135.67
Mkt Cap.(Rs cr) 2
Buy Price 4.00
Buy Qty 1.00
Sell Price 4.07
Sell Qty 250.00

Richirich Inventures Ltd. (RICHIRICHINVENT) - Auditors Report

Company auditors report

To the Members of Richirich Inventures Limited

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying Ind AS financial statements of Richirich InventuresLimited ("the Company") which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the statement of changes in equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("die Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the companies(Indian Accounting Standards) Rules 2015 as amended under Section 133 of the Act.

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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act and the Rules made there underincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Basis for Qualified Opinion

As stated in note 7 the Company has identified an amount of Rs. 749.000/- to bewritten off which were given as advances to certain parties Out of which the Company haswritten off Rs. 90000/- only during the year out of total amount to be written off.Consequently profit for the year is overstated by Rs. 659000/- and reserve and surplusas at the year end is overstated by an equivalent amount.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matter described in the basis of qualifiedopinion paragraph above the aforesaid Ind AS 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 of the state of affairs of theCompany as at 31st March 2018 and its financial performance (including othercomprehensive income) cash flow and changes in equity for the year ended on that date.

Emphasis of Matter

As stated in note 8 and as per the representation received from the management theCompany has granted loans and advances to certain parties out of the funds lying idle withthe Company to earn interest income. However such advances are given for temporary purposeonly and the Company is not an Non Banking Financial Institution (NBFC) nor it intends tocarry out any such activity as NBFC. Accordingly the Company has prepared its financialsas per IND As.

Our opinion is not modified in respect of above matter.

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 ("the Order") and on the basis of such checks of the books and recordsof the company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the order.

2. As required by Section 143 (3) ofthe 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 it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the statement of changes in equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under Section 133 oftheAct.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2018 from being appointed as a director in terms ofSection 164 (2) oftheAct.

(f) With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company and operating effectiveness of such controls refer to ourseparate 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 our opinion and to the best ofour

information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended 31 st March 2018.

For J.P.J. ASSOCIATES LLP
CharteredAccountants
Firm's Registration Number: 113012W
CA Vaibhav Vaidya
Partner
Membership Number: 157754
Mumbai
Date: 29th May 2018

Annexure - A to the Auditor's Report

The Annexure referred to in Independent Auditors ' Report to the members of the Companyon the Ind AS financial statements for the year ended 31 March 2018 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) A substantial portion of the fixed assets have been physically verified by themanagement during the year and in our opinion the frequency of verification is reasonablehaving regard to the size of the Company and Nature of Business. No material discrepancieswere noticed on such verification.

(c) The Company does not have any immovable properties So the question of title deedsdoes not arise.

(ii) The company does not have inventory during the year. Thus paragraph 3(ii) of theOrder is not applicable to the Company.

(iii) The Company has granted unsecured loans to companies firms or other partiescovered in the register maintained under Section 189 of the Companies Act 2013 as per theinformation and explanation given to us.

a) As per the information and explanations given to us the terms and conditions of thegrant of such loans are not prejudicial to the company's interest;

h) No schedule of repayment of principal or interest has been stipulated for suchloans.

c) In view of above (b) the question of any overdue amount does not arise.

(iv) As per the information and explanation given to us and in our opinion the Companydoes not have any transactions to which the provisions of Section 185 apply. The Companyhas complied with the provisions of Section 186 of the Act with respect to the loansinvestments guarantees and security.

(v) The Company has not accepted any deposit from the public.

(vi) As per the information and explanations given to us the Central Government hasnot prescribed the maintenance of cost records under section 148 (1) of the Companies Act2013 hence the question of maintaining such accounts and records does notarise.

(vii) (a) According to the records of the Company and as per the information andexplanations given to us

the Company generally is regular in depositing undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State Insurance Incometax Goods & Service tax Sales tax Wealth tax Service tax Duty of Customs Duty ofExcise value added tax cess and other statutory dues with appropriate authorities.According to the information and explanations given to us no arrears of statutory dues asat March 312018 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us there are no dues ofincome tax or sales tax or wealth tax or service tax or duty of customs or duty of exciseor value added tax or cess outstanding on account of any dispute as on 31 st March 2018.

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Accordinglyparagraph 3 (viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans dining the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act..

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

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3 (xv)of the Order is not applicable.

(xvi) The company is not required to be registered under section 45IA of the ReserveBank of India Act 1934. (Refer Note 8)

For J.R J Associates LLP
CharteredAccountants
FirmRegistrationNo.ll3012W
LLPIN:AAM-7098
CA Vaibhav Vaidya
Partner
M.No. 157754
Mumbai
Date: 29th May 2018

Annexure - B to the Auditors' Report

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

We have audited the internal financial controls over financial reporting of RichirichInventures Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (TCAT). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

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)ofthe Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 Ind AS 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 and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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.

Opinion

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 31 March 2018 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.

For J.R J Associates LLP
CharteredAccountants
FirmRegistrationNo.ll3012W
LLPIN:AAM-7098
CA Vaibhav Vaidya
Partner
M.No. 157754
Mumbai
Date: 29th May 2018