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RLF Ltd.

BSE: 512618 Sector: Industrials
NSE: N.A. ISIN Code: INE629C01014
BSE 00:00 | 23 Jul 4.51 0.21
(4.88%)
OPEN

4.51

HIGH

4.51

LOW

4.10

NSE 05:30 | 01 Jan RLF Ltd
OPEN 4.51
PREVIOUS CLOSE 4.30
VOLUME 4934
52-Week high 6.13
52-Week low 1.25
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.51
CLOSE 4.30
VOLUME 4934
52-Week high 6.13
52-Week low 1.25
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

RLF Ltd. (RLF) - Auditors Report

Company auditors report

The Board of Directors

RLF Limited

Gurugram

Report on the Audit of the Annual Financial Results

1. Opinion

We have audited the accompanying financial results ("the Statement") of RLFLimited ("the Company") for the quarter and year ended on Marth 31 2020 beingsubmitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (ListingObligations And Disclosure Requirements) Regulations 2015 as amended ("ListingRegulations") read with SEBI Circular No. CIR/CFD/CMDI/80/2019 dated July 19 2019.

In our opinion and to the best of our information and according to the explanationsgiven to us the Statement:

a) are presented in accordance with the requirements of Regulation 33 of the ListingRegulations in this regard read with SEBI Circular No. CIR/CFD/CMDI/80/2019 dated July19 2019;

b) give a true and fair view in conformity with the recognition and measurementprinciples laid down in the applicable accounting standards and other accountingprinciples generally accepted in India of the net profit/ (loss) and other comprehensiveIncome and other financial information for the quarter and the year ended on March312020.

2. Basis for Opinion

We conducted the audit in accordance with the Standards on Auditing specified underSection 143(10) of the Companies Act 2013 ("the Act"). Our responsibilitiesunder those Standards are further described. In the Auditor's Responsibilities for theAudit of the Financial Results section of our report we are independent of the Company Inaccordance with the Code of Ethics issued by The Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial results under the provisions of the Act and the Rule thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide basis for our opinion.

• Identify and assess the risks of material misstatement of the financial resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on the effectiveness of the company's Internal control.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors' use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialresults including the disclosures and whether the financial results represent theunderlying transactions and events in a manner that achieves fair presentation.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we have compiledwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourIndependence and where applicable related safeguards.

3. Emphasis of Matter-Effects of COVID-19

Please refer to Note No.33 to the Notes to Accounts statement which describes theimpact of COVID-19 a global pandemic on the operations and financial matters of thecompany.

Due to Covid-19 Pandemic there was material impact on sales and operations of theCompany in March 2020. The manufacturing operations of the Company was closed due tolockdown imposed. In Addition the Company's sales and production and sales for theFinancial Year 2020-21 shall also be impacted due to COVID-19.

Our opinion is not modified in respect of this matter.

4. Management's Responsibilities for the Financial Results

This Statement which is the responsibility of the Company's Management and approved bythe Board of Directors has been prepared on the basis of the related financial statementsof the Company. The Company's Board of Directors are responsible for the preparation andpresentation of the Financial Results that give a true and fair view of the net profit/(loss) and other comprehensive Income and other financial Information in accordance withthe recognition and measurement principles laid down In Indian Accounting Standardsprescribed under Section 133 of the Act read with relevant rules issued there under andother accounting principles generally accepted In India and in compliance with Regulation33 of the Listing Regulations. This responsibility also includes maintenance of adequateaccounting record in accordance with the provisions of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgements and estimates thatare reasonable and prudent; and the design implementation and maintenance of adequateInternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Results that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial results the Board of Directors are 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.

5. Auditor's Responsibilities for the Audit of the Financial Results

Our objectives are to obtain reasonable assurance about whether the financial resultsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our 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 ofthese financial results.

As part of and audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may Involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on the effectiveness of the company's Internal control.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors' use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialresults including the disclosures and whether the financial results represent theunderlying transactions and events in a manner that achieves fair presentation.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we have compiledwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourIndependence and where applicable related safeguards.

We also performed procedures in accordance with the circular Issued by the SEBI underRegulation 33(8) of the Listing Regulations as amended to the extent applicable.

6. Other Matters

The annual financial results include the results for the quarter ended 31 March 2020being the balancing figure between the audited figures in respect of the full financialyear and the published unaudited year to date figures up to the third quarter of thecurrent financial year which were subject to limited review by us.

For M/s. Raj Anirudh & Associates Chartered Accountants Firm's registration number:020497N
Date : New Delhi Place : 29th July 2020 UDIN : 20083093AAAABR4329 Sd/- RAJ KUMAR VERMA PROPRIETOR Membership number: 083093

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date to the financial statements of theCompany for the year ended March 312020:

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

(b) A substantial part of the fixed assets have been physically verified by themanagement during the year and there is a regular program of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the company. However the immovableproperties are under equitable mortgage with the bank as security for credit facilityobtained from the bank.

2) Inventory has been physically verified during the year by the management and nomaterial discrepancies were noticed. In our opinion the frequency of verification isreasonable.

3) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of theOrder are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5) According to the information and explanations given to us the Company has renewedsome deposits during the year for certain deposits appearing in note 10 of balance sheetcertain procedural guideline as mentioned in the section 73 of the Company's Act 2013 andrules framed there under has been followed.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under subsection (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 312020 for a period of more than six months fromthe date on when they become payable.

b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.

8) As per information and explanations furnished to us and on verification of recordsproduced the Company has not defaulted in repayment of dues to a financial institutionbank or debenture holders.

9) As per information and explanations given to us and as per verification of recordsproduced before us the Company has taken term loans and as has applied for the purposesfor which term loan obtained. Company has not raised any funds through initial publicoffering during the year.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management no fraud by the Company or on the company by its officers oremployees has been noticed or reported during the year.

11) As per information and explanations furnished to us and on verification of recordsproduced during the year Company has not paid or provided any managerial remunerationhence Para 3 (xi) of the order is not applicable.

12) The provisions of statue applicable to Nidhi Company are not applicable to theCompany.

13) As per information and explanations furnished to us and on verification of recordsproduced all transactions with the disclosed related parties have been disclosed in theFinancial Statements as required by the applicable accounting standards. They are incompliance with section 177 and 188 of Companies Act 2013.

14) As per information and explanations furnished to us and on verification of recordsproduced the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year hence Para 3 (xiv) ofthe Order is not applicable.

15) As per information and explanations provided to us the company has not enteredinto non-cash transactions with directors or persons connected with him and accordinglyprovisions of section 192 of Companies Act 2013 are not applicable.

16) The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.

For M/s. Raj Anirudh & Associates Chartered Accountants Firm's registration number:020497N
Date : New Delhi Place : 29th July 2020 Sd/- RAJ KUMAR VERMA PROPRIETOR Membership number: 083093

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF RLF LIMITED

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 RLF Limited("the Company") as of March 312020 in conjunction with our audit of thefinancial 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating 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.

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) 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.

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 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 ofIndia.

For M/s. Raj Anirudh & Associates Chartered Accountants Firm's registration number:020497N
Date : New Delhi Place : 29th July 2020 Sd/- RAJ KUMAR VERMA PROPRIETOR Membership number: 083093

.