To
The Members of
Raaj Medisafe India Limited
Report on the audit of the IND AS Financial Statements
Opinion
We have audited the accompanying IND AS Financial Statements of Raaj
Medisafe India Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, and the Statement of Profit and Loss and Statement of Cash flows and notes
to the IND AS Financial Statements, including a summary of significant accounting policies
and other explanatory information.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid IND AS Financial Statements give the information
required by the Companies Act, 2013(‘Act) in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31,2023 and its Profit and Loss account
and Cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing
specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under
those Standards are further described in the auditors responsibilities for the audit of
the IND AS Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the IND AS
Financial Statements under the provisions of the Act and the rules there under, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the standalone IND AS Financial Statements of
the current period. These matters were addressed in the context of our audit of the IND AS
Financial Statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
| Key Audit Matter |
Auditors Response |
| Accuracy of recognition measurement, presentation and
disclosures of revenues and other related balances in view of adoption of IND AS 115 |
We assessed the companys process to identify the impact of
the existing revenue accounting policy |
|
Our audit approach consisted testing of the design and
operating effectiveness of the internal controls and substantive testing as follows: |
|
i. We have reviewed the Companys Accounting policies for
Revenue Recognition (Refer Note No. 1 of the standalone financial statements. |
|
ii. We have carried out substantive procedures on sample
basis for evaluation of operating effectiveness and each income stream, basis of
management estimation and their corresponding disclosure. |
Information other than the IND AS Financial Statements and
auditors? report thereon
The Company?s board of directors is responsible for the
preparation of the other information. The other information comprises the information
included in the Director?s Report and other company related information, but does not
include the standalone IND AS Financial Statements and our auditor?s report thereon.
Our opinion on the IND AS Financial Statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the IND AS Financial Statements, our
responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the IND AS Financial Statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We
have nothing to report in this regard.
Management?s responsibility for the IND AS Financial Statements
The Company?s board of directors are responsible for the matters
stated in section 134 (5) of the Act with respect to the preparation of these IND AS
Financial Statements that give a true and fair view of the financial position and
financial performance and Cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the accounting standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the IND AS Financial Statements, management is responsible
for assessing the Company?s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. The Board of Directors are also
responsible for overseeing the Company?s financial reporting process.
Auditor?s responsibilities for the audit of the IND AS Financial
Statements
Our objectives are to obtain reasonable assurance about whether the IND
AS Financial Statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor?s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these IND AS Financial Statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
IND AS Financial Statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company?s
internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management?s use of the
going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant
doubt on the Company?s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor?s
report to the related disclosures in the IND AS Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor?s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
IND AS Financial Statements, including the disclosures, and whether the IND AS Financial
Statements represent the underlying transactions and events in a manner that achieves fair
presentation.
• We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify
during our audit.
• We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Report on other legal and regulatory requirements
. As required by section 197(16) of the Act based on our audit, we
report that the Company has paid remuneration to its directors during the year in
accordance with the provisions of and limits laid down under section 197 read with
Schedule V to the Act.
!. As required by the Companies (Auditor?s Report) Order, 2020
(‘the Order?) issued by the Central Government of India in terms of section
143(11) of the Act we give in the Annexure A, a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
I. 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 best of 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 the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid IND AS Financial Statements comply
with the accounting standards specified under section 133 of the Act, read with rule 7 of
the Companies (Accounts) Rules, 2014 Companies Rules 2015 as amended except for IND AS 107
re. Financial Instruments Disclosures;
(e) On the basis of the written representations received from the
directors as on March 31,2023 taken on record by the board of directors, none of the
directors is disqualified as on March 31,2023 from being appointed as a director in terms
of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls
with reference to IND AS Financial Statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B" to
this report.
(g) With respect to the other matters to be included in the
Auditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and according to the
explanations given to us;
i. The company has disclosed the impact of the pending litigations on
its financial position in its IND AS Financial Statements- Refer Note No. 32 to the IND AS
Financial Statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses; and
iii. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company .
iv. (a) Management has represented that, to the best of its knowledge
and belief, other than as disclosed in the notes to the accounts, no funds have been
advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the company to or in any other person(s) or entity(ies),
including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) Management has represented, that, to the best of its knowledge and
belief, other than as disclosed in the notes to the accounts, no funds have been received
by the company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and
(c) Based on the audit procedures that have been considered reasonable
and appropriate in the circumstances performed by us nothing has come to our notice that
has caused us to believe that the representations under sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and (b) above, contain any material misstatement.
v. During the year the company has not declared or paid any interim,
final dividend to the accumulated loss sustained by the company.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company w.e.f. April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable for the financial year ended March 31,2023.
ANNEXURE ‘A? TO THE INDEPENDENT AUDITOR?S REPORT
Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our report of even date to the Auditor of Raaj Medisafe Limited,
on the Standalone Ind AS financial statements for the year ended 31st March
2023
In terms of the information and explanations given to us and the books
and records of the Company examined by us in the normal course of audit and to the best of
our knowledge and belief, we state that
i(a) (A) As per information and explanations given to us, the Company
has maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant and Equipment;
(B) As per information and explanations given to us, the Company has
maintained proper records showing full particulars of intangible assets.
(b) As per information and explanations given to us, Property, Plant
and Equipment have been physically verified by the management at reasonable intervals; no
material discrepancies were noticed on such verification;
(c) The title deeds of all the immovable properties disclosed in the
financial statements are held in the name of the company,
(d) The Company has not revalued any of its property, plant and
equipment (including Right of Use assets) or intangible assets or both during the year
(e) As per information and explanations given to us, no proceedings
have been initiated or are pending against the company as at 31st March, 2023 for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made there under.
ii (a) As per information and explanations given to us, the inventories
were physically verified during the year by the Management at reasonable intervals. In our
opinion the coverage and procedure of such verification by the Management is appropriate
having regard to the size of the Company and the nature of its operations. No material
discrepancies were noticed on such physical verification of inventories when compared with
books of accounts.
(b) During the year, the Company has been sanctioned working capital
limits in excess of Rs. 5 crores, in aggregate, from banks on the basis of security of
current assets. The Company has filed quarterly returns or statements with such banks,
which are in agreement with the audited books of account.
iii. (a) The Company has made investments in one company and advances
in nature of loans (advances) to parties. The aggregate amount during the year, and
balance outstanding at the balance sheet date with respect to such loans or advances and
guarantees or security to subsidiaries, joint ventures and associates and to parties other
than subsidiaries, joint ventures and associates are as per the table given below:
The Company has provided loans, during the year and details of which
are given below:
| A Aggregate amount granted / provided during the year: |
Loans (Rs In crores) |
| Related Party |
0.03 |
| Others |
0.00 |
| B. Balance outstanding as at balance sheet date in respect of
above cases:* |
|
| Related Party |
Nil |
(b) According to the information and explanations given to us, the
investments made, guarantees provided, security given and the terms and conditions of the
grant of all loans and advances in the nature of loans and guarantees provided are not
prima facie prejudicial to the company?s interest;
(c) There is no stipulation of schedule of repayment of principal and
payment of interest and therefore we are unable to comment on the regularity of repayment
of principal & payment of interest.
(d) There is no stipulation of schedule of repayment of principal and
payment of interest and therefore we are unable to comment whether the amount is overdue
or not.
(e) There were no loans/advances in nature of loans which fell due
during the year.
(f) The company has granted loan to one party i.e M/s Shriniwas
Polyfabric and Packwell Pvt. Ltd. amount of Rs. 0.03 crores which was repaid at the year
end and balance is Nil or no advances are in the nature of loans either repayable on
demand or without specifying any terms or period of repayment.
iv. In our opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of Sections 185 and 186 of the
Companies Act, 2013 in respect of the loans and investments made. The Company has not
provided any guarantees and security to the parties covered under Sections 185 and 186 of
the Companies Act, 2013.
v. The company has not accepted any deposits or amounts which are
deemed to be deposits covered under sections 73 to 76 of the Companies Act, 2013.Hence,
reporting under clause (v) of the Order is not applicable.
vi. As per information & explanation given by the management,
maintenance of cost records has been specified by the Central Government under sub-section
(1) of section 148 of the Companies Act,2013 for the business activities carried out by
the company. Thus reporting under this clause is not applicable to the company.
vii. According to the information and explanations given to us, in
respect of statutory dues:
(a) According to the records made available to us, company is regular
in depositing undisputed statutory dues including Goods and Services Tax, provident fund,
employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of
excise, value added tax, cess and any other statutory dues to the appropriate authorities.
According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of March, 2023 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 of Income Tax, Goods and Service Tax, VAT, sales tax which have not been deposited
by the Company on account of disputes except of the following:-
| Nature of Statue |
Nature of Dues |
Amount (in lacs) |
Period to which the Amount relates |
Forum where dispute is pending |
| Income Tax |
Income Tax |
5.68 |
2018-19 |
Commissioner of Income Tax (Appeal), Bhopal |
| GST |
GST |
1.62 |
2018-19 |
State Commissioner (Appeals),Indore |
viii. According to the information and explanations given by the
management, no transactions recorded in the books of account have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) In our opinion and according to the information and
explanations given by the management, we are of the opinion
that the company has not defaulted in repayment of loans or other
borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given by the
management, the company has not declared willful defaulter by any bank or financial
institution or other lender;
(c) In our opinion and according to the information and explanations
given by the management, the Company has utilized the money obtained by way of term loans
during the year for the purposes for which they were obtained,
(d) In our opinion and according to the information and explanations
given by the management, funds raised on short term basis have not been utilized for long
term purposes.
(e) In our opinion and according to the information and explanations
given by the management, the company has not taken any funds from any entity or person on
account of or to meet the obligations of its subsidiaries, associates or joint ventures,
(f) In our opinion and according to the information and explanations
given by the management, the company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies. Hence
reporting on clause (ix)(f) of the Order is not applicable.
x. (a) The company has not raised any money by way of initial public
offer or further public offer (including debt instruments) during the year. Hence
reporting on clause (x)(a) of the Order is not applicable.
(b) The company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year. Hence reporting on clause (x)(b) of the Order is not applicable.
xi. a) According to the information and explanations given by the
management, no fraud by the company or any fraud on the company has been noticed or
reported during the year.
b) No report under sub-section (12) of section 143 of the Companies Act
has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
c) According to the information and explanations given to us by the
management, no whistle-blower complaints had been received by the company.
xii. The company is not a Nidhi Company. Therefore, clause xii is not
applicable on the company.
xiii. In our opinion and according to the information and explanations
given to us, the Company is in compliance with Section 177 and 188 of the Companies Act,
2013 where applicable, for all transactions with the related parties and the details of
related party transactions have been disclosed by the management in the IND AS Financial
Statements & notes to accounts as required by the applicable accounting standards.
xiv. (a) In our opinion the Company has an adequate internal audit
system commensurate with the size and the nature of its business.
(b) We have considered the internal audit reports issued to the Company
during the year and covering the period up to 31 March 2023 for the period under audit.
xv. On the basis of the information and explanations given to us, in
our opinion, during the year the company has not entered into any non-cash transactions
with directors or persons connected with him. Hence provisions of section 192 of the
Companies Act, 2013 are not applicable to the Company.
xvi. (a) In our Opinion and based on our examination, the Company is
not required to be registered under section 45-IA of
the Reserve Bank of India Act, 1934 (2 of 1934).The company is not a
core investment company, hence, reporting under clause (xvi)(a), (b) and (c) of the Order
is not applicable.
xvii. Based on our examination, the company has not incurred cash
losses in the financial year and in the immediately preceding financial year.
xviii There has been no resignation of the statutory auditors of the
Company during the year.
xix. On the basis of information obtained from the management and audit
procedures performed and on the basis of the financial ratios, ageing and expected dates
of realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements, the auditor?s knowledge of the Board of
Directors and management plans, we are of the opinion that no material uncertainty exists
as on the date of the audit report that company is capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one
year from the balance sheet date.
xx Based on our examination, the provision of section 135 is not
applicable on the company. Hence this clause is not applicable on the company.
xxi. The company is not required to prepare Consolidate financial
statement hence this clause is not applicable.
ANNEXURE - B TO INDEPENDENT AUDITORS REPORT
Report on the internal financial controls with reference to the
aforesaid Ind AS financial statements under Section 143(3)(I) of the Companies Act, 2013
(Referred to in paragraph 2(f) under ‘Report on Other Legal and
Regulatory Requirements? section of our report of even date)
We have audited the internal financial controls with reference to Ind
AS financial statements over financial reporting of Raaj Medisafe (India) Limited
("the Company") as of 31st March 2023 in conjunction with our audit
of the Ind AS financial statements of the Company for the year ended on that date.
Management?s Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and
maintaining internal financial controls with reference to Ind AS financial statements
based on the internal controls over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by The
Institute of Chartered Accountants of India (ICAI). These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to Companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Act.
Auditors? Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls with reference to Ind AS financial statements based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting (the "Guidance Note") and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to
the extent applicable to an audit of internal financial controls, both applicable to an
audit of Internal Financial Controls and, both issued by ICAI. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls
with reference to Ind AS financial statements was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial control system with reference to Ind AS financial
statements and their operating effectiveness. Our audit of internal financial control with
reference to Ind AS financial statements included obtaining an understanding of internal
financial control with reference to Ind AS financial statements, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
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 to provide a basis for our audit opinion on the Companys internal financial
controls system with reference to Ind AS financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of Ind AS financial statements for external purposes in
accordance with generally accepted accounting principles. A companys internal financial
control over financial reporting includes those policies and procedures that (1)Pertain to
the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
Company; (2)Provide reasonable assurance that transactions are recorded as necessary to
permit preparation of Ind AS financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the Company are being made
only in accordance with authorizations of the Management and directors of the Company; and
(3)Provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Companys assets that could have a material effect
on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were needs to be strengthen as at 31stMarch 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
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