R J Bio Tech Ltd Auditors Report.

To,

The Members,

R J Bio-Tech Limited,

"Siddharth Arcade", Opp. Holiday Camp, Station Road,

Aurangabad - 431 005

01] Qualified Opinion

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of We have audited the financial statements of the company, which comprise tire statement of financial position as at March 31, 2019, and the Statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended, and notes to the financial statements, including a summary of significant accounting policies.

02] Basis for Qualified Opinion

i) Following events or conditions indicate that a material uncertainty exists that may cast significant

We draw attention to the standalone financial statements, which indicates that -

- The Company has incurred a net loss of Rs. 11.53 Crores during the year ended 31st March, 2019 and also its current liabilities over current assets exceeded by Rs. 18.87 Crores.

- The Company has accumulated losses and its Net Worth has been fully eroded.

- The Companys financing arrangements expired and the amount outstanding of Rs. 36.11 Crores was payable on March 31, 2019. The Company has been unable to re-negotiate or obtain replacement financing and is currently classified by bank as Non Performing Assets.

ii) As per the information & explanations given, management has sent balance confirmations to outstanding As a result of the matters stated in Para (ii), we were unable to determine whether any adjustments

03] Managements Responsibility for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies In preparing the financial statements, management is responsible for assessing the Companys ability to Those Board of Directors are also responsible for overseeing the companys financial reporting process

04] Auditors Responsibility

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that

05] Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2) As required by section 143(3) of the Act, we report that:

a) Except for the effects of the matters described in Basis for Qualified Opinion paragraph, we have

b) Except the matters described in Bans for Qualified Opinion paragraph , in our opinion, proper books of

c) Except for the effects of the matters described in Basis for Qualified Opinion paragraph, the Balance

d) Except for the possible effects of she matters described in the Basis for Qualified Opinion paragraph,

e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an

f) on the basis of written representations received from the directors as on March 31, 2019, and taken

g) with respect to the adequacy of the internal financial controls other financial reporting of the

h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 1 1 of the Companies (Audit and Auditors) Rules, 2014, in other opinion and to the best of other information and according to the explanations given to us:

i. The details of pending litigations, amount involved, contingent liability for these litigations are given in Note No. 36 to the financial statements.

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

iii. There are no such amounts which are required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 2013 and rules made there

(As per our report of even date)
For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
SD/-
(Ashok P.Patil)
Date : 28.05.2019 Partner
Place : Aurangabad M. No. 34423

ANNEXURE A TO THE AUDITORS REPORT

REFERRED TO IN PARAGRAPH 5 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF R J BIO-TECH LIMITED ON THE FINANCIAL STATEMENTS;

FOR THE YEAR ENDED AS ON 31.03.2019

(i) Fixed Assets:

(a) The Company has maintained proper records showing full particulars including quantitative details

(b) The fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

(c) Title deeds of immovable property has been held in the name of company, for this purpose we

(ii) Inventory:

As explained to us, the management has conducted physical verification of inventory at reasonable

(iii) Loans:

During the year under review, the company has not granted any loan secured or unsecured to Companies, Firms, Limited Liability Partnership or other parties covered in register maintained u/s 189 of the Companies Act, 2013 hence clause (iii) (a) to ( c ) are not applicable.

(iv) Internal Control System:

In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services and there are no major weaknesses in internal control system.

(iv) Loans , Investment and Guarantees

As per the information and explanations given to us we are of the opinion that the Company has

(v) Deposits:

In our opinion & according to the information & explanations given to us, the company has not

(vi) Cost Records :

As explained to us Central Government has not prescribed for maintenance of cost records under

(vii) Statutory Dues:

(a) As observed by us during the course of our examination of the books of accounts carried out in

i) Income Tax demand reflected on Income Tax website of Rs.18,825/- for the period from A.Y. 200708 to 2014-15 for which rectification u/s 154 is pending.

ii) Undisputed demand for TDS defaults shown on TDS Traces website of Rs.13,20,110.00 /-which are

(b) According to the information and explanations given to us, there are no material disputed dues in respect of Service Tax, Duty of Customs and cess which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us & on the basis of documents examined, the following dues of Income tax has not been deposited by the Company on account of disputes :

NAME OF THE STATUE : THE INCOME TAX ACT, 1961

Period Income Tax Demand Details Forum
A. Y. 2013-2014 NIL (Refer Note) Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax (Appeals)-1, Aurangabad Income Tax Appellate Tribunal, Pune
A. Y. 2014-2015 Rs. 82,44,360/- Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax (Appeals)-I, Aurangabad Income Tax Appellate Tribunal, Pune

Note

Income Assessed at Rs. 16,72,387/- by the Assessing Officer i.e. ACIT, Circle - I, Aurangabad & it has been set off against the B/F Business Loss hence Tax Liability is NIL.

(viii) Default to FIS & Banks:

In our opinion & according to the information given to us, the company has defaulted in repayment.

Details of defaults in repayment of Loans :

(x) Guarantees:

In our opinion & according to the information & explanations given to us, during the year under

Account No. Type on Loan Amount of Default Date on Which Installment / Interest due Date on Which Installment / Interest Paid
1,295,821.00 01.05.2016 Yet to be paid
2,320,784.00 01.06.2016 Yet to be paid
2,864,986.35 01.07.2016 Yet to be paid
2,596,114.99 01.08.2016 Yet to be paid
2,619,531.51 01.09.2016 Yet to be paid
2,525,629.40 01.10.2016 Yet to be paid
2,617,300.94 01.11.2016 Yet to be paid
2,535,852.94 01.12.2016 Yet to be paid
32133824088 Cash Credit - SBI 2,619,635.97 01.01.2017 Yet to be paid
2,597,037.89 01.02.2017 Yet to be paid
2,365,819.75 01.03.2017 Yet to be paid
2,601,008.93 01.04.2017 Yet to be paid
209,940,558.51 27.06.2016 Yet to be paid
33,069,129.00 Accrued Int for the F. Y. 17-18 Yet to be paid
34,224,161.54 Accrued Int for the F. Y. 18-19 Yet to be paid
354,758.00 01.05.2016 Yet to be paid
369,877.00 01.06.2016 Yet to be paid
397,332.27 01.07.2016 Yet to be paid
389,613.97 01.08.2016 Yet to be paid
392,844.86 01.09.2016 Yet to be paid
380,205.77 01.10.2016 Yet to be paid
392,762.98 01.11.2016 Yet to be paid
380,204.93 01.12.2016 Yet to be paid
33686610896 SBI SLC 392,762.97 01.01.2017 Yet to be paid
392,878.43 01.02.2017 Yet to be paid
354,859.05 01.03.2017 Yet to be paid
392,529.61 01.04.2017 Yet to be paid
31,500,000.00 27.06.2016 Yet to be paid
4,981,657.00 Accrued Int for the F. Y. 17-18 Yet to be paid
6,236,307.16 Accrued Int for the F. Y. 18-19 Yet to be paid
50,963.72 01.07.2016 Yet to be paid
52,051.69 01.08.2016 Yet to be paid
52,489.92 01.09.2016 Yet to be paid
50,801.27 01.10.2016 Yet to be paid
52,478.90 01.11.2016 Yet to be paid
50,801.16 01.12.2016 Yet to be paid
52,478.89 01.01.2017 Yet to be paid
32929483076 Term Loan - SBI 52,494.53 01.02.2017 Yet to be paid
47,414.57 01.03.2017 Yet to be paid
52,447.29 01.04.2017 Yet to be paid
4,165,405.00 27.06.2016 Yet to be paid
664,434.00 Accrued Int for the F. Y. 17-18 Yet to be paid
761,613.00 Accrued Int for the F. Y. 18-19 Yet to be paid
9,094.69 01.07.2016 Yet to be paid
10,238.75 01.08.2016 Yet to be paid
10,324.95 01.09.2016 Yet to be paid
9,992.79 01.10.2016 Yet to be paid
10,244.93 01.11.2016 Yet to be paid
9,992.07 01.12.2016 Yet to be paid
10,322.78 01.01.2017 Yet to be paid
321340917079 Term Loan - SBI 10,325.86 01.02.2017 Yet to be paid
9,326.61 01.03.2017 Yet to be paid
10,316.57 01.04.2017 Yet to be paid
626,025.00 01.04.2016 Yet to be paid
103,105.00 Accrued Int for the F. Y. 17-18 Yet to be paid
118,186.00 Accrued Int for the F. Y. 18-19 Yet to be paid

Above mentioned defaults has been made during the period 01.04.2016 to 31.03.2017 and on 27 June 2016 State Bank of India, MIDC Waluj, Aurangabad Branch (Currently shifted to Stressed Assets Management Branch -II, Mumbai) has classified above accounts as Non Performing Asset in accordance with the directions/guidelines relating to asset classification issued by the Reserve Bank of India.

Interest on Non Performing Asset has been booked on the basis of Balance Confirmation given by the

(ix) Utilization of IPO, Further Public Offer & Term Loan:

During the current financial year, the company has not raised any public issue and any fresh term

(x) Frauds:

During the course of our examinations of the books & records of the company, carried out in accordance with the generally accepted auditing practices in India & according to the information & explanations given to us, we have neither come across any instances of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by management.

(xi) Approval of Managerial Remuneration :

During the year company has not paid any Managerial Remuneration. Hence, not applicable.

(xii) Nidhi Company : Company is not a Nidhi Company. Hence, Not Applicable.

(xiii) Related Party Transactions:

As per the information and explanation given to us, during the year under review company has not entered into any transactions with related parties are in accordance with section 177 and 188 of Companies Act ,2013 hence disclosure of related Party Transactions are Not Applicable.

(xiv) Private Placement or Preferential Issues

The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

(xv) Non Cash Transactions:

According to the information given to us, the company has not entered into any non-cash transactions with directors or person connected with him .

(xvi) Register under RBI Act 1934 :

The company is not required to be registered u/s 45-IA of Reserve Bank of India Act ,1934.

(As per our report of even date)
For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
SD/-
(Ashok P.Patil)
Date : 28.05.2019 Partner
Place : Aurangabad M. No. 34423

Annexure B to the Auditors Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies We have audited the internal financial controls over financial reporting of R J Biotech Limited (‘the Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting Our audit involves performing procedu res to obtain audit evidence about: tce adeq uacA of the internal financial We bolieve that the andit evidence we have ebtained is suffieient and appropriate to provide o basis for our audit opinion on the Companys internal financial controls system over financial reporting.

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 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 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 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 adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2019, based on the internal financial 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.

For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
SD/-
(Ashok P.Patil)
Date : 28.05.2019 Partner
Place : Aurangabad M. No. 34423