To;
The Members of
RICH UNIVERSE NETWORK LIMITED, 7/125 (C-2) KANPUR
Report on Audit of the Standalone Financial Statements Qualified Opinion
We have audited the accompanying Standalone financial statements of Rich Universe
Network Limited, (‘the Company) which comprise the Standalone Balance Sheet as
at MARCH 31st, 2023, the Standalone Statement of Profit & Loss (Including other
comprehensive income), the standalone statement of changes in equity , the Standalone Cash
Flow Statement and a summary of significant accounting policies and other explanatory
information ("herein after referred as Standalone financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in the basis for Qualified
opinion section of our report, the aforesaid standalone financial statements give the
information required by the Companies Act, 2013 ("the 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,
its profit and standalone cash flows for the ended on that date.
Basis for Qualified Opinion i) We draw attention to the note number 4 "Other
Non-current assets" of the financial statements where the balances related to income
tax which are under
appeal or seized by the department and balances related to SEBI and Service tax which
are under protest, the management has not booked any contingent liability in the financial
statements and not reflected in the notes. However, we have relied on the balances as per
management representations provided to us by the
management. ii) As per our opinion the management has not made any provision for
recovery of sundry debtors related to the balance of one of the party New E-World Services
Limited. We have relied on the management for the balances for sundry debtors.
Our Opinion is qualified for the above matters.
Emphasis of Matter
We draw attention to the note no. 34 of the financial statements where adjustment of
Rs.7,12,577 related to previous years Mat credit has not been booked which has been duly
booked during the current year which will impact (increase) our profit after tax. Our
opinion is not qualified on the above matter.
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
Standalone 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 (ICAI) together with the ethical requirements that are relevant to
our audit of the standalone financial statements under the provisions of the Companies
Act, 2013 and the Rules made thereunder, 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 qualified opinion on standalone financial statements.
Responsibilities of Management and Those Charged with Governance for the
Standalone Financial Statement :
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013("the Act") with respect to the preparation of
these standalone statements that give a true and fair view of the financial position,
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 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 standalone financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error. In preparing the
standalone financial statements, the Board of Directors is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the companys
standalone financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements:
Our objectives are to obtain reasonable assurance about whether the standalone
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone 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. Under
section 143(3)(i) of the Companies Act, 2013, we are also responsible for
expressing our opinion on whether the company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by
management.
Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors report to
the related disclosures in the standalone 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 auditors 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 standalone financial
statements, including the disclosures, and whether the standalone
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 safeguard.
Report on Other Legal & Regulatory Requirements :
1. As required by the Companies (Auditors Report) Order, 2020 , 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.
2. 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. Except for the effects of the matter described in the Basis for Qualified
Opinion paragraph above, 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 Standalone Balance Sheet, the Standalone Statement of Profit & Loss and
Standalone Cash Flow Statement dealt with by this Report are in agreement with the books
of account.
d. Except for the effects of the matter described in the basis for Qualified opinion
paragraph above ,in our opinion, the aforesaid Financial Statement
comply with the Accounting Standard specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards)
Amendment Rules, 2017 as amended.
e. The qualifications relating to the maintenance of accounts and other matters
connected therewith are as stated in the Basis of Qualified Opinion paragraph
above.
f. On the basis of the written representations received from the directors as on
March 31st, 2023, taken on record by the Board of Directors, none of the directors is
disqualified as on March 31st, 2023, from being appointed as a director in Terms of
Section-164(2) of the Act.
g. With respect to the other matters to be included in the Auditors 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 does not have any pending litigation which
would impacts its financial position. ii) The Company did not have any long-term contracts
including derivative contracts for which there were any material foreseeable
losses. iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
For SRIVASTAVA S AND CO. Chartered Accountants FRN:- 015187C SD/-
(CA Swadesh Chandra Srivastava)
Partner Membership No. 073915 Place: Kanpur Date: 30th May, 2023 UDIN:
23073915BGRXVZ6683
"Annexure A" to the Independent Auditors Report to the members of Rich
Universe
Network Limited on its financial statements.
Report on the matters specified in paragraph 3 of the Companies (Auditors Report)
Order, 2020 ("the Order) issued by the Central Government of India in terms of
section 143(11) of the Companies Act, 2013 ("the Act") as referred to in
paragraph 3 of ‘Report on Other Legal and Regulatory Requirements section.
To the best of our information and according to the explanations provided to us by the
Company and the books of account and records examined by us in the normal course of audit,
we state that: i) (a) (A) The Company has maintained proper records showing full
particulars including quantitative details and situation of property, plant and equipment
and relevant details of right-of use assets.
(B) The Company has maintained proper records showing full particulars of intangible
assets. (b) The property, plant and equipment and right-of use assets have been physically
verified by the management according to the programme of periodical verification in phased
manner which, in our opinion, is reasonable having regard to the size of the company and
the nature of its property, plant and equipment. The discrepancies, if any, noticed on
such physical verification have been properly dealt with in the books of accounts. (c)
According to the information and explanation given to us and on the basis of our
examination of the records of the Company, the title deed of immovable properties are held
in the name of the company. (d) The Company has not revalued its property, plant and
equipment (including right-of use assets) and intangible assets during the year. (e) There
are no proceedings initiated or are pending against the Company for holding any benami
property under the Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder. ii) (a) According to the information and explanation given to us, inventory
has been physically verified at reasonable intervals by the management. In our opinion,
procedure of physical verification of inventory followed by the management are reasonable
and adequate in relation to the size of the company and nature of its business. Further,
we have relied on the management for correct position of the inventory as per management
representation letter.
(b) According to the information and explanations given to us and based on our
examinations of the records, in our opinion, the Company has not been sanctioned any
working capital limits on the basis of security of current assets of the Company during
the year. Accordingly, the provisions of clause
3(ii) (b) of the Order are not applicable to the company. iii) According to the
information and explanations given to us and based on our examinations of the records, in
our opinion, the Company has not provided any guarantee or security or granted any loans
or advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability
Partnerships or other parties during the year. iv) According to the information and
explanations given to us and based on our examinations of the records, in our opinion, the
Company has not granted any loans or made any investments, or provided any guarantee or
security to the parties covered under section 185 and 186 of the Companies Act 2013.
Accordingly, the provisions of clause 3(iv) of the said order are not applicable to the
Company. v) According to the information and explanations given to us, in our opinion, the
Company has not accepted any deposits from the public within the meaning of section 73,
74, 75 and 76 of the Act read with the Companies (Acceptance & Deposit) Rules 2014 and
other relevant provisions of the Act, to the extent notified. Accordingly, the provisions
of clause 3(v) of the said order are not applicable to the Company. vi) According to the
information and explanations maintenance of cost records under section 148(1) of the Act,
prescribed by the Central Government are not applicable to the company. vii) In respect of
statutory dues: a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, employees state insurance (ESI), Income-tax, Tax
deducted at sources, Tax collected at source, Sales Tax, value added tax (VAT), Goods and
Service Tax (GST), Custom Duty, Excise Duty, Cess and any other statutory dues applicable
to it, with the appropriate authorities. b) According to the information and explanations
given to us, there are some outstanding statutory dues that have not been deposited on
account of any dispute which are:
| viii) |
c) Nature of dues / Payments |
Amount due (Rs. In Lacs) |
Period of which the amount Relates |
Forum where amount is pending |
|
Income Tax |
15.04 |
A.Y.2010-11 |
I.T. DEPT. |
|
Income Tax |
14.69 |
A.Y.2011-12 |
I.T. DEPT. |
|
Income Tax |
2.50 |
A.Y.2012-13 |
I.T. DEPT. |
|
Income Tax |
21.67 |
A.Y.2013-14 |
I.T. DEPT. |
|
Income Tax |
16.47 |
A.Y.2014-15 |
I.T. DEPT. |
|
Income Tax |
13.64 |
A.Y.2015-16 |
I.T. DEPT. |
|
Income Tax |
12.13 |
A.Y.2016-17 |
I.T. DEPT. |
|
Income Tax |
0.49 |
A.Y.1993-94 |
High Court* |
|
Income Tax |
0.64 |
A.Y.1994-95 |
-do-* |
|
Income Tax |
2.45 |
A.Y.1995-96 |
-do-* |
|
Income Tax |
67.88 |
A.Y.1999-00 |
-do-* |
|
Income Tax |
114.99 |
A.Y.2000-01 |
-do-* |
|
Income Tax |
41.55 |
A.Y.2001-02 |
-do-* |
|
Income Tax |
216.59 |
A.Y.2002-03 |
-do-* |
|
Amount Paid(Tax) |
27.72 |
EARLIER YEARS |
I.T. DEPT. |
|
SEBI |
12.50 |
EARLIER YEARS |
SEBI |
|
Service Tax |
3.20 |
A.Y. 2011-12 |
S.TAX DEPT. |
to the information and explanations given to us, Company has not surrendered or
disclosed any transaction, previously unrecorded in the books of accounts, in the tax
assessments under the Income Tax Act, 1961, as income during the year. Accordingly, the
provisions of clause 3(viii) of the Order are not applicable to the company.
ix) (a) According to the information and explanations given to us and as per the books
and records examined by us, in our opinion, the Company has
not availed fund based working capital facilities from any banks, financial
institutions and lenders. Accordingly, the provisions of clause 3(ix)(a) of the Order are
not applicable to the company. (b) According to the information and explanations
given to us and the records of the Company examined by us including representation
received from the management, the Company has not been declared wilful defaulter by any
bank, financial institution or other lenders or government or any government authority.
(c) The Company has not availed any Term loans from any banks and financial institution
during the year and the said loan was applied for the purpose for which it was obtained.
(d) On overall examination of the financial statement of the Company, prima facie, funds
raised on short term basis have not been used for long term purposes by the Company. (e)
According to the information and explanations given to us and as per the books and records
examined by us, the company has not taken any funds from any entity or person on account
of or to meet the obligations of its subsidiary company. f) According to the information
and explanations given to us and procedures performed by us, the company has not raised
loans during
the year on the pledge of securities held in its subsidiary company x) (a) According to
the information and explanations given to us and as per the books and records examined by
us, the company has not raised
money by way of initial public offer or further public offer (including debt
instruments). Accordingly, the provisions of paragraph 3(x) (a) of the Order are not
applicable to the company. (b) According to the information and explanations given to us
and as per the books and records examined by us, the company has not made any preferential
allotment or private placement of shares or convertible debentures during the year.
Accordingly, the provisions of paragraph 3(x) (b) of the Order are not applicable to the
company.
xi) (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company or any fraud on the
Company has been noticed or reported during the year. Accordingly, the provisions of
paragraph 3(xi) (a) and (b) of the Order are not applicable to the company. (b) According
to the information & explanations and representation made by the management, no
whistle- blower complaints have been received
during the year (and up to the date of the report) by the company. xii) In our opinion,
the Company is not a Nidhi Company. Accordingly, the provisions of paragraph 3(xii) (a) to
(c) of the Order are not applicable to
the company. xiii) According to the information and explanations given to us and based
on our examination of the records of the Company, transactions with the
related parties are in compliance with sections 177 and 188 of the Act
where applicable and details of such transactions have been disclosed in
the financial statements as required by applicable accounting standards. xiv) The
Company has no internal audit system commensurate with the size and nature of its
business. xv) In our opinion, and according to the information and explanations given to
us, the Company has not entered into any non-cash transactions with
directors or persons connected with him and hence the provisions of
paragraph 3 (xv) of the Order is not applicable to the Company. xvi) (a) The provisions
of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to
the Company. Accordingly, the provision
of paragraph 3 (xvi) (a) to (c) of the Order is not applicable to the Company. (b) In
our opinion, there is no core investment company within the Group (as defined in the Core
Investment Companies (Reserve Bank) Directions, 2016) and accordingly provision of
paragraph 3 (xvi) (d) of the Order is not
applicable. xvii) In our opinion, and according to the information and explanations
provided to us, The Company has not incurred cash losses in the current
financial year and in the immediately preceding financial year. xviii) There has been
no resignation of the statutory auditors during the year. Accordingly, provisions of
paragraph (xviii) of the Order are not
applicable to the Company. xix) According to the information and explanations given to
us 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, our knowledge of the Board of Directors and management plans and
based on our examination of the evidence supporting the assumptions, has come to our
attention, which causes us to believe 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.
We, however, state that this is not an assurance as to the future viability of the
company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the company as and when they fall due.
xx) In our opinion, and according to the information and explanations given to us,
compliance of CSR is not applicable to the company.
xxi) There has been no adverse auditor remark or any qualifications in other group
companies. Accordingly provision of paragraph 3 (xxi) of the Order
is not applicable.
For SRIVASTAVA S AND CO. Chartered Accountants FRN: - 015187C SD/-
(CA Swadesh Chandra Srivastava)
Partner Membership No. 073915 Place: Kanpur Date: 30th May, 2023 UDIN:
23073915BGRXVZ6683
+91-9892691696
