Independent Auditors Report on standalone quarterly financial results and standalone
year to date financial results of Richirich Inventures Limited pursuant to the Regulation
33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended
To
The Board of Directors of Richirich Inventures Limited
Report on the audit of the Standalone Financial Results
Opinion
1. We have audited the accompanying statement of standalone financial results of
Richirich Inventures Limited (“the Company”) for the quarter ended March 31,
2023 and the year to date results for the period from 1 April 2022 to 31 March 2023
(“the Statement”), being submitted by the Company pursuant to the requirements
of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“Listing Regulations”).
2. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Statement: 2.1. are presented in accordance with the
requirements of the Listing Regulations in this regard; and
2.2. give a true and fair view in conformity with the recognition and measurement
principles laid down in the applicable Indian accounting standards (“Ind AS”)
and other accounting principles generally accepted in India, of the net profit and other
comprehensive income and other financial information for the quarter ended 31 March 2023
and the year to date results for the period from 1 April 2022 to 31 March 2023.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing
(“SAs”) specified under section 143(10) of the Companies Act, 2013 (“the
Act”). Our responsibilities under those SAs are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Results 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 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 obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
As stated in note 5, the Company has identified an amount of Rs.2,51,318/- to be
written off which were given as advances to certain parties. Out of which the Company has
written off Rs.96, 000/- only during the year out of the total amount to be written off.
Consequently profit for the year is overstated by Rs.1, 55,318/- and reserve and surplus
as at the year-end is overstated by an equivalent amount.
As stated in note 16 and as per the representation received from the management, the
Company has granted loans and advances to certain parties out of the fund lying idle with
the Company to earn interest income. However, such advances are given for temporary
purpose only and the Company is not a Non-Banking Financial Institution (NBFC) nor it
intends to carry out any such activity as NBFC. Accordingly, the Company has prepared its
financial as per Ind AS.
Managements Responsibilities for the Standalone Financial Results
4. The Statement has been prepared on the basis of the standalone annual financial
statements. The Companys Board of Directors are responsible for the preparation and
presentation of the Statement that give a true and fair view of the net profit and loss
and other comprehensive income and other financial information in accordance with the
recognition and measurement principles laid down in Ind AS prescribed under Section 133 of
the Act and other accounting principles generally accepted in India and in compliance with
the Listing Regulations. 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 Statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
5. In preparing the Statement, the Board of Directors are 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.
6. The Board of Directors are also responsible for overseeing the Companys financial
reporting process. Auditors Responsibilities for the Audit of the Standalone Financial
Results
7. Our objectives are to obtain reasonable assurance about whether the Statement as a
whole is 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
the Statement.
8. As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
8.1. Identify and assess the risks of material misstatement of the Statement, 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.
8.2. 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 Act, we are also responsible for expressing our opinion through a separate
report on the complete set of standalone financial statements on whether the Company has
adequate internal financial controls with reference to standalone financial statements in
place and the operating effectiveness of such controls.
8.3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board of Directors.
8.4. Conclude on the appropriateness of the Board of Directors 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 Statement 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.
8.5. Evaluate the overall presentation, structure and content of the Statement,
including the disclosures, and whether the Statement represents the underlying
transactions and events in a manner that achieves fair presentation.
9. 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.
10. 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.
Other matters
11. The Statement includes the results for the quarter ended 31 March 2022 being the
balancing figure between the audited figures in respect of the full financial year and the
published unaudited year to date figures up to the third quarter of the current financial
year which were subject to limited review by us. Our opinion is not modified in respect of
this matter
12. The Statement includes the unaudited results for the quarter ended 31 March 2022
being the balancing figure between the audited figures in respect of the full financial
year and the management accounts for the nine months ended 31 December 2021, which was not
subject to audit and limited review. Our opinion is not modified in respect of this
matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 (“the Order”)
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act (“the Order”), and on the basis of such checks of the books and records
of the company as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure A, a statement on the matters specified
in the paragraph 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) 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 (including other comprehensive
income), the Cash Flow Statement and the statement of changes in equity 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.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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 over financial
reporting of the Company and operating effectiveness of such controls, refer to our
separate report in “Annexure B”.
(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 litigations which would impact 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 were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. The reporting on disclosure relating to Specified Bank Notes is not applicable to
the Company for the year ended 31st March, 2023.
For H. Rajen & Co Chartered Accountants
Firms Registration Number: 108351W
Sd/-
CA Bharat Kumar Partner
Membership Number: 175787 Mumbai Date: 12/05/2023 UDIN: 23175787BGVSNQ3989
“Annexure A” to the Independent Auditors Report of even date on the
Standalone Financial Statements of Richirich Inventures Limited:-
i) (a) (A) The company maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment; (B) The company is
not having any intangible assets; hence this clause is not applicable;
(b) All the Property, Plant and Equipment have been physically verified by the
management during the year and there is a regular programme of verification which, in our
opinion, is reasonable having regard to the size of the company and the nature of its
assets. No material discrepancies were noticed on such verification; (c) All the title
deeds 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 of assets) or
intangible asset of both during the financial year; (e) There is no any proceeding have
been initiated or pending against company for holding any Benaim property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) (a) Company does not have any inventory; hence this clause is not applicable;
(b) Company has not been sanctioned any working capital limits from banks or financial
institution on the basis of security of current assets during the financial.
(iii) (a) In our opinion and according to the information provided to us the company
has made investments and provided guarantees and granted unsecured loans or advances in
the nature of loans as specified below: (A) To Subsidiaries, Joint Ventures, Associates:
Nil (B) To other than Subsidiaries, Joint Ventures and Associates: as per note no. 4.1 of
financials statements (b) The terms and conditions of 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 prejudicial to the
interest of the company. (c) In respect of loans and advances in the nature of loans, the
schedule of repayment of principal and payment of interest has not been stipulated and the
repayments or receipts are regular. (d) The amount is not overdue, on the above loan and
advances; hence this clause is not applicable; (e) The company has granted loans or
advances in the nature of loans either repayable on demand or without specifying any terms
or period of repayment. Details of the said loan or advances as per note no. 4.1 of
financials statements
(iv)The company has provided following mentioned corporate guarantees within the
meaning of section 185 & 186 of the Companies Act, 2013-
(v) The Company has not accepted any deposits or amount which is deemed to be deposits
from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under
section 148(1) of the Act, for any of the services rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted / accrued in the books of
account in respect of undisputed statutory dues including provident fund, income-tax, GST,
value added tax, duty of customs, service tax, cess and other material statutory dues if
applicable have been regularly deposited during the year by the Company with the
appropriate authorities. As explained to us, the Company did not have any dues on account
duty of excise.
(b) According to the information and explanations given to us, and the records of the
companies examined by us, there are no disputed dues of GST, income tax, custom duty,
service tax, wealth tax, Value added tax, excise duty and cess which have not been
deposited.
(viii) The company has not recorded any transactions in the books of account which have
been surrendered of disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961. The previously unrecorded income has been properly recorded in the
books of account during the year.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in
the payment of interest thereon to any lender; hence this clause is not applicable; (b)
The company has not declared willful defaulter by any bank or financial institution or
other lender, hence this clause is not applicable; (c) The company has not obtained any
term loan; hence this clause is not applicable; (d) The company has not raised any short
term fund; hence this clause is not applicable; (e) 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; hence this clause is not applicable; (f) The company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies; hence this clause is not applicable.
(x) (a) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments); hence this clause 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
this clause is not applicable.
(xi) (a) According to the information and explanations given to us, no material fraud
by the Company or by its officers or employees has been noticed or reported during the
course of our audit.
(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; hence this clause is not applicable.
(xii) (a) The Company is not a Nidhi Company hence compliance of Net Owned Funds to
Deposits in the ratio of 1: 20 to meet out the liability is not applicable to the company;
(b) The Company is not a Nidhi Company hence maintaining ten percent unencumbered term
deposits as specified in the Nidhi Rules, 2014 to meet out the liability is not applicable
to the company; (c) The Company is not a Nidhi Company hence this clause is not applicable
to the company.
(xiii) According to the information and explanation given to us and based on the our
examination of the records of the company, all transactions with the related parties are
in compliance with sections 177 and 188 of Companies Act where applicable and the details
have been disclosed in note no 1.16 of the financial statements, etc., as required by the
applicable accounting standards.
(xiv) (a) The Central Government has not prescribed to appoint internal auditor under
section 138 of the Act, for any of the services rendered by the Company; (b) This clause
is not applicable to the company.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with him as restricted in section 192 of
Companies Act, 2013; hence this clause is not applicable.
(xvi) (a) The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act 1934.
(b) The Company is not has conducted any Non-Banking Financial or Housing Finance
activities; hence this clause is not applicable. (c) The Company is not a Core Investment
Company (CIC) as defined in the regulations made by the Reserve Bank of India; hence this
clause is not applicable. (d) The Company does not have any CIC.
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There is no resignation of statutory auditors during the year; hence this
clause is not applicable.
(xix) According to the information and explanations given to us and based on our
examination of the records of the Company and financial ratios, ageing and expected dates
of realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements, the auditors knowledge of the Board of Directors
and management plans, we were in the opinion that no material uncertainty exists as on the
date of the audit report. There was no any liability in the books of the company for those
payable within one year from the date of balance sheet date.
(xx) (a) The company has not any other than ongoing projects, therefore provision of
section 135 of Companies Act, 2013 is not applicable to the company; (b) This clause is
not applicable to the company.
(xxi) There are no any qualifications or adverse remarks given by the respective
auditors in the Companies (Auditors Report) Order (CARO) reports, hence this clause is
not applicable to the company.
For H.Rajen & Co Chartered Accountants
Firms Registration Number: 108351W
Sd/-
CA Bharat Kumar Partner
Membership Number: 175787 Mumbai Date: 12/05/2023 UDIN: 23175787BGVSNQ3989
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 Act, 2013 (“the Act”)
‘We have audited the internal financial controls over financial reporting of
Richirich Inventures Limited (“the Company”) as of 31 March 2023 in conjunction
with our audit of the Ind AS financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls 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 (‘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 Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting 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 Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting 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 controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
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
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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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 31 March 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.
For H.Rajen & Co Chartered Accountants
Firms Registration Number: 108351W
Sd/-
CA Bharat Kumar Partner
Membership Number: 175787 Mumbai
Date: 12/05/2023
UDIN: 23175787BGVSNQ3989
+91-9892691696
