We have audited the accompanying Ind AS financial statements of Radha Madhav Corporation Limited
('tire Company'), which comprise the Balance Sheet as at 31st March, 2024; the Statement of Profit and Loss
(including other comprehensive income), the Cash Flows Statement and the Statement of Changes in Equity
for tire year then ended and a summary of the Significant Accounting Policies and other Explanatory
Information (herein after referred to as "Ind AS financial statements").
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 in the
mamrer so required and give a true and fair view in conformity with the accounting principles generally
accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2024;
(ii) in the case of the Statement of Profit and Loss (comprising of Other Comprehensive Income), of the
Loss for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date and
(iv) the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the
Auditor's 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, and we have fulfilled our other ethical responsibilities in accordance with the
provisions of the Companies Act, 2013. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Emphasis of Matter
1) Related to Going Concern:
Due to recurring losses the Company's Net Worth is fully eroded and has a negative net worth of Rs. 14.380
million indicating the existence of uncertainty that may cast doubt about the Company's ability to continue
as a Going Concern. The company was under Corporate Insolvency Resolution Process since 22/10/2020
& IRP/RP of the Company were evaluating various options like including starting a new line of business,
monetizing its assets, sell of its marketing business., restructuring its liabilities and recommencement of its
operations, sale by the promoters to a strategic partner with further equity infusion. The Company has
received a Prospective Resolution Applicant (PRA) and his resolution plan for revival/ restructuring of the
Company has been approved by COC and Honorable NCLT vide their order dated 01.08.2022. We refer to
Note No. 41 of the Financial Statements, considering the matters set out in the said Note, these Financial
Statements are prepared on a going concern basis. Our Opinion is not modified in respect of the said matter.
2) Related to write off Assets/Liabilities
The assets and liabilities standing on the date of initiation of Corporate Insolvency Resolution Process
(CIRP) have been write off as per the amount offered on different heads in the approved resolution plan.
Our Opinion is not modified in respect of the said matter
3) Related to Receivables and Payables:
The Outstanding balances as at the end under consideration in respect of sundry debtors, loans & advances
and sundry creditors are subject to confirmation from respective parties and consequential reconciliation
and adjustments arising there from if any. Consequential impact thereof on the financial results is not
ascertainable. Company is in process of obtaining such confirmation which has resulted into departure
from standard on auditing. Our Opinion is not modified in respect of the said matter.
4) Related to Inventory Records:
Company has not maintained proper records of inventory of trading goods and its physical verification
cannot be ascertained. Our Opinion is not modified in respect of the said matter.
Key Audit Matters
In view of all our emphasis of matters, according to us it was difficult to ascertain the key audit matters.
We, therefore, did not identify any matter to be reported further here.
Responsibilities of the Management and Those Charged with Governance for the Ind AS Financial
Statements
The Company's 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 Ind AS financial statements that give a true
and fair view of the financial position, financial performance including other comprehensive income, cash
flows and changes in equity of the Company in accordance with the accounting principles generally
accepted in India, including tire Indian Accounting Standards (Ind AS) prescribed under Section 133 of the
Act read with relevant rules issued thereunder.
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 Ind AS financial statements 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, the Board of Directors of the company are responsible for
assessing the ability of the company 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 of the company are also responsible for overseeing the financial reporting process
of the company
Auditors' Responsibility
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 tire 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 controls 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 whether
the Company has in place an adequate internal financial controls system over financial reporting 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 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 ability of the Company to continue as a
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.
From tine matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the Ind AS financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the " Annexure
A", a statement on the matters specified in paragraphs 3 and 4 of die Order, to the extent applicable.
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 purpose 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, 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
(Ind AS) specified under Section 133 of the Act, read with Companies ( Indian Accounting
Standards) Rules, 2015 as amended;
e. On the basis of written representations received from the directors as on 31st March, 2024 taken
on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024
from being appointed as a director in terms of Sectionl64(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B".
g. In our opinion, the managerial remuneration for the year ended March 31, 2024 has been not
paid / provided by the Company to its directors in accordance with the provisions of section 197
read with Schedule V to the Act;
h. With respect to 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 tire explanations given to us:
(i) The Company has disclosed tire impact of pending litigations on its financial position in its
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;
(iii) There has been no delay in transferring amounts, required to be transferred, to tire Investors
Education and Protection Fund by the Company.
For Ajay Shobha & Co
Chartered Accountants
FRN: 317031E
Arun Singh
Partner
Membership Number: 113591
UDIN: 24113591BKAUBN9782
Place: Daman
Date: 29/05/2024
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