CRP Risk Management Ltd. के अकाउंट के लिये नोट

Mar 31, 2023

Provisions involving substantial degree of estimates in measurement are recognized when there is a
prese^pbli^ation as a result of past events and it is probable that there will be an outflow of
resouj&ek''JAj^closure for contingent liability is made when there is possible obligation or a present
dblf^jop^fiat may, but probably will not, require an outflow of resources. Where there is a possible
3 present obligation in respect of which the likelihood of outflow of resources is remote,
\TO PWwsitMi cfceljsclosure is made.

ix.Earnings Per share

The basic earnings per share (“EPS”) are computed by dividing the net profit/ (loss) after tax tor the
vlr avaiS for the equi^ shareholders by the weighted average number of equtty share
outstanding during the year For the purpose of calculating diluted earnings per share, net profit/(loss)
available for equity shareholders a„d the weighted average number of sha.es
outstanding during the year are adjusted for the effeets of all dilutive potent,al equ.ty shares.

x. Cash and cash equivalents: -

_{r h anH cash} eauivalents for the purpose of cash flow statement comprise cash on hand and cash at
bank including fixed deposit with original maturity period of less than three months and short term
highly liquid investments with an original maturity of three months or less.

xi. IPO expenses amortization: -

IPO Expenses included in Miscellaneous Expenditure are being and shall continue to be written off
over a period of 5 years from the year in which it was incurred.

xii. Government grants/subsidies: -

Government grants are not recognized until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received. (^::°™ent grants
are recognized in profit or loss on a systematic basis over the periods in which the Company
recognizes as expenses the related costs for which the grants are intended to compensate is netted off

from the related expenses.

^Si“‘^LUases other thau finance lease, are operating leases, and the leased assets are not recognized on the
Company’s Balance Sheet. Payments / rental income under operating leases are recognized in the
Statement of Profit and Loss on a straight-line basis over the term of the lease.

xiv.Segment Reporting:

The accounting policies adopted by the Company for segment reporting are in line with the
accounting standard on Segmental Reporting.

Business Segment: The Company is in the business of trading of animal feed and providing risk
management service and accordingly has two reportable business segment viz. Trading and
‘Service’ which constitutes the primary segment.

Segment Expenses, Segment Assets, and Segment Liabilities have been allocated to segments on the
ba^is of their relationship to the operating activities of the segment. Revenue, expenses, ass
liabilities which relate to the Company as a whole and are not 00
00

32) Debtors Outstanding and Provision for Doubtful Debts

As on the date of balance sheet company is having more than 180 days outstanding of Rs. 5,041.41 and
further, the company has not made any provision for the doubtful debts for the year under reporting.

33) Difference in GSTR 2A and Books of Account

As per the working there is less input available of Rs. 41,782 in the reconciliation of GSTR 2A for
IGST and Books, however the company is in touch with the Suppliers who has not filed their returns
due to ongoing pandemic situation and national lockdown. However, suppliers have confirmed the
company that the same will be sorted out once lockdown lifted.

34) Mismatch in 26AS and Books of accounts

There is short TDS reflection of Rs. 0.42 Lakhs in 26AS portal due to non updation of TDS returns by
customers. However company is in touch with customers to get the reflection in 26AS.

39) Employee benefits:

a. Defined contribution Plans:-

Retirement benefits in the form of provident fund (where contributed to the regional PF Commissioner)
are a defined contribution scheme. The contribution to the provident fund is not applicable to the
Company.

b. Defined Benefit plan:-

Gratuity payable to employees in accordance with the provisions of The Payment of The Gratuity Act,
1972 is a defined benefit plan as per Accounting Standard (AS) - 15 “Employee Benefits” as per
Actuarial valuation certificates.

During FY 2021-22 Net actuarial gain amounting to Rs. 2,53,993 for the gratuity liability debited to
Profit and loss account.

40) Leases: -

(a) The company has one office premises under operating lease that are renewable on a periodic basis at
the option of both the lessor and lessee.

(b) There is najjiinimum lease payment as per the operation lease under non -cancellable lease term.

42) Contingent liabilities not provided in respect of:-

a. Disputed TDS demand of Rs 76,37,460/- against which company will preferred an appeal /
Rectification within allowable time, management is of opinion that the demand is likely to be either
deleted or substantially reduced accordingly no provision has been made.

b. As informed by management there is no litigation pending against the Company which has bearing
on financial status of the Company.

c. Income tax related cases of past years. The details of the same have also been specified in the CARO
report, for the period under audit.

⁴⁵¹ £2W CSR amount as pet Section 135 of the companies Act,

2013 read with Schedule VII. The average profit preceding 3 years are negat.ve of Rs. 1, , ,

and thus company doesn’t not make any provision.

461 During the Financial year 2019-20 company has issued 13, 30,000 Warrants and each carrying a rig t to
^46> SZrita to one S Share per Warrant a, a price of Rs. 30/- per Warrant. An amount e_q„,valent to
25% of the Warrant Price has been paid and the balance 75% of the Warrant Price shall be payab y
fhe V.man.Mte against each Warrant a. the time of allotment of Equity Shares pursuant to exerc.se
of the options attached to Warrant(s) to subscribe to Equity Sharefs). The amount pmdagmnstW™^
has been adjusted in reserves of company since company has not received balance 75% of the warrant

price.

47) Segment Information:

a) The Company has identified two reportable segments viz ; Trading of CVD and ^R’J
Service Segments have been identified and reported taking into account nature of products and
services the⁸differing risks and returns. The accounting policies adopted for segment reporting are in
line with the accounting policy of the Company with following additional polices for segme. t

reporting.

bl Revenue and Expenses have been identified to a segment on the basis of relationship to operating
a£fes of the segment. Revenue and Expenses which relate to -«JP™ - » -

allocable to a segment on reasonable basis have been disclosed as Unallocable .

cl Segment Assets and Segment Liabilities represent Assets and Liabilities in respective Segments.
Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on
reasonable basis have been disclosed as “Unallocable In I IrKcl

d) Inter segment pricing are at Arm’s length basis.

d)As per Accounting Standard on Segment Reporting (AS-17), the Company has reported
Segment information on consolidated basis.

48) The company has given advances of Rs. 11,92,83,423/- to its suppliers since year and during the year
there is no settlement of advances paid to suppliers.

49) There have been delays in payment to some suppliers and service providers. The management has
expressed that this has been done to manage working capital flows better, as there are delays in receipt
of payments from clients as well.

There is salary outstanding of Rs. 58.85 Lakhs as on 31.03.2021 out of which subsequently company
has paid Rs. 6.76 Lakhs. The management has expressed an opinion that due to the visible slowdown in
macro economic conditions in the last quarter of the FY, the senior management of the Company,
including the Directors, had taken a conscious decision to delay their own salaries and this constitutes a
major portion of the pending salaries.

50) In the opinion of the management, current assets, loans, advances and deposits are approximately of the
value stated, if realized in the ordinary course of business. The provision of all known liabilities is
adequate and not in excess of the amount reasonably necessary.

51) Additional information pursuant to Schedule III of the Companies Act, 2013 has not been furnished as
the same is either Nil or not applicable.

52) There is no impairment loss on fixed assets on the basis of review carried out by the Management in
accordance with Accounting Standard (AS)-28 ‘‘Impairment of Assets”

53) Previous year’s figures have been reclassified/regrouped, wherever necessary to make the same
comparable with the current year’s figures.

As per our report attached for and on behalf of the Board

For RAK Champs & Co. LLP CRP Risk Management Limited

Chartered Accountants A

FRN: 131094W _/^PS>v \ ^ A _x A

Mr. Ramanath Shetty \ wayCd Razaz Hites hA§jraflf^

(Partner) nAjm---VjjManaging Director Director and CFO

M. No.: 218600 pIN: 02497549 DIN: 06399098

Place: Mumbai

Dated: 31st December 2022

---

Mar 31, 2022

viii. Accounting for provisions and contingent liabilities

Provisions involving substantial degree of estimates in measurement are recognized when there is a pres&^pbli^ation as a result of past events and it is probable that there will be an outflow of resoui&ek''JA^i^closure for contingent liability is made when there is possible obligation or a present ctttfWjjop; tilth rhay, but probably will not, require an outflow of resources. Where there is a possible j 3 present obligation in respect of which the likelihood of outflow of resources is remote,

\ fto pfpyisioti Qrdrsclosure is made.

ix.Earnings Per share

The basic earnings per share (“EPS”) are computed by dividing the net profit/ (loss) after tax tor the vlr availab^ £ the equi^ shareholders by the weighted average number of equity share outstanding during the year For the purpose of calculating diluted earnings per share, net profit/(loss) aCax fo/^.he year available for acuity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equrty shines.

x. Cash and cash equivalents: -

_{r h nnH cash} eauivalents for the purpose of cash flow statement comprise cash on hand and cash at bank including fixed deposit with original maturity period of less than three months and short term highly liquid investments with an original maturity of three months or less.

xi. IPO expenses amortization: -

IPO Expenses included in Miscellaneous Expenditure are being and shall continue to be written off over a period of 5 years from the year in which it was incurred.

xii. Government grants/subsidies: -

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received government grante are recognized in profit or loss on a systematic basis over the periods in which the ^CoillP^any recognizes as expenses the related costs for which the grants are intended to compensate is netted off

from the related expenses.

^Xiii''^Luies other than finance lease, are operating leases, and the leased assets are not recognized on the Company’s Balance Sheet. Payments / rental income under operating leases are recognized in the Statement of Profit and Loss on a straight-line basis over the term of the lease.

xiv.Segment Reporting:

The accounting policies adopted by the Company for segment reporting are in line with the accounting standard on Segmental Reporting.

Business Segment: The Company is in the business of trading of animal feed and providing risk management service and accordingly has two reportable business segment viz. Trading and ‘Service’ which constitutes the primary segment.

Segment Expenses, Segment Assets, and Segment Liabilities have been allocated to segments on the ba^is of their relationship to the operating activities of the segment. Revenue, expenses, ass liabilities which relate to the Company as a whole and are not 00 00

32) Debtors Outstanding and Provision for Doubtful Debts

As on the date of balance sheet company is having more than 180 days outstanding of Rs. 5,041.41 and further, the company has not made any provision for the doubtful debts for the year under reporting.

33) Difference in GSTR 2A and Books of Account

As per the working there is less input available of Rs. 41,782 in the reconciliation of GSTR 2A for IGST and Books, however the company is in touch with the Suppliers who has not filed their returns due to ongoing pandemic situation and national lockdown. However, suppliers have confirmed the company that the same will be sorted out once lockdown lifted.

34) Mismatch in 26AS and Books of accounts

There is short TDS reflection of Rs. 0.42 Lakhs in 26AS portal due to non updation of TDS returns by customers. However company is in touch with customers to get the reflection in 26AS.

39) Employee benefits:

a. Defined contribution Plans:-

Retirement benefits in the form of provident fund (where contributed to the regional PF Commissioner) are a defined contribution scheme. The contribution to the provident fund is not applicable to the Company.

b. Defined Benefit plan:-

Gratuity payable to employees in accordance with the provisions of The Payment of The Gratuity Act, 1972 is a defined benefit plan as per Accounting Standard (AS) - 15 “Employee Benefits” as per Actuarial valuation certificates.

During FY 2021-22 Net actuarial gain amounting to Rs. 2,53,993 for the gratuity liability debited to Profit and loss account.

461 Durine the Financial year 2019-20 company has issued 13, 30,000 Warrants and each carrying a right to ^46> Sta to “uity Share per Warrant a, a price of Rs. 30/- per Warrant. An amount e_qu,valent to 25% of the Warrant Price has been paid and the balance 75% of the Warrant Pnce shall be payab y Ae^Warran, holder against each Warrant a. the time of allotment of Equity Shares pursuant to exerc.se of the options attached to Warrant(s) to subscribe to Equity Sharefs). The amount^“^ga''ⁿ* has been adjusted in reserves of company since company has not received balance 75% of the warrant

price.

47) Segment Information:

a) The Company has identified two reportable segments viz ; Trading of CVD and Service Segments have been identified and reported taking into account nature of products and services the differing risks and returns. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional polices for segme. t

reporting.

_w Revenue and Expenses have been identified to a segment on the basis of relationship to operating aSS of thc segment. Revenue and Expenses which relate to -»H» - » *>le and are no. allocable to a segment on reasonable basis have been disclosed as Unallocable .

cf Segment Assets and Segment Liabilities represent Assets and Liabilities in respective Segments. InvesLents, tax related as£ts and other assets and liabilities that cannot be allocated to a segment on

rrancnnahle basis have been disclosed as''‘Unallocable . \

d) Inter segment pricing are at Arm’s length basis.

d)As per Accounting Standard on Segment Reporting (AS-17), the Company has reported Segment information on consolidated basis.

48) The company has given advances of Rs. 11,92,83,423/- to its suppliers since year and during the year there is no settlement of advances paid to suppliers.

49) There have been delays in payment to some suppliers and service providers. The management has

. expressed that this has been done to manage working capital flows better, as there are delays in receipt

of payments from clients as well.

There is salary outstanding of Rs. 58.85 Lakhs as on 31.03.2021 out of which subsequently company has paid Rs. 6.76 Lakhs. The management has expressed an opinion that due to the visible slowdown in macro economic conditions in the last quarter of the FY, the senior management of the Company, including the Directors, had taken a conscious decision to delay their own salaries and this constitutes a major portion of the pending salaries.

50) In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

51) Additional information pursuant to Schedule III of the Companies Act, 2013 has not been furnished as the same is either Nil or not applicable.

52) There is no impairment loss on fixed assets on the basis of review carried out by the Management in accordance with Accounting Standard (AS)-28 ‘‘Impairment of Assets”

53) Previous year’s figures have been reclassified/regrouped, wherever necessary to make the same comparable with the current year’s figures.

As per our report attached for and on behalf of the Board

For RAK Champs & Co. LLP CRP Risk Management Limited

Chartered Accountants A

FRN: 131094W _/^PS>_?. K (\ A

^ * I-

Mr. Ramanath Shetty \ Aayoil Razai Hites hA§jrarff^

(Partner) —AjAx VjjManaging Director Director and CFO

M. No.: 218600 pIN: 02497549 DIN: 06399098

Place: Mumbai

Ihikd: 31st December 2022

---

Mar 31, 2018

1) Notes to Accounts

(i) Share Issue:

a) During the year Company issued bonus on 20^th July, 2017 at the ratio of 1:1 i.e., 65,00,000 shares for existing 65,00,000 shares @ Rs.10/- i.e. Rs. 6,50,00,000/- out of reserves.

b) Right Issue of 4,84,900 equity shares of face value of Rs.10/- per shares of our Company was made to the existing shareholders of our Company in the ratio of 373:10,000 i.e., 373 equity shares for every 10,000 equity shares held in our company vide Board resolution dated 15^th September, 2017 @ Rs.30/- per share which includes a premium of Rs.20/- per share i.e. Rs.48,49,000/- share capital and Rs.96,98,000 share premium.

c) The Company made its IPO (Initial public Offer) for SME Listing on 31^st January, 2018 of 40,00,000 shares @ Rs. 60/- which includes a premium of Rs.50/- per share i.e., Rs.4,00,00,000 share capital and Rs.20,00,00,000 share premium.

(ii) Earnings per share:

Earnings per share are calculated by dividing the profit/ (loss) attributable to the Equity Shareholders by the total number of Equity Shares outstanding during the period. The numbers used in calculating the basic and diluted earnings per Equity Share are as follows:

(iii) Related party disclosures:

a) Related Party Relationships:

The related party relationships have been determined on the basis of the requirements of the Accounting Standard (AS)-18 ''Related Party Disclosures'' and the same have been relied upon by the auditors.

(iv) Employee Benefit: Define contribution Plans:

Retirement benefits in the form of provident fund (where contributed to the regional PF Commissioner) are a defined contribution scheme. The contribution to the provident fund is not applicable to the company.

(v) Leases:-

(a) The company has taken various office premises under operating lease that are renewable on a periodic basis at the option of both the lessor and lessee.

(vi) Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs. 10,62,843/- (Previous Year Rs.7,15,802)

(b) Expenditure related to Corporate Social Responsibility is Rs, 11,05,772/-(Previous Year Rs. 29,53,219/-)

(vii) The Company has not received any information from its suppliers regarding their registration under the ''Micro, Small and Medium Enterprises Development Act, 2006'' Hence the information required to be given in accordance with Section 22 of the said Act, is not ascertainable and not disclosed.

(viii) The balances in accounts of sundry debtor and creditors and Loans & Advances are subject to confirmation, and consequent reconciliations. Adjustments in this respect in the opinion of the management are not likely to be material and would be carried out as and when ascertained.

(ix) In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(x) Additional information pursuant to Schedule III of the Companies Act, 2013 has not been furnished as the same is either Nil or not applicable.

(xi) SEGMENT INFORMATION:

The Company has identified two reportable segments viz.; Trading of CVD and Risk Management Service. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

Segment Assets and Segment Liabilities represent Assets and Liabilities in respective Segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

d) Inter segment pricing are at Arm''s length basis.

e) As per Accounting Standard on Segment Reporting (AS-17), the Company has reported segment information on consolidated basis.

(xii) CONTINGENT LIABILITIES not provided in respect of demand against which company will preferred an appeal / Rectification within allowable time, management is of opinion that the demand is likely to be either deleted or substantially reduced accordingly.

(a) TDS demand for which rectification uploaded to department Rs.2,85,000/-

(b) Old outstanding ESIC on which interest approximately Rs.8,80,000/-

(c) Service tax for the prior period for which no demand notice received form the department. However, Company has paid Rs. 1.75 cr. as contingent.

(xiii) There is no impairment loss on fixed assets on the basis of review carried out by the Management in accordance with Accounting Standard (AS)-28 "Impairment of Assets"

(xiv) Previous year''s figures have been reclassified/regrouped, where necessary to make the same comparable with the current year''s figures.