RRP S4E innovation Unlisted Shares

Annual Report Summary

RRP S4E INNOVATION PRIVATE LIMITED - Summary:

This document presents the financial statements of RRP S4E Innovation Private Limited, including the Balance Sheet as of March 31, 2023, and the Statement of Profit and Loss for the year ended on that date. All figures are in Lakhs of Rupees. Ravi Malviya & Co., Chartered Accountants, conducted an independent audit of these statements, issuing an unqualified opinion that the statements provide a true and fair view of the company's financial position.

I. Equity and Liabilities:

• Shareholder's Funds: Share capital increased from 658 in 2022 to 718 in 2023. Surplus (including security premium and profit and loss account) increased significantly from 3,785 in 2022 to 5,568 in 2023. The security premium account increased substantially, from Rs 2,606 Lakhs in 2022 to Rs 3,536 Lakhs in 2023. A reconciliation of the number of shares outstanding is provided, noting a fresh issue of 6 lacs shares during the year.
• Non-Current Liabilities: Long-term borrowings decreased from 535 in 2022 to 460 in 2023. Deferred tax liability decreased slightly from 35 to 30.
• Current Liabilities: Trade payables remained stable at around 720-731. Other current liabilities increased significantly from 1,269 to 2,496. Short-term provisions increased from 398 to 546, largely due to increased provision for income tax.

II. Assets:

• Non-Current Assets: Property, plant, and equipment (including capital work-in-progress) increased significantly from 2,257 to 3,342. Capital work-in-progress is at 367. Long term loans and advances is 91.
• Current Assets: Inventories increased from 1,287 to 2,265. Trade receivables increased slightly from 2,830 to 2,984. Cash and cash equivalents decreased from 142 to 124. Short-term loans and advances increased significantly from 884 to 1,376.

III. Statement of Profit and Loss:

• Revenue: Revenue from operations decreased from 3,831 in 2022 to 3,120 in 2023. Other income increased from 4 to 57. Total income decreased from 3,835 to 3,177.
• Expenses: Cost of materials consumed increased slightly from 1,914 to 1,963. Changes in inventories shifted from 68 to (978). Employee benefit expense increased slightly from 237 to 253. Financial costs increased significantly from 92 to 195. Depreciation and amortisation cost increased from 277 to 320. Other expenses decreased significantly from 385 to 273. Total expenses decreased significantly from 2,973 to 2,047.
• Profitability: Profit before tax increased from 862 to 1,130. Profit from the period also increased from 622 to 853. Earning per equity share (basic and diluted) increased from 13.05 to 15.89.

IV. Notes to the Financial Statements (Selected Highlights):

• Share Capital: The authorised share capital is 75,00,000 Equity shares of Rs 10/- each and 19,00,000 Preference shares of Rs 100/- each. The issued, subscribed and paid-up share capital is 47,67,033 Equity shares of Rs 10/- each fully paid up plus and additional shares issued during the year plus non-convertible debentures. Details of major shareholders (holding more than 5% of shares) are provided, including Rajendra Chodankar and Priyanka Chodankar.
• Surplus: The surplus comprises a security premium and a profit and loss account balance.
• Long Term Borrowings: Loans and advances from related parties.
• Trade Receivables: Includes amounts outstanding for more than six months and others.
• Inventories: Valued at lower of cost and net realizable value.
• Cash Flow Statement: Net cash generated from operating activities, net cash used in investing activities, and net cash generated from financing activities are presented. The net increase in cash and cash equivalents during the period is negative.

V. Auditor's Report:

• The audit was conducted in accordance with the Standards on Auditing (SAs).
• The auditor believes that the audit evidence is sufficient and appropriate to provide a basis for their opinion.
• Emphasis of Matter: Includes details related to but not limited to negative net worth, sudden disruptions in manufacturing or sales, any material change in business process, any unsecured loan granted to Directors etc.
• Key Audit Matters: The report notes that key audit matters are not applicable to the Company as it is an unlisted company.
• The report addresses responsibilities of management and auditor.
• The auditor states that proper books of account have been kept by the Company. The financial statements comply with accounting standards.
• The Company does not have any pending litigations which would impact its financial position.
• The company has not declared or paid any dividend during the year.
• Internal Controls: Given turnover and borrowing levels, the company is exempted from getting an audit opinion on the adequacy of internal financial controls over financial reporting.
• The company is generally regular in depositing undisputed statutory dues except Income tax dues of Rs. 10 lakhs for AY 21-22 & Rs. 2.27 Crores for AY 22-23 & Rs. 2.83 Crores for AY 23-24.

VI. Related Party Transactions:

• Disclosure is provided for transactions with related parties, including Rajendra Chodankar, Raunaq Chodankar, Anay Chodankar, and FFS Industries Pvt Ltd. This includes details of purchase & labour charges, interest expenses, and salary expenses.