We have audited the accompanying standalone Financial statements
of Rashi Peripherals Limited (the "Company"), which comprise the
Balance Sheet as at March 31, 2026, and the Statement of Profit
and Loss (including Other Comprehensive Loss), the Cash Flow
Statement and the Statement of Changes in Equity for the year
ended on that date, and notes to the financial statements, including
a summary of material accounting policies and other explanatory
information in which are incorporated the Returns for the year
ended on that date audited by the branch auditor of the Company's
branch located at Singapore.
In our opinion and to the best of our information and according to
the explanations given to us, and based on the consideration of
report of the branch auditor on separate financial statements of the
branch referred to in the Other Matter section below, 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 Indian Accounting
Standards prescribed under section 133 of the Act, ("Ind AS") and
other accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2026, its profit and other
comprehensive loss, its cash flows and the changes in equity for the
year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing ("SA"s) specified
under section 143(10) of the Act. Our responsibilities under those
Standards are further described in the Auditor's Responsibility 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 Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics. We believe that
the audit evidence obtained by us and the audit evidence obtained
by the branch auditor in terms of their report referred to in the Other
Matter section below, is sufficient and appropriate to provide a basis
for our audit opinion on the standalone financial statements.
Key Rudit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters
to be communicated in our report.
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Sr.
no.
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Key Audit Matter
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Auditor's Response
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1
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Supplier Rebates
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To
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assess accuracy and completeness of Supplier Rebates, our
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The Company is entitled to price support from the
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principal audit procedures performed included the following:
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suppliers in the form of rebates. There are various
types of rebate programmes, including but not limited
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•
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Obtained an understanding of the processes relating to recording
of supplier rebates.
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to inventory volume promotion programs and price
protection rebates, etc. with unique terms, transactions
with different suppliers. The calculation of supplier
rebates involves a manual process. The Company
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•
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Assessed the appropriateness of the accounting policy followed
by the Company for such supplier rebates with reference to the
relevant accounting standards.
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tracks vendor promotional programs for discounts
on a program-by-program basis. Once the program is
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•
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Evaluated the design and implementation and tested operating
effectiveness of controls, relating to recording of supplier rebates.
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implemented, the benefit of the program based on the
actual volume is recorded as a receivable from vendors
with a corresponding reduction in the cost of purchase
of traded goods and carrying value of inventories.
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•
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Obtained the rebate tracker maintained by the Management and
reconciled the same with the books of account to check whether
eligible rebates have been considered and accurately recorded in
the reporting period.
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The quantum of rebates recorded against cost of
purchase of traded goods are significant. Accordingly,
determination of the accuracy and completeness of
rebates recorded, were areas of focus for our audit and
were identified as one of the key audit matters. See
note 1.3(xi) to the standalone financial statements.
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•
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For sample selected from the supplier rebate receivables/ received
during the year:
a) Obtained details of the schemes announced through various
channels to assess the eligibility of the supplier rebates to be
recorded.
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Sr.
no.
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Key Audit Matter
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Auditor's Response
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b) Verified the supplier rebate scheme workings with the
underlying documents received from the vendors to test
accuracy of the amount recorded.
c) Verified rebates recorded subsequent to the year end to test
the appropriateness of the rebates accrued and accounted as
at the Balance Sheet date.
d) Performed a high level analytical review of the rebates
recorded for various categories of purchases/vendors and
enquired into exceptions.
e) Tested the vendor-wise reconciliation for selected vendors to
identify unrecorded rebates, if any.
f) Reviewed the ageing of rebate receivables and on a sample
basis tested subsequent collections.
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2
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Valuation of Inventory:
The Company is primarily engaged in the sale of
Information and Communication Technology products
(ICT) distribution business. However, due to rapid
changes in technology, the short life cycle of electronic
products, and the prices being highly affected by market
fluctuation, there is a higher risk of incurring inventory
valuation losses. As management's judgement on
determining net realisable value of inventory is
relatively subjective and the amount of inventory is
material to the standalone financial statements, we
have considered provision for inventory as one of
the key audit matters. See note 1.3(v) and 12 to the
standalone financial statements.
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To assess the valuation of Inventory, our principal audit procedures
performed included the following:
a) Obtained an understanding of the process followed by the
Company in respect of the provisioning for inventory for net
realisable value adjustments
b) Obtained the Inventory ageing report and performed tests to
validate the ageing.
c) Evaluated the design and implementation and tested operating
effectiveness of controls, relating to provisioning for inventory.
d) Performed retrospective review of inventory ageing and
obtained information related to aged inventory which has been
subsequently liquidated, on a sample basis.
e) Assessed whether the provisioning policy of the management
has been determined on an appropriate basis and is applied in
a manner consistent between comparative and current periods
of the standalone financial statements and discuss with the
management to test exceptions, if any.
f) Assessed if the provision is adequate in comparison to the net
realisable value of inventories.
g) For selected samples, verified underlying documents to support
accuracy of the net realisable value considered.
h) Verified the workings to ascertain if the amount accounted as
provision for inventory as at the reporting period is in accordance
with the provisioning policy.
i) Tested the management calculation of the days since last sale
for inventory items and item-wise inventory holding days to
identify obsolete inventory, if any, and assess the adequacy of
management provision for the same
j) Assessed the appropriateness of the presentation and disclosure
of such provisions in the financial statements.
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Information Other than the Financial Statements
and Auditor's Report Thereon
• The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Board report, Management
Discussion and Analysis, Corporate Governance
report and Business Responsibility and Sustainability
report, but does not include the consolidated financial
statements, standalone financial statements and our
auditor's report thereon. The Board report, Management
Discussion and Analysis, Corporate Governance report
and Business Responsibility and Sustainability report is
expected to be made available to us after the date of
this auditor's report.
• Our opinion on the standalone financial statements does
not cover the other information and will not express any
form of assurance conclusion thereon.
• In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available,
compare with the financial statements of the branch
audited by the branch auditor to the extent it relates
to this branch and, in doing so, place reliance on the
work of the branch auditor and consider whether the
other information is materially inconsistent with the
standalone financial statements or our knowledge
obtained during the course of our audit or otherwise
appears to be materially misstated. Other information
so far as it relates to the branch is traced from their
financial statements audited by the branch auditor.
• When we read the Board report, Management Discussion
and Analysis, Corporate Governance report and Business
Responsibility and Sustainability report, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to those charged
with governance as required under SA 720 ‘The
Auditor's responsibilities Relating to Other Information'.
Responsibilities of Management and Board of
Directors for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and
fair view of the financial position, financial performance including
other comprehensive loss, cash flows and changes in equity of the
Company in accordance with the accounting principles generally
accepted in India, including Ind AS 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 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, management and
Board of Directors are responsible for assessing the Company's
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 intend to
liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Company's Board of Directors is also responsible for overseeing
the Company's financial reporting process.
Ruditor's Responsibility for the Rudit 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 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 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 skepticism 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 financial controls 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 on
whether the Company has adequate internal financial controls
with reference to standalone financial statements 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 the 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 Company's ability to continue as a going concern. 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 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
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
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.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the Company and its branch to express
an opinion on the standalone financial statements. We are
responsible for the direction, supervision and performance
of the audit of the financial statements of such entities or
business activities included in the standalone financial
statements of which we are the independent auditors. For the
other entities or business activities included in the standalone
financial statements, which have been audited by the branch
auditor, such branch auditor remain responsible for the
direction, supervision and performance of the audits carried
out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable
user of the standalone financial statements may be influenced.
We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified
misstatements in the standalone financial statements.
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 financial controls 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 the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone 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.
Other Matter
We did not audit the financial statements of a branch included in the
standalone financial statements of the Company whose financial
statements reflect total assets of Rs. 333.75 millions as at March 31,
2026 and total revenue of Rs. 381.76 millions for the year ended on
that date, as considered in the standalone financial statements. The
financial statements of the branch has been audited by the branch
auditor whose report have been furnished to us, and our opinion
in so far as it relates to the amounts and disclosures included in
respect of the branch and our report in terms of subsection (3) of
Section 143 of the Act, in so far as it relates to the aforesaid branch,
is based solely on the report of such branch auditor.
This branch is located outside India whose financial statements
have been prepared in accordance with accounting principles
generally accepted in their country and which have been audited
by branch auditor under generally accepted auditing standards
applicable in their country. The Company's management has
converted the financial statements of such branch located outside
India from accounting principles generally accepted in their country
to accounting principles generally accepted in India. We have
audited, these conversion adjustments made by the Company's
management. Our conclusion in so far as it relates to the balances
and affairs of such branch located outside India is based on the
report of branch auditor and the conversion adjustments prepared
by the management of the Company and audited by us.
Our opinion on the standalone financial statements and our report
on Other Legal and Regulatory Requirements below is not modified
in respect of these matters.
Report on Other Legal and RegulatoryRequirements
1. As required by Section 143(3) of the Act, based on our audit
and on the consideration of the report of the branch auditor
on the separate financial statements of the branch, referred
to in the Other Matter section above we report, to the extent
applicable 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 and proper returns
adequate for the purposes of our audit has been
received from the branch not visited by us.
c) The report on the accounts of the branch office of the
Company audited under Section 143(8) of the Act by
branch auditor have been sent to us and have been
properly dealt with by us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss
including Other Comprehensive Loss, the Cash Flow
Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books
of account and with the returns received from the
Singapore branch not visited by us.
e) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under
Section 133 of the Act.
f) On the basis of the written representations received
from the directors as on March 31, 2026 taken on
record by the Board of Directors, none of the directors is
disqualified as on March 31, 2026 from being appointed
as a director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in "Annexure A". Our report expresses an
unmodified opinion on the adequacy and operating
effectiveness of the Company's internal financial controls
with reference to standalone financial statements. With
respect to a branch located outside India, reporting on
the adequacy of the internal financial controls with
reference to its financial statements and the operating
effectiveness of such controls is not applicable as per
the Act, being a branch located outside India.
h) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act, as amended, in our opinion
and to the best of our information and according to the
explanations given to us, the remuneration paid by the
Company to its directors during the year is in accordance
with the provisions of section 197 of the Act.
i) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended
in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements - Refer Note 34 to the
standalone 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 were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.
iv. (a) The Management has represented that,
to the best of its knowledge and belief, as
disclosed in the note 49(i) to the financial
statements no funds have been advanced
or loaned or invested (either from borrowed
funds or share premium or any other sources
or kind of funds) by the Company to or in
any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(b) The Management has represented, that, to
the best of its knowledge and belief, disclosed
in the note 49(ii) to the financial statements,
no funds have been received by the
Company from any person(s) or entity(ies),
including foreign entities ("Funding Parties"),
with the understanding, whether recorded in
writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain any
material misstatement.
v. The final dividend proposed in the previous year,
declared and paid by the Company during the
year is in accordance with section 123 of the
Act, as applicable.
As stated in note 51 to the standalone financial
statements, the Board of Directors of the Company
has proposed final dividend for the year which is
subject to the approval of the members at the
ensuing Annual General Meeting. Such dividend
proposed is in accordance with section 123 of the
Act, as applicable.
vi. Based on our examination, which included test
checks, the Company has used an accounting
software system for maintaining its books of
account for the financial year ended March 31,
2026 which has the feature of recording audit
trail (edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software system. Further, during
the course of our audit we did not come across any
instance of the audit trail feature being tampered
with and the audit trail has been preserved by the
Company as per the statutory requirements for
record retention.
2. As required by the Companies (Auditor's Report) Order, 2020
("the Order") issued by the Central Government in terms of
Section 143(11) of the Act, we give in "Annexure B" a statement
on the matters specified in paragraphs 3 and 4 of the Order.
For Pipara & Co LLP For Deloitte Haskins & Sells LLP
Chartered Accountants Chartered Accountants
(Firm's Registration No. 107929W/W100219) (Firm's Registration No. 117366W/W-100018)
Bhawik Madrecha Pallavi Sharma
(Partner) (Partner)
Membership No. 163412 Membership No. 113861
UDIN: 26163412JUVLCO8366 UDIN: 26113861HZLLPJ6243
Date: May 14, 2026 Date: May 14, 2026
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