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Rajoo Engineers Ltd.

BSE: 522257 Sector: Engineering
NSE: N.A. ISIN Code: INE535F01024
BSE 00:00 | 24 Apr Rajoo Engineers Ltd
NSE 05:30 | 01 Jan Rajoo Engineers Ltd
OPEN 7.53
PREVIOUS CLOSE 7.79
VOLUME 11443
52-Week high 31.10
52-Week low 5.51
P/E 11.52
Mkt Cap.(Rs cr) 47
Buy Price 7.65
Buy Qty 3.00
Sell Price 7.89
Sell Qty 50.00
OPEN 7.53
CLOSE 7.79
VOLUME 11443
52-Week high 31.10
52-Week low 5.51
P/E 11.52
Mkt Cap.(Rs cr) 47
Buy Price 7.65
Buy Qty 3.00
Sell Price 7.89
Sell Qty 50.00

Rajoo Engineers Ltd. (RAJOOENGINEERS) - Auditors Report


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Company auditors report

To

The Members of

RAJOO ENGINEERS LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of M/s RAIOOENGINEERS LIMITED[ "the Company''] which comprise the Balance Sheet as at March 312019t he Statement of Profit and Loss (including other comprehensive in come)t heStatement of Changes in Equity and the Cash Flow Statement for the year then ended andNotes to the financial statement including summary of significant accounting policies andother explanatory in formation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies A ct2 013 (the Act) in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under section133 of theAct read with Companies (lndian Accounting Standards) Rules2015a s amended[ "lndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2019 its profits (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the AcL Our responsibilities under those Standards are furtherdescribed in the Audito's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of lndia (ICAI) together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financials statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financials statements of the current period.These matters were addressed *l the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe Key Audit matter to be communicated in our Report.

Key Audit Matter How the matter was addressed in our audit
lmpairment of Investment in Joint Venture In terms of option of Deemed Cost as per Ind-AS 101 'First Time Adoption of Indian Accounting Standards' the Company has valued its investments in joint Venture amounting to Rs.19600000a s on 31st March 2019 at cost. We have performed the following processes in relation to Management's judgement in identification of impairment of value of investment in Joint Venture;
1. We have obtained representation from the Management regarding indication of likely impairment loss in respect of Investments made in Joint Venture and process of estimation of recoverable amount.
2. In case of a joint Venture having material value under investment in respect of which no observable inputs were available we have referred to the valuation obtained by the Management regarding its Value in Use and tested and discussed the assumptions used in the process of valuation with the management to ensure that no impairment provision against the same is required.
3.our Audit process did not identify any requirement of provisioning of impairment in the value of investment in Subsidiaries
Principal Audit Procedures.
Warranty obligation involves critical estimates. 1. We have obtained representation from the management regarding assumption and estimation of Warranty obligation.
This estimate has a high inherent uncertainty as it involves management judgement by making assumption based on past experience. 2. Performed analytical procedures and test of details for reasonableness of management estimation.
Company is estimating provision for warranty Rs. 10281926 at 1% of total revenue from Machine sold. 3. Reviewed the management's assumption and estimated efforts on these uncertainty.
4. Our audit process did not identify any change required to management's position on these uncertainty.

Information Other than the Standalone Financial Statements and Auditor's report thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the managementdiscussion and analysis Board's Report including Annexures to the Board report Businessresponsibility report corporate governance report and Shareholder's information but doesnot include the standalone financial statement and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we not express any from of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude theat there is materialsmisstatement of this other information we required to report that fact. We have nothingto report in this regard.

Responsibilities of Management and those charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters started in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat gives a true and fair view of the financial position financial performance(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in india including theaccounting Standards specified under section 133 of the Act.

The responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities section and applicationof the appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterials misstatement whether due to fraud or error.

In preparing the standalone financial statements the Management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objective are to obtain reasonable assurance about whether the standalone financialstatements are free from materials misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with Sas willalways detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered materials ifindividually or in the aggregate they could reasonable be expected to influence theeconomic 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 andmaintain professional scepticism throughout the audit.

We also:

- Identify and assess the risks of materials misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery international missions mis representation or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(I)of theAct we are also also responsible for expressing our opinion on whether the Company hasadequate internal financial control system in place in place and the operatingeffectiveness of such controls.

- Evaluate the appropriateness of account policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

- Conclude on the appropriateness of Management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a materia uncertainty existsrelated to events of conditions that may cast significant doubt on the entity's ability tocontinue as a going concern. If we conclude that a materials uncertainty exist we arerequired to draw attention in our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusion are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the entity to cease tocontinue as a going concern.

- Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the financial statements represent theunderlying transaction cause the entity to crease to continue as a going concern.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the standalone financialstatements that individually or in aggregate makes it probable that the economic decisionsof a reasonably knowledgeable user of the standalone financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (I)Planningthe scope of our audit work and in evaluating the results of our work and (ii) To evaluatethe effect of and identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit finding including anysignificant deficiencies in internal control that we identify during our audit.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's rare circumstances we determine that a matter should not be commentatedin our report because the adverse consequences of doing so would reasonably be expected toout weight the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) order 2016 (”the order”)issued by the Central Government of India in terms of sub -section (11) if section 143 ifthe Act we give in the “Annerxure A” a statement on the matters specified inparagraphs 3 and 4 of the said 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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss(Including other comprehensiveincome) the Cash Flow Statement and the statement of changes in equity dealt with by thisreport are in agreement with books of account

(d) In our opinion the afore said Standalone financial statements comply with theindian Accounting Standard specified under section 133 of the Act read with Rule 7 of theCompanies (Account) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312019 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2019 from being appointed as director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B” and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Sec197(16)of the Act as amended;

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the matters to be included in the Auditor's Report in accordancewith Rule11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us;

a) The Company has disclosed the impact of pending litigations on its financialposition in its Ind As financial statements;

b ) The Company does not have nay long term contracts including derivative contractsfor which there were any material for seeable losses

c) The company has transferred the amounts required to be transferred to the investorEducation and Protection Fund after 50 days from the due date as against requirement oftransfer with in 7 days the due date.

Place: Veraval (Shapar) FOR PANKAJ K. SHAH ASSOCIATES
Date: 19/05/2019 Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
PROPRIETOR
M. No. 34603

"Annexure A" to the independent Auditors' Report"

Referred to in paragraph 1 under the heading Report on Other Legal & RegulatoryRequirement' of our report of even date to the Standalone financial statements of theCompany for the year ended March 31 2019;we report that

1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us the Fixed Assets have been physically verified by themanagement in a phased manner designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the company andnature of its business. Pursuant to the program a portion of the fixed asset has beenphysically verified by the management during the year and no material discrepanciesbetween the books records and the physical fixed assets have been noticed.

(c) According to the information and explanations given to us and on the basis of ourexamination of the record of the company the title deeds of immovable properties are heldin the name of the company.

2) The Inventory of finished goods raw materials components stores and spare partshas been physically verified at reasonable intervals by the management. In our opinionthe frequency of such verification is reasonable. No material discrepancies were noticedon physical verification of inventories as compared to books records.

3) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liabilitypartnerships or other parties covered in the Register maintained under section 189 of theAct. Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are notapplicable to the Company.

4)In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans and investments.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Act. We have broadly reviewed the cost records maintained by theCompany pursuant to Companies (Cost Records and Audit) Rules 2014 as amended by theCentral Government of India maintenance of cost records has been prescribed undersub-section (1) of Section 148 of the Companies Act and is of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

7) (a) According to the records of the company and the in and explanations given to usand on the basis of our examination of the books of account and records the Company hasbeen generally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance income-Tax Custom Duty Goods and Service Tax Act Cess andother material statutory dues as applicable to it to the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the above were in arrears as at March 31 2019 for a period of more than sixmonths from the date they became payable.

b) According to the information and explanations given to us and record of the Companydisputed amount payable in respect of Income tax sales tax & Custom and Excise Dutyand that have not been deposited with the appropriate authorities on account of disputeand the forum where the disputes are pending are given below:

Name of Statue Nature of Dues Disputed Amount Rs. Period to which the amount Relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 291220 A.Y. 2012-13 CIT (A) III Rajkot
Income Tax Act 1961 Protective Demand 86422130 A.Y. 2014-15 CIT (A) III Rajkot

8) in our opinion and according to the information and explanations given to us. theCompany has not defaulted in the repayment of dues to any financial institutions andbanks.

9)Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid in accordance with theprovisions of section 197 read with Schedule V to the Companies Act;

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

13) According to the information and explanations given to us and on the basis of ourexamination of the record of the company in our opinion all transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosed in the Ind AS Financial Statements as required by the applicableaccounting standards.

14) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares du ring the year under review.

15) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not entered into any non -cashtransactions with directors or persons connected with the company. Accordingly theprovisions of clause 3 (xv) of the Order are not applicable to the Company and hence notcommented upon.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe order are not applicable to the Company and hence not commented upon.

Place: Veraval (Shapar) FOR PANKAJ K. SHAH ASSOCIATES
Date: 19/05/2019 Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
PROPRIETOR
M. No. 34603

“Annexure B" to the independent Auditors' Report"

Referred to in paragraph 1 under the heading Report on Other Legal & RegulatoryRequirement' of our report of even date to the Standalone financial statements of theCompany for the year ended March 31 2019;we report that

We have audited the internal financial controls over financial reporting of M/S. RajooEngineers Limited (”the company” ) as of March 31 2019 in conjunction with ouraudit of the Standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on Audit of internal Financial Controls Over Financial Reportingissued by the institute of Charted Accounts of india (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's polices the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express and opinion the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the“Guidance

2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal Financial Controls and both issued by the institute ofChartered Accounts of India. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialsrespects

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and understanding of internal financial evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgement including the assessment of the risks of materialsmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting. Note”) and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedtor provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company'; and (3)provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion of improper management override ofcontrols materials misstatements due tor error or fraud may occur and not be detected.Also projections of any evolution of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

opinion

In our opinion to the best of our information and according to the explanation givento us the Company has in all materia respects and adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the criteria forinternal Financial control over Financial Reporting established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofinternal Financial Controls over Financial Reporting issued by the institute of CharteredAccountants of India.

Place: Veraval (Shapar) FOR PANKAJ K. SHAH ASSOCIATES
Date: 19/05/2019 Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
PROPRIETOR
M. No. 34603