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Rama Petrochemicals Ltd.

BSE: 500358 Sector: Industrials
NSE: RAMAPETRO ISIN Code: INE783A01013
BSE 00:00 | 09 Apr 2020 Rama Petrochemicals Ltd
NSE 05:30 | 01 Jan 1970 Rama Petrochemicals Ltd

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OPEN 6.52
PREVIOUS CLOSE 6.52
VOLUME 16
52-Week high 8.07
52-Week low 6.52
P/E 8.25
Mkt Cap.(Rs cr) 7
Buy Price 6.52
Buy Qty 82.00
Sell Price 6.52
Sell Qty 1.00
OPEN 6.52
CLOSE 6.52
VOLUME 16
52-Week high 8.07
52-Week low 6.52
P/E 8.25
Mkt Cap.(Rs cr) 7
Buy Price 6.52
Buy Qty 82.00
Sell Price 6.52
Sell Qty 1.00

Rama Petrochemicals Ltd. (RAMAPETRO) - Auditors Report


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Company auditors report

To the members of

Rama Petrochemicals Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Rama PetrochemicalsLimited (“the Company”) which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia. This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provision of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone financial statements.

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

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India

(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2018;

(b) in the case of the Statement of Profit and Loss of the Profit including OtherComprehensive Income for the year ended on that date;

(c) in the case of the Statement of Changes in Equity of the changes in equity for theyear ended on that date; and

(d) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the standalone financialstatements:

Without qualifying the report we like to bring to your attention that the company's networth has been completely eroded. As explained in Note 28 the management is of the viewthat the Company can be revived and made viable and accordingly the company's accountshave been prepared on Going Concern assumption. The revival of the Company's operationsdepends upon the Company being able to obtain the alternative main feed stock. In absenceof any other information indicating to the contrary we have accepted this view andaccordingly the accounts have been prepared on the basis of “Going Concern Concept''.

Our opinion is not modified in respect of this matter.

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) of section 143 ofthe Act we give in the “Annexure A” a statement on the matters specified inparagraph 3 and 4 of the 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 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 Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015;

e. On the basis of written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2018 from being appointed as adirector 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 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 Rule 11 of the Companies (Audit and Auditors) Rules 2014as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in Note 27 of the standalone financial statements.

ii) The Company did not have any long term contracts including derivatives contract forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to Investor Education& Protection Fund by the Company.

For Dayal and Lohia
Chartered Accountants
Firm's Regn. No. 102200W
Rinkit K. Uchat
Place: Mumbai Partner
Date: May 29 2018. Membership No.165557

Annexure A to Independent Auditors' Report

The Annexure referred to in our report to the members of Rama Petrochemicals Limited(‘the Company') for the year Ended on 31st March 2018.

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Management of the Company has physically verified the fixed assets in accordancewith its policy of physical verification at reasonable intervals. The discrepancies ifany noticed during such verification have been suitably adjusted in the books of account.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company

ii) a) According to the information and explanations given to us the management hasconducted physical verification of the inventories at reasonable intervals.

b) In our opinion and according to the information and explanations given to us theprocedures followed by the management for physical verification of inventory arereasonable and adequate in relation to the size of the Company and the nature of thebusiness.

c) No material discrepancies have been noticed on physical verification of the stocksas compared to book records in so far as it appears from our examination of the books.

iii) According to the information and explanations given to us and on the basis of ourexamination of books of account the Company has not granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Therefore theprovision of clauses 3(iii)(a) (b) and (c) of the said Order are not applicable.

iv) 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 Act with respectto the loans and investments made and guarantee and security provided.

v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public.

vi) According to the information and explanation given to us the government hasprescribed maintenance of cost records pursuant to Companies (Cost Accounting Records)Rules 2011 prescribed by the Central Government under sub-section (1) of section 148 ofthe Companies Act. Since there is no turnover of manufacturing goods in the precedingfinancial year the same is not applicable.

vii) a) According to the records of the Company undisputed statutory dues includingProvident Fund Employee's

State Insurance Sales Tax Income Tax Service Tax Custom Duty Excise Duty ValueAdded Tax Goods and Service Tax Cess and other statutory dues have been regularlydeposited with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of aforesaid dues were outstandingas at 31st March 2018 for a period of more than six months from the date it becamepayable except:

Name of the statute Nature of the dues Amount Period to which the amount relates Due Date
The Customs Act 1962 Custom Duty on import of Catalyst 5932740/- 1998-1999 21.02.1998
Sales Tax Act Deferral Sales Tax Liability 310344140/- 1988-1997 30.04.2014

b) According to the records of the Company and information and explanations given to usthe following are the dues of Income Tax on account of disputes:

Name of the statute Amount involved Period to which the amount relates Forum where dispute is pending
Income Tax 3453167 AY 1997-98 High Court
Income Tax 11998802 AY 1998-99 High Court
Income Tax 3443296 AY 2009-10 ITAT

According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Service Tax Sales Tax Excise Duty CustomDuty or Value Added Tax Goods and Service Tax which have not been deposited on account ofany dispute.

viii) On the basis of our examination of the books and according to the information andexplanations given to us there are no borrowings from financial institutions banks ordebenture holders.

ix) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not raise any money by way of initial publicoffer or further public offer (including debt instruments). Term loans raised during theyear is applied for the purpose for which it is obtained.

x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) The Company has not paid/provided for any managerial remuneration during the year.Hence the compliance of provisions of section 197 read with Schedule V to the Act arenot applicable.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Dayal and Lohia
Chartered Accountants
Firm's Regn. No. 102200W
Rinkit K. Uchat
Place: Mumbai Partner
Date: May 29 2018. Membership No.165557

ANNEXURE - ‘B' TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF RAMA PETROCHEMICALS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of RamaPetrochemicals Limited (“the Company”) as of 31st March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

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 Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

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 an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Dayal and Lohia
Chartered Accountants
Firm's Regn. No. 102200W
Rinkit K. Uchat
Place: Mumbai Partner
Date: May 29 2018. Membership No.165557


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