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Rasandik Engineering Industries India Ltd.

BSE: 522207 Sector: Auto
NSE: N.A. ISIN Code: INE682D01011
BSE 00:00 | 24 Apr 2020 Rasandik Engineering Industries India Ltd
NSE 05:30 | 01 Jan 1970 Rasandik Engineering Industries India Ltd

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OPEN 40.10
PREVIOUS CLOSE 39.30
VOLUME 103
52-Week high 117.70
52-Week low 32.10
P/E
Mkt Cap.(Rs cr) 22
Buy Price 37.50
Buy Qty 200.00
Sell Price 40.10
Sell Qty 8.00
OPEN 40.10
CLOSE 39.30
VOLUME 103
52-Week high 117.70
52-Week low 32.10
P/E
Mkt Cap.(Rs cr) 22
Buy Price 37.50
Buy Qty 200.00
Sell Price 40.10
Sell Qty 8.00

Rasandik Engineering Industries India Ltd. (RASANDIKENGG) - Auditors Report


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Company auditors report

To the Members of

Rasandik Engineering Industries India Limited

Report on the Audit of Financial Statements

OPINION

We have audited the accompanying financial statements of Rasandik EngineeringIndustries India Limited ("the Company") which comprise the Balance Sheet as at31st March 2019 the Statement of Profit and Loss (including other comprehensive income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and accounting principles generally accepted in India of the stateof affairs of the Company as at 31st March 2019 its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

BASIS FOR OpINION

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

EMPHASIS OF MATTER

We draw attention to note no. 34 of the accompanying financial statements regardingcertain plant & equipment continued to be classified as "capital work inprogress" as explained therein and possible interest liability on nonfulfilment ofexport obligations.

Our opinion is not modified in respect of the above matter.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report

S No Key Audit Matter Auditor's Response
1 Revenue recognition: Our audit procedure included among others
For the year ended March 31 2019 the Company has recognized revenue from contracts with customers amounting to र26676.10 lakhs. • Assessed the Company's revenue recognition policy prepared as per Ind AS 115 'Revenue from contracts with customers'.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company is entitled in exchange for those goods or services. • Performed sample tests of individual sale transactions and traced to sales invoices sales orders and other related documents.
The Company has generally concluded that as principal it controls the goods or services before transferring them to the customer. Revenue is also an important element of how the Company measures its performance. The Company focuses on revenue as a key performance measure which could create an incentive for revenue to be recognized before the risk and rewards have been transferred. • Tested the provision calculations related to price revisions/increase etc. by agreeing a sample of amounts recognized to underlying arrangements with customers and other supporting documents.
Accordingly due to the risk associated with revenue recognition in accordance with terms of Ind AS 115 'Revenue from contracts with customers' it is determined to be a key audit matter in our audit of the financial statements. • To test cut off selected sample of sales transactions made pre- and post-year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

Based on the work we have performed if we conclude that there is a materialmisstatement of this other information obtained prior to the date of this auditor'sreport we are required to report that fact. This reporting is not applicable as otherinformation is not obtained at the date of this auditor's report.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIALSTATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the Management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless theManagement 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 FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 material misstatement of the 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 intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 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 purposes 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 the books of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) On the basis of written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (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 A".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided 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 other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact if any of pending litigations on itsfinancial position in its financial statements - Refer Note No. 32(a) to the financialstatements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred during the year tothe Investor Education and Protection Fund by the Company.

2. 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 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure B" a statement on the matters specified in the paragraphs3 and 4 of the said Order.

For V. SANKAR AIYAR & CO.
Chartered Accountants
ICAI Firm Regn. No. 109208W
(Ajay gupta)
Place : New Delhi Partner
Dated : 29th May 2019 Membership No. 090104

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1(f) under ‘Report on Other Legal and Regulatoryrequirements' of our report on even date)

Report on the Internal Financial controls over Financial Reporting under clause (i) ofSub-section 3 of Section 143 of the Act

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2019 in conjunction with our audit of the financial statements of theCompany for the year 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by ICAI. 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 materialrespects.

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 judgement 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 authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

The Company has represented that by virtue of its procedures it consider that itsinternal financial control system over financial reporting is adequate. However theoperating effectiveness of such internal financial control over financial reporting needsimprovements as at 31st March 2019 considering the essential components of internalcontrol stated in the guidance note issued by ICAI.

For v. SANKAR AIYAR & cO.
Chartered Accountants
ICAI Firm Regn. No. 109208W
(Ajay Gupta)
Place : New Delhi Partner
Dated : 29th May 2019 Membership No. 090104

Annexure "B" to the Independent Auditors' Report

(Referred to in Paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our Report on even date)

i 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 are physically verified by the Managementaccording to a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its business. No material discrepancieswere noticed on such verification.

c) The title deeds of immovable properties as disclosed in Note 2 to the financialstatements on fixed assets are held in the name of the Company.

ii As informed to us inventories have been physically verified during the year by themanagement except stocks lying with third parties for which confirmation are notavailable. In our opinion the frequency of verification is reasonable. Discrepanciesnoticed on physical verification of the inventories between the physical inventories andbook records were not material having regard to the size and nature of the operations ofthe Company.

iii The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties required to be covered in the registermaintained under section 189 of the Act. Therefore the provisions of clause 3(iii) (a) to(c) of the Order are not applicable.

iv The Company has not granted any loans or provided any guarantees or security to theparties covered under section 185 of the Act. The Company has not made any investmentgiven any loan given any guarantee or provided any security in connection with a loanwithin the provisions of section 186 of the Act.

v The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordinglythe provisions of clause 3(v) of the Order are not applicable.

vi The Central Government has not prescribed maintenance of cost records under section148(1) of the Act in respect of Company's activities.

vii a) According to the records of the Company the Company has been generally regularin depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax duty of customs cess and other material statutory dues with theappropriate authorities except for goods and service tax (GST). There were no arrears ofundisputed statutory dues as at 31st March 2019 which were outstanding for a period ofmore than six months from the date they became payable.

b) There are no disputed dues which have remained unpaid as on 31st March 2019 inrespect of income tax or sale tax or service tax or duty of customs or duty of excise orvalue added tax except as follows.

Nature of dues Financial Year in lacs Forum where pending
Central Sales Tax 2014-15 39.70 Excise & Taxation officer Mewat

viii On the basis of the verification of records and information and explanations givento us the Company has not defaulted in repayment of loans and borrowings to banks. TheCompany does not have any loans or borrowings from financial institution or government inthe books of accounts at any time during the year. The Company has not issued anydebentures.

ix The Company did not raise any money by way of initial/further public offer(including debt instruments) and term loans during the year. Therefore the provisions ofclause 3(xii) of the Order are not applicable.

x Based on the audit procedure performed and the representation obtained from themanagement no material fraud by the Company or on the Company by its officers andemployees has been noticed or reported during the year.

xi According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

xii The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable.

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 section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv According to the information and explanations given to us the Company has madepreferential allotment/private placement of shares during the year under review.

In respect of the above issue we further report that:

a) the requirements of Section 42 of the Companies Act 2013 as applicable have beencomplied with; and

b) the amounts raised have been applied by the Company during the year for the purposesfor which the funds were raised other than temporary deployment pending application.

xv. According to the information and explanations given to us and the representationobtained from the management the Company has not entered into any non-cash transactionswith directors or persons connected with them under section 192 of the Act. Therefore theprovisions of clause 3(xv) of the Order are not applicable.

xvi In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For V. SANKAR AIYAR & CO.
Chartered Accountants
ICAI Firm Regn. No. 109208W
(Ajay Gupta)
Place : New Delhi Partner
Dated : 29th May 2019 Membership No. 090104


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