TO THE MEMBERS OF
RASANDIK ENGINEERING INDUSTRIES INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RASANDIK ENGINEERINGINDUSTRIES INDIA LIMITED ("the Company") which comprise the Balance Sheetas at March 31 2015 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Financial Statements
The Management is responsible for the matters stated in Section 134(5) of the CompaniesAct 2013 (the Act) with respect to the preparation of these Standalone financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2015; (b) in the case of the Statement of Profit and Loss of the Profit for theyear ended on that date; and (c) in the case of the Cash Flow Statement of the cash flowsfor the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2015 (''the Order'') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of thesaid Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books; c. the Balance SheetStatement of Profit and Loss and Cash Flow Statement dealt with by this Report are inagreement with the books of account;
d. in our opinion the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors except Mr. M.S. Ramprasad is qualified as on March 31 2015 from being appointed as a director interms of Section 164 (2) of the Act.
f. with respect to other matters to be included in the Auditor''s Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 27 to the financial statements.
ii. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses - Refer Note 27 to the financialstatements.
ii. there have been no delays in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For A W A T A R & C O.
Firm Registration No. 000726N
Membership No. : 087787
Place : New Delhi
Date : May 28 2015
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph 1 of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.
Additions and deletions made during the year under report will be entered in the saidrecords during current year i.e. 2015-16 as per Company's practice.
(b) All the fixed assets have been physically verified by the management in a phasedperiodical manner which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. No material discrepancies were noticed on such physicalverification.
(ii) In respect of its inventories:
(a) The inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) On the basis of our examination of the records of inventory we are of the opinionthat the Company is maintaining proper records of inventories. The discrepancies noticedon verification between the physical stocks and the book records were not material.
(iii) The Company has not granted loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Therefore the provisions of clause (iii) of the para 3 of the Order are notapplicable to the Company.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the Companyand the nature of its business with regard to purchases of inventory fixed assets andwith regards to the sale of goods and services. During the course of our audit no majorweakness has been noticed in the internal controls.
(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from public during the year. Therefore the provisionsof clause (v) of the para 3 of the Order are not applicable to the Company.
(vi) It has been explained that books of account relating to materials labour andother items of cost pursuant to the Rules made by the Central Government for themaintenance of cost records under section 148(1) of the Companies Act 2013 are in theprocess of being made for the year covered under this report.
(vii)(a) According to the records of the Company the Company is regular in depositingwith the appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax value added tax wealth tax customsduty excise-duty service tax cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of income-tax wealth tax sales tax value added tax service taxcustoms duty and excise duty were outstanding as at March 31 2015 for a period of morethan six months from the date they became payable.
(c) According to the records of the Company details of dues of Income Tax which havenot been deposited on account of any dispute are given below:-
|Particulars ||Period to which the amount related ||Forum where the dispute is pending ||Amount (Rs. in Lacs) |
|Income Tax ||AY 2008-09 ||Commissioner of Income Tax-Appeals ||105.35 |
|Income Tax ||AY 2009-10 ||Commissioner of Income Tax-Appeals ||5.70 |
(d) The amounts required to be transferred to the Investor Education and ProtectionFund in accordance with the provisions of the Companies Act 1956(1of 1956) and rules madethereunder have been transferred to such fund within time.
(viii) The Company has no accumulated losses at the end of the financial year. TheCompany has not incurred any cash losses during the financial year covered by our auditand the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution or bank. However the Foreign Currency Convertible Bondsaggregating to US$ 2 Million (Rs. 9.158 crores at issue) that matured for repayment onApril 8 2009 and the interest accruing thereon have not been repaid by the Company. TheCompany has not raised any monies against issue of debentures.
(x) The Company has not given any guarantee for loans taken by others from bank orfinancial institutions. Therefore the provisions of clause (x) of the para 3 of the Orderare not applicable to the Company.
(xi) The term loans have been applied for the purpose for which they were raised.
(xii) Based upon the audit procedures performed and as per the information andexplanations given by the management we report that no fraud on or by the Company hasbeen noticed or reported during the course of our audit.
For A W A T A R & C O.
Firm Registration No. 000726N
Membership No. : 087787
Place : New Delhi
Date : May 28 2015