Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Rajkumar Forge Ltd. which comprise the
a) Ind AS Balance Sheet as at the March 31, 2018;
b) Ind AS Statement of Profit and Loss (including Other Comprehensive Income) for the year ended on that date;
c) Ind AS Statement of Cash Flows for the year ended on that date;
d) Statement of Changes in Equity for the year ended on that date, and;
e) Notes to the financial statements including a summary of significant accounting policies and other explanatory information.
Responsibility of the Management for the financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance (including Other Comprehensive Income), cash flows and change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified u/s 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes
a) 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;
b) selection and application of appropriate implementation and maintenance of accounting policies;
c) making judgments and estimates that are reasonable and prudent; and
d) 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility for the audit of the financial statements
Our responsibility is to express an opinion on these Ind As financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,
a) in the case of the balance sheet, of the state of affairs of the Company as at March 31, 2018.
b) in the case of the statement of profit & loss, of the profit of the Company for the year ended on that date.
c) in the case of the cash flow statement, of the cash flows of the Company for the year ended on that date.
d) in the case of the statement of changes in equity, of the changes in equity of the Company for the year ended on that date.
Report on other legal and regulatory requirements
a) As required by the Companies (Auditor''s Report) Order, 2016, (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Companies Act, 2013, we enclose, on the basis of our opinion, our examination of the relevant records and according to the information and explanation given to us, in the âAnnexure Aâ a statement on the matters specified in Paragraphs 3 and 4 of the Order.
b) As required by Section 143(3) of the Act, we report that
i 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;
ii In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;
iii The Ind AS Balance Sheet, the Ind AS Statement of Profit and Loss including the statement of Other Comprehensive Income, the Ind AS Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
iv In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015;
v On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
vi With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure B â; and
vii 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:
a) the Company does not have any pending litigations which would impact its financial position;
b) the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
c) there has been no delay on the part of the Company in transferring amounts, required to be transferred, to the Investor Education and Protection Fund.
Annexure A Referred to in Paragraph a) under the heading âReport on other legal and regulatory requirementsâ of Our Report of Even Date
(i) Fixed Assets
(a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets, except for quantitative details of furniture & fixtures, which is under updation.
(b) The management has physically verified all the fixed assets during the year, except for quantitative details of furniture & fixtures, which is under updation. No material discrepancies were noticed on such verification during the financial year under review. The frequency of verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of immovable properties owned by the Company are held in the name of the company.
(ii) Inventories
The management has conducted physical verification of inventories (excluding inventories lying with third parties, which have been substantially confirmed by the third parties) at reasonable intervals during the year. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.
(iii) Loans granted to related parties
The contents of Paragraph 3(iii) of CARO, 2016 are not applicable since the Company has not granted loans, secured or unsecured, to companies, firms or other parties covered in the register maintained u/s 189 of the Act.
(iv) Compliance with Section. 185 & Section. 186
The contents of Paragraph 3(iv) of CARO, 2016 are not applicable since the Company has not made investments, granted loans, offered guarantee and security to which the provisions of section 185 & section 186 of Companies Act, 2013 apply.
(v) Deposits
The contents of Paragraph 3(v) of CARO, 2016 are not applicable since the Company has not accepted deposits from the public within the provisions of Sections 73-76 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014.
(vi) Cost Records
Maintenance of cost records is not required by the Companies (Cost Record & Audit) Rules, 2014 prescribed by the Central Government u/s 148(1) of the Act because the turnover of the Company during the last preceding year is less than.35 crores.
(vii) Payment of statutory dues
(a) The Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service tax, Customs Duty, Excise Duty, cess and other material statutory dues applicable to it. There are no arrears of outstanding undisputed statutory dues as at the last day of the financial year for a period of more than six months from the date those became payable.
(b) There are no disputed amounts outstanding in respect of Income-tax, Sales-tax, Wealth Tax, Service tax, Customs Duty, Excise Duty, cess and other material statutory dues applicable to it as at the last day of the Financial year.
(c) During the year under review, the Company has transferred.943,600/- to the Investor Education and Protection Fund in accordance with the provisions of section 124(5) the Companies Act, 2013 and Rule 4 of the Companies (Declaration & Payment of Dividend) Rules 2014, made thereunder.
(d) During the year under review, the Company has transferred 5,34,300 shares to the Investor Education and Protection Fund in accordance with the provisions of section 124 of the Companies Act, 2013 and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (âIePf Rules'').
(viii) Default in repayment of bank loan
The contents of Paragraph 3(v) of CARO, 2016 are not applicable since the Company has not defaulted in repayment of loans or borrowings obtained from banks and Government. The Company has nor issued any debenture nor obtained loans from financial institutions.
(ix) Application of proceeds of term loans / public offer
The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year under review. The Company has applied the proceeds of term loans from banks towards the purposes for which the loans were obtained.
(x) Fraud
The contents of Paragraph 3(x) of CARO, 2016 are not applicable since no material fraud on or by the Company has been noticed or reported during the financial year under review.
(xi) Managerial remuneration
The Company has paid or provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) Nidhi Company
The contents of Paragraph 3(xii) of CARO, 2016 are not applicable since the Company is not a Nidhi Company.
(xiii) Related party transactions & compliance with Section.177 & 188
All the transactions with related parties are in compliance with Sections 177 & 188 of the Companies ,Act 2013 2013 and details thereof have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) Preferential allotment / private placement of shares or convertible debentures & compliance with Section 42 The contents of Paragraph 3(xiv) of CARO, 2016 are not applicable since the Company has not made preferential allotment or private placement of equity shares or fully or partly-paid convertible debentures during the year under review.
(xv) Non-cash transactions with directors etc. & compliance with Section.192
The contents of paragraph 3(xv) of CARO, 2016 are not applicable since
(a) the directors have not entered into any arrangement for acquiring any assets from the company for a consideration other than cash during the financial year under review.
(b) the company has not entered into any arrangement for acquiring any assets from the directors for a consideration other than cash during the financial year under review.
(xvi) Compliance with Section.45IA of RBI Act
The contents of paragraph 3(xvi) are not applicable since ;the company is not required to register itself with RBI under section 45IA of the RBI Act.
Annexure B Referred to in Paragraph (b)(vi) under the heading âReport on other legal and regulatory requirementsâ of Our Report of Even Date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Rajkumar Forge Ltd. (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI'').
These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and its operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that;
(a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(c) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and may not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were generally operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Gokhale, Tanksale & Ghatpande,
Firm Registration No: 103277W
Chartered Accountants
S. M. Ghatpande
Place: Pune Partner
Date: May 26, 2018 Membership No. 30462
Mar 31, 2016
To the Members of Rajkumar Forge Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Rajkumar Forge Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone® Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 and ensuring their operating effectiveness and 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance 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 the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 its loss and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note 28 to the financial statements which describe the uncertainty related to the outcome of âMinimum Guaranteed Offtakeâ claim of Rs 197.98 lacs filed on the Company by Maharashtra Natural Gas Limited.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in âAnnexure 1â, a statement on the matters specified in paragraphs 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 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
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate Report in âAnnexure 2â.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 financial statements - Refer Note 28 on Contingent Liabilities of the financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
[Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ in the Independent Auditorâs Report of even date to the members of Rajkumar Forge Limited on the financial statements for the year ended March 31, 2016]
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets, except for quantitative details of furniture and fixtures, which is under updation.
(b) During the year, the fixed assets of the Company have been physically verified by the management, except for furniture and fixtures whose quantitative details in fixed assets register is under updation and as informed, no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) The title deeds of immovable properties recorded in the books of account of the Company are held in the name of the Company.
(ii) The inventory (excluding stocks lying with third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them.
(iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii)(a), 3 (iii) (b) and 3 (iii)(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) The Central Government of India has not prescribed the maintenance of cost records for any of the products of the Company under sub-section (1) of Section 148 of the Act and the rules framed there under.
(vii) (a) The Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are no dues with respect to income tax, sales tax, service tax, value added tax, customs duty, excise duty, which have not been deposited on account of any dispute.
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to banks and government. The Company do not have any outstanding dues to financial institution and debenture holder.
(ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) As per the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) As per the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) Based on the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
[Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirementsâ in the Independent Auditorâs Report of even date to the members of Rajkumar Forge Limited on the financial statements for the year ended March 31, 2016]
Para 1 - Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Rajkumar Forge Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Para 2 - Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âiCaIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Para 3 - Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Para 4 - Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Para 5 - Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Para 6- Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W
Anup Mundhra
Place: Pune Partner
Date: May 13, 2016 Membership No. 061083
Mar 31, 2015
We have audited the accompanying financial statements of Rajkumar Forge
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of 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
and ensuring their operating effectiveness and 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance 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 the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable. The Order is yet to be notified in the
Gazette of India.
(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 best of 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 the Company so far as it appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015 from being
appointed as a director in terms of Section 164 (2) of the Act;
f. 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, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company does not have any pending litigations which would
impact its financial position;
(ii) The Company did not have any long-term contracts including
derivative contracts hence, the question of any material foreseeable
losses does not arise;
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
[Referred to in paragraph 1 under 'Report on Other Legal and
Regulatory Requirements' in the Independent Auditor's Report
of even date to the members of Rajkumar Forge Limited on the
standalone financial statements for the year ended March 31,2015]
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) During the year, the fixed assets of the Company have been
physically verified by the management and as informed, no material
discrepancies were noticed on such verification. In our opinion, the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets.
(ii) (a) The inventory has been physically verified by the
management during the year. There is no inventory lying with third
parties. In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As
informed no material discrepancies were noticed on physical
verification carried out during the year.
(iii) As informed, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Act. Accordingly, the provisions
stated in paragraph 3 (iii)(a) and 3 (iii)(b) of the Order are not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the Company.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the provisions of Sections 73 to 76 of the Act and the rules
framed there under.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where the maintenance of cost records
has been specified by the Central Government under sub-section (1) of
Section 148 of the Act and the rules framed there under and we are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained.
(vii) (a) The Company is regular in depositing with appropriate
authorities, undisputed statutory dues including provident fund, income
tax, sales tax, service tax, value added tax, customs duty, excise
duty, cess and any other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed
amounts payable in respect of provident fund, income tax, sales tax,
service tax, value added tax, customs duty, excise duty, cess and any
other material statutory dues applicable to it, were outstanding, at
the year end, for a period of more than six months from the date they
became payable.
(b) According to the information and explanation given to us, there are
no dues with respect to income tax, sales tax, wealth tax, service tax,
value added tax, customs duty, excise duty, cess and any other material
statutory dues applicable to it, which have not been deposited on
account of any dispute.
(c) According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(viii) The Company does not have accumulated losses at the end of the
financial year nor has incurred cash losses in the current and
immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) The Company has not obtained any term loans.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such instance by the management.
For Haribhakti & Co. LLP
Chartered Accountants
ICAI Firm Registration No.103523W
Atul Gala
Place: Pune Partner
Date: May 09, 2015 Membership No.48650
Mar 31, 2014
We have audited the accompanying financial statements of RAJKUMAR FORGE
LIMITED ("the Company") which comprise the Balance Sheet as at 31 March
2014, the Statement of Profit and Loss for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with Note no
3B, 4 and 7 of notes forming part of financial statement give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. In the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014; and
ii. In the case of the statement of profit and loss, of the profit for
the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books.
c. the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1965 and.
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
(Referred to in our Report on Other Legal and Regulatory Requirements)
1. a) The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets.
b) According to the information and explanations given to us, the fixed
assets are physically verified by the management during the year as per
a regular programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its assets. To the best of our knowledge and as
represented to us by the management, no material discrepancies were
noticed in respect of assets verified during the year.
c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have been substantially
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of the records of inventory, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stock as compared to
the records were not material.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. As per the information given to us, no major
weaknesses in the internal controls have been identified by the
management or the internal auditors of the Company during the year.
During the course of our audit, nothing has come to our notice that may
suggest a major weakness in the internal control system of the Company.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
b) According to the information and explanations given to us where each
of such transactions is in excess of Rs.5, 00, 000/- (Rupees Five Lacs
Only) in respect of any party, the transactions have been made at
prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time based on the circumstances explained
by the Company.
6. The Company has not accepted deposits from the public. Hence, the
question of the Company complying with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the rules framed there under,
does not arise.
7. In our opinion, the internal audit system carried out by an
independent firm of Chartered Accountant is generally commensurate with
the size of the Company and the nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of Section 209 of the
Act, and are of the option that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9 According to the information and explanations given to us and records
of the company examined by us, in our opinion, the Company is regular
in depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues as applicable with the
appropriate authorities.
10. The Company has no accumulated losses as at 31st March 2014 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures upto the
balance sheet date.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima facie prejudicial to the interest of the Company.
16. The Term Loan was applied for the purpose for which it was
obtained.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, funds raised on short term basis have not been used for long
term investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company, either noticed or reported during the year, nor
have we been informed of such case by the Management.
For BAPAT AND COMPANY
Chartered Accountants
Firm Registration No. 100997W
A. N. Bapat
Place: Pune Partner
Date : 30th May, 2014 Membership No. 7524
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of RAJKUMAR FORGE
LIMITED ("the Company") which comprise the Balance Sheet as at 31 March
2013, the Statement of Profit and Loss for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with note no
3C, 3D ,4 and 5 of notes forming part of financial statement give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India: i. In the case of the balance sheet, of
the state of affairs of the Company as at 31 March 2013; and ii. In
the case of the statement of profit and loss, of the profit for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c. the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account ;
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our Report on Other Legal and Regulatory Requirements)
1. a) The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets. However,
these records need further improvement.
b) According to the information and explanations given to us, the fixed
assets are physically verified by the management during the year as per
a regular programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its assets. To the best of our knowledge and as
represented to us by the management, no material discrepancies were
noticed in respect of assets verified during the year.
c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2. a) The inventory (excluding stocks with third parties) has been
Physically verified by the management during the year. In respect of
inventory lying with third parties, these have been substantially
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of the records of inventory, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stock as compared to
the records were not material.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. As per the information given to us, no major
weaknesses in the internal controls have been identified by the
management or the internal auditors of the Company during the year.
During the course of our audit, nothing has come to our notice that may
suggest a major weakness in the internal control system of the Company.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
b) According to the information and explanations given to us where each
of such transactions is in excess of Rs.5,00,000/- (Rupees Five Lacs
Only) in respect of any party, the transactions have been made at
prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time based on the circumstances explained
by the Company.
6. The Company has not accepted deposits from the public. Hence, the
question of the Company complying with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the rules framed there under,
does not arise.
7. In our opinion, the internal audit system carried out by an
independent firm of Chartered Accountant is generally commensurate with
the size of the Company and the nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of Section 209 of the
Act, and are of the option that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9 a) According to the information and explanations given to us and
records of the company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues as applicable with
the appropriate authorities .
b) According to the information and explanations given to us and the
records of the Company, the following dues of Excise Duty, Sales Ta x
and Income Tax have not been deposited on account of dispute:
Sr.
No. Name of Nature of
disputed Amount Forum where dispute
Statute Statutory dues (Rs) is pending
1 Sales Tax Chapter Heading 16,40,764 Deputy Commissioner of
1996-97 Sales Tax, Pune
2 Sales Tax Chapter Heading 2,78,362 Deputy Commissioner of
1997-98 Sales Tax, Pune
3 Sales Tax Scrap generated
at Sub 5,22,680 Joint Commissioner Sales
2006-07 Contractor End Tax Appeal, Pune
10. The Company has no accumulated losses as at 31st March 2013 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures upto the
balance sheet date.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/ mutual benefit fund/societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanations given to us , the
Company has given guarantee for loans taken by others from bank or
financial institutions , the terms and conditions whereof in our
opinion are not prima facie prejudicial to the interest of the Company
16. The Term Loan was applied for the purpose for which it was
obtained.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, funds raised on short term basis have not been used for long
term investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company, either noticed or reported during the year, nor
have we been informed of such case by the Management.
For BAPAT AND COMPANY
Chartered Accountants
Firm Registration No. 100997W
A. N. Bapat
Place: Pune Partner
Date: 13''th May, 2013 Membership No. 7524
Mar 31, 2012
1. We have audited the attached Balance Sheet of RAJKUMAR FORGE
LIMITED as at 31st March, 2012, and the related Profit and Loss Account
and Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall Financial Statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have 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 appears from our examination of
those books ;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account ;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 subject to note 16;
(e) On the basis of the written representations received from the
Directors as on 31st March, 2012 we report that none of the Directors
are disqualified as on 31st March, 2012 from being appointed as a
Director in terms of Section 274 (1)(g) of the Companies Act, 1956 ;
(f) In our opinion and to the best of our information and according to
the explanations given to us the said Financial Statements read with
Sr. no. 3C, 3D, 3E, 4, and 5 of note 23Ãnotes forming part of Financial
Statements give the information required by the Companies Act, 1956, in
the manner so required and present a true and fair view in conformity
with the accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
1. a) The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets. However,
these records need further improvement.
b) According to the information and explanations given to us, the fixed
assets are physically verified by the management during the year as per
a regular programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its assets. To the best of our knowledge and as
represented to us by the management, no material discrepancies were
noticed in respect of assets verified during the year.
c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have been substantially
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of the records of inventory, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stock as compared to
the records were not material.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. As per the information given to us, no major
weaknesses in the internal controls have been identified by the
management or the internal auditors of the Company during the year.
During the course of our audit, nothing has come to our notice that may
suggest a major weakness in the internal control system of the Company.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
b) According to the information and explanations given to us where each
of such transactions is in excess of Rs.5,00,000/- (Rupees Five Lacs
Only) in respect of any party, the transactions have been made at
prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time based on the circumstances explained
by the Company.
6. The Company has not accepted deposits from the public. Hence, the
question of the Company complying with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the rules framed there under,
does not arise.
7. In our opinion, the internal audit system carried out by an
independent firm of Chartered Accountant is generally commensurate with
the size of the Company and the nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of Section 209 of the
Act, and are of the option that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9 a) According to the information and explanations given to us and
records of the company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues as applicable with
the appropriate authorities except in case of repayment of Deferred
Sales Tax amounting to Rs. 17.14 Lakhs as declared by the Company.
b) According to the information and explanations given to us and the
records of the Company, the following dues of Excise Duty, Sales Tax
and Income Ta x have not been deposited on account of dispute:
Sr. Name of Nature of Amount Forum where
no. Statute disputed (Rs) dispute is
Statutory dues pending
1 Sales Tax 'C' Forms and 92,72,102 Maharashtra Sales
1995-96 Chapter Heading Tax Tribunal,
Mumbai
2 Sales Tax 'C' Forms and 50,18,168 Deputy
1996-97 Chapter Heading Commissioner of
Sales Tax Pune
3 Sales Tax 'C' Forms and 24,33,912 Deputy
1997-98 Chapter Heading Commissioner of
Sales Tax Pune
4 Sales Tax 'C' Forms and 56,32,305 Maharashtra Sales
1998-99 Chapter Heading Tax Tribunal,
Mumbai
10. The Company has no accumulated losses as at 31st March 2012 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures upto the
balance sheet date.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanations given to us , the
Company has given guarantee for loans taken by others from bank or
financial institutions , the terms and conditions whereof in our opinion
are not prima facie prejudicial to the interest of the Company.
16. The Term Loan was applied for the purpose for which it was
obtained.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, funds raised on short term basis have not been used for long
term investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company, either noticed or reported during the year, nor
have we been informed of such case by the Management.
FOR BAPAT AND COMPANY
Chartered Accountants
Firm Registration no. 100997w
A. n. Bapat
Place: Pune Partner
Date : 12/05/2012 Membership no. 7524
Mar 31, 2010
1. We have audited the attached Balance Sheet of RAJKUMAR FORGE
LIMITED, as at 31st March, 2010, and the related Profit and Loss
Account and Cash Flow Statement of the Company for the year ended on
that date, annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the-amounts
and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall Financial Statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A)of the
Companies Act, 1956, we enclose in Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have 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 appears from our examination of
those books ;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 subject to Note 7 of Schedule O - Notes forming part of
Financial Statements ;
(e) On the basis of the written representations received from the
Directors as on 31st March, 2010, we report that none of the Directors
are disqualified as on 31st March, 2010 from being appointed as a
Director in terms of Section 274 (1)(g) of the Companies Act, 1956 ;
(f) In our opinion and to the best of our information and according to
the explanations given to us the said Financial Statements read with
Note Nos. 5 C, 5D , 6 and 7 of Schedule O - Notes forming part of
Financial Statements
give the information required by the Companies Act, 1956, in the manner
so required and present a true and fair view in conformity with the
accounting principles generally accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
1. a) The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets. However,
these records need further improvement.
b) According to the information and explanations given to us, the fixed
assets are physically verified by the management during the year
according to a regular programme of verification. In our opinion, the
frequency of verification is reasonable having regard to the size of
the company and the nature of its assets. To the best of our knowledge
and as represented to us by the management, no material discrepancies
were noticed in respect of assets verified during the year.
c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have been substantially
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) On the basis of our examination of the records of inventory, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of stock as compared to
the records were not material.
3. a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parlies covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. As per the information given to us. no major
weaknesses in the internal controls have been identified by the
management or the internal auditors of the Company during the year.
During the course of our audit, nothing has come to our notice that may
suggest a major weakness in the internal control system of the Company.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956.
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
b) According to the information and explanations given to us where each
of such transactions is in excess of Rs.5,00,000/- (Rupees Five Lacs
Only) in respect of any party, the transactions have been made at
prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time based on the circumstances explained
by the Company.
6. The Company has not accepted deposits from the public. Hence, the
question of the Company complying with the provisions of section 58A
and 58AA of the Companies Act. 1956 and the rules framed there under,
does not arise.
7. In our opinion, the internal audit system carried out by an
independent firm of Chartered Accountant is generally commensurate with
the size of the Company and the nature of its business.
8. As informed to us, the Central Government has not prescribed
maintenance of cost records under section 209 (1) (d) of the Companies
Act. 1956 for any of the products of the Company.
9 a) Accordirg to the information and explanations given to us and
records of the Company examined by us. in our opinion, the Company is
regular in depositing the undisputed statutory dues including Provident
Fund. Investor Education and Protection Fund. Employees State
Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty. Cess and other material statutory dues as applicable with the
appropriate authorities except in case of repayment of Deferred Sales
Tax amounting to Rs. 82.91 Lakhs as declared by the Company .
b) According to the information and explanations given to us and the
records of the Company, the following dues of Excise Duty , Sales Tax
and I ncome Tax have not been deposited on account of dispute:
Sr. No. Name of Nature of disputed Amount Forum where
dispute
Statute Statutory dues (Rs) is pending
1 Excise Duty Classification 27,10,789 High Court,
Mumbai
2 Sales Tax C Forms and 78,09,940 Maharashtra
Sales Tax
1994-95 Chapter Heading Tribunal,
Mumbai
3 SalesTax C Forms and 53,94,767 Deputy
Commissioner
of
1996-97 Chapter Heading Sales Tax,
Pune
4 SalesTax C Forms and 42,72,305 Deputy
Commissioner
of
1997-98 Chapter Heading Sales Tax,
Pune
5 SalesTax C Forms and 56,32,305 Maharashtra
Sales Tax
1998-99 Chapter Heading Tribunal,
Mumbai
6 SalesTax C Forms 38,03,338 Deputy
Commissioner
of
1999-2000 Sales Tax,
Pune
7 Income Disallowance 54,07,000 Income Tax
Appellate
Tax A.Y. Tribunal,
Pune
2002-2003
10. The Company has no accumulated losses as at 31Ã March 2010 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures upto the
balance sheet date.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from bank or
financial institutions, the terms and conditions whereof in our opinion
are not prima facie prejudicial to the interest of the Company .
16 According to the information and explanations given to us and on the
basis of the total expenditure incurred on the various assets till
date, the term loans obtained by the Company, in our opinion, have been
applied for the purpose for which they were obtained.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the Company, in our
opinion, funds raised on short term basis have not been used for long
term investments.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company, either noticed or reported during the year, nor
have we been informed of such case by the Management.
For BAPAT AND COMPANY
Chartered Accountants
Amod Bapat
Place: Pune Partner
Date: 8th May , 2010 Membership No. 103972
Firm Registration No. 100997W
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