Mar 31, 2023
INDEPENDENT AUDITOR''S REPORT
To the Members of
RAMA STEEL TUBES LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial
statements of RAMA STEEL TUBES LiMiTED ("the Company"),
which comprise the balance sheet as at March 31,2023, the
statement of Profit and Loss (including Other Comprehensive
Income), statement of changes in equity and statement of cash
flows for the year then ended, and notes to the standalone
financial statements, including a summary of significant
accounting policies and other explanatory information.
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 Companies Act,
2013(the "Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, ("IndAS")
and other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2023 and its
profits, total comprehensive income, changes in equity and its
cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are further
described in the Auditor''s Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are
independent of the Company in accordance with the Code of
Ethics issued by the Institute of Chartered Accountants of India("
ICAI") together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of
the Companies Act, 2013 and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI''s Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion on the financial statements.
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements of the current period.
We have determined that there are no key audit matters to
communicate in our report.
information other than the Financial statements and auditor''s
Report thereon
The Company''s Board of Directors is responsible for the
preparation of the other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board''s Report including Annexures
to Board''s Report, Business Responsibility Report, Corporate
Governance and Shareholder''s Information, but does not include
the financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available and, indoing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that
there is a material misstatement of this other information,we
are required to report the fact. We have nothing to report in this
regard.
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 Act with respect to the preparation
of these financial statements that give a true and fair view of
the financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the IndAS
and other accounting principles generally accepted in India.
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 implementation and maintenance
of accounting policies; making judgments and estimates that
are reasonable and prudent; and 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 financial statement that give a true and fair
view and are free from material misstatement, whether due to
fraud or error.
In preparing the standalone financial statements, management is
responsible for assessing the Company''s ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors'' are also responsible for overseeing the
Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor''s report that includes our opinion. Reasonable assurance
is a high level of assurance,but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional skepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
⢠Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion
on whether the Company has adequate financial controls
system with reference to standalone financial statements in
place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
⢠Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor''s
report to the related disclosures in the financial statements
or,if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
to the date of our auditor''s report. However, future events or
conditions may cause the company to cease to continue as a
going concern.
⢠Evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial
statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonable knowledgeable
users of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements in
the financial statements.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor''s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and
explanations which to the 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 Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including other
comprehensive income,the Standalone Statement of
Changes in Equity and the Standalone Statement of
Cash Flows dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid standalone 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 the written representations received
from the directors as on March 31, 2023 taken on record
by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 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 with reference to standalone financial
statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in "Annexure A". Our report expresses an
unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial
controls with reference to standalone financial
statements.
g) With respect to the other matters to be included in the
Auditor''s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and
according to the explanations given to us, managerial
remuneration has been paid by the Company to its
directors during the year in accordance with the
provisions of Section 197 read with Schedule V to the
Act.
h) 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 has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
iii. The Company is not required to transfer any amount
to the Investor Education and Protection Fund.
iv. (a) The Management has represented that, to the
best of its knowledge and belief, rematerial
either individually or in the aggregate) have
been advanced or loaned or invested (either
from borrowed funds or share premium or
any other sources or kind of funds) by the
Company to or in any other person or entity,
including foreign entity ("Intermediaries"),
with the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified in
any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(b) The Management has represented, that, to the
best of its knowledge and belief, rematerial
either individually or in the aggregate)have
been received by the Company from any
person or entity, including foreign entity,
whether recorded in writing or otherwise,
that the Company shall, whether, directly or
indirectly, lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Funding Party("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
(c) Based on the audit procedures that have been
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of
Rule 11(e), as provided under (a) and (b) above,
contain any material misstatement.
(d) (A) No final dividend for the year has been
declared and paid by the Company during
the year and until the date of this report.
(B) No Interim dividend has been declared and
paid by the Company during the year and
until the date of this report.
(C) The Board of Directors of the Company
have not proposed any final dividend
for the year which will be subject to the
approval of the members at the ensuring
Annual General Meeting. The amount
of dividend to be proposed will be in
accordance with section 123 of the Act, as
applicable.
iv. Based on our examination which included test
checks, the company has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the
year for all relevant transactions recorded in the
software. Further, during the course of our audit
we did not come across any instance of audit trail
feature being tampered with.
2. As required by the Companies (Auditor''s Report) Order, 2020
("the Orderâ), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in "Annexure Bâ a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
Chartered Accountants
ICAI Firm Registration Number:005717N
Sd/-
Partner
Membership Number: 071205
Place: New Delhi
Date: May 30,2023
UDIN-23071205BGUAWJ3424
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of RAMA STEEL TUBES LTD. ("the Company"), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes 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; 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, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 standalone 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 there under and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the 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 March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) on the basis of the written representations received from the directors of the Company 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.
f) 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 "Annexure A" Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' section of our report to the Members of Rama Steel Tubes Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of RAMA STEEL TUBES LTD. ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Board of Directors of the Company 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. 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, 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 auditor''s judgement, 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 (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 authorisations of management and directors of the company; and (3) 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.
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.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, 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, 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.
ANNEXURE ''B'' TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report to the Members of Rama Steel Tubes Limited of even date)
i. In respect of the Company''s fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the standalone financial statements, the lease agreements are in the name of the Company.
ii. As explained to us, the inventories (other than stock lying with third parties and goods in transit) were physically verified during the year by the Management at the year end. Discrepancies noted on physical verification were not material and have been properly dealt with in the books of accounts.
iii. According to the information and explanations given to us, the Company has granted unsecured loans to one body corporate, covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
vi. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of the Companies Act, 2013, and are of the opinion that , prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below:
Nature of the statute |
Nature of dues |
Forum where Dispute is Pending |
Period to which Amount Relates |
Amount In Lakhs |
U.P Tax on Entry of Goods into Local Areas Ordinance, 2007 |
The Constitutional Validity of U.P. Entry of Goods in Local Areas ordinance 2007 has been challenged. |
Before the Hon''ble Allahabad High Court* |
Nov-2008 to March-2011 |
69.90 |
*Hon''ble Supreme Court of India has referred the case to Allahabad High Court during the year.
viii. The Company has not defaulted in repayment of loan or borrowing to any bank. The Company has not obtained any loans from debenture holders, financial institution and government. Hence reporting clause 3 (viii) of the Order is not applicable to the Company.
ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For VAPS & COMPANY
Chartered Accountants
(FRN.: 003612N)
Praveen Kumar Jain
Place: Ghaziabad, UP, Partner
Dated: May 28, 2018 (Membership No. 082515)
Mar 31, 2016
INDEPENDENT AUDITOR S REPORT
To
The Members,
Rama Steel Tubes Limited,
Delhi. Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of M/s Rama Steel Tubes Limited (âThe Companyâ) which comprises the Balance Sheet as at March 31, 2016, Statement of Profit and Loss and 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 in Section 134(5) of the Companies Act, 2013(âthe actâ) with respect to preparation of these Standalone 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) Rule, 2014. This responsibility also includes 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 the 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 control that were operating effectively for ensuring the accuracy and completeness of accounting records , relevant to the preparation and fair presentation of these standalone 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 standalone 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 and under Section 143(11) of the Act.
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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 Standalone 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 companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidences we have obtained are sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the 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, subject to the note no.11 where we do not express any opinion, in conformity with the accounting principles generally accepted in India, of the state of Affairs of the Company as at March 31,2016, and 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we enclose âAnnexure Aâ giving a Statement on the matters specified in Paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the 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, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone 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 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 enclose âAnnexure Bâ giving our separate report.
g) With respect to the other matters included in the Auditorâs Report 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.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
Hi. There has been no amount required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorsâ Report -31st March 2016
Re: Rama Steel Tubes Limited
Referred to in our report of even date
1. a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) A substantial portion of the fixed assets has been physically verified by the management during the period and in our opinion the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.
c) According to the information given to us, the title deeds of all the immovable properties are held in the name of the company.
2. The inventories except Goods in Transit have been physically verified during the period by the management at reasonable intervals. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.
3. The company has not granted any loans, secured or unsecured to any company, firm, Limited Liability Partnership or other Parties covered in the register maintained under section 189 of the companies Act, 2013.
4. In our opinion and according to the information and explanations given to us the company has not granted any loans, investments, guarantees, and security and the provisions of Section 185 and 186 of the Companies Act, 2013 have been complied with.
5. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits within the meaning of provisions of sections of 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. In our opinion and according to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any court or any other Tribunal against the company.
6. The company has maintained books of account relating to materials, labour and other items of cost pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 (1) of the Companies Act, 2013. We have not made however a detailed examination of the record with a view to determine whether they are accurate or complete as the same has been audited by the Cost auditors.
7. a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, investor Education Protection Fund, Employees State Insurance, income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Value Added Tax, Cess and other material statutory dues, as applicable, with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March 2016for a period of more than six months from the date they became payable.
c) According to the information and explanation given to us and records of the company examined by us, the particulars dues of Sales Tax, income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax, Value Added Tax, Cess which have not been deposited on account of any dispute, are as per annexure below:
SI. No. |
Name of Statute |
Nature of Dues |
Amount in Rs. |
Period to Which dues Related |
Authority where the dispute is Pending for Decision |
1. |
U.R Tax on Entry of Goods in to Local areas ordinance, 2007 |
The Constitutional validity of U.R Tax on Entry of Goods in to Local areas ordinance, 2007 had been challenged. |
1,01,82,386 |
November, 2008 to March 2011 |
Before the Supreme Court |
8. In our opinion and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in the repayment of dues to a financial institution, bank or debenture holders.
9. In our opinion, the moneys raised by term loans have been applied for the purpose for which they were raised.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.
11. According to the information given to us and based upon our audit procedures, the managerial remuneration has been paid in accordance with the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
12. The company is not a Nidhi Company and hence, the company is not governed by Nidhi Rules, 2014.
13. In our opinion, the transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private allotment of shares or fully or partly paid convertible debentures during the year under review.
15. On the basis of information provided to us, the company has not entered into any non-cash transactions with directors or parties connected with him under Section 192 of the Companies Act, 2013.
16. The company is not required to get registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For VAPS & Company
Chartered Accountants,
Firm Regn. No. 003612N
Sd/-
(P.K.JAIN)
Place: New Delhi Partner
Dated: 26-05-2016 M.N. 082515
Mar 31, 2015
1. We have audited the accompanying financial statements of FWs Rama
Steel Tubes Limited which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
2. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
Section 134(5) of the Companies Act,2013("the act") with respect to
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)
Rule,2014. This responsibility also includes the 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 the 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 internal financial control that were operating
effectively for ensuring the accuracy and completeness of accounting
records, relevant to the preparation and fair presentation of the
financial statements that give true and Fairview and are free from
material misstatement, whether due if fraud or error.
3. 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 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 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 evidences we have obtained are 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, subject to the note no. 11 where we do not express
any opinion, 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 2015.
ii) In the case of the Profits. Loss Statement, of the Profit of the
Company for the year ended on that date.
Hi) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
4. Report on Other Legal and Regulatory Requirements 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 appears from our examination of those
books.
C) the Balance Sheet, the Statement of Profit and Loss, and 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.
s) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
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.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There has been no amount required to be transferred, to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report Re: Rama Steel Tubes
Limited Referred to in paragraph 3 and 4 of our report of even date
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the period and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
2. a) The inventories have been physically verified during the period
by the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and have been properly dealt
within the books of account.
3. a) The company has not granted unsecured loan to any company, firms
or other Parties covered in the register maintained under section 189
of the companies Act, 2013.Therefore, clause (b) and (c)are not
applicable.
4. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system.
5. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of provisions of sections of 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the ruts framed there under.
In our opinion and according to the information and explanations given
to us, no order has been passed by the Company Law Board or the National
Company Law Tribunal or the Reserve Bank of India or any other Tribunal
against the company.
6. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the maintenance
of cost records under section 148(1) of the Companies Act, 2013 we are
of the opinion that prima facie the prescribed accounts and record have
been made and maintained. We have not made however a detailed
examination of the record with a view to determine whether they are
accurate or complete.
7. (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty. Excise
Duty, Service Tax, Value Added Tax . Cess and other material statutory
dues applicable toil
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Value Added Tax, Cess
etc. were outstanding as at 31st March, 015 for a period of more than
six months from the date they became payable.
(c) According to the information and explanation given to us and
records of the company examined by us, the particulars of dues of Sales
Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax,
Value Added Tax, Cess which have not been deposited on account of any
dispute, are as per annexure below:
SI No. Name of the Nature of Dues Amount in Rs.
Statute
1. UP. Tax on
Entry of Goods
in The constitutional 1,01,82,386
to Local areas
ordinance, 2007 validity of U.P. Tax on
Entry of Goods in
to Local areas ordinance,
2007 had been Challenged,
Name of the Period to which Authority where the
dues Related
Statute November,2008
UP. Tax on to March 2011
Entry of Goods Dispute is Pending
to Local areas for Decision
to Local areas
Before the Supreme
Court of India
(d) According to the information and explanation given to us and
records of the company examined by us, the company is not required to
transfer amount to investor education and protection fund in accordance
with the relevant provisions of the Companies Act,1956(1 of 1956) and
rules made there under to such fund with in time.
1. The company has no accumulated losses as at 31st March 2015 and has
not incurred any cash losses during the financial period covered fay
our audit and in the immediately preceding financial period.
2. In our opinion and according to the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
10. The company has given corporate guarantee for Rs.3000 Lacs for
loans taken by Joint Venture Company in which the Company is one of
Participant, from bank or financial institutions.
11. In our opinion, the term loans have been applied for the purpose
for which they were raised.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For VAPS & Company
Chartered Accountants,
Firm Regn. No. 003612N
Sd/- (P.KJAIN)
Partner
H.N.082515
Place: Delhi
Dated: May 30,2015
Mar 31, 2014
We have audited the accompanying financial statements of RAMA STEELS
TUBES LTD which comprise the Balance Sheet as at March 31,2014, and the
Statement of Profit and Loss and 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
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and fair presentation of
the financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors' 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 give the information
required by the Act in the manner so required and give a true and fair
view, subject to note no.10 where we do not express any opinion, 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 31,2014;
(b) In the case of the Statement of Profit & Loss, of the profit for
the year ended on that date.
(c) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 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, he Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. ;
e. On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, 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
Ref: RAMA STEEL TUBES LTD.
Referred to in paragraph 3 of our report of even date:
1) a) The company has maintained proper records to show full
particulars including quantitative
details and situation of Fixed Assets.
b) A substantial portion of the fixed assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) During the year Fixed assets disposed off of Rs. 8,06,985/- .But
according to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the company.
2) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the management. In respect of
inventory lying with the third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) In our opinion and accordingly to the information and explanations
given to us, discrepancies noticed on verification between the physical
stocks and the book records were not material and have been properly
dealt with in the books of account.
3) a) The company has not granted unsecured loan to Companies, Firms or
other parties covered in the register maintained under section 301
of the Companies Act, 1956.
b) The company has taken unsecured loan from fourteen company, firms, &
other parties covered in the register maintained under section 301 of
the Companies Act 1956. The maximum amount involved during the year was
Rs. 399,10,367 and the year end balance of loans taken from such
parties was Rs. 335,24,594. In our opinion the rate of interest and
other terms and conditions on which loans have been taken from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the company.
c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, if any.
d) There is no overdue amount of loans taken 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 system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system of the company in
respect of these areas.
5) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts and arrangements that need to
be entered into the register maintained under section 301 have been so
entered.
b) The transactions in pursuance of such contracts have been made at
prices which are reasonable having regard to the prevailing market
price at the relevant time.
6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act
1956, and the Companies (Acceptance of Deposit) Rules, 1975 with regard
to the deposits accepted from the public. The Company Law Board /
National Company Law Tribunal or Reserve Bank of India or any court or
any other any Tribunal has passed no order in respect of the aforesaid
deposits.
7) In our opinion the company has an internal audit system commensurate
with the size and nature of its business.
8) We have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 we are of
the opinion that Prima-facie the prescribed accounts and Records have
been maintained.
9) a) According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, 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 amount payable in respect of Income Tax, Sales Tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax, Cess etc. were outstanding
as at March 31,2014 for a period of more than six months from the date
they became payable.
c) According to the information and explanation given to us and records
of the company examined by us, the particulars dues of Sales Tax,
Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax, and
Cess which have not been deposited on account of any dispute are as
follows:
Sl Name of the Nature of Dues Amount
No. Statute in Rs.
1. U.P. Tax on The constitutional 101,82,386
Entry of Goods validity of U.P.
in to Local Tax on Entry of
areas Goods in to
ordinance, Local areas
2007 ordinance,
2007 had
been Challenged.
Sl Name of the Period to Authority where
No. Statute which dues the Dispute is
Related
1. U.P. Tax on November,2008 Before the
Entry of Goods to March 2011 Supreme Court
in to Local Judicature
areas
ordinance,
2007
10) The company has no accumulated losses as at 31st March, 2014 and
has not incurred any cash losses during the financial year covered by
our audit and in the immediately preceding financial year.
11) In our opinion and according to the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12) We have been informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(xii) of the order is
not applicable.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the Companies (auditors' report) Order, 2004(amended) are not
applicable to the company.
14) Accordingly to the information & explanations given to us, the
company has made investment in shares, securities, debenture, & other
investment during the year. All the shares have been held by company in
its own name. The Company Complied with the provisions of clause 4
(xiv) of the Companies (auditors report) order, 2004.
15) The company has given Corporate Guarantee for Rs. 3000 Lacs for
loans taken by the Joint Venture Company in which the Company is one of
participant, from bank or financial institutions.
16) In our opinion, the term loan has been applied for the purpose for
which they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short term basis have been used for long term
investment.
18) Based on our examination of records and the information provided to
us by the management we report that the company has made preferential
allotment of shares to its Managing Director Sh. Naresh Kumar Bansal of
10,00,000, 5%Non Cumulative Preference Shares of Rs. 10 each were
allotted in Oct 2013.
19) During the period covered by our audit report, the company has not
issued any debentures.
20) The company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For VAPS & COMPANY.
Chartered Accountants
Firm Regn. No. 003612N
Sd/-
(P.K. Jain)
Partner
Membership No. 82515
Place : New Delhi
Date : September 1,2014
Mar 31, 2013
We have audited the accompanying financial statements of RAMA STEELS
TUBES LTD which comprise the Balance Sheet as at March 31, 2013, and
the Statement of Profit and Loss and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
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. 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.
Auditors'' 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 give the information
required by the Act in the manner so required and give a true and fair
view, subject to note no.10 where we do not express any opinion, 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, 2013;
(b) In the case of the Statement of Profit & Loss, of the profit for
the year ended on that date.
(c) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 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 subsection (3C) of
section 211 of the Companies Act, 1956, subject to Note No.9(a) and
9(b) of Significant Accounting Policies in Annexure I ;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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'' REPORTRef: RAMA STEEL TUBES LTD.
Referred to in paragraph 3 of our report of even date:
1) a) The company has maintained proper records to show full
particulars including quantitative details and situation of Fixed Assets.
b) A substantial portion of the fixed assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) During the year Fixed assets disposed off of Rs 5,35,394/- .But
according to the information and explanations given to us, we are of
the opinion that the disposal of fixed assets has not affected the
going concern status of the company.
2) a) The inventories (excluding stocks with third parties) have been
physically verified during the year by the management.
In respect of inventory lying with the third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) In our opinion and accordingly to the information and explanations
given to us, discrepancies noticed on verification between the physical
stocks and the book records were not material and have been properly
dealt with in the books of account.
3) a) The company has not granted unsecured loan to Companies, Firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
b) The company has taken unsecured loan from twelve company, firms, &
other parties covered in the register maintained under section 301 of
the Companies Act 1956. The maximum amount involved during the year was
Rs.390,78,128 and the year end balance of loans taken from such parties
was Rs.221,27,146. In our opinion the rate of interest and other terms
and conditions on which loans have been taken from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the company.
c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, if any.
d) There is no overdue amount of loans taken 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 system commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls system of the company in
respect of these areas.
5) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts and arrangements that need to
be entered into the register maintained under section 301 have been so
entered.
b) The transactions in pursuance of such contracts have been made at
prices which are reasonable having regard to the prevailing market
price at the relevant time.
6) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act
1956, and the Companies (Acceptance of Deposit) Rules, 1975 with regard
to the deposits accepted from the public. The Company Law Board /
National Company Law Tribunal or Reserve Bank of India or any court or
any other any Tribunal has passed no order in respect of the aforesaid
deposits.
7) In our opinion the company has an internal audit system commensurate
with the size and nature of its business.
8) We have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act, 1956 we are of
the opinion that Prima-facie the prescribed accounts and Records have
been maintained.
9) a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, 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 amount payable in respect of Income Tax, Sales Tax, Wealth
Tax, Custom Duty, Excise Duty, Service Tax, Cess etc. were outstanding
as at March 31, 2013 for a period of more than six months from the date
they became payable.
c) According to the information and explanation given to us and records
of the company examined by us, the particulars dues of Sales Tax,
Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax, and
Cess which have not been deposited on account of any dispute are as
follows:
Name of the Statute : U.P. Tax on Entry of Goods in to Local areas
ordinance, 2007
Nature of Dues : The constitutional validity of U.P. Tax on Entry
of Goods in to Local areas ordinance, 2007 had
been Challenged.
Amount in Rs. : 109,94,936
Period to which : November,2008 to March 2011
dues Related
Authority where the : Before the Supreme Court Judicature
Dispute is Pending
for Decision
10) The company has no accumulated losses as at 31st March, 2013 and
has not incurred any cash losses during the financial year covered by
our audit and in the immediately preceding financial year.
11) In our opinion and according to the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12) We have been informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities. Hence paragraph 4(xii) of the order is
not applicable.
13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of Clause 4 (xiii) of
the Companies (auditors'' report) Order, 2004(amended) are not
applicable to the company.
14) Accordingly to the information & explanations given to us, the
company has made investment in shares, securities, debenture, & other
investment during the year. All the shares have been held by company in
its own name. The Company Complied with the provisions of clause 4
(xiv) of the Companies (auditors report) order, 2004.
15) The company has given Corporate Guarantee for Rs.3000 Lacs for
loans taken by the Joint Venture Company in which the Company is one of
participant, from bank or financial institutions.
16) In our opinion, the term loan has been applied for the purpose for
which they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short term basis have been used for long term
investment.
18) Based on our examination of records and the information provided to
us by the management we report that the company has not made
preferential allotment of shares to parties and companies covered in
the register maintained under section 301 of the Act.
19) During the period covered by our audit report, the company has not
issued any debentures.
20) The company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For VAPS & COMPANY
Chartered Accountants
Firm Regn. No. 003612N
Sd/-
( P.K. Jain)
Partner
Membership No. 82515
Place : New Delhi
Date : September 2, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Rama Steel Tubes
Limited as at 31st March, 2012 and Statement of Profit & Loss and Cash
Flow Statement for the period ended on that date annexed hereto. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. 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 the 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, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks as we considered appropriate and according to the explanations
furnished to us during the course of our audit, we give in the Annexure
a statement specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the annexure referred to 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 purpose of our
audit.
(b) In our opinion proper books of accounts as required by law has kept
by the company so far as appears from our examination of such books.
(c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account.
(d) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement have been prepared in compliance with the Accounting
Standards referred to in sub section (3c) of section 211 of the
Companies Act, 1956, subject to Note No. 9(a) and 9(b) of Significant
Accounting Policies in Annexure I
(e) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information as required by the Companies Act,1956 and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i.) In so far as it relates to the Balance Sheet of the State of
Affairs of the company as at 31st March 2012,
ii) In the case of Statement of Profit & Loss Account of the profit of
the company for the Period ended on that date, and
iii) In the case of Cash Flow Statement of the cash flows of the
company for the Period ended on that date.
(f) Based on representation made by all the Directors of the company to
the Board and the information and explanations as made available to us
by the company, none of the directors of the company prima-facie have
any disqualification as referred to in clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Auditors' Report
Re: Rama Steel Tubes Limited
Referred to in paragraph 3 of our report of even date
1. a) The company has maintained proper records showing full particulars
Including quantitative details and situation of fixed assets.
b) A substantial portion of the fixed assets has been physically
verified by the management during the period and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
c) There was no substantial disposal of fixed assets during the year.
2. a) The inventories have been physically verified during the period
by the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material and have been properly dealt
with in the books of account.
3. a) The company has not granted unsecured loan to any company, firms
or other Parties covered in the register maintained under section 301 of
the companies Act, 1956. Accordingly, the clauses (iii)(b), (iii)(c),
(iii)(d) of the paragraph 4 of the Order, are not applicable.
b) The company has taken unsecured loan from Nine company,firms or
other parties covered in the register maintained under section 301 of
the companies Act, 1956. The maximum amount involved during the year
was Rs.5,70,31,636/- Lacs and the year end balance of loans taken from
such parties was Rs.3,29,82,893/- Lacs In our opinion the rate of
interest and other terms and conditions on which loan have been taken
from company covered in the register maintained under section 301 of
the companies Act, 1956 is not, prima facie, prejudicial to the
interest of the company.
c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest, if any.
d) There is no overdue amount of loans taken 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 are adequate internal control procedures commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal controls.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the particulars of contracts and arrangement that need to
be entered into the register maintained under section 301 have been so
entered.
b) The transactions in pursuance of such contracts have been made at
prices which are reasonable having regard to the prevailing market
price at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has accepted public deposits during the year
from the public within the meaning of provisions of sections of 58A,
58AA or any other relevant provisions of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rule 1975 have been complied
with. No order has been passed by the Company Law Board ,in this
regard.
7. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956 we are of the opinion that prima facie the prescribed
accounts and record have been made and maintained. We have not made
however a detailed examination of the record with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the company, the company is regular
in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education Protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Wealth Tax, Custom Duty, 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 amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty, Service Tax, Cess etc. were
outstanding as at 31st March, 2012 for a period of more than six months
from the date they became payable.
(c) According to the information and explanation given to us and
records of the company examined by us, the particulars dues of Sales
Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax,
Cess which have not been deposited on account of any dispute, are as
follows:
Sl Name of the Nature of Amount in Period
No. Statute Dues Rs. to which
dues
Related
1. U.P. Tax on The constitutional 109,94,936 November,2008 to
Entry of validity of U.P. March 2012
Goods Tax on Entry of
in to Local Goods in to Local
areas areas ordinance,
ordinance, 2007 had
2007 been Challenged.
Sl Name of the Authority
No. Statute where the
Dispute is
Pending for
Decision
1. U.P. Tax on Before the
Entry of Supreme Court
Goods Judicature
in to Local
areas
ordinance,
2007
10. The company has no accumulated losses as at 31st March 2012 and
has not incurred any cash losses during the financial period covered by
our audit and in the immediately preceding financial period.
11. In our opinion and according to the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12. We have been informed that the company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (auditors' report) Order, 2003 are not applicable to the
company.
14. According to the information and explanations given to us, the
company made investment in shares, securities, debentures and other
investments during the Year. All the shares are in the name of the
Company and in this regard contracts have been made.
15. The company has not given any guarantee for loans taken by others
from bank or financial institutions.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for long
term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to Parties
and Companies covered in the register to be maintained under section
301 of the Act
19. During the period covered by our audit report, the company has not
issued any debentures.
20. The company has not raised any money from public issue and as such
question of end use of money raised by public issue does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For VAPS & Company
Chartered Accountants
Firm Regn. No. 003612N
Sd/-
(P.K.JAIN)
Partner
M.N. 82515
Place: N. Delhi
Dated: August 29, 2012