Mar 31, 2023
Ramkrishna Forgings Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Ramkrishna Forgings Limited ("the Company"), which comprise the Balance Sheet as at March 31 2023, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity 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 t he explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended ("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 31,2023, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
Key audit matters |
How our audit addressed the key audit matter |
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Revenue recognition (as described in Note 2.3(d) and 24 of the standalone financial statements) |
||
Revenue is recognised when control of the goods are |
Our audit procedures included the following: |
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transferred to the customer at an amount that reflects |
⢠|
Evaluated Company''s revenue recognition policy and its compliance |
the consideration to which the Company expects |
in terms of Ind AS 115 ''Revenue from contracts with customers''. |
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to be entitled in exchange for those goods. During |
⢠|
Assessed the design and tested the operating effectiveness of |
the year ended March 31, 2023. the Company has |
internal controls related to revenue recognition. |
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recognised domestic and export revenue aggregating |
⢠|
Evaluated the general information and technology control |
'' 3,00,099.86 Lakhs. Terms of sales arrangements, |
environment and tested the operating effectiveness of key IT |
|
including the timing of transfer of control, delivery |
application controls over recognition of revenue. |
|
specifications including incoterms in case of exports, |
⢠|
Tested samples of individual sales transaction and traced to sales |
timing of recognition of sales require significant judgment |
invoices, sales orders, (received from customers) and other related |
|
in determining revenues. The risk is, therefore, that revenue |
documents. Further, in respect of the samples tested, reviewed |
|
may not get recognised in the correct period. |
recognition of revenue when the conditions for revenue recognitions |
|
Therefore, there is a significant risk associated with |
are met. |
|
timing of revenue recognition in accordance with terms |
⢠|
Selected sample of sales transactions made pre- and post-year end, |
of Ind AS 115 ''Revenue from contracts with customers. |
traced the period of revenue recognition to underlying documents. |
|
Accordingly, due to the significant risk associated with |
⢠|
Performed procedures to identify any unusual trends of revenue |
revenue recognition in accordance with terms of Ind AS |
recognition. |
|
115 ''Revenue from contracts with customers'', it has been |
⢠|
Assessed the relevant disclosures made within the standalone |
determined to be a key audit matter in our audit of the |
financial statements. |
|
Standalone financial statements. |
We have determined that there are no other key audit matters to communicate in our report.
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to the Board''s Report, Business Responsibility and Sustainability Report and Corporate Governance Report, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do 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 and, in doing so, consider whether such 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 that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone 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 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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.
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.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone 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 control 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 internal financial controls with reference to 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 standalone financial statements for the financial year ended March 31, 2023 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 of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure 1" 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 it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity 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 Companies (Indian Accounting Standards) Rules, 2015, as amended;
(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 March 31,2023 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 these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31,2023 has been paid / provided by the Company to its directors 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, 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 - Refer Note 35A to the 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. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the note 49(v) to the standalone financial statements, no funds 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(s) or entity(ies), including foreign entities ("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, other than as disclosed in the note 49(vi) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, 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; and
c) Based on such audit procedures performed 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 subclause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Act.
As stated in note 45 to the standalone financial statements, the Board of Directors of the Company have proposed interim dividend for the year. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
For S.R. BATLIBOI & CO. LLP For M/S. S.K. NAREDI & CO.
Chartered Accountants Chartered Accountants
ICAI Firm registration number: 301003E/E300005 ICAI Firm registration number: 003333C
Sd/- Sd/-
per Sanjay Kumar Agarwal per Abhijit Bose
Partner Partner
Membership No.: 060352 Membership No.: 056109
UDIN: 23060352BGWRFB8442 UDIN: 23056109BGWHJE8873
Place: Kolkata Place: Kolkata
Date: April 28, 2023 Date: April 28, 2023
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Ramkrishna Forgings Limited ("the Companyâ), which comprise the Balance Sheet as at March 31 2022, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity 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, as amended ("the Actâ) 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, 2022, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31,2022. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Revenue recognition (as described in Note 2.3(d) and 24 of the standalone financial statements) |
|
Revenue is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. During the year ended March 31, 2022, the Company has recognised revenue amounting to ''1,29,498.42 lakhs and '' 99,038.13 lakhs from domestic and export sales respectively. Terms of sales arrangements, including the timing of transfer of control, delivery specifications including incoterms in case of exports, timing of recognition of sales require significant judgment in determining revenues. The risk is, therefore, that revenue may not get recognised in the correct period. Therefore, there is a significant risk associated with timing of revenue recognition in accordance with terms of Ind AS 115 ''Revenue from contracts with customers''. Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 ''Revenue from contracts with customers'', it has been determined to be a key audit matter in our audit of the Standalone financial statements. |
Our audit procedures included the following: ⢠Evaluated Company''s revenue recognition policy and its compliance in terms of Ind AS 115 ''Revenue from contracts with customers''. ⢠Assessed the design and tested the operating effectiveness of internal controls related to revenue recognition. ⢠Evaluated the general information and technology control environment and tested the operating effectiveness of key IT application controls over recognition of revenue. ⢠Tested samples of individual sales transaction and traced to sales invoices, sales orders, (received from customers) and other related documents. Further, in respect of the samples tested, reviewed recognition of revenue when the conditions for revenue recognitions are met. ⢠Selected sample of sales transactions made pre- and postyear end, traced the period of revenue recognition to underlying documents. ⢠Performed procedures to identify any unusual trends of revenue recognition. ⢠Assessed the relevant disclosures made within the standalone financial statements. |
We have determined that there are no other key audit matters to communicate in our report.
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to the Board''s Report and Corporate Governance Report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do 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 and, in doing so, consider whether such 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 that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone 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 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the 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.
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.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)0) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 standalone financial statements for the financial year ended March 31,2022 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 of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. 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 Act, we give in the "Annexure 1âa 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 it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity 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 Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2022 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 and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors 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, 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 - Refer Note 35A to the 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. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. a) The management has represented that, to the best of its knowledge and belief, as disclosed in
the note 50(v) to the standalone financial statements, no funds 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(s) or entity(ies), including foreign entities ("Intermediariesâ), 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 Beneficiariesâ) 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, as disclosed in the note 50(vi) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Partiesâ), with the understanding, 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 Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures that were 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 (a) and (b) contain any material misstatement.
v. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Act.
As stated in note 45 to the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
For S. R. BATLIBOI & CO. LLP For M/S. S.K. NAREDI & CO.
Chartered Accountants Chartered Accountants
ICAI Firm registration number: 301003E/E300005 ICAI Firm registration number: 003333C
Sd/- Sd/-
per Sanjay Kumar Agarwal per Abhijit Bose
Partner Partner
Membership No.: 060352 Membership No.: 056109
UDIN: 22060352AIHZRN8985 UDIN: 22056109AIIWRN5287
Place: Kolkata Date: May 03, 2022
Mar 31, 2018
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of Ramkrishna Forgings Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of other comprehensive income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. !ose Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements.! procedures selected depend on the auditorâs judgment,including the assessment of the risks of material misstatement of the standalone Ind AS 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 Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
OTHER MATTER
The Ind AS comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the accounting principles generally accepted in India, including the Companies (Accounting Standards) Rules, 2006 (as amended) specified under section 133 of the Act, read with the Companies (Accounts) Rules, 2014 audited by the predecessor auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated May 19, 2017 and May 21, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 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 purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on March 31, 2018, and 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 with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(h) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 33 to the standalone Ind AS financial statements;
(i) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, on long-term contracts including derivative contracts;
(j) There has been no delay in transferring amount, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE I REFERRED TO IN PARAGRAPH 1 OF THE SECTION ON âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR EVEN REPORT ON THE EVEN DATE
To the Members of Ramkrishna Forgings Limited
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant & equipments (fixed assets).
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company.
ii. The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them as at March 31, 2018 and no material discrepancies were noticed in respect of such confirmations.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
vi. We have broadly reviewed the books of account 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, related to the manufacture of the Companyâs products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
vii. a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues, including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues applicable to it.
b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of excise and value added tax on account of any dispute, are as follows:
Name of the statute |
Nature of Dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax Act, 1956 |
Sales Tax |
52.37 |
F.Y. 2012-13 to 2015-16 |
Various Appellate Authorities |
Service Tax under Finance Act, 1994 |
Service Tax |
513.61 |
F.Y. 2007-08 to 2015-16 |
Various Forums |
Income Tax Act, 1961 |
Income Tax |
233.62 |
F.Y. 2011-12 |
Income Tax Appellate Tribunal, Kolkata |
32.67 |
F.Y. 2013-14 & 2014-15 |
CIT (Appeal), Kolkata |
viii. In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowings to a financial institution or bank during the year. The Company did not had any outstanding loans or borrowing from Government or dues to debenture holders during the year.
ix. In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by way of term loans for the purposes for which they were raised.
x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
xiv. According to the information and explanations given by the management, the Company has complied with provisions of section 42 of the Companies Act, 2013 in respect of the preferential allotment or private placement of shares during the year. According to the information and explanations given by the management, we report that the amounts raised, have been used for the purposes for which the funds were raised. There was no preferential allotment or private placement of fully or partly convertible debentures during the year.
xv. According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE II TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF RAMKRISHNA FORGINGS LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ramkrishna Forgings Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting with reference to these standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. !ose 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 with reference to these standalone Ind AS financial statements 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 over financial reporting with reference to these standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 internal financial controls over financial reporting with reference to these standalone Ind AS financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING WITH REFERENCE TO THESE STANDALONE IND AS FINANCIAL STATEMENTS
A companyâs internal financial control over financial reporting with reference to these standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting with reference to these standalone Ind AS financial statements 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 companyâs assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING WITH REFERENCE TO THESE STANDALONE IND AS FINANCIAL STATEMENTS
Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, 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 with reference to these standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone Ind AS financial statementsmay become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements and such internal financial controls over financial reporting with reference to these standalone Ind AS financial statements 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.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Sd/-
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
Place of Signature: Kolkata
Date: May 25, 2018
Mar 31, 2017
Independent Auditor''s Certificate on Corporate Governance
To the Members of
Ramkrishna Forgings Limited
1. We have examined the compliance of conditions of Corporate Governance by Ramkrishna Forgings Limited. ("the Company"), for the year ended on 31st March, 2017, as stipulated in Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and para C and D of Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations").
Managements'' Responsibility
2. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure compliance with the conditions of the Corporate Governance stipulated in the Listing Regulations.
Auditor''s Responsibility
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
4. We have examined the books of account and other relevant records and documents maintained by the Company for the purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
5. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification of Corporate Governance issued by the Institute of the Chartered Accountants of India (the "ICAI"), the Standards on Auditing specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
Engagements.
Opinion
7. Based on our examination of the relevant records and according to the information and explanations provided to us and the representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Regulations 17 to 27 and clauses (b) to (i) of Regulation 46(2) and para C and D of Schedule V to the Listing Regulations during the year ended 31st March, 2017.
8. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.
To
The Members of
Ramkrishna Forgings Limited REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of RAMKRISHNA FORGINGS LIMITED (''the Company^, which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE 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 and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, 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. 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 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 31 March 2017 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 (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ''A'' a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report to the extent applicable that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the relevant 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 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 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 ''B''. 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 - Refer Note 30 to the standalone financial statements;
ii. The Company has long term contracts including derivative contracts as at 31st March, 2017 for which there were no material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in the financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016; and such disclosures are in accordance with the books of accounts maintained by the Company - Refer Note 17(b) to the standalone financial statements.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2017, we report that:
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.
(b) As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased program of verification of its fixed assets adopted by the Company and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having regard to size of the Company and nature of its business.
(c) According to the information and explanations given to us and on the basis of the examination of the records of the company, the title deeds of the immovable properties are held in the name of the company.
ii. As per the information and explanations given to us, the inventories have been physically verified at reasonable intervals during the year by the management except materials lying with third parties, where confirmations are obtained and no material discrepancies between book stock and physical stock have been found.
iii. The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
v. The Company has not accepted any deposits from the public.
vi. We have broadly reviewed the books of accounts maintained by Company in respect of product, where pursuant to the rule made by the Central Government of India the maintenance of cost records has been prescribed under section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie ,the prescribed records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of customs, duty of excise, Value Added Tax, Cess and other statutory dues with the appropriate authorities. According to the information and explanations given to us and the records of the Company examined by us, no undisputed amounts payable in respect of provident fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of customs, duty of excise, Value Added Tax, Cess and other material statutory dues were in arrears as at 31st March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, the dues of Sales Tax, Income Tax, duty of custom , Wealth Tax, duty of excise, Service Tax and Cess which have not been deposited on account of any dispute and the forum where the dispute is pending as on 31st March, 2017 are as under :-
Name of the status |
Nature of Dues |
Amount (Rs, In Lakhs) |
Period to which amount relates |
Forum where dispute is pending |
Central Sales Tax Act, 1956 |
Sales Tax |
150.72 |
F.Y. 2015-16 |
Ranchi High Court |
Central Sales Tax Act, 1956 |
Sales Tax |
219.96 |
F.Y. 2013-14 to 2015-16 |
Commissioner of Sales Tax, Ranchi |
Central Sales Tax Act, 1956 |
Sales Tax |
13.76 |
F.Y. 2015-16 |
Deputy Commissioner, Ranchi |
Service Tax under Finance Act, 1994 |
Sales Tax |
450.6 |
F.Y. 2012-13 to 2015-16 |
Ranchi High Court |
Service Tax under Finance Act, 1994 |
Sales Tax |
33.39 |
F.Y. 2012-13 to 2015-16 |
Commissioner (Appeal), Ranchi |
Service Tax under Finance Act, 1994 |
Service Tax |
34.11 |
F.Y. 2010-11 & 2011-12 |
Commissioner Appeals 1, Kolkata |
Service Tax under Finance Act, 1994 |
Service Tax |
33.98 |
F.Y. 2004-05 to 2006-07 |
Excise & Service Tax Appellate Tribunal, Kolkata |
Service Tax under Finance Act, 1994 |
Service Tax |
29.62 |
F.Y. 2007-08 to 2011-12 |
Commissioner Central Excise (Appeals-II), Kolkata |
Income Tax Act, 1961 |
Income Tax |
223.62 |
F.Y. 2011-12 |
Income Tax Appellate Tribunal, Kolkata |
Income Tax Act, 1961 |
Income Tax |
32.67 |
F.Y. 2013-14 & 2014-15 |
CIT (Appeal), Kolkata |
viii. The Company has not defaulted in repayment of dues to Financial Institutions or Banks or Government or Debenture holders.
ix. The company has not raised any money by way of initial public offer or further public offer including debt instruments during the year. Further, according to the information and explanations given to us the Company has applied term loans for the purpose for which they were obtained during the year.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for 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. Accordingly, paragraph 3(XII) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls 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 Ramkrishna Forgings Limited ("the Company") as of 31st March, 2017 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 Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "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 judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone 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 standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Singhi & Co. For Jitendra K Agarwal & Associates
Chartered Accountants Chartered Accountants
Firm Registration No.302049E Firm''s Registration No. 318086E
Sd/- Sd/-
(Rajiv Singhi) (Abhishek Mohta)
Partner Partner
Membership No.-053518 Membership No. 066653
Place: Kolkata Place: Kolkata
Date: 19th May, 2017 Date: 19th May, 2017
Mar 31, 2015
We have audited the accompanying standalone financial statements of
RAMKRISHNA FORGINGS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement 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 and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 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. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the 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 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to Note No. 30 to the financial statements which
describes that the company has paid a managerial remuneration in excess
of the limits as laid down in the section 309(3) read with Schedule XIII
of the Companies Act, 1956 of Rs. 65.62 Lacs and Rs. 106.38 Lacs
respectively during the financial year 2012-13 and 2013-14 to Mr.
Mahabir Prasad Jalan, Chairman. Since the payment of the remuneration in
excess of the limits requires approval of the Central Government the
Company had made an application to the Central Government. The Central
Government has rejected the application made for Mr. Mahabir Prasad
Jalan, Chairman and the Company has made a representation for the same.
The outcome of the same is awaited. Our opinion is not qualified in
respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the balance sheet, the statement of profit and loss, and the cash
flow statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the aforesaid standalone financial statements comply
with the applicable 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its
financial position in its financial statements - Refer Note 31 & 32 to
the financial statements.
ii. The Company has long-term contracts including derivative contracts
as at 31st March, 2015 for which there were no material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re : Ramkrishna Forgings Limited (the Company)
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and nature of its
business.
II. (a) The inventories have been physically verified at reasonable
intervals during the year by the management except materials
lying with third parties, where confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
III. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013.
IV. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there is
adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of inventory
and fixed assets and for the sale of goods and services. Further, on
the basis of our examination of the records of the Company and
according to the information and explanation given to us, no major
weakness has been noticed or reported in the internal controls system.
V. The Company has not accepted any deposit from the public.
VI. We have broadly reviewed the books of accounts maintained by
Company in respect of product, where pursuant to the rule made by the
Central Government of India the maintenance of cost records has been
prescribed under section 148 (1) of the Companies Act 2013 and are of
the opinion that, prima facie ,the prescribed records have been
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
VII. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the
Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Employee''s State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added
Tax, Cess and other statutory dues with the appropriate authorities.
According to the information and explanations given to us and the
records of the Company examined by us, no undisputed statutory dues as
above were outstanding as at 31st March, 2015 for a period of more than
six months from the date they became payable.
(b) According to the information and explanation given to us, the dues
of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Service
Tax and Cess which have not been deposited on account of any dispute
and the forum where the dispute is pending as on 31st March, 2015 are
as under :
Name of the Nature of Amount
status Dues (` in lacs)
Income Tax Act, 1961. Income Tax 13.01
Sales Tax & Local Sales Sales Tax 8.18
Tax Act
The Central Excise Act, 1994 Excise Duty 17.72
Service Tax under Finance Service Tax 33.98
Act, 1994.
Service Tax under Finance Service Tax 15.34
Act, 1994.
Service Tax under Finance Service Tax 9.37
Act, 1994.
Name of the Period to which Forum where dispute
status amount relates is pending
Income Tax Act, 1961. 2007-08 CIT (Appeal) Kolkata.
Sales Tax & Local Sales 2003-04 to Jt. Commissioner Sales
Tax Act 2005- 06 Tax (Appeal), Jamshedpur.
The Central Excise Act, 1994 2010-11 & Jt. Commissioner, Central
2011-12 Excise, Kolkata.
Service Tax under Finance 2004-05 to CESTAT, Kolkata.
Act, 1994.
2006- 07
Service Tax under Finance 2007-08 to Additional Commissioner,
Act, 1994. 2011-12 Service tax, Kolkata.
Service Tax under Finance 2009-10 Commissioner Appeals-1,
Act, 1994. Kolkata
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund within time.
VIII. The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
IX. The Company has not defaulted in repayment of dues to Financial
Institutions or Banks or Debenture holders.
X. In our opinion, the terms and conditions on which the company has
given guarantees for loan taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
XI. According to the information and explanations given to us the
Company has applied term loans for the purpose for which they were
obtained during the year.
XII. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For SINGHI & CO.
Chartered Accountants
Firm Registration No.302049E
Rajiv Singhi
Place : Kolkata Partner
Dated : the 16th day of May, 2015 Membership No.53518
Mar 31, 2013
We have audited the accompanying financial statements of RAMKRISHNA
FORCINGS LIMITED (the Company), which comprise the Balance Sheet as at
31st March, 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 and cash flows of the company in accordance with
the accounting principles generally accepted in India, including
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2013
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date, and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
1. We draw attention to Note No. 31 to the financial statements which
describes that the company has paid managerial remuneration of
Rs.338.29 Lakhs during the financial year 2012-13 out of which Rs.
120.48 Lakhs is in excess of the limits as laid down in the section 309
(3) read with schedule XIII of the Companies Act, 1956. Since the
payment of the remuneration in excess of the limits requires approval
of the Central Government the company has made an application to the
Central Government and the approval is awaited. Our opinion is not
qualified in respect of this matter.
Report on other legal and regulatory requirements
1) As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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, Statement of Profit and Loss and Cash Flow
Statement dealt with the this report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e) on the basis of written representations received from the Directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re : Ramkrishna Forgings Ltd. (the Company)
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and nature of its
business.
(c) There was no substantial disposal of fixed assets during the year.
II. (a) The inventories have been physically verified at reasonable
intervals during the year by the management except materials lying with
third parties, where confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
III. (a) As per the information furnished, the Company has not granted
any loans, secured or unsecured to companies, firms or other parties
listed in the register maintained under Section 301 of the Companies
Act, 1956. Hence Clauses 3 (b), (c), (d) of the order are not
applicable to the Company.
(e) As per the information furnished, the Company has taken interest
bearing unsecured loan from two companies listed in the register
maintained under Section 301 of the Companies Act, 1956. In respect of
the said loans, the maximum amount outstanding at anytime during the
year was Rs.3,009.19 lacs and the year end balance is Nil.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company, are not prima facie prejudicial to the
interest of the company.
(g) The principal amount of the loan is repayable on demand and
interest thereon is paid regularly as per the stipulated terms.
IV. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across nor have we been informed of any
instances of major weaknesses in the aforesaid internal control system.
V. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies act,1956 have been so entered.
(b) As per the information and explanations give to us there are no
contract or arrangements made for transactions exceeding Rupees
5,00,000 in respect of each party, for sale and purchase of goods and
services in pursuance of section 301 of the company''s Act,1956.
VI. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under.
VII. In our opinion, the internal audit functions carried out during
the year by firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and nature of its
business.
VIII. We have broadly reviewed the books of accounts maintained by
Company in respect of product, where pursuant to the rule made by the
Central Government of India the maintenance of cost records has been
prescribed under section 209 (1) (d) of the Companies Act 1956 and are
of the opinion that, prima facie ,the prescribed records have been
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
IX. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employee''s
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities. According to the information and explanations
given to us and the records of the Company examined by us, no
undisputed statutory dues as above were outstanding as at 31st March,
2013 for a period of more than 6 months from the date they became
payable.
X. The Company has no accumulated losses as at 31stMarch 2012 and has
not incurred cash losses in the current financial year ended on that
date and in the immediately preceding financial year.
XI. Based on our audit procedures and on the basis of information and
explanations given to us the Company has not defaulted in repayment of
dues to Financial Institutions or Banks.
XII. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
XIII. Provisions of any special statute applicable to chit fund are
not applicable to the Company.
XIV. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. The Company has maintained proper records of
transactions and contracts in respect of Shares, Securities, Debentures
and other Investments and timely entries have been made therein. The
Shares, Securities, Debentures and other Investments have been held by
the Company, in its own name except to the extent of exemption granted
under section 49 of the Companies Act, 1956.
XV. As per the information the Company has not given any guarantee for
loans taken by others from Bank or Financial Institutions.
XVI. According to the information and explanations given to us the
Company has applied term loans for the purpose for which they were
obtained during the year.
XVII. On the basis of our examination of the Balance Sheet and Cash
Flow Statement and according to the information and explanations given
to us, the fund raised on Short Term basis, during the year, have not
been used for Long Term investments.
XVIII.During the year under Audit, the Company has made preferential
allotment of equity shares to a Company covered in the register
maintained under section 301 of the Companies Act, 1956. The price at
which the shares have been issued has been determined as per the
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirement) Regulation 2009, which in our opinion is not prejudicial
to the interest of the Company.
XIX. The Company has not issued debentures during the year.
XX. The Company has not raised any money by Public Issue during the
year.
XXI. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practice in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor we
have been informed of such cases by the management.
For SINGHI & CO.
Chartered Accountants
Firm Registration NO.302049E
Rajiv Singhi
Place -.Kolkata Partner
Dated : the 18th day of May, 2013 Membership No. 53518
Mar 31, 2012
1. We have audited the attached Balance Sheet of RAMKRISHNA FORGINGS
LIMITED (the Company) as at 31st March 2012, the Statement of Profit &
Loss and the Cash Flow Statement of the company for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 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, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. In response to an application made by the Company to the Central
Government for approval of payment of increased remuneration to Chairman
cum Whole Time Director and the Managing Director from 1stApril, 2008 to
31st March, 2011 the central government, has vide its letter dated 29th
February, 2012 assented to payment of remuneration of Rs 48,30,000 from
1st April, 2008 to 31st March, 2009 and Rs 84,00,000 from 1st April, 2009
to 31st March,2010 to Managing Director and Rs 84,00,000from 1stApril,
2008 to 31st March, 2010 to Chairman cum Whole Time Director which ever
is higher. Based on the above approval remuneration paid to the
Chairman cum Whole Time Director and the Managing Director is in excess
by Rs 38,36,400 and by Rs 50,96,400for the year 2008-09 and 2009-10
respectively. The Company has again represented to the Central
Government for reconsideration of its application and to accord its
Approval for payment of remuneration as proposed in the said application.
The said representation is pending for reconsideration of the Central
Government.
5. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
iii) The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
v) On the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said account, subject to our remark
in paragraph 4 above, read with Significant Accounting Policies and
Notes to Account in Note No. 1 give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012.
(b) in the case of the Statement of Profit & Loss, of the PROFIT for
the year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure to the Auditors' Report (Referred to in Paragraph 3 of our
report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and nature of its
business.
(c) There was no substantial disposal of fixed assets during the year.
ii. (a) The inventories have been physically verified at reasonable
intervals during the year by the management except materials lying with
third parties, where confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
iii. (a) As per the information furnished, the Company has not granted
any loans secured or unsecured to Companies, firms or other parties
covered in the Register maintained U/S 301 of the Companies Act, 1956.
Hence Clauses 3(b), (c) and (d) of the order are also not applicable to
the company.
(e) As per the information furnished, the Company has taken interest
bearing unsecured loan from two companies covered in the Register
maintained U/S 301 of the Companies Act, 1956. In respect of the said
loans, the maximum amount outstanding at anytime during the year was Rs
1847.99 lacs and the year end balance is Rs 864.98 lacs.
(f) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the Company, are not prima facie prejudicial to the
interest of the Company.
(g) The principal amount of the loan is repayable on demand and
interest thereon is paid regularly as per the stipulated terms.
iv. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across nor have we been informed of any
instances of major weaknesses in the aforesaid internal control system.
v. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered in the register maintained under Section 301 of the Companies
act, 1956 have been so entered.
b) As per the information and explanations give to us there are no
contract or arrangements made for transactions exceeding Rupees
5,00,000 in respect of each party, for sale and purchase of goods and
services in pursuance of Section 301 of the Company's Act,1956.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under.
vii. In our opinion, the internal audit functions carried out during
the year by firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and nature of its
business.
viii. As per the Companies (Cost Accounting Records) Rules, 2011
(published vide G.S.R. 430 (E) dated 3rd June, 2011) the company is
required to maintain Cost Records effective from 1st April, 2011 during
the period under audit, for the products of the company. As confirmed
by the management the above required records are maintained by them.
ix. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty and Cess during the year with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amount payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues were outstanding as at 31st March,
2012 for a period of more than six months from the date they became
payable.
As per the information and explanations given to us and as per the
records of the company there are no dues of Wealth Tax, Custom Duty,
Excise Duty, Cess which have not been deposited on account of any
dispute. The due of the Income Tax, Service Tax & Sales Tax which has
not been deposited on account of any dispute and forum where the
dispute is pending is given as under :-
Name of the
status Nature of
Dues Amount Period
to which Forum where
dispute
(Rs in lacs)amount
relates is pending
Income Tax
Act,1961 Income Tax 11.99 2007-08 and
2008-09 CIT(Appeal)
Kolkata
35.98 2004-05 to
2006-07 CESTAT Kolkata
Service
Tax under Service Tax 23.50 2006-07 to
209-10 The Additional
finance
act 1994 Commissioner of
Service Tax,
Kolkata
WB Value
Added Sales Tax 1.63 2007-08 The Joint
Commissioner
Tax Act, 2003 of Sales Tax,
Kolkata
x. The Company has no accumulated losses as at 31st March 2012 and has
not incurred cash losses in the current financial year ended on that
date and in the immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us the Company has not defaulted in repayment of
dues to Financial Institutions or Banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. Provisions of any special statute applicable to chit fund are
not applicable to the company.
xiv. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. The Company has maintained proper records of
transactions and contracts in respect of Shares, Securities, Debentures
and other Investments and timely entries have been made therein. The
Shares, Securities, Debentures and other Investments have been held by
the Company, in its own name except to the extent of exemption granted
under Section 49 of the Companies Act, 1956.
xv. As per the information the Company has not given any guarantee for
loans taken by others from Bank or Financial Institutions.
xvi. According to the information and explanations given to us the
Company has applied term loans for the purpose for which they were
obtained during the year.
xvii. On the basis of our examination of the Balance Sheet and Cash
Flow Statement and according to the information and explanations given
to us, the fund raised on Short Term basis, during the year, have not
been used for Long Term investments.
xviii. During the year under Audit, the Company has made preferential
allotment of equity shares on conversion of warrants, to a Company
covered in the register maintained under Section 301 of the Companies
Act, 1956. The price at which the shares have been issued has been
determined as per the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirement) Regulation 2009, which in our
opinion is not prejudicial to the interest of the Company.
xix. The Company has not issued debentures during the year.
xx. The Company has not raised any money by Public Issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practice in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor we
have been informed of such cases by the management.
For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
1B, Old Post Office Street Rajiv Singhi
Place : Kolkata (Partner)
Dated : 12th day of May, 2012 Membership No.53518
Mar 31, 2011
1. We have audited the attached Balance Sheet of RAMKRISHNA FORCINGS
LIMITED ("the Company") as at 31 st March, 2011, the Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors 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, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. In response to an application made by the Company to the Central
Government for approval of payment of increased remuneration to
Chairman cum Wholetime Director and the Managing Director from 1st
April, 2008 to 31st March, 2011 the Central Government, has vide its
letter dated 27th January, 2011 assented to payment of remuneration on
the basis of the permissible limit as laid down in Section 309(3) read
with Schedule XIII of the Companies Act, 1956 or remuneration of Rs.
141,21,520/- to Managing Director and Rs.54,05,400/- to Chairman cum
Whole Time Director whichever is higher. Based on the above approval
remuneration paid to the Chairman cum Wholetime Director and the
Managing Director is in excess by Rs.51,90,526/-and by Rs. 84,14,747/-
for the year2009-10 and 2008-09 respectively.The Company has again
represented to the Central Government for reconsideration of its
application and to accord its approval for payment of remuneration
as proposed in the said application. The said representation is pending
for reconsideration of the Central Government. However, the
remuneration paid during the year 2010-11 to Chairman cum Wholetime
Director and the Managing Director is within the limits as laid down in
Section309(3) read with Schedule Xlll of the Companies Act,1956.
5. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
v) On the basis of the written representations received from the
Directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March, 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said account, subject to our comment
in paragraph 4 above, read with Significant Accounting Policies and
Notes to Account in Schedule "20" give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
(a) in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31 st March, 2011.
(b) in the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and nature of its
business.
(c) There was no substantial disposal of fixed assets during the year.
ii. (a) The inventories have been physically verified at reasonable
intervals during the year by the management except materials lying with
third parties, where confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
iii. (a) As per the information furnished, the Company has not granted
any loans secured or unsecured to companies, firms or other parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956. Hence, Clauses 3(b), (c) and (d) of the order are also not
applicable to the Company.
(b) As per the information furnished, the Company has taken interest
bearing unsecured loan from a Company covered in the Register
maintained under Section 301 of the Companies Act, 1956. The terms and
condition of such loan is not prima-facie prejudicial to the interest
of the Company.
iv. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanations
given to us, we have not come across nor have we been informed of any
instances of major weaknesses in the aforesaid internal control system.
v. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements that need to
be entered in the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b) As per the information and explanations give to us there are no
contract or arrangements made for transactions exceeding Rs.5,00,000
in respect of each party, for sale and purchase of goods and services
in pursuance of Section 301 of the Companies Act, 1956.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Sections 58A and 58AA of the
Companies Act, 1956 and rules made there under.
vii. In our opinion, the internal audit functions carried out during
the year by firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Company and nature of its
business.
viii. Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of Section 209
of the Companies Act 1956, for the Company.
ix. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty and Cess during the year with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amount payable in respect of Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues were outstanding as at 31 st March,
2011 for a period of more than six months from the date they became
payable.
As per the information and explanations given to us and as per the
records of the Company there are no dues of Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Cess which have not been deposited on account
of any dispute. The dues
of the Income Tax and Service Tax which has not been deposited on
account of any dispute and forum where the dispute is pending is given
as under :-
Name of the Statute Nature of dues Amount
(Rs. in Lakhs)
IncomeTax Act, 1961 Income Tax 11.99
Service Tax under Service Tax 35.98
Finance Act, 1994
Name of the Statute Period to which Forum where dispute
amount relates is pending
IncomeTax Act, 1961 2007-08 and 2008-09 CIT(Appeal), Kolkata
Service Tax under 2004-05 and2006-07 CESTAT, Kolkata
Finance Act, 1994
x. The Company has no accumulated losses as at 31 st March, 2011 and
has not incurred cash losses in the current financial year ended on
that date and in the immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us the Company has not defaulted in repayment of
dues to Financial Institutions or Banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. Provisions of any special statute applicable to chit fund are
not applicable to the Company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. The Company has maintained proper records of
transactions and contracts in respect of shares, securities, debentures
and other Investments and timely entries have been made therein. The
shares, securities, Debentures and other Investments have been held by
the Company, in its own name except to the extent of exemption granted
under Section 49 of the Companies Act, 1956.
xv. As per the information the Company has not given any guarantee for
loans taken by others from Bank or Financial Institutions.
xvi. According to the information and explanations given to us the
Company has applied term loans for the purpose for which they were
obtained during the year.
xvii. On the basis of our examination of the Balance Sheet and Cash
Flow Statement and according to the information and explanations given
to us, the fund raised on Short Term basis, during the year, have not
been used for Long Term Investments.
xviii. During the year under Audit, the Company has not made any
preferential allotment of equity shares to any party and Company
covered in the register maintained under Section 301 of the Companies
Act, 1956.
xix. The company has not issued debentures during the year.
xx. The Company has not raised any money by Public Issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor we
have been informed of such cases by the management.
For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
Rajiv Singhi
(Partner)
Membership No. 53518
1B, Old Post Office Street
Kolkata-700 001
Dated: The 12th day of May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of RAMKRISHNA FORCINGS
LIMITED as at 31 st March, 2010 the Profit & Loss Account for the year
ended on that date and also the Cash Flow Statement for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis- statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Orde? 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Asexplained in Note no.34(b), remuneration paid to the Chairman cum
Whole Time Director and the Mana of limit specifled in Schedule Xlll of
the Companies Act by Rs.52,48,126/- for the year 2009-W (Rs.96,48,960/-
for the year 2008-09) .ln response to an application made by the
Company to the Central Government for approval of payment of increased
remuneration to Chairman cum Whole Time Director and the Managing
Director from lst April, 2008 to 31st March
vide its letter dated 18th March, 20 7 0 assented to payment of
remuneration on the basis of the permissible limit as specified under
Schedule XIII of the Companies Act, 7 956 or remuneration last drawn by
the said Managerial Personnel which ever Is higher. The Company has
made a representation to the Central Government for reconsideration of
its application and accord its approval to the Company for payment of
remuneration as proposed in the said application. The said
representation is pending for reconsideration of the Central
Government.
5. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
iv) In our opinion the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
v) On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said account, subject to our remarkin
paragraph 4 above, read with Notes to Account and Significant
Accounting Policies in Schedule"20"give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010
(b) in the case of the Profit & Loss Account, of the PROFIT for the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 3 of our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification.lnouropinion,thefrequencyof verification is reasonable
having regard to sizeof the Company and nature of its business.
(c) There was no substantial disposal of fixed assets during the year.
ii. (a) The inventories have been physically verified at reasonable
intervals during the year by the management except materials lying with
third parties, where confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
iii. (a) As per the information furnished, the Company has not granted
any loans secured or unsecured to Companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Hence clauses 3(b), (c) and (d) of the order are also not
applicable to the Company.
(e) As per the information furnished, the Company has taken interest
bearing unsecured loan from a Company covered in the register
maintained under Section 301 of the Companies Act, 1956. The terms and
condition of such loan is not prima-facie prejudicial to the interest
of the Company.
iv. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across nor have we been informed of any
instances of major weaknesses in the aforesaid internal control system.
v. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956, have been entered.
b) As per the information and explanations give to us there are no
contract or arrangements made for transactions exceeding Rs. 5,00,000/-
in respect of each party, for sale and purchase of goods and services
in pursuance of Section 301 of the Companies Act, 1956.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under.
vii. In our opinion, the Company has internal audit system commensurate
with the size and nature of its business.
viii. Maintenance of cost records has not been prescribed by the
Central Government under clause (d) of sub-section (1) of Section 209
of the Companies Act, 1956, for the Company.
ix. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
EmployeesState Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax,Custom Duty, Excise Duty and Cess during the year with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amount payable in respect of Provident Fund,
Investor Education and Protection Fund, EmployeesState Insurance,
Income Tax,
As per the information and explanations given to us and as per the
records of the Company there are no dues of Sales Tax, Wealth Tax,
Custom Duty, Excise Duty, Cess which have not been deposited on account
of any dispute. The dues of the Income Tax which has not been deposited
on account of any dispute and forum where the dispute is pending is
given as under :-
Name of the
Statute Nature of dues Amount Period to which Forum where
(Rs. in diuspute
Lakhs) amount relates is pending
Income Tax
Act, 1961 IncomeTax 10.43 2006-07 CIT (Appeal),
Kolkata
x. The Company has no accumulated losses as at 31 st March, 2010 and
has not incurred cash losses in the current financial year ended on
that date and in the immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions or banks.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. Provisions of any special statute applicable to chit fund are not
applicable to the Company.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. The Company has maintained proper records of
transactions and contracts in respect of shares, securities, debentures
and other investments and timely entries have been made therein. The
shares, securities, debentures and other investments have been held by
the Company, in its own name except to the extent of exemption granted
under Section 49 of the Companies Act, 1956.
xv. As per the information the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
xvi. According to the information and explanations given to us the
Company has applied term loans for the purpose for which they were
obtained during the year.
xvii.On the basis of our examination of the Balance Sheet and Cash Flow
Statement and according to the information and explanations given to
us, the fund raised on Short Term basis, during the year, have not been
used for Long Term Investments.
xviii. During the year under Audit, the Company has made preferential
allotment of equity shares and has also made preferential allotments of
warrants to a Company covered in the register maintained under Section
301 of the Companies Act, 1956. The price at which the shares/warrants
have been issued, has been determined as per the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulation, 2009, which in our opinion, is not prejudicial to the
interest of the Company.
xix. The Company has not issued debentures during the year.
xx. The Company has not raised any money by Public Issue during the
year.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For SINGHI & CO.
Chartered Accountants
Firm Registration No. 302049E
18, Old Post Office Street Rajiv Singhi
Kolkata-700 001 Partner
Dated: The 22nd day of May, 2010 Membership No. 53518