Mar 31, 2017
TO THE MEMBERS OF RAUNAQ EPC INTERNATIONAL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of RAUNAQ EPC INTERNATIONAL 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 the significant accounting policies and other explanatory information.
Managementâs 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, as applicable.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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. 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 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 Section 143(3) of the Act, we report, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors on 31 March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
(a) The company does not have any pending litigation which would have any material impact on its financial position in its financial statements.
(b) The company has made provisions as required under the applicable law or accounting standards for material foreseeable losses on long term contracts. Company did not have any derivative contracts.
(c) Amounts which were required to be transferred to the Investor Education and Protection Fund by the Company were so transferred in time.
(d) The Company has provided requisite disclosures in the financial statements as regards its holdings and dealings in Specified Bank Notes as defined in the
Notification S.0.3407(E) dated 08 November, 2016 of the Ministry of Finance, during the period from 08 November, 2016 to 30 December, 2016. Based on audit procedures performed and the representations provided to us by Management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by management.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR''S REPORT OF RAUNAQ EPC INTERNATIONAL LIMITED (STANDALONE)
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over the financial reporting of RAUNAQ EPC INTERNATIONAL LIMITED ("the Company") as of 31 March, 2017 in conjunction with our audit of financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The management of the individual company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, 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.
Auditorâs 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 control over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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.
I. (a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, we report that the Company does not own any immovable property whether freehold or leasehold.
II. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals other than for contract work-in-progress in respect of civil/ mechanical/erection contract.
III. During the year, the Company has not granted any loans, to its subsidiary company, or others parties covered in the register maintained under Section 189 of the Act.
IV. The Company has not granted any loan etc. to Directors or entered into other transactions detailed in section 185 of the Companies Act 2013, during the year. Accordingly, compliance of section 186 is not required.
V. According to the information and explanations given to us, the Company has not accepted any deposit during the year and accordingly, the question of complying with section 73 and 76 of the Act does not arise.
VI. We have been informed by the Management that no cost records have been prescribed U/s 148(1) of the Companies Act, 2013 in respect of Company''s construction activities.
VII. According to the information and explanation given to us, in respect of statutory dues:
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at 31 March, 2017 for a period of more than six months from the date they become payable.
(c) There are no dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise and Value Added Tax as on 31 March, 2017 on account of disputes except detailed below.
Name of the Statute |
Nature of Dues |
Amount of Tax(Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
Central |
Excise Duty |
22,63,487/-* |
1 996-97 & |
High Court |
Excise Act |
Penalty |
22,63,487/-* |
1 997-98 |
Allahabad |
*Fully provided
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT ON STANDALONE FINANCIAL STATEMENTS OF RAUNAQ EPC INTERNATIONAL LIMITED FOR THE FINANCIAL YEAR ENDED ON 31 MARCH, 2017
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
VIII. In our opinion and according to the information and I explanations given to us, the company has not defaulted in repayment of loans or borrowings to financial institutions and banks. The Company has not issued debentures.
IX. In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments).
X. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
XI. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
XII. The Company is not a Nidhi Company and hence, reporting under Clause (xii) of CARO 2016 Order is not applicable.
XIII. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act 2013, where applicable, for all transactions with the related parties and details of related party transactions have been disclosed in the financial statements etc., as required by the applicable accounting standards.
XIV. During the year, the Company has not made any preferential allotment or private placement of the shares or fully or partly convertible debentures and hence, reporting under Clause (xiv) of CARO 2016 Order is not applicable.
XV. In our opinion and according to the information and explanations given to us during the year, the Company has not entered into non-cash transactions with its director or persons connected with him and hence provisions of Section 192 of the Act are not applicable.
XVI. The company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
For V.P. Jain & Associates
Chartered Accountants
(FRN: 01 5260N)
(V.P. Jain)
Place: New Delhi Partner
Date: 26 May, 2017 (Membership No. 081514)
Mar 31, 2016
Independent Auditorâs Report
TO THE MEMBERS OF
RAUNAQ EPC INTERNATIONAL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of RAUNAQ EPC INTERNATIONAL LIMITED
("the Companyâ), which comprise the Balance Sheet as at
31 March, 2016, 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.
Managementâs 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 Actâ) 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, as applicable.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the order under Section 143 (11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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. 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 31 March, 2016, and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors as on 31 March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure-A. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s financial control 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, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigation which would have any material impact on its financial position in its financial statements.
ii. The Company has made provisions as required under the applicable law or accounting standards for material foreseeable losses on long term contracts. Company did not have any derivative contracts.
iii. Amounts which were required to be transferred to the Investor Education and Protection Fund by the Company were so transferred in time.
2) As required by the Companies (Auditor''s Report) Order, 2016 ("the CARO 2016 Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in ''Annexure-Bâ a statement on the matters specified in Paragraph-3 & 4 of the CARO 2016 Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Raunaq EPC International Limited ("the Companyâ) as of 31 March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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.
Auditorâs 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 Noteâ) 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 financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with 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 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a programme of verification of fixed assets to cover all the items in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, we report that the company does not own any immovable property whether free hold or leasehold.
(ii) (a) As explained to us, inventories were physically verified
during the year by the Management at reasonable intervals, other than for contract work-in-progress in respect of civil/mechanical/erection contract.
(b) No material discrepancies were noticed on physical verification.
(iii) During the year company has granted loan to its subsidiary company on terms and conditions which were not prejudicial to the interest of the company. Loan was converted into Equity Shares during the year
(iv) The company has not given any loan to Directors under Section-185, hence, Section-185 is not applicable for loan given, investment made in subsidiary company and guarantees provided in connection with limits given by banks, the provision of Section-186 of the Companies Act have been complied with.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) We have been informed by the Management that no cost records have been prescribed U/s 148(1) of the Companies Act, 2013 in respect of Company''s construction activities.
(vii) According to the information and explanation given to us, in respect of statutory dues :
(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' 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 applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at 31 March, 2016 for a period of more than six months from the date they become payable.
(c) There are no dues of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise and Value Added Tax as on 31 March, 2016 on account of disputes except as detailed below:
Name of the Statute |
Nature of Dues |
Amount of Tax('') |
Period to which the amount relates |
Forum where dispute is pending |
Central |
Excise Duty |
22,63,487/-* |
1996-97 & |
High Court |
Excise |
Penalty |
22,63,487/-* |
1997-98 |
Allahabad |
Act |
* Fully Provided
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The Company has not borrowed from Government. Also the Company has not issued debentures.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with schedule-V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence, reporting under Clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc., as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence, reporting under Clause (xiv) of CARO 2016 Order is not applicable.
(xv) In our opinion and according to the information and explanations given to us during the year, the Company has not entered into any non-cash transaction with its directors or persons connected with him and hence, provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
For V.P. Jain & Associates
Chartered Accountants
(FRN:015260N)
(V.P. Jain)
Place: New Delhi Partner
Dated: 27 May, 2016 (Membership No. 081514)
Mar 31, 2015
We have audited the accompanying standalone financial statements of
RAUNAQ INTERNATIONAL LIMITED ("the Company "), which comprise the
Balance Sheet as at 31 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 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
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 proce
-dures selected depend on the auditor's judgment, including the assess
-ment 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 31 March, 2015, 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, 2015
("the Order"), issued by the Central Government in terms of
sub-section (11) of Section 143 of the Act, we give below statement on
the matters specified in paragraphs 3 and 4 of the Order.
(i) In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The company has a programme of verification of fixed assets to
cover all the items in a phased manner over a period of two years,
which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. Pursuant to the said programme,
certain fixed assets were physically verified by the management during
the year. According to the information and explanations given to us,
no discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals, other than
for contract work- in-progress in respect of civil/mechanical/ erection
contract.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no discrepancies were noticed on physical verification.
(iii) The company has granted unsecured loan to a company, covered in
the register maintained under Section 189 of the Act. The interest as
per terms and condition is received regularly. There is no overdue
amount so far as repayment of principal is concerned.
(iv) In our opinion and according to the information and explanations
given to us, 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. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
(v) According to the information and explanations given to us, the
company has not accepted any deposit during the year and hence the
directives issued by the Reserve Bank of India and the provisions of
Sections 73 to 76 or any other relevant provisions of the Act and the
rules framed thereunder, are not applicable to the company.
(vi) We have been informed by the management that no cost records have
been prescribed under section 148(1) of the Companies Act, 2013 in
respect of company's construction activities.
(vii) According to the information and explanations given to us in
respect of statutory dues:
(a) The company has been regular in depositing undisputed statutory
dues, including Provident Fund, Employees' 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 applicable to it
with the appropriate authorities. There were no undisputed amounts payable
in respect of the aforesaid statutory dues in arrears as at 31 March, 2015
for a period of more than six months from the date they became payable.
(b) There are no dues of Income-tax, Sales Tax, Wealth Tax, Service
Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess which
have not been deposited as at 31 March, 2015 on account of any dispute
except as detailed below:-
Name of the Nature of Amount Period to
Statute Dues of Tax(') which the
amount
relates
Central Excise Duty 22,63,487/- 1996-97 &
Excise Act Penalty 22,63,487/- 1997-98
Haryana Vat 2,10,788/- 2011-12
Vat ACT
Name of the Statute Forum where dispute is pending
Central The Customs & Service Tax Appellate Tribunal,
Excise Act New Delhi
Haryana Commissioner of Excise & taxation
Vat ACT
(c) Amounts which were required to be transferred to the Investor
Education and Protection Fund by the company were transferred to such
fund in time.
(viii) The company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(ix) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of dues to
financial institutions and banks. The company has not issued any
debentures.
(x) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
and financial institutions during the financial year. However,
guarantees given in earlier years were renewed during the financial
year on terms which are not prejudicial to the interest of the company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the company during the
year for the purposes for which they were obtained.
Company or its holding, subsidiary or associate company in any of the
three financial years immediately preceding the current financial year;
(ii) is or has been an employee or proprietor or a partner, in any of
the three financial years immediately preceding the financial year in
which he is proposed to be appointed, of:-
(A) a firm of Auditors or Company Secretaries in practice or Cost
Auditors of the Company or its holding, subsidiary or associate
company; or
(B) any legal or a consulting firm that has or had any transaction with
the company, its holding, subsidiary or associate company amounting to
ten per cent or more of the gross turnover of such firm;
(iii) holds together with his relatives two per cent or more of the
total voting power of the Company; or
(iv) is a Chief Executive or Director, by whatever name called, of any
non-profit organisation that receives twenty-five per cent or more of
its receipts from the Company, any of its Promoters, Directors or its
holding, subsidiary or associate company or that holds two per cent or
more of the total voting power of the Company;
Table-1
(v) is a material supplier, service provider or customer or a lessor or
lessee of the Company;
f. is not less than 21 years of age.
The Board of Directors of the Company vide its resolution dated 3 rd
February, 2012 has decided that the materiality/significance shall be
ascertained on the following basis:
- The concept of 'materiality' is relevant from the total revenue
inflow and/or outflow from and/or to a particular individual/body,
directly or indirectly, during a particular financial year.
- The term 'material' needs to be defined in percentage. One per
cent (1 per cent) or more of total turnover of the Company, as per
latest audited annual financial statement.
It has been confirmed by all the Independent Directors of the Company
that as on March 31,2015, they fulfill the criteria of being
Independent Director as stipulated under Clause 49 of the Listing
Agreement.
The Table-1 gives composition of the Board, Attendance record of the
Directors at the Board Meetings and at the last Annual General Meeting
(AGM); Number of their outside Directorships and their
Memberships/Chairmanships in Board Committees
Name of Director(s) Category No. of Attendance
Board at last AGM
Meetings held/ attended
Mr.Surinder P.Kanwar Chairman 5/5 Present
and Managing Director
Mr.Sachit Kanwar Joint Managing 5/5 Present
Director
Mr.P.K.Mittal Non-Executive 5/5 Absent
Independent Director
Dr.Sanjeev Kumar Non-Executive 5/5 Present
Independent Director
Mr.V.K.Pargal Non-Executive 5/5 Present
Independent Director
Mr.Gautam Mukherjee Non-Executive 5/3 Present
Independent Director
Mr.N.V.Srinivasan Non-Executive 5/4 Absent
Director
Mr.Satya Prakash Mangal Non-Executive 5/5 Absent
Independent Director
Ms. Seethalakshmi Additional Director 1/0E N.A.
Venkataraman
No. of No. of Memberships/
outside Chairmanships in Board
Directorships Committees
held Member Chairman
Mr.Surinder P.Kanwar 2 1 -
Mr.Sachit Kanwar 1 1 -
Mr.P.K.Mittal - 1 1
Dr.Sanjeev Kumar 2 1 2
Mr.V.K.Pargal 2 3 -
Mr.Gautam Mukherjee 2 1 -
Mr.N.V.Srinivasan - - -
Mr.Satya Prakash Mangal - 1 -
Ms. Seethalakshmi - - -
Venkataraman
Excluding directorship in Private Companies, Alternate Directorship,
Companies registered under Section 8 of the Companies Act, 2013 and
Foreign Companies.
BFor the purpose of considering the limit of the Committees on which a
Director can serve, all Public Limited Companies, whether listed or
not, are included and all other Companies including Private Companies,
Foreign Companies and the companies under Section 8 of the Companies
Act, 2013 are excluded. Further, it includes Membership/Chairmanship of
Audit Committee and Stakeholders' Relationship Committee only. None
of the Directors of your Company is a Member of more than ten (10)
Committees or is the Chairman of more than five (5) committees across
all Public Limited Companies in which they are Directors. The
Membership/Chairmanship also includes Membership/Chairmanship in Raunaq
International Limited.
None of the Independent Director of the Company holds the position of
the Independent Director in more than Seven (7) listed Companies,
including Independent Directorship in Raunaq International Limited and
any such Director serving as a whole time Director in a listed Company
is not serving as an Independent Director in more than three listed
Companies including Raunaq International Limited.
CMr. Surinder P. Kanwar is the father of Mr. Sachit Kanwar. Mr. Sachit
Kanwar has been appointed as Joint Managing Director w.e.f. June
01,2011 for a period of five years.
DMr. P.K. Mittal is also providing consultancy service to the Company
in his individual capacity. Professional fees paid to him for the year
2014-15 is Rs 60,000/-. The Board is of the opinion that such payments
in the context of overall expenditure by the Company, is not
significant and does not affect his independence.
EMs. Seethalakshmi Venkataraman has been appointed as an Additional
Director of the Company w.e.f March 28, 2015 till the conclusion of the
next Annual General Meeting.
Apart from this, no Non-Executive Director has any material pecuniary
relationships/transactions vis-a-vis the Company (other than the
sitting fees for attending the Board/Committee meetings).
A formal letter of appointment had been issued to the Directors
appointed at the Annual General Meeting of the Company held on August
29, 2014. The terms and conditions of the said appointment are
available on the website of the Company i.e.
www.raunaqinternational.com.
Further, the Company has adopted a familarisation programme for
Independent Directors which is available on the website of the Company
i.e. www.raunaqinternational.com under the link:
http: //www.raunaqinternational.com/pdf/familarisation- programme.pdf.
B. Board Meetings
During the financial year 2014-15, Five (5) Board Meetings were held on
the following dates. The gap between any two meetings was not more than
One Hundred and Twenty (120) days as mandated in Clause 49 of the
Listing Agreement:-
- 30thMay, 2014;
- 31 stJuly, 2014;
- 13thNovember, 2014;
- 10thFebruary, 2015 and
- 28thMarch, 2015
The Company Secretary prepares the agenda and explanatory notes, in
consultation with the Chairman and Managing Director, Joint Managing
Director and Chief Financial Officer and circulates the same in advance
to the Directors. The Board meets atleast once every quarter inter alia
to review the quarterly results. Additional meetings are held, when
necessary. Presentations are made to the Board on the business
operations and performance of the Company. The minutes of the
proceedings of the meetings of the Board of Directors are noted and the
draft minutes are circulated amongst the members of the Board for their
perusal. Comments, if any received from the Directors are also
incorporated in the minutes, in consultation with the Chairman and
Managing Director. The Minutes are signed by Chairman of the Board at
the next meeting. Senior management personnel are invited to provide
additional inputs for the items being discussed by the Board of
Directors as and when considered necessary.
Post Meeting Follow Up System: The Company has an effective post Board
Meeting follow up procedure. Action Taken Report on the decisions taken
in a meeting are placed at the immediately succeeding meeting for
information of the Board.
C. Information supplied to the Board
The Board has complete access to all information with the Company. The
information is provided to the Board on regular basis and the agenda
papers for the meetings are circulated in advance of each meeting. The
information supplied to the Board includes the following, to the extent
applicable during the year as per Clause 49 of Listing Agreements.
- AnnualOperating Plans and Budgets and any updates.
- Capitalbudgets and any updates.
- Quarterly, Half Yearly and Yearly Results of the Company.
- Minutes of the Meetings of Audit Committee and other Committees of
the Board.
The Board periodically reviews the compliance reports of all laws
applicable to the Company, prepared by the Company along with the
declaration made by all the respective departmental heads and by the
Chairman and Managing Director regarding compliance with all applicable
laws.
3. BOARD COMMITTEES
A. Audit Committee
I. Constitution and Composition
The Audit Committee comprises of the following four (4) Non-Executive
and Independent Directors, who have financial/accounting acumen to
specifically look into internal controls and audit procedures. All the
members are financially literate and have accounting and financial
management expertise. The Table-2 gives the composition of the Audit
Committee and the attendance record of members of the Committee:
Table-2
S. Name of Member Designation No. of meetings
No. Held/Attended
1. Dr. Sanjeev Kumar Chairman 5/5
2. Mr. P.K. Mittal Member 5/5
3. Mr. V.K.Pargal Member 5/5
4. Mr. Satya Prakash Member 5/5
Mangal
In addition to the Members of the Audit Committee, the Chief Executive
Officer, Chief Financial Officer, Internal Auditors and Statutory
Auditors attended the meetings of the Committee as invitees. Members
held discussions with Statutory Auditors during the meetings of the
Committee. The Audit Committee reviewed the quarterly, half-yearly and
year to date un-audited and annual audited financials of the company
before submission to the Board of Directors for their consideration and
approval. The Committee also reviewed the internal control systems and
internal audit reports.
The Chairman of the Committee was present at the last Annual General
Meeting to answer the queries of the shareholders to their
satisfaction.
Mr. Kaushal Narula, Company Secretary of the Company acted as Secretary
to the Audit Committee Meetings as aforesaid.
II. Audit Committee Meetings
During the year, five (5) meetings of the Audit Committee were held on
the following dates:
- 30thMay, 2014;
- 31 stJuly, 2014;
- 13thNovember, 2014;
- 10thFebruary, 2015 and
- 28thMarch, 2015
III. Powers of Audit Committee
The Audit Committee has been empowered with the adequate powers as
mandated in the Clause 49 of the Listing Agreement, which includes the
following:
1. To investigate any activity within its terms of reference.
2. To seek information from any employee.
3. To obtain outside legal or other professional advice.
4. To secure attendance of outsiders with relevant expertise, if it
considers necessary.
IV. Role of Audit Committee
The role of the Audit Committee includes the following:
1. Oversight of the Company's financial reporting process and the
disclosure of its financial information to ensure that the financial
statement is correct, sufficient and credible;
2. Recommendation for appointment, remuneration and terms of
appointment of auditors of the Company;
3. Approval of payment to Statutory Auditors for any other services
rendered by the Statutory Auditors;
4. Reviewing, with the management, the annual financial statements and
Auditor's Report thereon before submission to the Board for approval,
with particular reference to:
a. Matters required to be included in the Director's Responsibility
Statement to be included in the Board's report in terms of clause (c)
of Sub-Section 3 of Section 134 of the Companies Act, 2013.
b. Changes, if any, in accounting policies and practices and reasons
for the same.
c. Major accounting entries involving estimates based on the exercise
of judgment by management.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31 March, 2015 taken on record by the board of
directors, none of the directors is disqualified as on 31 March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The company does not have any pending litigation which would have
any material impact on its financial position in its financial
statements.
ii. The company has made provisions as required under the applicable
law or accounting standards for material foreseeable losses on long
term contracts. Company did not have any derivative contracts.
iii. Amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company were so transferred in
time.
For V.P.Jain & Associates
Chartered Accountants
(FRN:015260N)
(V.P.Jain)
Place : New Delhi Partner
Dated: May 30, 2015 (Membership No. 081514)
Mar 31, 2014
We have audited the accompanying financial statements of Raunaq
International Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Profit and Loss Statement and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act") (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs) and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Profit and Loss Statement, 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.
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, Profit and Loss Statement, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Profit and Loss Statement, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS'' REPORT DATED
30/05/2014 TO THE MEMBERS OF RAUNAQ INTERNATIONAL LTD. ON THE ACCOUNTS
FOR THE YEAR ENDED 31st MARCH, 2014 UNDER SECTION ''REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS''
(i) (a) The company is maintaining proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) The company has a programme of physical verification under which
all items of fixed assets are verified once in two years. As per the
said programme, certain assets were physically verified during the
year. According to the information and explanations given to us no
discrepancies were noticed. In our opinion, having regard to the size
of the company and the nature of its assets, the programme of
verification of fixed asset of the company is reasonable.
(c) In our opinion, the Fixed Assets disposed off during the year do
not constitute substantial part of the Fixed Assets and such disposal
has not affected the going concern status of the company.
(ii) (a) The inventories, except for contract work-in-
progress in respect of Civil/Mechanical/Erection Contracts, have been
physically verified by the management during the year at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. According to the information and explanations given to us no
discrepancies were noticed on physical verification between the
physical stock and the book records.
(iii) (a) The company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Act.
(b) Not applicable.
(c) Not applicable.
(d) Not applicable.
(e) Company has taken unsecured loan from parties covered in the
register maintained under Section
301 of the Act. Total loan amount taken is '' 50 Lacs from one party.
Maximum balance outstanding during the year was '' 50 Lacs and balance
outstanding at the year end is '' 50 Lacs.
(f) In our opinion, rate of interest and other terms and conditions on
which loan referred above have been taken, are not prejudicial to the
interest of the company.
(g) In respect of loan referred above, the interest was paid during the
year as agreed upon. There is no stipulation as to the repayment of
loan.
(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 the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
(v) (a) Particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, transaction made in pursuance of contract or arrangement
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rupees five lacs during the year
has been made at reasonable rate.
(vi) The Company has not accepted any fixed deposit from public during
the year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
(ix) (a) According to the information and explanations
given to us and according to the records of the company, the company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable to it.
(b) As explained to us and according to the records of the company, the
following dues have not been deposited on account of dispute :
Name ofthe Statute Nature of Dues Amount of Period towhich
Tax (RS) the amount relates
Central Excise Act Excise Duty 22,63,487/- 1996-97 & 1997-98
Penalty 22,63,487/-
Name of the Statute Forum where dispute is pending
Central Excise ACT The Custom & Service Tax Appellate
Tribunal New Delhi
fully provided.
(x) There are no accumulated losses at the end of financial year. The
company has not incurred any cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
(xi) The company has not defaulted in repayment of dues of financial
Institutions or banks. There are no debenture holders since the Company
has not issued any debenture.
(xii) Since the company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the company is not a Nidhi/Mutual Benefit Fund/Society,
paragraph 4(xiii) of the Order is not applicable.
(xiv) Since the company is not dealing or trading in shares,
securities, debentures and other investments, paragraph 4(xiv) of the
Order is not applicable.
(xv) The company has not given any guarantee during the year for loans
taken by other from bank or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long term
investments.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) Since the company has not issued any debentures during the year,
paragraph 4(xix) of the Order is not applicable.
(xx) Since the company has not raised any money during the year by way
of public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For V.P. Jain & Associates
Chartered Accountants
FRN: 015260N
( V.P. Jain )
Place : New Delhi Partner
Date : May 30, 2014 Membership No.: 081514
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Raunaq
International Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2013, and the Profit and Loss Statement and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in Sub- Section (3C) of Section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted
in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Profit and Loss Statement, 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.
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, Profit and Loss Statement and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Profit and Loss Statement 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 March 31,2013 and taken on record by the Board of Directors, none
of the Directors is disqualified as on March 31,2013, from being
appointed as a Director in terms of Clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS'' REPORT DATED
23/05/2013 TO THE MEMBERS OF RAUNAQ INTERNATIONAL LIMITED ON THE
ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2013 UNDER SECTION ''REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS''
(i) (a) The Company is maintaining proper records
showing full particulars including quantitative details and situation
of fixed assets.
(b) The Company has a programme of physical verification under which
all items of fixed assets are verified once in two years. As per the
said programme, certain assets were physically verified during the
year. According to the information and explanations given to us no
discrepancies were noticed. In our opinion, having regard to the size
of the Company and the nature of its assets, the programme of
verification of fixed asset of the company is reasonable.
(c) Since there is no disposal of substantial part of fixed assets
during the year, paragraph 4 (i) (c) of the Companies (Auditors''
Report) Order, 2003 (hereinafter referred to as the Order) is not
applicable.
(ii) (a) The inventories, except for contract work-in-
progress in respect of Civil/Mechanical/Erection Contracts, have been
physically verified by the management during the year at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we
are of the opinion that the Company is maintaining proper records of
inventory. According to the information and explanations given to us
no discrepancies were noticed on physical verification between the
physical stock and the book records.
(iii) (a) The Company has not granted any loans, secured
or unsecured to Companies, Firms or other parties covered in the
register maintained under Section 301 of the Act.
(b) Not applicable.
(c) Not applicable.
(d) Not applicable.
(e) Company has taken unsecured loan from parties covered in the
register maintained under Section 301 of the Act. Total loan amount
taken is '' 55 Lacs from two parties. Maximum balance outstanding during
the year was Rs. 55 Lacs and balance outstanding at the year end is Rs.
NIL.
(f) In our opinion, rate of interest and other terms and conditions on
which loan referred above have been taken, are not prejudicial to the
interest of the Company.
(g) In respect of loan referred above, the principal and interest was
repaid during the year as agreed upon.
(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 the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
controls.
(v) (a) Particulars of contracts or arrangements referred to in Section
301 of the Act have been entered in the register required to be
maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, transaction made in pursuance of contract or arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rupees five lacs during the year
has been made at reasonable rate though no comparative rates are
available since the transaction being a civil construction contract.
(vi) The Company has not accepted any fixed deposit from public during
the year.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the records of the Company, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax,Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues applicable to it.
(b) As explained to us and according to the records of the Company, the
following dues have not been deposited on account of dispute :
Name of the Nature of Dues Amount of Period to which Forum where
Statute Tax (`) the amount dispute is
relates pending
Orissa Sales Sales Tax (WC) 8,84,021/- 1984-85 to Orissa Sales
Tax Act 1986-87 Tax Tribunal
Cuttack
Central Excise Duty 22,63,487/-* 1996-97 & The Customs &
Excise Act Penalty 22,63,487/-* 1997-98 Service Tax
Appellate
Tribunal
New Delhi
*Provision made in full.
(x) There are no accumulated losses at the end of financial year. The
Company has not incurred any cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues of Financial
Institutions or Banks. There are no debenture holders since the Company
has not issued any debenture.
(xii) Since the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a Nidhi / Mutual Benefit Fund / Society,
paragraph 4(xiii) of the Order is not applicable.
(xiv) Since the Company is not dealing or trading in shares,
securities, debentures and other investments, paragraph 4(xiv) of the
Order is not applicable.
(xv) The Company has not given any guarantee during the year for loans
taken by other from Bank or Financial Institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanation given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long term
investments.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the register maintained under
Section 301 of the Act.
(xix) Since the Company has not issued any debentures during the year,
paragraph 4(xix) of the Order is not applicable.
(xx) Since the Company has not raised any money during the year by way
of public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year.
For V.P. Jain & Associates
Chartered Accountants
FRN:015260N
( V.P. Jain )
Place : Faridabad Partner
Date : May 23, 2013 Membership No.: 81514