Mar 31, 2016
To the Members of
Richa Industries Limited
Report on the Standalone Financial Statements
1 We have audited the accompanying standalone financial statements of Richa Industries Limited(âthe Companyâ), which comprise the Balance Sheet as at 31st 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.
Management''s Responsibility for the Standalone Financial Statements
2 The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation 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 7of 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3 Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4 We have taken into account the provisions of the Act and the rules made there-under including, 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.
5 We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6 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.
7 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
8 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, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9 As required by ''the Companies [Auditor''s Report] Order, 2016'', issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act [hereinafter referred to as âOrderâ], we give in the ''Annexure - A'', a statement on the matters specified in paragraph 3 and 4 of the Order.
10 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 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 31stMarch,2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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-B'' and
(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 has disclosed the impact of pending litigations on its financial position in its financial statements
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company
Referred to paragraph 9 of the Independent Auditor''s Report of even date to the members of Richa Industries Limited on the standalone financial statement as of and for the year ended March 31, 2016.
(I) [a] The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
[b] The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items 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 programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
[c] The title deeds of the immoveable properties are held in the name of the Company, but the beneficiary interest lies with the bankers / lenders, with whom the same are mortgaged as security.
(ii) The inventory, including stocks with certain third parties, has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
(iii) 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. Hence the clauses (a), (b) and (c) of Para 3(iii) of the order are not applicable.
(iv) The Company has not granted any loans, made investments, given guarantees, or any other security during the year under consideration. Hence the Para 3(iv) of the order is not applicable.
(v) The Company has not accepted any Deposits from the public within the meaning of Sections 73 and 74 of the Act and the rules framed there under to the extent notified. Hence the Para 3(v) of the order is not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where pursuant to the rules made by the Central Government of India, the maintenance of cost records has been specified under sub-section (1) of Section 148 of the Act. And are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) [a] According to the information and examination provided to us and records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and other statutory dues, as applicable, with the appropriate authorities.
[b] According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income tax, or sales tax, or service tax or duty of customs or duty or duty of excise or value added tax as at 31st March 2016 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act 1961 and rules made there under |
Income Tax and other dues u/s 143(3) and 271(1)(C) |
6,22,375.00 |
AY 2013-2014 |
CIT (A), Faridabad |
4,07,170.00 |
AY 2012-2013 |
CIT (A), Faridabad |
||
22,16,086.00 |
AY 2008-2009 |
Punjab & Haryana High Court, Chandigarh |
||
26,56,796.00 |
AY 2009-2010 |
ITAT New Delhi |
||
26,68,660.00 |
AY 2006-2007 |
ITAT New Delhi |
||
8,61,515.00 |
AY 2005-2006 |
ITAT New Delhi |
||
3,09,753.00 |
AY 2005-2006 |
CIT (A), Faridabad |
||
Finance Act 1994 (Service Tax) and rules made there under |
Under Sec 77, 78 and Rule 15(3) |
1,32,01,385.00 |
FY 2008-12 |
CESTAT, New Delhi |
Uttrakhand Sales Tax |
Uttrakhand Sales Tax |
4,80,000.00 |
2015-2016 |
Joint Commissioner (Appeal) Sales Tax Haldwani, Uttrakhand |
U P Commercial Tax Act |
U/s 55 of the Act and rules made there under |
2,18,43,565.00 |
2015-2016 |
Additional Commissioner, Grade-II, Noida UP |
(viii)According to the records of the Company examined by us and the information and explanations given to us, the Company has delayed in repayment of dues to the banks, the details of which are as follows:
Particulars |
Amount of default as at the Balance Sheet Date (Rs.) |
Period of Delay |
Remarks, if any |
(1) Indian Overseas Bank, Faridabad |
|||
Term Loan |
2,71,18,496.00 |
Jan-16 to Mar-16 |
Includes Rs. 1,89,30,000/- on account of Pending Installments to be paid till March-16 |
Working Capital Loan |
7,64,26,203.38 |
Feb-16 to Mar-16 |
Company has applied full convertibility of NFB to FB, pending approvals |
(2) Corporation Bank, Faridabad |
|||
Term Loan |
1,25,11,270.00 |
March-2016 |
Includes Rs. 1,20,00,000/- on account of Pending Installments to be paid till March-16 |
However, the Company has not taken any financial facilities from any financial institution or not issued any debentures in past, hence no default could be there to these as at the balance sheet date.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year under review. Hence the Para 3(ix) of the order is not applicable.
(x) During the course of our examination of the books and records of the Company, carried on in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company, or by its officers or employees, or has been noticed or reported during the year, nor have we been informed of any such case by the Management.
(xi) The Company has paid managerial remuneration during the year under consideration and is in accordance with the requisite approvals mandated by the provisions of Section 197 read with the Schedule V of the Companies Act, 2013
(xii) As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the order are not applicable to the Company.
(xiii)The Company has entered into transactions with the related parties in Compliance with the provisions of Section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(xiv)The Company has made preferential allotment during the year under review and the requirements of Section 42 of the Companies Act, 2013 have been complied with. The amount has been used for the purpose for which the funds were raised. However, the Company has not made any private placement of shares or fully or partly convertible debentures, during the year under review.
(xv)The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
(xvi)The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934, Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
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 Richa Industries Limited (''the Company'') as of 31 March 2016 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 managements 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 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 of the 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'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and the 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 control 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 auditors'' judgment, including the assessment of the risk 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 the financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over the financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transaction 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 the 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 Control Over Financial Reporting
Because of the inherent limitation of internal financial control 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 change the conditions, or that the degree of compliance with the policies or procedure 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 control 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 Control Over Financial Reporting issued by the Institute Chartered Accountants of India.
For Vijay Singla & Associates
Chartered Accountants
(Firm''s registration number :018099N)
( CA Vijay Kumar Singla)
Place : Faridabad Partner
Date : May 30,2016 n Membership Number : 094033
Mar 31, 2015
1 We have audited the accompanying standalone financial statements of
Richa Industries 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
2 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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3 Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4 We have taken into account the provisions of the Act and the rules
made there-under including, 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.
5 We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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
6 An audit involves 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.
7 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
8 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.
Report on Other Legal and Regulatory Requirements
9 As required by ''the Companies [Auditor''s Report] Order, 2015'', issued
by the Central Government of India in terms of sub- section (11) of
Section 143 of the Act [hereinafter referred to as "Order"], and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraph 3 and 4 of the Order.
10 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 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 litigations on its
financial position in its financial statements
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required onlong-term contractsincluding derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
Referred to paragraph 9 of the Independent Auditor''s Report of even
date to the members of Richa Industries Limited on the standalone
financial statement as of and for the year ended March 31,2015.
(i) [a] The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
[b] The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items 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 programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies have been noticed on such verification.
(ii) [a] The inventory, including stocks with certain third parties,
has been physically verified by the Management during the year.
In, respect to inventories lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
[b] In our opinion the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
[c] On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to Book records were not material.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms and other parties. Hence the clauses (a) and (b) of of
para 3(iii) of the order are not applicable.
(iv) In our opinion, and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of the business for the
purchase of inventory and fixed assets and for the sale of the goods
and services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weakness in the
aforesaid internal control system.
(v) The Company has not accepted any Deposits from the public within
the meaning of Sections 73 and 74 of the Act and the rules framed there
under to the extent notified.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub-section (1) of Section 148 of the Act and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) [a] According to the information and examination provided to us
and records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax and other material statutory dues, as applicable, with the
appropriate authorities.
[b] According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax including value added tax, duty of customs and duty of excise as at
315t March 2015 which have not been deposited on account of a dispute,
are as follows:
Name of the statute Nature of dues Amount ('')
Income TaxAct 1961 Income Tax and other 4,07,170.00
and rules made dues u/s143(3) and
thereunder 271(1)(c) 25,56,796.00
20.04.382.00
11.17.737.00
3.09.753.00
Name of the Statute Period to which the Forum where the
amount relates dispute is pending
Income Tax Act 1961 AY 2012-13 CIT (A) Faridabad
and rules made the
under AY 2009-10 CIT(A) Faridabad
AY 2008-09 CIT(A) Faridabad
AY 2005-06 ITAT New Delhi
AY 2005-06 ITAT New Delhi
According to the information and explanations given to us and the
records of the company examined by us, there are no dues of income tax,
wealth tax and service tax which have not been deposited on account of
any dispute.
[c] No amount is due / required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956(1 of 1956) and rules made there-under for the year
under consideration.
(viii) The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debentures
holders as at the balance sheet date.
(x) In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loans taken by others from banks or financial institutions
during the year are not prejudicial to the interest of the Company.
(xi) In our opinion, and according to the information and explanations
given to us, the terms loans have been applied, on an overall basis,
for the purpose for which they were obtained.
(xii) During the course of our examination of the books and records of
the Company, carried on in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For Vijay Singla & Associates
Chartered Accountants
Firm Registration Number: 018099N
CA Vijay Kumar Singla
Date: May 29, 2015 Partner
Place: Faridabad M.No 094033
Mar 31, 2014
We have audited the accompanying financial statements of RICHA
INDUSTRIES LIMITED ("the company"), which com- prise the Balance Sheet
as at 31st March, 2014, the statement of Profit & Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 ac- cepted in India including
Accounting Standard referred to in Section 211 (3C) of the Companies
Act,1956 ("the Act") read with the general circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
Sec.133 of the Companies Act 2013. This responsibility includes the
designs, 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 mis- statement, 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 ac- cordance
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 misstatements.
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 risk of material misstatements 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 estimated 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 aforesaid financial state- ments 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 Statements of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statements, of the cash flows for the
year ended on that date.
Reports 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 of
Section 227 (4A) of the Act, we give in the Annexure a statement on the
matters specified in paragraph 4 & 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 it appears from our examination of those
books.
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report com- ply with the
accounting standards referred in sub section (3C) of Section 211 of the
Companies Act 1956 read with the general circular 15/2013 dated 13th
September 2013 of the Ministry of Corporate Affairs in respect of
Sec.133 of the Companies Act 2013.
e. On the basis of written representations received from the directors
as on March 31 , 2014 and taken on records by the Board of Directors,
none of the director is disqualified as on March 31,2014 from the being
appointed as direc- tors in terms of Section 274(1)(g) of the Act.
ANNEXURE TO AUDITORS'' REPORT
(Annexure referred to in paragraph 1 under the heading "Report on other
Legal and Regulatory Requirements" 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 on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. No material discrepancies were noticed on such physical
verification;
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
company is not affected.
(ii) In respect of Inventories
(a) The inventory has been physically verified by the management at
regular intervals during the year. In our opin- ion, the frequency of
verification is reasonable;
(b) In our opinion and according to 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) The Company has maintained proper records of inventory. As
explained to us, there was no material discrepan- cies noticed on
physical verification of inventory as compared to the books records;
(iii) (a) The company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Sec 301 of the Act. Accordingly Clause 3(b), 3(c) 3(d) of the
Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company;
(b) The Company has taken unsecured loan from company, firms, parties
covered in register maintained under section 301 of the Act. The number
of parties is two (Richa Building Systems Pvt. Ltd. Rs. 1792.15 Lac and
Richa Holdings Ltd. Rs. 1044.34 Lac) amount involved is Rs. 2836.49
Lac. The Company has not taken any secured loan from company, firms,
parties covered in register maintained under section 301 of the Act;
(c) Rate of interest is Nil and other terms and conditions of unsecured
loans taken by the company, are not prima facie prejudicial to the
interest of the company; and
(d) Repayment of principal amounting to Rs 780.74 Lacs (Two parties).
(e) Balance outstanding as on 31.03.2014 is Rs 2836.49 Lac (Two
party),which is repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, 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
weakness in internal controls;
(v) (a) In respect of contracts or arrangements referred to in Section
301 of the Act all particulars have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursu- ance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs.500000/- (Rupees
Five Lac Only) in respect of each party during the year have been made
at prices which appear reasonable as per information available with the
company;
(vi) According to the information and explanations given to us, the
company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the order are not
applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Account- ing Records) Rules,
2011 prescribed by the Central Government under Section 209(1)(d) of
the Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or com- plete.
(ix) In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Educa- tion and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
(b) As per the records of the Company, the Company has no disputed dues
of Sales Tax/Custom Duty/Excise Duty/ Service Tax/Education Cess /
Wealth Tax / as on 31st March, 2014 except Income Tax detail of which
are as under
Nature of Dues Assessment Demand Raised Forum where dispute is
Year pending.
Income Tax 2005-06 Rs. 11,17,737/- The company has filed an
u/s 143(3)/147 appeal before ITAT, New
Delhi which is pending
till date.
Income Tax 2010-11 Rs. 17,14,901/- The company has filed an
U/s 143(3) appeal before CIT
(Appeal), Faridabad
Which is pending till
date.
Income Tax 2011-12 Rs. 5,98,854/- The company has filed an
u/s 143(3) appeal before CIT
(Appeal), Faridabad
which is pending till
date
(x) The Company does not have accumulated losses as at the end of
financial year. The Company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the company has
not defaulted in repayment of dues to financial institutions, and
debentures holders.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / societies. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Orders are not applicable to the Company.
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securi- ties, debentures, and other investments
have been held by the Company in its own name.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions during the year.
(xvi) The Company has not raised new terms loans during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment;
(xviii) The Company has made preferential allotment of shares to
parties covered in the Register maintained under Sec- tion 301 of the
Companies Act, 1956. In our opinion the price at which shares has been
issued is not prejudicial to the interest of the company.
(xix) The Company has not issued any debentures;
(xx) The Company has not raised any money by way of public issue during
the year under audit;
(xxi) In our opinion and according to the information and explanations
given to us, no material fraud on or by the Com- pany has been noticed
or reported during the year.
For Tayal & Co
Chartered Accountants
(Firm Registration No.001845N)
(CA R.A. Gupta)
Partner
Membership No 080997
Place : Faridabad
Date : 30.05.2014
Mar 31, 2013
We have audited the accompanying financial statements of RICHA
INDUSTRIES LIMITED ("the company"), which comprise the Balance Sheet as
at 31st March, 2013, the Profit & Loss and the Cash Flow Statement for
the year 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 Standard referred to in Section 211 (3C) of the Companies
Act,1956 ("the Act"). This responsibility includes the designs,
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 mis-statements.
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 risk of material misstatements 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 the 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 qualified audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
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 Statements of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statements, of the cash flows for the
year ended on that date.
Reports 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 of Section 227 (4A) of the Act, we give in the Annexure a
statement on the matters specified in paragraph 4 & 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 it appears from our examination of
those books.
(c) the Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred in sub section (3C) of Section 211 of the
Act.
(e) on the basis of written representations received from the directors
as on March 31 , 2013 taken on records by the Board of Directors, none
of the director is disqualified as on March 31, 2013 from the being
appointed as directors in terms of Section 274(1)(g) of the Act.
Annexure referred to in paragraph 1 under the heading "Report on Other
Legal and Regulatory Requirements" 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 on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. No material discrepancies were noticed on such physical
verification;
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
company is not affected.
(ii) In respect of Inventories
(a) The inventory has been physically verified by the management at
regular intervals during the year. In our opinion, the frequency of
verification is reasonable;
(b) In our opinion and according to 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) The Company has maintained proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the books records;
(iii) (a) The company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Sec 301 of the Act. Accordingly Clause 3(b), 3(c) 3(d) of the
Companies (Auditors'' Report ) Order, 2003 are not applicable to the
Company;
(b) The Company has taken unsecured loan from company, firms, parties
covered in register maintained under section 301 of the Act. The number
of parties is two (Richa Building Systems Ltd. Rs. 1602.50 Lac and
Richa Holdings Ltd. Rs. 1353.74 Lac) amount involved is Rs. 2956.24
Lac. The Company has not taken any secured loan from company, firms,
parties covered in register maintained under section 301 of the Act;
(c) Rate of interest is Nil and other terms and conditions of unsecured
loans taken by the company, are not prima facie prejudicial to the
interest of the company; and
(d) Repayment of principal amounting to Rs.431.26 Lacs (Two parties).
(e) Balance outstanding as on 31.03.2013 is Rs 2956.24 Lac (Two
party),which is repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, 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
weakness in internal controls;
(v) (a) In respect of contracts or arrangements referred to in Section
301 of the Act all particulars have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 excluding the value of Rs. 500000/- (Rupees Five Lac Only) in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the company;
(vi) According to the information and explanations given to us, the
company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the order are not
applicable to the company.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(ix) I n respect of statutory dues:
According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date of becoming payable.
(x) The Company does not have accumulated losses as at the end of
financial year. The Company has not incurred any cash losses in the
financial year covered by our audit and in the immediately preceding
financial year;
(xi) Based on our audit procedures and according to the informal and
explanation given to us, we are of the opinion that the company has not
defaulted in repayment of dues to financial institutions, banks and
debentures holders;
(xii) I n our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities;
(xiii) I n our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / societies. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Orders are not applicable to the Company;
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures, and other investments have
been held by the Company in its own name;
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions during the year;
(xvi) The Company has raised new terms loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised;
(xvii) According to the information and explanations given to us an
overall examination of the balance sheet of the Company, we are of the
opinion that there are no funds raised on short-term basis that have
been used for long-term investment;
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Compaies Act, 1956;
(xix) The Company has not issued any debentures;
(xx) The Company has not raised any money by way of public issue during
the year under audit;
( x x i ) I n our opinion and according to the information and
explanations given to us, no material fraud on or by the Company has
been noticed or reported during the year.
For Tayal & Co
Chartered Accountants
(Firm Registration No. 001845N)
(CA R.A. Gupta)
Place : Faridabad Partner
Date : May 30, 2013 Membership No 080997
Mar 31, 2012
1 We have audited the attached Balance Sheet of RICHA INDUSTRIES
LIMITED ("the company") as at 31st March, 2012, the Profit & Loss
Account and the Cash Flow Statement for the year ended on the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing 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 ("the
Order") 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 paragraph 4 & 5 of
the said Order, to the extent applicable to the Company.
4 Further to our comments in Annexure referred to in paragraph (3)
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred 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 , 2012 and taken on records by the Board of Directors,
we report that none of the director is disqualified as on 31st March,
2012 from the being appointed as directors in terms of clause (g) of
Sub Section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 principal
generally accepted in India;
1 In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
2 In the case of Profit & Loss Account, of the profit for the year
ended on the date; and
3 In the case of the Cash Flow Statement, of the Cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of the auditors' report of even
date to the Members of RICHA INDUSTRIES LIMITED, on the financial
statements for the year ended 31st March, 2012, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. No material discrepancies were noticed on such physical
verification;
(c) No substantial part of fixed assets has been disposed during the
year;
(ii) In respect of Inventories
(a) The inventory has been physically verified by the management at
regular intervals during the year. In our opinion, the frequency of
verification is reasonable;
(b) In our opinion and according to 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) The Company is maintaining proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the books records;
(iii) (a) The company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Sec 301 of the Act. Accordingly Clause 3(b), 3(c) 3(d) of the
Companies (Auditors' Report ) Order, 2003 are not applicable to the
Company;
(b) The Company has taken unsecured loan from company, firms, parties
covered in register maintained under section 301 of the Act. The number
of parties is two (Richa Building Systems Ltd. Rs. 1169.50 Lac and
Richa Holdings Ltd. Rs. 1259.89 Lac) amount involved is Rs. 2429.39
Lac. The Company has not taken any secured loan from company, firms,
parties covered in register maintained under section 301 of the Act;
(c) Rate of interest is Nil and other terms and conditions of loans
taken by the company, secured or unsecured, are not prima facie
prejudicial to the interest of the company; and
(d) Repayment of principal amounting to Rs.940.17 Lacs (Two parties).
(e) Balance outstanding as on 31.03.2012 is Rs 2429.39 Lac (Two
party),which is repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed any
weakness in internal controls;
(v) (a) In respect of contracts or arrangements referred to in Section
301 of the Act all particulars have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
The Companies Act, 1956 aggregating during the year to Rs. 500000/-
(Rupees Five Lac Only) or more in respect of each party;
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public,
and hence, the directives issued by the Reserve Bank of India and
provisions of Section 58A, and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable. No order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
(vii) The Company has an internal audit system, the scope and coverage
of which is commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 in
respect of company's activities.
(ix) In respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of becoming payable;
(b) As per the records of the Company, the Company has no disputed dues
of Sales Tax/Custom Duty/Excise Duty/ Education Cess / Service Tax /
Wealth Tax / as on 31st March, 2012 except Income Tax detail of which
are as under :
Assessment
Year Demand Raised Matter Pending
2006-07 Rs.3518816/- The company has filed an appeal before
CIT (Appeal),
u/s 143(3) Faridabad which is pending till date.
2008-09 Rs.1483680/- The company has filed application u/s 154
of the I.T. Act,
u/s 143(1) 1961 which is not disposed off by the
ACIT, Range-I, Faridabad.
2009-10 Rs.4205370/- The company has filed application u/s 154
of the I.T. Act,
u/s 143(1) 1961 which is not disposed off by the ACIT,
Range-I, Faridabad
2009-10 Rs.4088807/- The company has filed an appeal before CIT
(Appeal),
u/s 143(3) Faridabad which is pending till date.
(x) The Company does not have accumulated losses as at the end of
financial year. The Company has not incurred any cash losses in the
financial year covered by our audit and in the immediately preceding
financial year;
(xi) The Company has not defaulted in repayment of dues to any
financial institution or bank or debentures holder as on the Balance
Sheet date;
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures or other securities;
(xiii) In our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / societies. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Orders are not applicable to the Company;
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures, and other investments have
been held by the Company in its own name;
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions during the year;
(xvi) In our opinion and according to information and explanations
given to us, term loans have been applied for the purpose for which the
loans were obtained;
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, there are no funds raised on a short term
basis which have been used for long term investments;
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of Act, 1956;
(xix) The Company has not issued any debentures;
(xx) The Company has not raised any money by way of public issue during
the year under audit;
(xxi) In our opinion 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.
For Tayal & Co
Chartered Accountants
(Firm Registration No. 001845N)
(CA R.A. Gupta)
Place : Faridabad Partner
Date : 30.05.2012 Membership No 080997
Mar 31, 2011
1 We have audited the attached Balance Sheet of RICHA INDUSTRIES
LIMITED ("the company") as at 31st March, 2011, the Profit & Loss
Account and the Cash Flow Statement for the year ended on the 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 misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing 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 ("the
Order") 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 paragraph 4 & 5 of
the said Order, to the extent applicable to the Company.
4 Further to our comments in Annexure referred to in paragraph (3)
above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred 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 , 2011 and taken on record by the Board of Directors,
we report that none of the director is disqualified as on 31st March,
2011 from being appointed as directors in terms of clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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 principal
generally accepted in India;
1 in the case of Balance Sheet, the state of affairs of the Company as
at 31st March, 2011;
2 in the case of Profit & Loss Account, the profit for the year ended
on the date; and
3 in the case of the Cash Flow Statement, the Cash flows for the year
ended on that date.
Annexure to Auditors' Report
Annexure referred to in paragraph 3 of the auditors' report of even
date to the Members of RICHA INDUSTRIES LIMITED, on the financial
statements for the year ended 31st March, 2011, we report that:
(i) (a) the Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) as explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. No material discrepancies were noticed on such physical
verification;
(c) no substantial part of fixed assets has been disposed off during
the year;
(ii) In respect of Inventories
(a) the inventory has been physically verified by the management at
regular intervals during the year. In our opinion, the frequency of
verification is reasonable;
(b) in our opinion and according to 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) the Company is maintaining proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of inventory as compared to the books records;
(iii) (a) The company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Sec 301 of the Act. Accordingly Clause 3(b), 3(c), 3(d) of the
Companies (Auditors' Report ) Order, 2003 are not applicable to the
Company;
(b) The Company has taken unsecured loan from company, firms, parties
covered in register maintained under section 301 of the Act. The number
of parties is two (Richa Building Systems Ltd. Rs. 1154.50 Lac and
Richa Holdings Ltd. Rs. 962.50 Lac) amount involved is Rs. 2117 Lac.
The Company has not taken any secured loan from company, firms, parties
covered in register maintained under section 301 of the Act;
(c) Rate of interest is Nil and other terms and conditions of loans
taken by the company, secured or unsecured, are not prima facie
prejudicial to the interest of the company; and
(d) Repayment of principal amounting to Rs.672.50 lac (Two parties).
(e) Balance outstanding as on 31.03.2011 is Rs.2117 Lac (Two
party),which is repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed any
weakness in internal controls;
(v) (a) In respect of contracts or arrangements referred to in Section
301 of the Act all particulars have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
The Companies Act, 1956 aggregating during the year to Rs. 500000/-
(Rupees Five Lac Only) or more in respect of each party;
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public,
and hence, the directives issued by the Reserve Bank of India and
provisions of Section 58A, and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable. No order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or
any other Tribunal.
(vii) The Company has an internal audit system, the scope and coverage
of which is commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 in
respect of companys' activities.
(ix) I n respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31st March, 2011 for a period of more than six months
from the date of becoming payable;
(b) As per the records of the Company, the Company has no disputed dues
of Sales Tax/ Income Tax/ Custom Duty/Excise Duty/Education Cess /
Service Tax / Wealth Tax / as on 31st March, 2011;
(x) The Company does not have accumulated losses as at the end of
financial year. The Company has not incurred any cash losses in the
financial year covered by our audit and in the immediately preceding
financial year;
(xi) The Company has not defaulted in repayment of dues to any
financial institution or bank or debentures holder as on the Balance
Sheet date;
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures or other securities;
(xiii) I n our opinion, the company is not a chit fund / nidhi / mutual
benefit fund / societies. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company;
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name;
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the year;
(xvi) In our opinion and according to information and explanations
given to us, term loans had been applied for the purpose for which the
loans were obtained;
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, there are no funds raised on a short term
basis which have been used for long term investments;
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of Act,1956;
(xix) The Company has not issued any debentures;
(xx) The Company has not raised any money by way of public issue during
the year under audit;
(xxi) In our opinion 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.
For Tayal & Co
Chartered Accountants
(Firm Registration No. 001845N)
(CA R.A. Gupta)
Partner
Membership No 080997
Place : Faridabad
Date : May 30, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Richa Industries
Limited ("the company") as at March 31, 2010 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on the date,
annexed thereto. These financial statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing 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 (AuditorÃs Report) Order 2003 (Ãthe
OrderÃ), 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 paragraph 4 & 5 of
the said Order, to the extent applicable to the Company.
4. Further to our comments in Annexure referred to in paragraph (3)
above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of accounts, 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Profit & Loss Account and the
Cash Flow Statement dealt with by this report comply with the
accounting standards referred in Sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representation received from the Directors,
as on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the Director is disqualified as on 31st March 2010
from being appointed as Director in terms of clause (g) of Sub-section
(1) of Section 274 of the Companies Act, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and true
and fair view in conformity with the accounting principles generally
accepted in India;
1. in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
2. in the case of Profit & Loss Account, of the profit for the year
ended on the date; and
3. in the case of the Cash Flow Statement, of the Cash flows for the
year ended on that date.
Annexure to Auditors Report
The Annexure referred to in paragraph 3 of the Auditorsà Report of even
date to the Members of Richa Industries Limited, on the financial
statements for the year ended 31st March 2010, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the Company and nature of
its assets. No material discrepancies were noticed on such physical
verification;
(c) No substantial part of fixed assets, except the old obsolete
machinery has been disposed off during the year;
(ii) In respect of inventories :
(a) The inventory has been physically verified by the management at
regular intervals during the year. In our opinion, the frequency of
verification is reasonable;
(b) In our opinion and according to 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) The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records;
(iii) (a) The company has not granted any loan, secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly Clause 3(b), 3(c) & 3(d) of
the Companies (AuditorÃs Report ) Order, 2003 are not applicable to the
Company;
(b) The Company has taken unsecured loan from company, firms, parties
covered in register maintained under Section 301 of the Act. The number
of parties is three and amount involved is Rs. 418 Lac. The Company has
not taken any secured loan from company, firms, parties covered in
register maintained under Section 301 of the Act;
(c) Rate of interest is Nil and other terms and conditions of loans
taken by the Company, secured or unsecured, are not prima facie
prejudicial to the interest of the Company;
(d) Repayment of principal amounts to Rs.215 lac(three parties); and
(e) Balance outstanding as on 31.03.2010 is Rs.1129 lac( one
party),which is repayable on demand.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and also for the sale of goods
and services. During the course of our audit, we have not observed any
weakness in internal controls;
(v) (a) In respect of contracts or arrangements referred to in Section
301 of the Act, all particulars have been entered in the register
required to be maintained under this section; and
(b) In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/-
(Rupees Five Lac only) or more in respect of each party;
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public,
and hence, the directives issued by the Reserve Bank of India and
provisions of Section 58A, and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable.
(vii) The Company has an internal audit system, the scope and coverage
of which is commensurate with its size and nature of its business.
(viii) The Central Government has not prescribed the maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 in
respect of Companys activities.
(ix) I n respect of statutory dues:
(a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of the aforesaid dues were
outstanding as at 31st March, 2010 for a period of more than six months
from the date of becoming payable;
(b) As per the records of the Company, the Company has no disputed dues
of Sales Tax/ Income Tax/ Custom Duty/Excise Duty/Education Cess /
Service Tax / Wealth Tax as on 31-03-2010;
(x) The Company does not have accumulated losses as at the end of
financial year. The Company has not incurred any cash losses in the
financial year covered by our audit and in the immediately preceding
financial year;
(xi) The Company has not defaulted in repayment of dues to any
financial institution or bank or debenture holders as on the Balance
Sheet date;
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures or other securities;
(xiii) In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / societies. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company;
(xiv) The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures, and other investments
have been held by the Company in its own name;
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions during the year;
(xvi) In our opinion and according to information and explanations
given to us, term loans had been applied for the purpose for which the
loans were obtained;
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion, there are no funds raised on a short term
basis which have been used for long term investments;
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of Act,1956;
(xix) The Company has not issued any debentures;
(xx) The Company has not raised any money by way of public issue during
the year under audit;
(xxi) In our opinion 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.
For Tayal & Co
Chartered Accountants
(Firm Registration No. 001845N)
(CA R.A. Gupta)
Place : Faridabad Partner
Date : 31.05.2010 Membership No 080997
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