| 1. We have audited the accompanying financial statements of Rajvir
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the statement of Profit and 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
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 and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and Cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding 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 financial
statements based on our audit.
4. 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 rules
made there under.
5. 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.
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
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31 2015 and its Loss and its Cash Flows for the year ended on
that date.
Emphasis of Matter
9. We draw attention to Notes to accounts of the accompanying
financial statement in respect of:
(a) Note no. 2.27(e): contingency related to 'recompense payable in
lieu of bank sacrifice' outcome of which is materially uncertain and
cannot be determined currently;
(b) Note no. 2.32: the confirmation of balances of trade payable, trade
receivable, debit and credit to the parties are subject to
reconciliation, review and adjustment thereof
(c) Note no. 2.18.1: interest subsidy under TUFS receivable, towards
claim of refund made in earlier years, against eligible machinery,
which is pending, for final decision before appropriate authorities.
The management expects full realization thereof.
Our opinion is not qualified in respect of above matters.
Report on Other Legal and Regulatory Requirements
10. 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 the "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 the paragraph 3 and 4 of the Order, to the extent
applicable.
11. 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 March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us
i. The Company has disclosed the impact of pending litigations as on
March 31, 2015 on its financial position in its financial statements
ii. The Company has made provision, as required under the applicable
law or Accounting Standards, for material foreseeable losses, if any,
on long term contracts. The Company neither entered into any derivative
contract during the year nor have any outstanding derivative contract
at the end of the year;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015
Annexure to the Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Rajvir Industries Limited on the financial
statements 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 during
the year and there is regular program of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets
(ii) (a) The inventory has been physically verified by the management
during the year. In respect of inventory lying with the 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 or other parties covered in the registers maintained
under Section 189 of the Act.
(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. Further, on the basis of our examination of
the books and records of the Company and according to the Information
and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in
the aforesaid internal control system.
(v) In our opinion and according to the information and explanation
given to us, the company has complied with the provisions of section 73
to 76 and other relevant provisions of the Companies Act and the
Companies (Acceptance of Deposit) Rules, 2014 as applicable, with
regards to the deposits accepted from members and the public. 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
with regard to the Deposits
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government of India,
the maintenance of cost records 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 explanations given to us,
and on the basis of our examination of the books of account, the
company has been regular in depositing with appropriate authorities
undisputed statutory dues including wealth tax, sales-tax, customs
duty, investor education and protection fund and any other material
statutory dues applicable to it except as stated below, where the
company is irregular in payment of undisputed statutory dues and which
remained unpaid for a period of more than six months as on the date of
reporting
Particulars Period Amount
(In lakhs)
Employee State October 2013 to 29.19
insurance September 2014
Provident fund March 2014 to 26.71
September 2014
Tax deducted and April 2014 to September 14.42
collected at source 2014
Sales tax deferment Upto 31 st March 2015 187.89
Income Tax For the financial year 98.10
2012-13
(b) According to the information and explanations given to us, there
are no disputed statutory dues as at the year end
(c) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made there under.
(viii) The company has accumulated losses as at the close of the year
and are not more than 50% of its net worth. The company has incurred
cash losses during the financial year ended on that date and in the
immediately preceding financial year.
(ix) According to the records examined by us, the Company has defaulted
in repayment of dues to financial institutions/banks and same has been
rescheduled under Corporate Debt Restructuring dated 13th August 2014
during the current financial year. There are no over-dues as on 31 st
March 2015. In case of bond holder of Rs.41.43 lacs (Pr.year Rs.41.43
lacs), the company has not repaid and has disputed the same pending
before High Court. As per information and explanation given to us, the
company has deposited by way of fixed deposit a sum of Rs75 lacs(Pr.
year Rs.55 lacs ) with the bank against the same.
(x) In our opinion and according to the information and the
explanations given to us, the company has not given any guarantees for
loans taken by others from banks and financial institutions
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied on an overall basis for
the purposes for which they were obtained
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit nor have been informed of such case by the
Management.
For S Daga & Co.
Chartered Accountants
(ICAI FRN: 000669S)
Sd/-
(Pavan Kumar Bihani)
Place: Hyderabad Partner
Date: 30.05.2015 M. No. 225603 | 