We have audited the accompanying financial statements of Rishiroop
Rubber (International) Limited ("the Company") , which comprise the
Balance Sheet as at March 31, 2014, and the Statement of profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India, including the
Accounting Standards notifed under the Companies Act, 1956 read with
General Circular 15/2013 dated 13th September 2013, issued by the
ministry of Corporate Affairs, in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of profit and Loss , of the profits for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-Section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notifed under
the Companies Act, 1956 read with General Circular 15/2013 dated 13th
September 2013, issued by the ministry of Corporate Affairs, in respect
of Section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-Section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Auditors' Report. (Referred to in paragraph 1 of our
report)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verifcation of its
fixed assets under which fixed assets are verifed in a phased manner
,which in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verifcation.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verifcation of inventory
at reasonable intervals during the year.
(b) The procedures of physical verifcation 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verifcation.
(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, the provisions of clauses
4(iii)(b) to 4(iii)(d) of the Order are not applicable.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, the provisions of clauses
4(iii)(f) and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, 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 the goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
(v) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956 :
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract /
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 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 information and explanation given to us, the Company
has not accepted deposits in terms of the provisions of Section 58A and
58AA or any other relevant provisions of the Companies Act, 1956.
(vii) In our opinion, the internal audit functions carried out during
the year by the firm of Chartered Accountant appointed by the Management
have been commensurate with the size of the Company and nature of its
business.
(viii) In our opinion, the Central Government has not prescribed the
maintenance of cost records under clause (d) of sub- Section (1) of
Section 209 of the Companies Act, 1956 in respect of activities carried
out by the Company.
(ix) (a) According to information and explanation given to us the
Company is generally regular in depositing the undisputed statutory
dues including provident fund, income tax, sales tax, service tax,
customs duty, cess and other material statutory dues, as applicable,
with the appropriate authorities.
(b) In our opinion there are no disputed liabilities which are
outstanding for a period of more than six months from the date they
became payable.
(x) In our opinion, the accumulated losses of the company at the end of
the financial year are not more than fifty percent of its net worth. The
Company has not incurred cash losses for the current and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has no outstanding dues to any bank or
financial institution during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Accordingly, the provisions of clause 4(xii) of the Order
are not applicable.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund /
society. Accordingly, the provisions of clause 4(xiii) of the Order are
not applicable.
(xiv) The company is investing surplus funds in Mutual funds and proper
records have been maintained of the transactions & contract and timely
entries have been made therein and investment have been held by the
company in it's own name.
(xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or any financial institutions, accordingly provisions of the
clause 4(xv) of the order are not applicable.
(xvi) The Company has not obtained any term loans during the year under
audit. Accordingly Provisions of clause 4(xvi) of the order are not
applicable.
(xvii) According to the cash fow statement and other records examined
by us and the information and explanation given to us, on an overall
basis, funds raised on short term basis, have prima facie, not been
used during the year for long term investments.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly the provisions of clause 4 (xix) of the
Order are not applicable.
(xx) The Company has not raised any money by way of public issues
during the year. Accordingly, the provisions of clause 4(xx) of the
Order are not applicable.
(xxi) According to information and explanation given to us , no fraud
on or by the Company has been noticed or reported during the period
covered by our audit.
For Jayesh Dadia & Associates
Chartered Accountants
Firm's Registration No. 121142W
Nishit Dave
Partner
Membership No. 120073
Place : Mumbai
Date : 23rd May 2014
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