| We have audited the accompanying financial statements of RAJASTHAN TUBE
MANUFACTURING COMPANY LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, 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
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
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the 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 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
accounting policies used and the reasonableness of the accounting
estimates made by the Company's Directors, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the financial statements.
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, of the state of affairs of the Company as
at March 31, 2015, and its losses and its cash flows for the year ended
on that date.
Report On Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Profit and Loss Statement, 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 Auditors'
Report in accordance with Rule 11 of the Companies(Audit and Auditor's)
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 as of March 31, 2015.
ii. The Company has made provisions in its financial statements, as
required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long term contracts.
iii. There is no amount, required to be transferred, to the Investor
Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
Re. Rajasthan Tube Manufacturing Company Limited:
1. The company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. According
to the information and explanations given to us, most of the fixed
assets have been physically verified by the Management during the year.
In our opinion, the frequency of such physical verification is
reasonable having regard to the sizes of the Company and the nature of
its assets. No material discrepancies were noticed on such verification
as compared to the available records.
2. Physical verification of Inventory has been conducted by the
Management at reasonable intervals. The procedures for physical
verification of stocks followed by the Management are reasonable and
adequate in relation to the size of the company and nature of its
business. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. The Company has granted loans to companies under the same management,
firms or other parties listed in the Register maintained under section
189 of the Companies Act 2013. Total number of party is one and amount
involved was Rs.16460000/- and there is no outstanding at the year end.
(a) Not Applicable
(b) Not Applicable
4. 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 the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. The Company has not accepted any deposits from public.
6. We have broadly reviewed the books of accounts maintained by the
Company, pursuant to rules made by the Central Government for the
maintenance of cost records under sub-section (1) of section 148 of the
Companies Act, 2013 and are of the opinion that prima facie, the
prescribed accounts and records have been maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate and complete.
7. a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, value added tax, Excise Duty, Cess and
other material statutory dues have been regularly deposited during the
year by the company with the appropriate authorities. no undisputed
amounts payable in respect of sales tax, Income tax, Wealth Tax, Service
Tax, Custom tax, Excise Duty and Cess were outstanding of the year end
for a period of more than six months from the date they became payable
except the following:
Name of the Nature of Period to Amount
Statute the Dues which the Rs.
amt.Relates
Employees State ESI 1998-2000 94087
Insurance Act.
Name of the Forum where
Statute the dispute
is pending
Employees State Employees State
Insurance Act. Insurance Court
b) According to the records of the company, there are no disputed
amounts that have not been deposited with appropriate authorities on
account of Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Sales Tax, Cess and Service Tax.
c) According to the information and explanation given to us there were
no such amounts which were 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.
8. The company has no accumulated losses at the end of the financial
year and it has incurred cash losses in the current financial year but
not in the immediately preceding financial year.
9. The company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
10. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. The company has not applied for any term loan during the year.
12 . Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For PRAMOD & ASSOCIATES
Chartered Accountants
(Registration No.001557C)
Jaipur: (ANKITA JAIN)
Dated : 30th May, 2015 Partner
(Membership No.423734)
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