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RACL Geartech Ltd.

BSE: 520073 Sector: Auto
NSE: N.A. ISIN Code: INE704B01017
BSE LIVE 15:41 | 20 Nov 61.90 0.15
(0.24%)
OPEN

60.55

HIGH

62.70

LOW

60.55

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 60.55
PREVIOUS CLOSE 61.75
VOLUME 12042
52-Week high 70.90
52-Week low 26.55
P/E 12.71
Mkt Cap.(Rs cr) 61
Buy Price 61.90
Buy Qty 18.00
Sell Price 0.00
Sell Qty 0.00
OPEN 60.55
CLOSE 61.75
VOLUME 12042
52-Week high 70.90
52-Week low 26.55
P/E 12.71
Mkt Cap.(Rs cr) 61
Buy Price 61.90
Buy Qty 18.00
Sell Price 0.00
Sell Qty 0.00

RACL Geartech Ltd. (RACLGEARTECH) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

RACL Geartech Limited

(Formerly Raunaq Automotive Components Limited)

Report on the (Standalone) Financial Statements

We have audited the accompanying financial statements of RACL GeartechLimited("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Management and Board of Directors of the Company is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we enclosed in the annexure statement on the matters specified inparagraph 3 and 4 of the said 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. There are no observations or comments on the financial transactions or matters whichhave any adverse effect on the functioning of the company.

f. On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record none of the directors is disqualified as on 31st March 2017from being appointed as a director in terms of Section 164 (2) of the Act.

g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-A".

h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The company has no pending litigation which would impact its financial position;

ii. The company did not have any long-term contract including derivative contract forwhich there were any material foreseeable losses;

iii. There were no amount which were required by the company to be transferred to theInvestor Education and Protection Fund.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified bank notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management. (Refer Note No. 44 tothe Financial Statements)

For A SACHDEV & CO.

Chartered Accountants

FRN 001307C

Sd/-

B.K. AGARWAL

Partner

M. No. 090771

Place: Noida

Date : 27th MAY 2017

Annexure to the Independent Auditor's Report of RACL Geartech Limited for the Yearended as on 31st March 2017

Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory

Requirements" of our report on even date:-

i. a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) According to the information and explanations given to us the Fixed Assets havebeen physically verified by the management at the end of the financial year and alldiscrepancies have been properly dealt with in the Books of Accounts.

c) The title deeds of immovable properties are held in the name of the company.

ii. The inventories except for stocks lying with third parties where certificatesconfirming stocks have been received in respect of most of the stocks hold have beenphysically verified by the management during the year at reasonable interval. According toinformation & explanations given to us the discrepancies noticed on verificationbetween the physical stock and books record have been properly dealt with in the Books ofAccounts.

iii. According to information & explanations given to us The Company has notgranted any loans secured or unsecured to companies firms limited liabilitiespartnership or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Hence reporting under clause (a) to (c) of Para 3(iii) are notapplicable.

The Company has been pursuing civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs outstanding against him and the same shall be deemed as income of the companyas and when received.

iv. The Company has not entered into any transaction in respect of loans investmentsguarantee and securities which attracts compliance to the provisions of the sections 185and 186 of the Companies Act 2013.Therefore the paragraph 3(iv) of the Order is notapplicable to the company.

v. In our opinion and according to information and explanations given to us the Companyhas not accepted deposits in terms of the provisions of section 73 to 76 of the CompaniesAct 2013 and rules framed there under. Therefore the paragraph 3(v) of the Order is notapplicable to the company.

vi. As informed to us the Central Government has not prescribed maintenance of costrecords under subsection (1) of section 148 of the Companies Act 2013.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the books of accounts the company has been generally regular indepositing undisputed statutory dues including provident fund employee state insuranceincome tax service tax value added tax cess and other statutory dues during the yearwith the appropriate authorities. As on 31st March 2017 there are no undisputed statutorydues payables for period exceeding for a period more than six month from the date theybecome payable.

b) According to the information and explanations given to us there were no statutorydues pending in respect of income tax sales tax VAT custom duty and cess etc. onaccount of any dispute.

viii. In our opinion and according to information and explanations given to us theCompany has not defaulted repayment of loans or borrowing to the banks financialinstitutions and Government. Company has not raised any money by issue of debentures andhas not borrowed any money from Financial Institution or Government.

ix. Money raised by way of term loan were applied for the purpose for which it wasraised. The Company has not raised money by way of initial public offer or further publicoffer.

x. According to the information and explanation given to us by the management whichhave been relied by us there were no frauds on or by the company noticed or reportedduring the period under audit.

xi. In our opinion the managerial remuneration paid or provided by the company are inaccordance with the provision of section 197 read with Schedule V of the Companies Act2013.

xii. The company is not a Nidhi Company therefore para 3(xii) of the Order is notapplicable.

xiii. In our opinion and according to the information provided to use the transactionentered with the related parties are in compliance with section 177 and 188 of the Act andare disclosed in the financial statements as required by the applicable accountingstandards.

xiv. Company has not made any preferential allotment of shares or debentures during theyear.

xv. According to the information provided to us the company has not entered into anynon-cash transaction with directors or the persons connected with him covered undersection 192 of the Companies Act 2013. Therefore paragraph 3(xv) of the Order is notapplicable to the company.

xvi. According to the information provided to us the company is not required to beregistered under section 45IA of the Reserve Bank of India Act 1934. Therefore paragraph3(xvi) of the Order is not applicable to the company.

For A SACHDEV & CO.

Chartered Accountants

FRN 001307C

Sd/-

B.K. AGARWAL

Partner

M. No. 090771

Place: Noida

Date : 27th MAY 2017

Annexure-A

Annexure referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report on even date:-

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of RACLGeartech Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for my / our audit opinion on the Company's internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For A SACHDEV & CO.

Chartered Accountants

FRN 001307C

Sd/-

B.K. AGARWAL

Partner

M. No. 090771

Place: Noida

Date : 27th MAY 2017