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Rain Industries Ltd.

BSE: 500339 Sector: Others
NSE: RAIN ISIN Code: INE855B01025
BSE LIVE 15:51 | 18 Aug 138.00 8.00
(6.15%)
OPEN

130.20

HIGH

140.15

LOW

128.20

NSE 15:59 | 18 Aug 138.15 8.35
(6.43%)
OPEN

130.00

HIGH

140.50

LOW

128.10

OPEN 130.20
PREVIOUS CLOSE 130.00
VOLUME 446608
52-Week high 140.15
52-Week low 39.60
P/E 150.00
Mkt Cap.(Rs cr) 4,642
Buy Price 138.00
Buy Qty 106.00
Sell Price 0.00
Sell Qty 0.00
OPEN 130.20
CLOSE 130.00
VOLUME 446608
52-Week high 140.15
52-Week low 39.60
P/E 150.00
Mkt Cap.(Rs cr) 4,642
Buy Price 138.00
Buy Qty 106.00
Sell Price 0.00
Sell Qty 0.00

Rain Industries Ltd. (RAIN) - Auditors Report

Company auditors report

To the Members of Rain Industries Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Rain Industries Limited ('theCompany') which comprise the Balance Sheet as at 31 December 2015 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information (collecticvely referredas "financial statements").

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 and the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and rules made thereunder to the extent applicable.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India (ICAI). Those Standards and otherpronouncements require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal controls system over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe 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 31December 2015 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 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 bestof 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 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) on the basis of written representations received from the directors as on 31December 2015 and taken on record by the Board of Directors none of the director isdisqualified as on 31 December 2015 from being appointed as a director in terms ofSection 164 (2) of the Act.

f) 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 disclosed the impact of pending litigations on its financialposition in its Financial Statements as at 31 December 2015 - Refer note 24 to theFinancial Statements;

(ii) the Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses; and

(iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm registration number: 116231W/W-100024
Sriram Mahalingam
Hyderabad Partner
19 February 2016 Membership Number: 049642

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in our report of even date to the Members of Rain IndustriesLimited ("the Company") on the financial statements for the year ended 31December 2015. We report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular program of physical verification of its fixed assets bywhich all fixed assets are verified once in two years. In our opinion the periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets. In accordance with the programme all the fixed assets were verifiedduring the year and no material discrepancies were observed on such verification.

(ii) As explained to us the Company's activities primarily include service revenue andtrading in inventory of petroleum coke products. The sales made to its customers are on ahigh sea sale basis. Accordingly it does not hold any physical inventories. Thusparagraph 3(ii) of the Order is not applicable.

(iii) The Company has granted unsecured loan to one subsidiary company covered in theregister maintained under section 189 of the Companies Act 2013 ("Act"). TheCompany has not granted loans to firms or other parties covered in the register maintainedunder Section 189 of the Act. a. In case of the loans granted to the Company listed in theregister maintained under section 189 of the Act the borrower has been regular inrepaying the principal amounts as stipulated and in the payment of the interest. b. Thereare no overdue amounts of more than rupees one lakh in respect of loans granted to theCompany covered in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us andhaving regard to the explanation that purchase of certain items of inventories and fixedassets are for the Company's specialised requirements and similarly certain goods sold andservices rendered are for the specialised requirement of the buyers and suitablealternative sources are not available to obtain comparable quotations there is anadequate internal control system commensurate with the size of the Company and the natureof its business with regard to purchase of inventories and fixed assets and with regardto sale of goods and services. We have not observed any major weaknesses in the internalcontrol system during the course of our audit.

(v) The Company has not accepted any deposits from the public within the meaning ofSection 73 74 and 76 of the Act and the rules framed there under to the extent notified.

(vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income taxService tax Value added tax Wealth tax Cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company did not have any dues on account of Employees' stateinsurance Sales tax Duty of Customs and Duty of Excise.

According to the information and explanations given to us there are no undisputedamounts payable in respect of Provident fund Income tax Wealth tax Cess Value addedtax Service tax and other material statutory dues that were in arrears as at 31 December2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofSales tax Value added tax Wealth tax Service tax and Cess which have not beendeposited with appropriate authorities on account of any disputes. However the Companydisputes the following Income tax dues:

Name of the Statute Nature of the Dues Amount in Millions (Rs.) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax and interest 91.24 AY 2004-05 Honorable High Court of Andhra Pradesh
(91.24)*
Income Tax Act 1961 Income Tax and interest 158.77 AY 2008-09 Income Tax Appellate Tribunal
(12.81)*
Income Tax Act 1961 Income Tax and interest 167.76 AY 2009-10 Income Tax Appellate Tribunal
(94.90)*
Income Tax Act 1961 Income Tax and interest 200.44 AY 2010-11 Income Tax Appellate Tribunal
(10.00)*
Income Tax Act 1961 Income Tax and interest 57.74 AY 2011-12 Deputy Commissioner of Income Tax

(Amount in parenthesis represents payment under protest)

As explained to us the Company did not have any dues on account of Duty of Excise andDuty of Customs.

(c) According to the information and explanation given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 1956 (1 of 1956) and rules thereunderhas been transferred to such fund within time.

(viii)The Company does not have any accumulated losses at the end of the financial yearand has not incurred cash losses in the financial year and in the immediately precedingfinancial year.

(ix) In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to its bankers and financial institutions.The Company did not have any outstanding debentures during the year.

(x) According to the information and explanations given to us the Company has notgiven any guarantees for loans taken by others from banks or financial institutions.

(xi) According to the information and explanations given to us and on overallexamination of the balance sheet the term loans taken by the Company have been appliedfor the purpose for which they were raised.

(xii) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.

for B S R & Associates LLP
Chartered Accountants
ICAI Firm registration number: 116231W/W-100024
Sriram Mahalingam
Hyderabad Partner
19 February 2016 Membership Number: 049642