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Rainbow Foundations Ltd.

BSE: 531694 Sector: Infrastructure
NSE: N.A. ISIN Code: INE230F01014
BSE LIVE 15:14 | 18 Aug 14.73 0.70
(4.99%)
OPEN

14.73

HIGH

14.73

LOW

14.73

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.73
PREVIOUS CLOSE 14.03
VOLUME 100
52-Week high 22.65
52-Week low 10.47
P/E 2.99
Mkt Cap.(Rs cr) 8
Buy Price 14.73
Buy Qty 29712.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.73
CLOSE 14.03
VOLUME 100
52-Week high 22.65
52-Week low 10.47
P/E 2.99
Mkt Cap.(Rs cr) 8
Buy Price 14.73
Buy Qty 29712.00
Sell Price 0.00
Sell Qty 0.00

Rainbow Foundations Ltd. (RAINBOWFOUNDAT) - Auditors Report

Company auditors report

INDEPENDENTAUD ITOR’S REPORT

To the Members OF M/S. RAINBOW FOUNDATIONS LIMITED

Report on the FinancialS tatements

We have audited the accompanying financial statements of M/S. RAINBOW FOUNDATIONSLIMITED CHENNAI – 600 017 ("the Company") which comprise the BalanceSheet as at March 31 2016 and the Statement of Profit and Loss the Cash Flow Statementfort he year then ended and a summary of significant accounting policies and otherexplanatoryi nformation.

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) Rules2014.T hisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements 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 accounting recordsrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free fromm aterialm isstatement whether due to fraud ore rror.

Auditor’s Responsibility

Ourr esponsibilityi s 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 Rulesm adet hereunder.

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 materialm isstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis foro ura udit opinion on thef inancial 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 oft he Company as at 31stMarch 2016 and its profit and its cash flows for the year ended on thatd ate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act we give in the "AnnexureA "a statement on the mattersspecified in paragraphs3 and 4 of the Order.

2. As required by Section 143(3)o ft he Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof ourk nowledge and beliefw ere necessaryf or the purposeo f 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 Statementdealtwi th byt his Report are in agreementw ith 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)R ules2 014.

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financialc ontrols over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Reporti n "Annexure B"

(g) With respectt o the other matters to be included in the Auditor’s Reporti naccordance with Rule 11 of the Companies (Audit and Auditor) Rules 2014 in our opinionand to the besto f ouri nformation and accordingt o the explanations given to us:

i. The Company does not have any pending litigations which would impacti ts financialposition.

ii. The Company did not have any long-term contracts including derivative contractsforw hich there were anym aterialf oreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund byt he company.

PLACE: CHENNAI ForJ AIN BAFNA AND CO.
DATE: 30.05.2016 (Chartered Accountants)
Firm Reg No:010657 S
(S. MUTHU KUMAR)
(Partner)
Address: F-1 58 Greams Road
Chennai 600 006
Mem No: 209636

Annexure-A

ANNEXURET OT HEAUD ITORSR EPORT

The Annexure referred to in Paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" of our Independent Auditors Report to the shareholdersof M/S RAINBOW FOUNDATIONS LIMITED for the year ended 31st March 2016 and interms of the information and explanations given to us and also on the basis of such checksas we considered appropriate we furthers tate that:

(i)

a. The company has maintained proper records showing full particulars includingquantitative details and situation off ixed assets.

b. All the assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c. According to the information and explanations given to us the title deeds ofimmovable properties are held in the name oft he Company.

opinion the frequency ofv erification is reasonable. b. The discrepancies noticed onphysical verification of inventory as compared to books of records which hasb een properlydealtwi th int he books ofa ccounts were notm aterial.

(iii) According to the information and explanations given to us and in our opinion thecompany has not granted any loans secured or unsecured to Companies Firms LLPs or otherparties covered in the register maintained under section 189 of the Companies Act.Accordingly the provisions of clause 3 (iii) (a) to (c) of the order are not applicableto the company and hence not commented upon.

(iv) According to the information and explanations given to us and in our opinion inrespect of loans investments guarantees and security the provisions of section 185 and186 of Company Act 2013 have been complied with.

(v) According to the information and explanations given to us and in our opinion theCompany has not accepted any deposit from public and hence the directives issued by theReserve Bank of India and the Provisions of Section 73 to 76 or any other relevantprovisions of Companies Act and the companies (acceptance of deposit) Rules 2015 withregard to the deposits accepted from public are not applicable. (vi) In our opinion andaccording to the information and explanations given to us the maintenance of cost recordshas not been specified by the central Govt. under sub section (1) of section 148 oft heAct in respect of activities carried on byt he company.

(vii) a. According to the information and explanations given to us and on the basis ofour examination of the books of accounts and the records the company has been generallyregular in depositing undisputed statutory dues including provident fund employee’sstate insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payable inrespect of the above were in arrears as at March 312016 for a period of more than sixmonths from the date when they became payable. b. According to the information andexplanation given to us there are no dues of sale tax duty of customs duty ofexcise value added tax have not been deposited on account of any dispute. The particularsof Income Tax and Service Tax as at 31st March 2016 which have not been deposited onaccounto f dispute are as follows

Name of the Statue Nature ofD ues Amount under dispute noty et deposited Rs. Period tow hich amountr elates Forumw here the dispute is pending
Income TaxA ct 1961 Income tax including interest till the date of assessment 285218 AY 2002-03 TheH on’ble Madras High courtC hennai
Income TaxA ct 1961 Income Tax Alongwi th Interest till the date of Assessment Rs. 333003/- AY 2007-08 TheC ommissioner of Income Tax (Appeals) Chennai
Finance Act 1994 (Service Tax) Service Tax & Penalty Interest to be quantified till the date of actual payment Rs. 791330/- From November 2004 to September 2007 Customs Excise and Service Tax Appellate TribunalC hennai
Finance Act 1994 (Service Tax) Service Tax & Penalty Interest to be quantified till the date of actual payment Rs. 2971557/- 2006-2007 to 2010-2011 Customs Excise and Service Tax Appellate TribunalC hennai

(viii) According to the information and explanations given to us and in our opinionthe company has not defaulted in repayment of loans or borrowing to a financialinstitution bank and company has no loans orb orrowingfr om Government or dues todebenture holders.

(ix) Based on the audit procedures performed and according to the information andexplanation given to us and in our opinion no moneys were raised by way of initial publicoffer or further public offer (including debt instruments) and term loans wereapplied for the purposes for which those are raised.

(x) Based on the audit procedures performed and according to the information andexplanations given to us and in our opinion no fraud by the company or on the company byits officers or employees hasb een noticed or reported duringt hey ear.

(xi) Based on the audit procedures performed and according to the information andexplanations given to us the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the CompaniesA ct.

(xii) According to the information and explanations given to us and in our opinion theCompany is not a Nidhi Company. Therefore the provisions of clause 4(xii) of theCompanies (Auditor’s Report)O rder 2016 are not applicable to the company.

(xiii) All transactions with the related parties are in compliance with section 177 andsection 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. asr equired byt he applicable accounting standards.

(xiv) Based on the audit procedures performed and according to the information andexplanations given to usand in our opinion the Company has notm ade any preferentialallotmento r private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly the provisions of clause3 (xiv) of the order are notapplicable to the company and hence not commented upon.

(xv) Based on the audit procedures performed and according to the information andexplanations given to us and in our opinion the Company has not entered into any non-cashtransaction with directors or persons connected with him. Accordingly the provisions ofclause 3(xv) of the ordera re not applicablet o the company and hence not commented upon.

(xvi) According to the information and explanations given to us and in our opinion theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly the provisions of clause3 (xvi) of the order are not applicable tothe company and hence not commented upon.

PLACE: CHENNAI ForJ AIN BAFNA AND CO.
DATE: 30.05.2016 (Chartered Accountants)
Firm Reg No:010657 S
(S.MUTHU KUMAR)
(Partner)
Address: F-1 58 Greams Road
Chennai 600 006
Mem No: 209636

Annexure-B

IndependentA uditors'R eport

Report on the InternalF inancialC ontrols underC lause(i) ofS ub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/S. RAINBOWFOUNDATIONS LIMITED ("the Company") as of 31 March 2016 in conjunction withour audit of the financial statements of the Companyf ort he year ended on thatd ate.

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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the CompaniesA ct 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 performt he auditt o obtain reasonable assurance about whetheradequate internal financial controls overf inancialr eportingw as established andmaintained and ifs uch controls operated effectivelyi n all materialr espects.

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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterialm isstatement oft he financial statements whether due tof raud ore rror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis foro ura udito pinion on theC ompany's internalf inancial controls systemoverf inancialr eporting.

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 oft he assets oft he 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 ofmanagementa nd directors oft he company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition oft hecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because oft he inherent limitations ofi nternal financial controls over financialreporting includingt he 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 financialr eporting may become inadequatebe cause of changes in conditions or thatthe degree of compliancewi tht he 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 31 March 2016 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 ofC harteredAccountants ofI ndia.

PLACE: CHENNAI ForJ AIN BAFNA AND CO.
DATE: 30.05.2016 (Chartered Accountants)
Firm Reg No:010657 S
(S.MUTHU KUMAR)
(Partner)
Address: F-1 58 Greams Road
Chennai 600 006
Mem No: 209636