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Rainbow Foundations Ltd.

BSE: 531694 Sector: Infrastructure
NSE: N.A. ISIN Code: INE230F01014
BSE LIVE 15:23 | 14 Dec 19.70 -0.90
(-4.37%)
OPEN

19.60

HIGH

21.50

LOW

19.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 19.60
PREVIOUS CLOSE 20.60
VOLUME 489
52-Week high 28.20
52-Week low 10.47
P/E 4.57
Mkt Cap.(Rs cr) 11
Buy Price 19.60
Buy Qty 26.00
Sell Price 19.70
Sell Qty 7.00
OPEN 19.60
CLOSE 20.60
VOLUME 489
52-Week high 28.20
52-Week low 10.47
P/E 4.57
Mkt Cap.(Rs cr) 11
Buy Price 19.60
Buy Qty 26.00
Sell Price 19.70
Sell Qty 7.00

Rainbow Foundations Ltd. (RAINBOWFOUNDAT) - Auditors Report

Company auditors report

To the Members of M/S. RAINBOW FOUNDATIONS LIMITED

Report on the Financial Statements

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 2017 and the Statement of Profit and Loss the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

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. Thisresponsibility 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 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 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 thereunder.

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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of 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 Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

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 March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

(f) 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 B"

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

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

iv. The Company has provided requisite disclosures in the financial statements asregards its holding and dealings in Specified Bank Notes as defined in the NotificationS.O. 3407(E) dated the November 8 2016 of the Ministry of Finance during the period fromNovember 8 2016 to December 30 2016.

Based on audit procedures performed and the representations provided to us by themanagement we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management.

For JAIN BAFNA AND CO.
(Chartered Accountants)
Firm Reg No:010657 S
(S. MUTHU KUMAR)
(Partner)
Mem No: 209636
Place : Chennai Address: F-1 58 Greams Road
Date : 30.05.2017 Chennai 600 006

ANNEXURE TO THE AUDITORS REPORT

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 2017 and interms of the information and explanations given to us and also on the basis of such checksas we considered appropriate we further state that:

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

(ii) a. The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.

b. The discrepancies noticed on physical verification of inventory as compared to booksof accounts and the records has been properly dealt with in the books of accounts andwere not material.

(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 provisions of clause 4(iii) of the Companies (Auditor's Report) Order 2016are not applicable to 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 deposits from public and hence the directives issued by theReserve Bank of India and provisions of Sections 73 to 76 or any other relevant provisionsof the Companies Act 2013 and the rules framed thereunder with regards to the depositsaccepted from the public are not applicable and no order can have been passed by CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal.

(vi) In our opinion and according to the information and explanations given to us themaintenance of cost records has not been specified by the Central Govt. under sub section(1) of section 148 of the Act in respect of activities carried on by the 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's stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 312017 for a period of more than six months fromthe date when they became payable.

b. According to the information and explanation given to us there are no duesof sale tax duty of customs duty of excise value added tax have not been deposited onaccount of any dispute. The particulars of Income Tax and Service Tax as at 31st March2017 which have not been deposited on account of dispute are as follows

Name of the Statue Nature of Dues Amount under dispute not yet deposited Rs. Period to which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income tax including interest till the date of assessment 285218 AY 2002-03 The Hon'ble Madras High Court Chennai

 

Name of the Statue Nature of Dues Amount under dispute not yet deposited Rs. Period to which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax along with Interest till the date of Assessment Rs. 7301330/- AY 2013-14 The Commissioner 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 Tribunal Chennai
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 Tribunal Chennai
Finance Act 1994 (Service Tax) Service Tax & Penalty Interest to be quantified till the date of actual payment 178422/- From October 2011 to March 2012 Customs Excise and Service Tax Appellate Tribunal Chennai

(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 or borrowing from 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 has been noticed or reported during the year.

(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 Companies Act 2013.

(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) Order 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 wherever applicable and the details have been disclosedin the Financial Statements etc. as required by the applicable accounting standards.

(xiv) Based on the audit procedures performed and according to the information andexplanations given to us and in our opinion the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly the provisions of clause 3(xiv) of the Companies(Auditor's Report) Order 2016 are not applicable to the company and hence not commentedupon.

(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 Companies (Auditor's Report) Order 2016 are not applicable to thecompany 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 clause 3(xvi) of the Companies (Auditor'sReport) Order 2016 are not applicable to the company and hence not commented upon.

For JAIN BAFNA AND CO.
(Chartered Accountants)
Firm Reg No:010657 S
(S. MUTHU KUMAR)
(Partner)
Mem No: 209636
Place : Chennai Address: F-1 58 Greams Road
Date : 30.05.2017 Chennai 600 006