TO THE MEMBERS OF RAJASTHAN PETRO SYNTHETICS LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of RAJASTHAN PETROSYNTHETICS LIMITED ("the Company") which comprise the Balance Sheet as at31 March 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
Management's responsibility for the Financial Statements
2 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 andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash fiows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating efi ectively 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.
3 Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
4 An audit involves performing procedures to obtain audit evidence about the amountsand 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 and fairpresentation of the financial statements in order to design the audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and reasonableness of the accounting estimates made by themanagement as well as evaluating the overall presentation of the financial statements.
5 We believe that the audit evidence we have obtained is sufi cient and appropriate toprovide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: st
(i) in the case of the Balance Sheet of the state of afi airs of the Company as at 31March 2017;
(ii) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date; and
(iii) in the case of Cash Flow Statement of the cash fiows of the Company for the yearended on that date.
Report on Other Legal and Regulatory Requirement
7. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central
Government of India in terms of sub-section (11) of section 143 of the Act we give inthe Annexure A a statement on the matters specified in paragraph 3 and 4 of the saidOrder.
8. As required by Section143 (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 accounts as required by the law have been kept by theCompany so far as appears from our examination of those books
c. the Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this report are in agreement with the books of account;
d. In our opinion the aforesaid financial statements dealt with by the this reportcomply with the Accounting Standards referred to in section 133 of the Companies Act2013;
e. on the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors we report that none of the directorsis disqualified as on 31 March 2017 from being appointed as director in terms of section164(2) of the Companies Act 2013.
f. With respect to the adequacy of the Internal Financial Controls over the financialreporting of the Company and operating efi ectiveness of such controls refer to ourseparate Report in "Annexure B"; and
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 of the Companies (Audit and Auditors)Rules2014in our opinion andto the best of our information and according to the explanations given to us:
h. The Company has disclosed the impact of pending litigation on its financial positionin its financial statements refer Note 15 to the financial statements;
ii. The Company did not have any foreseeable losses on long term contracts and had noderivative contracts outstanding as at 31 March 2017;
iii. The Company did not have any dues on account of Investor Education and ProtectionFund; and
iv Accordingly to the information and records of the company the company had providedrequisite disclosures in its financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016 andthese are in accordance with the books of accounts maintained by the company. Refer Noteno.25 of the financial.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure "A" referred to in paragraph 7 of our report of even date to themembers of Rajasthan Petro Synthetics Limited on the financial statements for theyear ended 31 March 2017.
i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
ii) There is no inventory held by the company hence paragraph 3 (ii) of the Order isnot applicable to Company.
iii) According to the information and explanations given to us the Company has duringthe year not granted any loans secured or unsecured to companies firm Limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.
iv) According to the information and explanation given to us the company has neithergiven any loans investments guarantee and security covered under Section 185 & 186of the Act during the year under audit nor in earlier year and hence the paragraph 3 (iv)of the order is not applicable to the company.
v) The Company has not accepted any deposits during the year and hence paragraph 3 (v)of the Order is not applicable to the Company.
vi) The Central Government has not prescribed the maintenance of cost records underunder Sub Section (1) of Section 148 of the Companies Act 2013 for any of theproducts/services of the Company.
vii) a) According to the records examined by us during the year no deductions weremade towards Provident Fund and Employee's State Insurance. The Company was regular indepositing with appropriate authorities Income Tax and other statutory dues deducted byit during the year.
However Undisputed Statutory dues amounting to Rs. 20.07 Lakhs in respect of ESI Rs.12.34 Lakhs in respect of Sales Tax were outstanding as at 31st March 2017 for theperiod of more than 6 month from the date they became payable.
(b) According to the records of the Company the dues of income tax service tax dutyof excise cess and value added tax which have not been deposited on account of disputeand the forum where the dispute are pending are as under:
|Status ||Nature of Taxes ||Amount involved ||Forum where dispute is pending |
| || ||(Rs. In Lacs) || |
|1. Central Excise Act 1944 ||Excise Duty ||169.23 ||Supreme Court |
|2. Central Excise Act 1944 ||Excise Duty ||4.67 ||C.E.S.T.A.T. Delhi |
|3. Central Excise Act 1944 ||Excise Duty ||3.23 ||Dy. Commissioner of Excise (Appeals) Jaipur |
|4. Sales Tax Department ||Sales Tax ||82.77 ||SLSC |
|5. Central Excise Act 1944 ||Excise Duty ||2.33 ||Central Excise & Gold Appellate Tribunal |
|6. Central Excise Act 1944 ||Service Tax ||1.11 ||Asst. Commissioner of Central Excise & Customs. |
viii Based on our audit procedures and according to the information given by themanagement the company has not defaulted repayment in respect of any loans or borrowingsfrom any financial institution bank government or dues to debentures holders during theyear.
ix) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan and has not done any initial public ofi er or furtherpublic ofi er (including debt instrument) nor term loans and hence paragraph 3 (ix) of theOrder is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge andaccording to the information and explanations given to us by the management we reportthat no fraud by the Company or any fraud on the company by its ofi cer or employees hasbeen noticed or reported during the course of our audit.
xi) As per the records the Company has not paid or provided any managerialremuneration covered under the provisions of Section 197 read with Schedule V of the Actduring the year. Accordingly paragraph 3 (xi) of the Order is not applicable to theCompany.
xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicableto the Company.
xiii) As explained to us and as per the records of the company transactions if anywith the related parties are in compliance with Section 177 and 188 of the Act and thedetails have been disclosed in the financial statements as required by the applicableAccounting Standard.
xiv) According to the records the company it has not made any preferential allotmentof shares or private placement of shares or fully/partly convertible debentures during theyear under report. Accordingly paragraph 3 (xiv) of the Order is not applicable to theCompany.
xv) During the year the Company has not entered into any non-cash transaction withDirector or person connected with him. Accordingly paragraph 3 (xv) of the Order is notapplicable to the Company
xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.
Accordingly paragraph 3 (xvi) of the Order is not applicable to the Company.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF RAJASTHAN PETRO SYNTHETICS LIMITED
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 RajasthanPetro Synthetics Limited ("the Company") as of March 31 2017 in conjunctionwith our audit 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating efi ectively for ensuring the orderly and efi cient 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 Companies Act 2013.
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 efi ectively 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 operating efiectiveness. 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 efi ectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufi cient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover 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 RAJASTHAN PETRO SYNTHETICS LTD. reasonable detail accurately and fairlyrefiect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material efi ect on the financialstatements.
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.
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 efi ectively as at March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India"
|PLACE : NEW DELHI ||FOR MBR & COMPANY |
|DATE : 25 April2017 ||CHARTERED ACCOUNTANTS |
| ||FRN 021360N |
| ||(SUMAN LATA SARASWAT) |
| ||PARTNER |
| ||M.NO. 515444 |