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Rajasthan Tube Manufacturing Co Ltd.

BSE: 530253 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE497E01012
BSE 14:56 | 23 Jan 18.05 -0.76
(-4.04%)
OPEN

17.87

HIGH

18.05

LOW

17.87

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 17.87
PREVIOUS CLOSE 18.81
VOLUME 3078
52-Week high 19.80
52-Week low 12.03
P/E
Mkt Cap.(Rs cr) 8
Buy Price 18.05
Buy Qty 1922.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.87
CLOSE 18.81
VOLUME 3078
52-Week high 19.80
52-Week low 12.03
P/E
Mkt Cap.(Rs cr) 8
Buy Price 18.05
Buy Qty 1922.00
Sell Price 0.00
Sell Qty 0.00

Rajasthan Tube Manufacturing Co Ltd. (RAJASTUBEMFG) - Auditors Report

Company auditors report

To

The Members of

RAJASTHAN TUBE MANUFACTURING COMPANY LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of RAJASTHAN TUBE

MANUFACTURING COMPANY LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2017 and the Statement of Profit and Loss and 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 preparationand presentation 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 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 misstatements.

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. An audit also includes evaluating theappropriateness of 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 issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Basis of Qualified Opinion

Refer Note No.-28 regarding non-provision of gratuity payable as per AS-15. Thegratuity liability as per AS-15 for the year amounting to Rs.319963/- and cumulativeliability as on 31.03.2017 amounting to Rs.711586/- has not been accounted in thefinancial statement consequently the loss for the year is understated by Rs. 319963/- andnon-current liabilities are understated by Rs.709640/- and current liabilities areunderstated by Rs 1946/- and Reserve and surpluses are overstated by Rs.711586/- as on31.03.2017.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis of qualifiedopinion paragraphed above the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 and its Losses and its cash flows for the year ended on thatdate.

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 mattersspecified in paragraphs 3 and 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 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) Except for the matter described in the basis for Qualified Opinion paragraph Inour opinion the aforesaid financial statements comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. e) On the basis of the written representations received from the directors ason March 31 2017 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Act.

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"; and

g) With respect to the other matters to be included in the Auditors' 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 of March 31 2017.

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 Investor

Education and Protection Fund by the Company. iv. The company has provided requisitedisclosures at note No.-39 in its financial statements as to holding as well as dealing inspecified bank notes (SBN) during the period from 8th Nov to 30thDec 2016 and they are in accordance with the book of accounts maintained by the company.

For Giriraj & Lohiya
Chartered Accountants
(FRN-006031C)
(Giriraj Prasad)
Partner
(Membership No.73380)

Jaipur

Dated: 30th May 2017

ANNEXURE-A REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER

LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

Re. Rajasthan Tube Manufacturing Company Limited:

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

(b) All fixed assets have not been physically verified by the management during theyear but 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 and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

3. The Company has granted loans to one body corporate covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act'). (a)In ouropinion the rate of interest and other terms and conditions on which the loans had beengranted to the body corporate listed in the register maintained under Section 189 of theAct were not prima facie prejudicial to the interest of the Company.

(b)In the case of the loans granted to the body corporate listed in the registermaintained under section 189 of the Act the borrowers have been regular in the payment ofthe principal and interest as stipulated.

(c)There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.

4. In our opinion and according to the information and explanations given to us thereare no loans guarantees and securities granted in respect of which provisions of Section185 of the Companies Act 2013 are applicable and hence not commented upon. Based on ouraudit procedures performed for the purpose of reporting the true and fair view of thefinancial statements and according to information and explanations given by themanagement the Company has complied with provisions of Section 186 of the Companies Act2013 in respect of loans and investments made during the year.

5. The Company has not accepted any deposits from public.

6. We have broadly reviewed the books of accounts maintained by the Company pursuantto rules made by the Central Government for the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 and are of the opinion thatprima facie the prescribed accounts and records have been maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund income TaxSales Tax Wealth Tax Service Tax Custom Duty value added tax Excise Duty Cess andother material statutory dues have been regularly deposited during the year by the companywith the appropriate authorities. No undisputed amounts payable in respect of sales taxIncome tax Wealth Tax Service Tax Custom tax Excise Duty and Cess were outstanding ofthe year end for a period of more than six months from the date they became payable exceptthe following:

Name of the Statute Nature of the Dues Period to which the amt.Relates Amount Rs. Forum where the dispute is pending
Employees State Insurance Act. ESI 1998-2000 94087 Employees State Insurance Court
RVAT ACT 2003 VAT 2013-2014 2621772 Appellate Authority

b) According to the records of the company there are no disputed amounts that have notbeen deposited with appropriate authorities on account of Income Tax Wealth Tax ServiceTax Custom Duty Excise Duty Sales Tax Cess and Service Tax.

8. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management we are of the opinion that the Company has not defaulted in repaymentof dues to any bank. Further the Company does not have any debentures and loan fromfinancial institution or government.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments).

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the

Reserve Bank of India Act 1934.

For Giriraj & Lohiya
Chartered Accountants
(FRN-006031C)
(Giriraj Prasad)
Partner
(Membership No.73380)
Jaipur:
Dated: 30th May 2017

Annexure - B to the Auditors' Report

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

We have audited the internal financial controls over financial reporting of RajasthanTube Manufacturing Company Limited ("the Company") as of 31 March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 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 ofmaterial misstatement 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31st March 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 Giriraj & Lohiya
Chartered Accountants
(FRN- 006031C)
(Giriraj Prasad)
Partner
(Membership No. 73380)

 

Jaipur:
Dated: 30th May 2017