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Rajasthan Cylinders & Containers Ltd.

BSE: 538707 Sector: Others
NSE: N.A. ISIN Code: INE929D01016
BSE LIVE 19:40 | 19 Oct 44.15 -0.50
(-1.12%)
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 44.00
PREVIOUS CLOSE 44.65
VOLUME 1396
52-Week high 70.90
52-Week low 22.80
P/E 77.46
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 44.00
CLOSE 44.65
VOLUME 1396
52-Week high 70.90
52-Week low 22.80
P/E 77.46
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rajasthan Cylinders & Containers Ltd. (RAJASTHANCYLIND) - Auditors Report

Company auditors report

To The Members of

Rajasthan Cylinders & Containers Limited Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of Rajasthan Cylinders& Containers Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 preparation ofthese standalone financial statements that give a true and fair view of financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 standalone financial statementsbased on our audit.

We have taken into the 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. An audit also includes evaluating theappropriateness of the 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 is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion

(i) Non provision of Gratuity for the year Rs. 750381/- and Cumulative upto31/03/2016 Rs. 2583890/- (Previous Year Rs. 370071/- and Cumulative upto 31/03/2015Rs. 1833509/-) refer note No. 2.32.

(ii) Non provision of Leave pay for the year Rs. 237385/- and Cumulative upto31/03/2016 Rs. 1253479/- (Previous Year Rs. 196364/- and Cumulative upto 31/03/2015Rs. 1016094/-) refer note No. 2.33.

Qualified 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 for QualifiedOpinion paragraph the aforesaid standalone 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

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 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) Except for the effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion proper books of account as required by law have been keptby the Company 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 effects of the matter described in the Basis for Qualified Opinionparagraph above in our opinion the aforesaid standalone financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the company.

(f) On the basis of written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Section164(2) of the Act.

(g) The qualification relating to other matters connected there with are stated in theBasis for Qualified Opinion paragraph above.

(h) 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

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

i. The Company has disclosed the impact of pending litigation on its financial positionin its financial statements- Refer Note No. 2.27 & 2.30 to the financial statements.

ii. The Company does not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There were no amount which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2016.

For S.S. SURANA & CO.
Chartered Accountants
(FRN. 001079C)
Sd/-
(Prahalad Gupta)
Place: Jaipur Partner
Date: 30/05/2016 Membership No. 074458

ANNEXURE - A FORMING PART OF THE INDEPENDENT AUDITOR'S REPORT OF Rajasthan Cylinders& Containers Limited

Referred to in paragraph under the heading of "Report on other Legal &Regulatory Requirements" of our report of even date to the Members of RajasthanCylinders & Containers Limited on the standalone financial statement for the yearended March 31st 2016;

I (a) As explained to us the Company generally maintains proper records showing fullparticulars including quantitative details and situation of fixed Assets.

(b) As informed to us parts of the assets have been physically verified by themanagement in accordance with a phased programme of verification; however such physicalverification reports were not available for our verification. As informed to us nomaterial discrepancies have been 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 except for the following immovable property:

Name of Immovable Property Total Number of Cases Gross Block (Amount in Rs.) Net Block (Amount in Rs.) Remarks
Building 2 966180/- 867782/- Lease deed is yet to be executed and registered.

(II) As per information furnished the inventory lying at its location has beenphysically verified during the year by the management at reasonable intervals. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material.

(III) According to information and explanations given to us the company has givenadvances to 6 bodies corporate covered in the register maintained under Section 189 of theCompanies Act 2013.

(a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest except variation in the rate of interest charged from such parties.

(b) The principal amount of loan and interest is payable on demand. Repayment of Loanand interest is received as and when demanded.

(c) Since the amount of loan and interest is repayable on demand and the company hasnot recalled the loan hence there is no overdue.

(IV) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(V) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits within in the meaning of the provisions of Sections73 to 76 or any other relevant provisions of

Companies Act 2013 and the rules framed thereunder and the directives issued byReserve Bank of India.

(VI) As explained to us the Central Government has prescribed maintenance of the costrecords under section 148(1) of the Companies Act 2013 in respect to the company'sproducts. We are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained by the company. However we have not made detailed examination ofsuch records.

(VII) (a) According to the records of the company produced for our verification thecompany is generally regular in depositing undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of customsduty of excise value added tax cess and any other statutory dues to appropriateauthorities wherever applicable. According to the information and explanation given to usno undisputed arrears of statutory dues were outstanding as on 31/03/2016 for a period ofmore than six months from the date they

became payable.

(b.) According to the information and explanations given to us and records of theCompany the dues of Sales tax and Income tax which have not been deposited on account ofdisputes are as under:-

Name of statute Nature of Dues Amount (Rs.) Period to which the Amount Disputed (Financial Year) Dispute Pending with Appropriate authorities
Rajasthan VAT2003 /CST Act 1956 Sales Tax 1504442/- 2012-13 Dy. Commissioner of Sales Tax (Appeals)
Income tax Act 1961 Income Tax 73730/- 2010-11 CIT (A)
Income Tax Act 1961 Income tax 510200/- (Net of payment of Rs. 263487/-) 2012-13 CIT (A)

(VIII) According to the records of the Company and information given to us we are ofthe opinion that the company has not defaulted in repayment of Loans or Borrowings toFinancial Institutions Banks Government. There are no debenture holders of the Company.

(IX) The company has not raised any money by the way of Initial Public Offer or FurtherPublic Offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(X) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(XI) 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 of section 197 read with Schedule V to the Act.

(XII) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(XIII) 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 such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

(XIV) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(XV) As explained and informed to us by the management the company has not entered intoany non cash transaction with the directors or person connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.

(XVI) The company is not required to be registered under Section 45IA of the ReserveBank of India Act1934.

For S.S. SURANA & CO.
Chartered Accountants
(FRN. 001079C)
Sd/-
(Prahalad Gupta)
Place: Jaipur Partner
Date: 30/05/2016 Membership No. 074458

Annexure - B to the Independent Auditors' Report on Standalone Financial Statements ofRajasthan Cylinders and Containers 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 RajasthanCylinders and Containers Limited ("the Company") as of 31 March 2016 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the 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 ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 controls over financial reporting were operatingeffectively as at 31 March 2016 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For S.S. SURANA & CO.
Chartered Accountants
(FRN. 001079C)
Sd/-
(Prahalad Gupta)
Place: Jaipur Partner
Date: 30/05/2016 Membership No. 074458