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RTS Power Corporation Ltd.

BSE: 531215 Sector: Engineering
NSE: N.A. ISIN Code: INE005C01017
BSE LIVE 15:40 | 23 Nov 56.95 0.80
(1.42%)
OPEN

56.00

HIGH

58.15

LOW

56.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 56.00
PREVIOUS CLOSE 56.15
VOLUME 671
52-Week high 68.35
52-Week low 24.55
P/E 14.87
Mkt Cap.(Rs cr) 47
Buy Price 56.95
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 56.00
CLOSE 56.15
VOLUME 671
52-Week high 68.35
52-Week low 24.55
P/E 14.87
Mkt Cap.(Rs cr) 47
Buy Price 56.95
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

RTS Power Corporation Ltd. (RTSPOWERCORPN) - Auditors Report

Company auditors report

To the Members of

RTS Power Corporation Limited Report on the Financial Statements

We have audited the accompanying financial statements of RTS Power Corporation Limited(‘the Company') which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory 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 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 andthe 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 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 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 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 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' statement on the matters specified in paragraphs3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that: i. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. ii. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. iii. The Branch Auditor's report in respect of branches notvisited by us have been properly dealt with in preparing our report. iv. The BalanceSheet the Statement of Profit and Loss and the Cash flow Statement dealt with this Reportare in agreement with the books of account. v. In our opinion the aforesaid financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014. vi. On the basis of the writtenrepresentations received from the directors as on 31st March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a director in terms of Section 164 (2) of the Act. vii. With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in"Annexure B"; and viii. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note No. 33 to the financialstatements.

(ii) The Company has made adequate provision for long term contracts includingderivative contracts.

(iii) There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company.

(iv) The company had provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and based on Audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountsmaintained by the company and as produced to us by the management. (Refer Note No. 36 tothe financial statements)

For A.C. Bhuteria & Co.
Chartered Accountants
Firm Regn. No. 303105E
Rahul Sethia
Place: Kolkata Partner
Dated : 30th May 2017 Membership No.: 303931

ANNEXURE ‘A' TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 UNDERTHE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORTOF EVEN DATE.

i. (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management in a phasedmanner during the year which in our opinion is reasonable having regard to the size ofthe Company and nature of its business. No material discrepancies were noticed on suchverification. (c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. Physical verification of inventories has been conducted at reasonable intervals bythe management. No material discrepancies were noticed on physical verification ascompared to book record.

iii. The Company has not granted any loan secured or unsecured to Companies / firms/parties covered in the register maintained under Section 189 of the Companies Act 2013(‘the Act'). Accordingly paragraphs 3(iii)(b) & 3(iii)(c) of the Order are notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has not given any loan/guarantee/security to or on behalf of any party referred toin Section 185 of the Companies Act 2013. The Company has complied with Section 186 inrespect of loans and investments made. The Company has not given any guarantee or providedany security in connection with a loan to any body corporate or any other person.

v. On the basis of our examination of books and records of the Company in our opinionand according to the information and explanations given to us the Company has notaccepted deposits during the year and therefore the directives issued by the Reserve bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable to the Company. vi.We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete. vii. a. According to the information and explanations given to us and on thebasis of our examination of the books and records of the Company the Company is 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 and other statutory dues as applicable to it with appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the books and records of the Company no undisputed amounts payable inrespect of provident fund income tax sales tax value added tax duty of customsservice tax cess and other material statutory dues were in arrears as at 31st March 2017for a period of more than six months from the date they became payable except as under:

Name of the Statute Nature of Dues Amount (Rs. ) Financial Year to which the amount relates
Rajasthan Tax on Entry of Goods in Local Area Act 1999 Entry Tax 2095481 2014-2015

b. According to the information & explanation give to us there are no dues ofIncome tax and other applicable Statutory Dues which have not been deposited on account ofany dispute except as under:

Name of the Statute Nature of Dues Amount (Rs. ) Period Forum where dispute is pending
Rajasthan VAT/CST VATCST 733527/- 2007-08 Tax Board Rajasthan
Interest Penalty 993285/- 2008-09
on Freight 872954/- 2009-10
and insurance 1121471/- 2010-11
recovered 2112544/- 2011-12
West Bengal VAT VAT 4046172/- 2009-10 Appellate & Revision Board of Sales Tax
Central Excise Act Excise 626170/- 2010-11 Deputy Commissioner of Central Excise
Central Excise Act Service Tax 3941342/- 2010-11 to Joint Commissioner of Central Excise
2013-14

viii. Based on our audit procedures and as per the information & explanation givenby the management the Company has not defaulted in repayment of loans or borrowings tofinancial Institution or Banks. The Company has not issued any debentures. The Companydoes not have any Loans or borrowings from Government.

ix. The Company did not raise any money by 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. On the basis of our examination of books and records of the Company and according tothe information and explanation provided to us no fraud by the Company or on the Companyby its officers or employees has been noticed or reported during the year.

xi. According to the information and explanations given 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 Companies Act 2013.

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 Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards. xiv. In our opinion and according to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

xv. The company has not entered into any non cash transaction with directors or personsconnected with him under section 192 of the Companies Act 2013. xvi. The Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For A.C. Bhuteria & Co.
Chartered Accountants
Firm Regn. No. 303105E
Rahul Sethia
Place: Kolkata Partner
Dated : 30th May 2017 Membership No.: 303931

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 RTS PowerCorporation Ltd ("the Company") as of 31st March 2017 in conjunction with ouraudit 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 (‘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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting in so far as itrelates to 6 branches is based on the corresponding reports of the branch auditors ofsuch branches.

For A.C. Bhuteria & Co.
Chartered Accountants
Firm Regn. No. 303105E
Rahul Sethia
Place: Kolkata Partner
Dated : 30th May 2017 Membership No.: 303931