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R J Bio-Tech Ltd.

BSE: 536456 Sector: Others
NSE: N.A. ISIN Code: INE594O01015
BSE 00:00 | 26 Mar R J Bio-Tech Ltd
NSE 05:30 | 01 Jan R J Bio-Tech Ltd
OPEN 24.50
PREVIOUS CLOSE 24.50
VOLUME 3000
52-Week high 27.50
52-Week low 12.45
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.50
CLOSE 24.50
VOLUME 3000
52-Week high 27.50
52-Week low 12.45
P/E
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

R J Bio-Tech Ltd. (RJBIOTECH) - Auditors Report

Company auditors report

To

The Members

R J Bio-Tech Limited.

"Siddharth Arcade" Opp. Holiday Camp Station Road

Aurangabad - 431 005

01] Report on the Financial Statements

We have audited the accompanying financial statements of R J Biotech Limited whichcomprise the Balance Sheet as at March 31 2017 and the Statement of Profit and Loss andCash Flow Statement for the year ended and a summary of significant accounting policiesand other explanatory information.

02] 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) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments 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 the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

03] Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based onconducting our audit in accordance with the Standards on Auditing under Section 143(10) ofthe Act.

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 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.

Except the matter described in the Basis for Disclaimer of Opinion paragraph webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the financial statements.

04] Basis for Disclaimer of Opinion

i) As per the information & explanations given management has sent balanceconfirmations to outstanding debtors due to ongoing season confirmations are stillawaited. In the absence of unavailability of confimations we are unable to confirm orverify by alternative means accounts receivable included in the Balance Sheet at a totalamount of Rs.210843295/- (before provision for bad & doubtful debts of Rs.21084300/-) as at March 31 2017.

As a result of this matter we were unable to determine whether any adjustments mighthave been found necessary in respect of recorded receivables in the Balance Sheet and thecorresponding elements making up the Statement of Profit and Loss and Cash Flow Statement.

05] Disclaimer of Opinion

61 Except for the effects of the matter described in Basis for Disclaimer of Opinionparagraph in our opinion and to the best of our information and according to theexplanations given to us the financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India.

a) In the case of Balance Sheet of the state of affairs of the company as at 31stMarch 2017

b) In the case of Statement of Profit & Loss of the Profit for the year ended ason 31st March 2017

c) In the case of Cash Flow the Cash Flow of the company for the year ended as on 31stMarch 2017

06] 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 of the Companies Act2013 we

give in the 'Annexure A'a statement on the matters specified in paragraphs 3 and 4 ofthe Order

to the extent applicable.

2) As required by section 143(3) of the Act we report that:

a) As described in the Basis for Disclaimer of Opinion paragraph we sought but wereunable to obtain all the information and explanations as regards of trade receivableswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

b) Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph we are unable to state whether proper books of account as required bylaw have been kept by the Company so far as appears from our examination of those books ;

c) Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph we are unable to state whether the Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with the booksof account;

d) Due to the possible effects of the matter described in the Basis for Disclaimer ofOpinion paragraph we are unable to state whether the aforesaid financial statementscomply with the Accounting Standards under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) The matter described in the Basis for Disclaimer of 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 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.

g) 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

h) With respect to the other matters to be included in the Auditor's 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 details of pending litigations amount involved contingent liability for theselitigations are given in Note No. 36 to the financial statements.

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

iii. There are no such amounts which are required to be transferred to InvestorEducation and Protection Fund in accordance with the relevant provisions of the CompaniesAct 2013 and rules made there under.

iv. The Company has provided requisite disclosure in the financial statements as toholdings as well as dealing in Specified Bank Notes during the period from 08th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures given in Note No. 38 of the FinancialStatements are in accordance with books of accounts maintained by the Company and asproduced to us by the Management.

(As per our report of even date) For Ashok Patil & Associates Chartered AccountantsFirm Reg. No. 122045W

Sd/-
(Ashok P.Patil)
Date : 30.05.2017 Partner
Place : Aurangabad M. No.34423

ANNEXURE A' TO THE AUDITOR'S REPORT

REFERRED TO IN PARAGRAPH 5 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF R J BIO-TECHLIMITED ON THE FINANCIAL STATEMENTS;

FOR THE YEAR ENDED AS ON 31.03.2017

(1) Fixed Assets:

(a) The Company has maintained proper records showing full particulars Includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification.

(C ) Title deeds of immovable property has been held in the name of company for thispurpose we have relied on Title Investgation Report issued by advocate dated 30.06.2014.

(ii) Inventory:

According to the information & explanations given by the management they haveconducted physical verification of inventories on periodical basis and at the year end.Mangement has produced before us statement of physical verfication of inventories as on31st March 2017 and said statement is also certified by Mis U.G. Muley & Co.Chartered Accountants Aurangabad. As informed to us no material discrpencies werenoticed on physical verfication of inventories as compared to book records.

(iii) Loans:

During the year under review the company has not granted any loan secured or unsecuredto Companies Firms Limited Liability Partnership or other parties covered in registermaintained u/s 189 of the Companies Act 2013 hence clause (iii) (a) to ( c ) are notapplicable.

(iv) Loans Investment and Guarantees

As per the information and explanations given to us we are of the opinion that theCompany has complied the provisions of Section 185 and 186.

(v) Deposits:

In our opinion & according to the information & explanations given to us thecompany has not accepted any deposits during the year. Hence Not Applicable.

(vi) Cost Records :

As explained to us Central Government has not prescribed for maintenance of costrecords under sub-section (1) of section 148 of Companies Act 2013.

(vii) Statutory Dues:

(a) 4s observed by us during the course of our examination of the books of accountscarried out in accordance with generally accepted auditing principles in India companyhas generally been regular in depositing undisputed statutory dues including ProvidentFund Sales Tax Local Body Tax Service Tax Cess and any other statutory dues with theappropriate authorities except in following cases noticed during the period under review:

i) Income Tax demand reflected on Income Tax website of Rs. 19139/ - for the periodfrom A. Y. 2007-08 to 2014-15 for which rectification u/s 154 is pending. ii) Undisputeddemand for TDS defaults shown on TDS Traces website of Rs. 1123517/-which are notprovided in books.

61 (b) According to explanation given to us there are no disputed dues of Income TaxSales Tax Wealth Tax Service Tax Cess arrears as at 31.03.2017 except the following -

NAME OF THE STATUE : THE INCOME TAX ACT 1961

Period Amount Details Forum
A. Y. 2013-14 NIL

(refer Note)

Income Tax on Additions in Scrutiny U/s. 143(3) Commissioner of Income Tax (Appeals) Aurangabad.
A. Y. 2014-15 8244360.00 Income Tax on Additions in Scrutiny U/s. 143(3) Commissioner of Income Tax (Appeals) Aurangabad.

Notes :-

1) Income Assessed at Rs. 1672387/- & it has been set off against B/F BusinessLoss hence Tax Liability is NIL. But company has preferred appeal against the assessedincome.

2) Out of the above Income Tax Liability for the A. Y. 2014-15 assessee has paid Rs.500000/- underprotest towards stay.

(viii) Default to FIS & Banks:

In our opinion & according to the information given to us the company hasdefaulted in repayment of dues to the financial institutions and bank details are asunder -

Details of defaults in repayment of Loans :

t.Amount in Rs.)
Account No. Type of Loan Amount of Default Date on Which Date on Which
Installment / Installment /
Interest due Interest Paid
2268007.00 01.04.2016 26.05.2016
827145.00 01.05.2016 27.06.2016
70000.00 01.05.2016 19.07.2016
1295821.00 01.05.2016 Yet to be paid
2320784.00 01.06.2016 Yet to be paid
2864986.35 01.07.2016 Yet to be paid
2596114.99 01.08.2016 Yet to be paid
32133824088 Cash Credit 2619531.51

2525629.40

01.09.2016

01.10.2016

Yet to be paid Yet to be paid
2617300.94 01.11.2016 Yet to be paid
2535852.94 01.12.2016 Yet to be paid
2619635.97 01.01.2017 Yet to be paid
2597037.89 01.02.2017 Yet to be paid
2365819.75 01.03.2017 Yet to be paid
2601008.93 01.04.2017 Yet to be paid
210016558.51 27.06.2016 Yet to be paid
354015.00 01.04.2016 26.05.2016
354758.00 01.05.2016 Yet to be paid
369877.00 01.06.2016 Yet to be paid
397332.27 01.07.2016 Yet to be paid
389613.97 01.08.2016 Yet to be paid
392844.86 01.09.2016 Yet to be paid
33686610896 SLC 380205.77 392762.98 01.10.2016

01.11.2016

Yet to be paid Yet to be paid
380204.93 01.12.2016 Yet to be paid
392762.97 01.01.2017 Yet to be paid
392878.43 01.02.2017 Yet to be paid
354859.05 01.03.2017 Yet to be paid
392529.61 01.04.2017 Yet to be paid
31500000.00 27.06.2016 Yet to be paid
44767.00 01.04.2016 09.04.2016
43433.00 01.05.2016 25.06.2016
45223.00 01.06.2016 25.06.2016
50963.72 01.07.2016 Yet to be paid
52051.69 01.08.2016 Yet to be paid
52489.92 01.09.2016 Yet to be paid
32929483076 Term Loan 50801.27 52478.90 01.10.2016

01.11.2016

Yet to be paid Yet to be paid
50801.16 01.12.2016 Yet to be paid
52478.89 01.01.2017 Yet to be paid
52494.53 01.02.2017 Yet to be paid
47414.57 01.03.2017 Yet to be paid
52447.29 01.04.2017 Yet to be paid
4165405.00 27.06.2016 Yet to be paid
8806.00 01.04.2016 09.04.2016
8543.00 01.05.2016 30.05.2016
8892.00 01.06.2016 25.06.2016
9094.69 01.07.2016 Yet to be paid
10238.75 01.08.2016 Yet to be paid
10324.95 01.09.2016 Yet to be paid
9992.79 01.10.2016 Yet to be paid
32134091079 Term Loan 10244.93 01.11.2016 Yet to be paid
9992.07 01.12.2016 Yet to be paid
10322.78 01.01.2017 Yet to be paid
10325.86 01.02.2017 Yet to be paid
9326.61 01.03.2017 Yet to be paid
10316.57 01.04.2017 Yet to be paid
193325.00 01.04.2016 04.10.2016
626025.00 01.04.2016 Yet to be paid

Above mentioned defaults has been made during the period 01.04.2016 to 31.03.2017 andon 27 June 2016 State Bank of India MIDC Waluj Branch has classified above accounts asNon Performing Asset in accordance with the directions/guidelines relating to assetclassification issued by the Reserve Bank of India.

(ix) Utilization of IPO Further Public Offer & Term Loan:

During the current financial year the company has not raised any public issue and anyfresh term loan hence not applicable.

(x) Frauds:

During the course of our examinations of the books & records of the companycarried out in accordance with the generally accepted auditing practices in India &according to the information & explanations given to us we have neither come acrossany instances of material fraud on or by the Company noticed or reported during the yearnor have we been informed of such case by management.

(xi) Approval of Managerial Remuneration :

During the year company has not paid any Managerial Remuneration. Hence notapplicable.

(xii) Nidhi Company : Company is not a Nidhi Company. Hence Not Applicable.

(xiii) Related Party Transactions:

As per the information and explanation given to us all transactions with relatedparties are in compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosed in the Financial Statements as required by AS- 18.

(xiv) Private Placement or Preferential Issues

The company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.

(xv) Non Cash Transactions:

According to the information given to us the company has not entered into any non-cashtransactions with directors or person connected with him .

(xvi) Register under RBI Act 1934 :

The company is not required to be registered u/s 45-IA of Reserve Bank of India Act1934.

(As per our report of even date)
For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
Sd/-
(Ashok P.Patil)
Date : 30.05.2017 Partner
Place : Aurangabad M. No. 34423

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 'R JBiotech Limited' (‘the Company') as of 31 March 2017 conjunction with our audit ofthe 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 the Company's policies the safeguardingof its 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 auditors' 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 authorizations of the Management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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:-

ln 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 31 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 Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
Sd/-
(Ashok P.Patil)
Date : 30.05.2017 Partner
Place : Aurangabad M. No. 34423