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R J Bio-Tech Ltd.

BSE: 536456 Sector: Others
NSE: N.A. ISIN Code: INE594O01015
BSE 00:00 | 22 Oct R J Bio-Tech Ltd
NSE 05:30 | 01 Jan R J Bio-Tech Ltd
OPEN 16.10
PREVIOUS CLOSE 16.10
VOLUME 3000
52-Week high 20.10
52-Week low 15.45
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 20.10
Sell Qty 3000.00
OPEN 16.10
CLOSE 16.10
VOLUME 3000
52-Week high 20.10
52-Week low 15.45
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 20.10
Sell Qty 3000.00

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] Qualified Opinion

In our opinion except for the effects of the matter described in the Basis forQualified Opinion section of We have audited the financial statements of the companywhich comprise tire statement of financial position as at March 31 2019 and theStatement of comprehensive income statement of changes in equity and statement of cashflows for the year ended and notes to the financial statements including a summary ofsignificant accounting policies.

02] Basis for Qualified Opinion

i) Following events or conditions indicate that a material uncertainty exists that maycast significant

We draw attention to the standalone financial statements which indicates that -

- The Company has incurred a net loss of Rs. 11.53 Crores during the year ended 31stMarch 2019 and also its current liabilities over current assets exceeded by Rs. 18.87Crores.

- The Company has accumulated losses and its Net Worth has been fully eroded.

- The Company's financing arrangements expired and the amount outstanding of Rs. 36.11Crores was payable on March 31 2019. The Company has been unable to re-negotiate orobtain replacement financing and is currently classified by bank as Non Performing Assets.

ii) As per the information & explanations given management has sent balanceconfirmations to outstanding As a result of the matters stated in Para (ii) we wereunable to determine whether any adjustments

03] 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 In preparing the financial statements management is responsiblefor assessing the Company's ability to Those Board of Directors are also responsible foroverseeing the company's financial reporting process

04] Auditor's Responsibility

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that

05] 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 Companies Act 2013 we give in the 'Annexure A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

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

a) Except for the effects of the matters described in Basis for Qualified Opinionparagraph we have

b) Except the matters described in Ban's for Qualified Opinion paragraph in ouropinion proper books of

c) Except for the effects of the matters described in Basis for Qualified Opinionparagraph the Balance

d) Except for the possible effects of she matters described in the Basis for QualifiedOpinion paragraph

e) The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an

f) on the basis of written representations received from the directors as on March 312019 and taken

g) with respect to the adequacy of the internal financial controls other financialreporting of the

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 1 1 of the Companies (Audit and Auditors) Rules 2014 in otheropinion and to the best of other information and according to the explanations given tous:

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

(As per our report of even date)
For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
SD/-
(Ashok P.Patil)
Date : 28.05.2019 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 31.03.2019

(i) Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details

(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

(ii) Inventory:

As explained to us the management has conducted physical verification of inventory atreasonable

(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) Internal Control System:

In our opinion and according to the information and explanations given to us there isadequate internal control system commensurate with the size of the company and the natureof its business for the purchase of inventory and fixed assets and for the sale of goodsand services and there are no major weaknesses in internal control system.

(iv) Loans Investment and Guarantees

As per the information and explanations given to us we are of the opinion that theCompany has

(v) Deposits:

In our opinion & according to the information & explanations given to us thecompany has not

(vi) Cost Records :

As explained to us Central Government has not prescribed for maintenance of costrecords under

(vii) Statutory Dues:

(a) As observed by us during the course of our examination of the books of accountscarried out in

i) Income Tax demand reflected on Income Tax website of Rs.18825/- for the period fromA.Y. 200708 to 2014-15 for which rectification u/s 154 is pending.

ii) Undisputed demand for TDS defaults shown on TDS Traces website of Rs.1320110.00/-which are

(b) According to the information and explanations given to us there are no materialdisputed dues in respect of Service Tax Duty of Customs and cess which have not beendeposited with the appropriate authorities on account of any dispute. However accordingto information and explanations given to us & on the basis of documents examined thefollowing dues of Income tax has not been deposited by the Company on account of disputes:

NAME OF THE STATUE : THE INCOME TAX ACT 1961

Period Income Tax Demand Details Forum
A. Y. 2013-2014 NIL (Refer Note) Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax (Appeals)-1 Aurangabad Income Tax Appellate Tribunal Pune
A. Y. 2014-2015 Rs. 8244360/- Income Tax Department Filed Appeal against the Order of Commissioner Of Income Tax (Appeals)-I Aurangabad Income Tax Appellate Tribunal Pune

Note

Income Assessed at Rs. 1672387/- by the Assessing Officer i.e. ACIT Circle - IAurangabad & it has been set off against the B/F Business Loss hence Tax Liability isNIL.

(viii) Default to FIS & Banks:

In our opinion & according to the information given to us the company hasdefaulted in repayment.

Details of defaults in repayment of Loans :

(x) Guarantees:

In our opinion & according to the information & explanations given to usduring the year under

Account No. Type on Loan Amount of Default Date on Which Installment / Interest due Date on Which Installment / Interest Paid
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
2619531.51 01.09.2016 Yet to be paid
2525629.40 01.10.2016 Yet to be paid
2617300.94 01.11.2016 Yet to be paid
2535852.94 01.12.2016 Yet to be paid
32133824088 Cash Credit - SBI 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
209940558.51 27.06.2016 Yet to be paid
33069129.00 Accrued Int for the F. Y. 17-18 Yet to be paid
34224161.54 Accrued Int for the F. Y. 18-19 Yet to be paid
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
380205.77 01.10.2016 Yet to be paid
392762.98 01.11.2016 Yet to be paid
380204.93 01.12.2016 Yet to be paid
33686610896 SBI SLC 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
4981657.00 Accrued Int for the F. Y. 17-18 Yet to be paid
6236307.16 Accrued Int for the F. Y. 18-19 Yet to be paid
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
50801.27 01.10.2016 Yet to be paid
52478.90 01.11.2016 Yet to be paid
50801.16 01.12.2016 Yet to be paid
52478.89 01.01.2017 Yet to be paid
32929483076 Term Loan - SBI 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
664434.00 Accrued Int for the F. Y. 17-18 Yet to be paid
761613.00 Accrued Int for the F. Y. 18-19 Yet to be paid
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
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
321340917079 Term Loan - SBI 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
626025.00 01.04.2016 Yet to be paid
103105.00 Accrued Int for the F. Y. 17-18 Yet to be paid
118186.00 Accrued Int for the F. Y. 18-19 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 Aurangabad Branch (Currently shifted toStressed Assets Management Branch -II Mumbai) has classified above accounts as NonPerforming Asset in accordance with the directions/guidelines relating to assetclassification issued by the Reserve Bank of India.

Interest on Non Performing Asset has been booked on the basis of Balance Confirmationgiven by the

(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

(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 during the year under reviewcompany has not entered into any transactions with related parties are in accordance withsection 177 and 188 of Companies Act 2013 hence disclosure of related Party Transactionsare Not Applicable.

(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 : 28.05.2019 Partner
Place : Aurangabad M. No. 34423

Annexure B' to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies We have audited the internal financial controls over financialreporting of 'R J Biotech Limited' (‘the Management's Responsibility for InternalFinancial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting Our audit involves performing procedu res to obtainaudit evidence about: tce adeq uacA of the internal financial We bolieve that the anditevidence we have ebtained is suffieient and appropriate to provide o basis for our auditopinion on the Company's internal financial controls system over 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:-

In our opinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2019 based on theinternal financial 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.

For Ashok Patil & Associates
Chartered Accountants
Firm Reg. No. 122045W
SD/-
(Ashok P.Patil)
Date : 28.05.2019 Partner
Place : Aurangabad M. No. 34423