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 2017 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.
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 bad debts (Short Term Loans and Advances) receivable Rs.5631131/- from a body corporate M/s Ankur Drugs and Pharma Ltd which is underliquidation. In the opinion of management it is good and recoverable through officialliquidator as the company has already filed its claim with liquidator refer note No. 2.31.
(ii) Non provision of Gratuity for the year Rs. 1122898/- and Cumulative upto31/03/2017 Rs. 3706788/- (Previous Year Rs. 750381/- and Cumulative upto 31/03/2016Rs. 2583890/-) refer note No. 2.33.
(iii) Non provision of Leave pay for the year Rs. 273476/- and Cumulative upto31/03/2017 Rs. 1526955/- (Previous Year Rs. 237385/- and Cumulative upto 31/03/2016Rs. 1253479/-) refer note No. 2.34.
We further report that had the observation made by us in para (i) (ii) and (iii)above been considered the profit for the year would have been Rs. 980418/- (as againstthe reported figure of Rs. 8007923/-) the reserve and surplus for the year would havebeen Rs. 211081405/- (as against the reported figure of Rs. 221946279/-) Long term/Short term provisions for the year would have been Rs. 5233743/- (as against thereported figure of Rs. Nil) Short term loans and advances for the year would have beenRs. 47174273/- (as against the reported figure of Rs. 52805404/-)
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 2017;
(b) In the case of the Statement of Profit and Loss of the Profit for the year endedon that 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 2017 and 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.
(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 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 March2017.
iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8.11.2016 to30.12.2016 and these are in accordance with the books of accounts maintained by theCompany. (Refer Note No. 2.29)
| ||For S.S. SURANA & CO. |
| || |
| ||(FRN. 001079C) |
| ||Sd/- |
| ||(Prahalad Gupta) |
|Place: Jaipur ||Partner |
|Date: 30/05/2017 ||Membership No. 074458 |