The Members of
Rajdarshan Industries Limited
Report on the Financial Statements
We have audited the attached Balance Sheet of Rajdarshan Industries Limited as at 31stMarch 2017 and also the Profit and Loss Account for the year ended on that date and theCash Flow Statement for the year ended on that date annexed thereto. These financialCompany's Management.
Management's Responsibility for the Financial Statements
The Company Board of Directors is responsible for the matters stated in section 134(5)of the Companies Act 2013 ("the Act) with respect to the preparation of thesestatements that give a true and fair view of the Financial Position Financial Performanceand Cash flows of the company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards Specified U/S 133 of the Act Readwith Rule 7 of the Companies (Accounts) Rules 2014. This Responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of Act forsafeguarding the Assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of adequate internal financial controls and ensuring their operatingeffectiveness and the accuracy and completeness of accounting records relevant to thepreparation and presentation of the financial statements that give true and fair view andfree from the material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the of the act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under section 143(10) of theAct.issued by the Institute of Chartered Accountants of India. Those Standards requirethat we comply with the ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain 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 control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the said accounts read together with the other notes thereon give theinformation required by the Companies Act 1956 in the manner so required and give atrue and fair view in conformity with Accounting Principle generally accepted in India;
1. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017; and
2. In the case of the Profit and Loss Account of the profit for the year ended on thatdate; and
3. In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on the Other Legal & 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 annexure A to a statement on the matters specified in paragraphs 4 and5 of the said .
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. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of the books.
c. The Balance Sheet Profit and Loss Account and Cash Flow Statements dealt with bythis Report are in agreement with the books of account of the Company.
d. In our Opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with Rule 7 of the Companies(accounts) Rules 2014.
e. On the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2017 from being appointed as a director interms of section 164(2) of the Act.
f. With Respect to the adequacy of the internal financial controls company and theoperating effectiveness of such controls refer to our separate report in "AnnexureB" and
g. With Respect to the other matters to be included in the Auditors 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:
The Company has disclosed the impact of pending litigations on its Financial Positionin its Refer note on Contingent Liabilities and Note on Contingent asset to financial thefinancial statements.
The company did not have any long term contracts including derivative contracts hencethe question any material foreseeable losses does not arise.
There has been no delay in transferring amounts required to be transferred to theinvestor Education and Protection Fund by Company.
The company has provided Requisite disclosures in its financial statements as toholdings as well as dealings in specified bank notes during the period December 30 2016and these are in accordance with the books of accounts maintained by the Company. ReferNote 27 to the financial statements.
Annexure to Audit Report
The Annexure referred to in Independent Auditors report of even date to the members ofthe company on the financial statements for the year ended march 31 2017
Companies (Auditor's Report) Order 2016 - Suppression of Companies (Auditor's Report)Order 2015)
1. Fixed assets
a) The Company has maintained proper records of fixed assets showing full particularsincluding quantitative details and situation of fixed assets.
b) The company has a program of physical verification of its fixed assets at regularinterval which in our opinion is reasonable having regard to the size of the company andthe nature of its assets.
c) No material discrepancies were noticed on such physical verification conducted bythe company. During the year Company has not disposed of a substantial part of fixedassets.
d) The title deeds of immovable properties are held in the name of the company.
a) As explained to us the inventories have been physically verified by the managementat intervals during the year. In our opinion the frequency of such verification isreasonable having regard to the size of the Company and the nature of its business.
b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.
3. Unsecured and Secured Loans
a) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of theOrder are not applicable to the Company and hence not commented upon.
4. Investment & Guarantee
In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.
5. Deposits Accepted
The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable..
6. Cost Records
As explained to us the company is not required to maintain cost record under section148(1) of the Companies Act 2013.
7. Statutory Dues-
a) According to the information and explanations given to us and on the basis of ourexamination of records of the company amounts deducted/accrued in the books of accountin respect of undisputed statutory dues including provident income tax sales tax valueadded tax duty of customs service tax cess and other material statutory dues have beenregularly deposited during the year by the company with appropriate authorities.
According to the information and explanations given to us there are no undisputedstatutory dues payable in respect of Provident Fund Investor Education and Protectionfund Employees state Insurance Income- Tax Sales Tax Wealth Tax Custom Duty ExciseDuty Cess which are outstanding as at 31st March 2017 for a period of more than sixmonths from the date when they became payable. b) According to the Information andExplanations given and records of the company examined by us there are no dues of wealthtax sales tax. Service tax Value added Tax and Customs Duty which have not beendeposited on account of any disputes and the particulars of dues of Income tax exciseduty as at 31st March 2017 which have not been deposited on account of a dispute are asfollows
|Sr. No. ||Name of the Statute ||Nature of the Disputed Dues ||Amount (Rs Lacs) ||Period to which Amount Relates ||Forums Where Disputes are Pending |
|1. ||The Income Tax Act 1961 ||Income tax ||27.07* ||AY 2006-07 ||High court (Department Appeal) |
|2. ||The Income Tax Act 1961 ||Income tax ||Nil** ||AY 2012-13 ||CIT (Appeal) |
|3. ||The Finance Act 1994 ||Service Tax ||12.42 ||2008-09 and 2009-10 ||Commissioner Central Excise (Department Appeal) |
* The Amount does not include any sort of interest or penalty as it is not yetdetermined
** AO has added Rs 2.87 lakhs but due to carry forward losses demand was nil howeverthe decision of AO has been challenged in CIT (Appeal) for the addition of Rs 2.87 Lakhs
8. Defaults in Repayment of Loans or Borrowings
In our opinion the company has not defaulted in repayment of its dues to any financialinstitution bank or to debenture holders during the year.
9. End Use of Money Raised by IPO or Public offer
During the Period no such IPO or public offer including debt instruments have beenfloated.
There is no fraud by the company or on the Company by its officers or employees hasbeen noticed or reported during the year.
11. Managerial Remuneration
Based upon the audit procedures performed and the information and explanations given bythe management the managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.
12. Nidhi Companies
The Company is not a Nidhi Company. Therefore the provisions of clause 4 (xii) of theOrder are not applicable to the Company.
13. Related Parties
All transactions with the related parties are in compliance with sections 177 and 188of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
14. Preferential Allotment
Based upon the audit procedures performed and the information and explanations given bythe management the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Order are not applicable to theCompany and hence not commented upon.
15. Non Cash Transaction
Based upon the audit procedures performed and the information and explanations given bythe management the company has not entered into any non-cash transactions with directorsor persons connected with him. Accordingly the provisions of clause 3 (xv) of the Orderare not applicable to the Company and hence not commented upon.
16. Registration Under Sec 45-IA of RBI act 1934
The company does not require to be registered under this provision. However Companysuo motu will apply for the same if such circumstances arise
"Annexure B" to the Auditors Report
Referred to in paragragh 2(f) of the independent autiors report of even date to themembers of the company on the financial statements for the year ended March 31 2017 wereport that
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 internalfinancial controls over financial reporting of Raj Darshan Industies Limited ("TheCompany") as of March 31 2017 in conjunction with our audit of the standalonefinancial 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 [for example "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India".]These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the CompaniesAct 2013.
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 controls bothapplicable to an extentapplicabletoanauditofinternalfinancial audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financialreporting was 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 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 ontheCompany'sinternalfinancial . 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 external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) Pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions 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 management and directors of the company; and (3) Providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internalfinancialcontrols 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 reportingmay become inadequate because of changes in conditions or that the degree ofoverfinancial compliance with the policies or procedures may deteriorate.
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 March 31 2017 based on [forexample "the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India"].
| ||For SATYAM SVG & CO. |
| ||Chartered Accountants |
| ||ICAI Reg. No. 011714C |
| ||(YOGESH CHANDRA POKHARNA) |
|Place: Udaipur ||FCA-Partner |
|Date: May 30 2017 ||(Managiership .No.71503) |