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Rajkumar Forge Ltd.

BSE: 513369 Sector: Engineering
NSE: N.A. ISIN Code: INE013J01016
BSE 00:00 | 05 Aug 47.00 -0.50
(-1.05%)
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NSE 05:30 | 01 Jan Rajkumar Forge Ltd
OPEN 48.40
PREVIOUS CLOSE 47.50
VOLUME 143
52-Week high 65.00
52-Week low 37.55
P/E 13.70
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 48.40
CLOSE 47.50
VOLUME 143
52-Week high 65.00
52-Week low 37.55
P/E 13.70
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rajkumar Forge Ltd. (RAJKUMARFORGE) - Auditors Report

Company auditors report

To

The Members of Rajkumar Forge Ltd.

Report on the audit of the Financial Statements Opinions

We have audited the accompanying financial statements of Rajkumar ForgeLtd. (hereinafter referred to as "the Company") which comprise

a) Balance Sheet as at the 31st March 2022

b) Statement of Profit and Loss (including Other Comprehensive Income)for the year ended on that date

c) Statement of Cash Flows for the year ended on that date

d) Statement of Changes in Equity for the year ended on that date and

e) Notes to the financial statements including a summary of significantaccounting policies and other explanatory information. (hereinafter referred to as"the financial statements").

In our opinion to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the the Companies Act 2013 ("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia

a) in the case of the Balance Sheet of the state of affairs of theCompany as at 31st March 2022

b) in the case of the Statement of Profit & Loss of the Profit ofthe Company for the year ended on that date.

c) in the case of the Statement of Changes in Equity of the changes inequity of the Company for the year ended on that date.

d) in the case of the Cash Flow Statement of the cash flows of theCompany for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified u/s 143(10) of the Act. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder.

Our responsibilities under those Standards are further described in the"Auditor's Responsibilities for the Audit of the Financial Statements" sectionof our report.

We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters which were addressed in the context of our audit of the financial statementsas a whole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Other Information

The Company's management and Board of Directors are responsible for the"other information" included in the Company's annual report. The "otherinformation" comprises the information included in the Company's annual report butdoes not include the Financial Statements and our auditors' report thereon.

Our opinion on the Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact.

We have nothing to report in this regard Responsibility of Managementfor the financial statements

The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation and presentation of these financial statements that give a trueand fair view of the financial position financial performance (including OtherComprehensive Income) cash flows and change in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified u/s 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended.

This responsibility also includes

a) maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets of the Company and for preventing anddetecting frauds and other irregularities

b) selection application maintenance and implementation ofappropriate accounting policies

c) making judgments and estimates that are reasonable and prudent

d) 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.

In preparing the financial statements management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the company'sfinancial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are

a) to obtain reasonable assurance whether the Financial Statements as awhole are free from material misstatement whether due to fraud or error

b) to issue an auditor's report that includes our opinion on theseFinancial Statements based on our audit.

Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists.

Misstatements can arise from fraud or error and are considered materialif individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional skepticism throughout the audit. We also:

a) Identify and assess the risks of material misstatement of theFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

b) Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing if requiredour opinion on whether the company has adequate internal financial controls system inplace with reference to the Financial Statements and the operating effectiveness of suchcontrols.

c) Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the Financial Statementsmade by the management and the Board of Directors.

d) Conclude on the appropriateness of the management's and the Board ofDirectors' use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

e) Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the FinancialStatements of the current period and are therefore the key audit matters.

We describe these matters in our auditors' report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

a) As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of Section143(11) of the Companies Act 2013 we enclose on the basis of our opinion ourexamination of the relevant records and according to the information and explanation givento us in the "Annexure A" a statement on the matters specified in Paragraphs 3and 4 of the Order to the extent applicable.

b) As required by Section 143(3) of the Act we report that:

i) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

ii) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books

iii) The Balance Sheet the Statement of Profit and Loss including thestatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account

iv) In our opinion the aforesaid Financial Statements comply with theIndian Accounting Standards (Ind AS) notified under the Companies (Indian AccountingStandards) Rules 2015.

v) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

vi) With respect to the adequacy of the internal financial controlsover financial reporting with reference to the Financial Statements of the Company and theoperating effectiveness of such controls refer to our separate report in "Annexure B"; and

c) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i) The Company does not have any pending litigations which would impactits financial position

ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses

iii) There has been no delay on the part of the Company in transferringamounts required to be transferred to the Investor Education and Protection Fund

iv) The management has represented that to the best of its knowledgeand belief no funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the company to or in any otherperson(s) or entity(ies) including foreign entities ("Intermediaries") withthe understanding whether recorded in writing or otherwise that the Intermediary shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries")or provide any guarantee security or the like on behalf of the Ultimate Beneficiaries;

v) The management has represented that to the best of its knowledgeand belief no funds have been received by the company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and

vi) Based on such audit procedures that the auditors have consideredreasonable and appropriate in the circumstances nothing has come to their notice that hascaused them to believe that the representations under sub-clause (iv) and

(v) supra contain any material misstatement.

d) With respect to the matter to be included in the Auditors' Reportu/s 197(16) of the Act we state that in our opinion and according to the information andexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of Section 197 of the Act. Theremuneration paid to any director is not in excess of the limit laid down u/s 197 of theAct. The Ministry of Corporate Affairs has not prescribed other details u/s 197(16) of theAct which are required to be commented upon by us.

For Gokhale Tanksale & Ghatpande
Firm Registration No: 103277W
Chartered Accountants
S. M. Ghatpande
Partner
Place: Pune Membership No. 30462
Date: 11th May 2022 UDIN: 22030462AKWUNX5314

Annexure A Referred to in Paragraph a) under the heading

"Report on other legal and regulatory requirements" of OurReport of Even Date

(i) Property Plant and Equipment & Intangible Assets

(a) (A) The company has maintained during the financial year underreview proper records showing full particulars including quantitative details andsituation of Property Plant and Equipment.

(B) The company has maintained during the financial year under reviewproper records showing full particulars of intangible assets.

(b) The company has a regular program of physical verification of itsProperty Plant and Equipment by which its Property Plant and Equipment are verified in aphased manner. The periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its Property Plant and Equipment. No materialdiscrepancies were noticed on such verification of Property Plant and Equipment duringthe financial year under review.

(c) The title deeds of all the immovable properties (other thanproperties where the company is the lessee and the lease agreements are duly executed infavour of the lessee) disclosed in the financial statements are held in the name of thecompany.

(d) The company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.

(e) No proceedings have been initiated or are pending against thecompany for holding any benami property under the Benami Transactions (Prohibition) Act1988 (45 of 1988) and rules made thereunder Hence it is not necessary to appropriatelydisclose the details in its financial statements.

(ii) Inventories

(a) The management has conducted physical verification of inventoriesat reasonable intervals during financial year under review. The coverage and procedure ofsuch verification by the management is appropriate. Discrepancies of 10% or more in theaggregate for each class of inventory were not noticed on physical verification ofinventory as compared to the book records. The discrepancies which were not material havebeen properly dealt with in the books of account.

(b) During the financial year under review the company has beensanctioned working capital limits in excess of Rs 5 crores in aggregate from banks orfinancial institutions on the basis of security of current assets. The quarterly returnsor statements filed by the company with such banks or financial institutions are inagreement with the books of account of the Company

(iii) Investments Loans & Guarantees and Security for Loans

The company has not made investments in provided any guarantee orsecurity or granted any loans or advances in the nature of loans secured or unsecured tocompanies firms limited liability partnerships or any other parties. Hence the detailedinformation specified in Para 3(iii) of CARO 2020 cannot be furnished.

(iv) Compliance with S. 185 & S. 186

The contents of paragraph 3(iv) of CARO 2020 are not applicable sincethe Company has not granted during the financial year under review loans investmentsguarantee or security covered by section 185 & section 186 of CA 2013.

(v) Deposits

The contents of paragraph 3(v) of CARO 2020 are not applicable sincethe Company has not accepted any deposits from public during the financial year underreview. Hence the question of compliance with the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 & any other relevant provisions of theCA 2013 and the rules framed thereunder does not arise. No order has been passed byCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other tribunal in this regard.

(vi) Cost Records

Maintenance of cost records has been specified by the CentralGovernment under sub section (1) of section 148 of the Companies Act because the turnoverof the Company as per last audited financial statements is more than Rs 35 crores and suchaccounts and records have been so made and maintained;

(vii) Payment of statutory dues

(a) The Company is generally regular in depositing with the appropriateauthorities undisputed statutory dues including Goods & Service Tax provident fundemployees' state insurance income-tax sales-tax service tax customs duty excise dutyvalue added tax cess and other statutory dues applicable to it. As at the last day of thefinancial year there are no arrears of undisputed statutory dues outstanding for a periodof more than six months from the date those became payable.

(b) There are no disputed amounts outstanding in respect of Goods &Service Tax provident fund employees' state insurance income-tax sales-tax servicetax customs duty excise duty value added tax cess and other statutory dues applicableto it as at the last day of the financial year.

(viii) Unrecorded transactions surrendered in tax assessments

During the year in the tax assessments under the Income Tax Act 1961(43 of 1961) the Company has not surrendered or disclosed as income any transactionspreviously not recorded in the books of account.

(ix) Default in repayment of bank loan

(a) The company has not defaulted in repayment of loans or otherborrowings or in the payment of interest thereon to any lender

(b) The company has not been declared wilful defaulter by any bank orfinancial institution or other lender

(c) Term loans were applied for the purpose for which the loans wereobtained.

(d) Funds raised on short term basis have not been utilised for longterm purposes

(e) The company has not taken any funds from any entity or person onaccount of or to meet the obligations of its subsidiaries associates or joint ventures.

(f) The company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies

(x) Application of proceeds of public offer

The contents of Paragraph 3(x) of CARO 2020 are not applicable since

(a) the Company has not raised money by way of initial public offer orfurther public offer (including debt instruments) during the financial year under review.

(b) the company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionally convertible)during the financial year under review.

(xi) Fraud

(a) No fraud by the company or on the company has been noticed orreported during the year.

(b) A report under sub-section (12) of section 143 of the Companies Acthas not been filed by the auditors in Form ADT- 4 as prescribed under rule 13 of Companies(Audit and Auditors) Rules 2014 with the Central Government.

(c) The auditor has considered whistle-blower complaints if anyreceived during the year by the company. No whistleblower complaints were received duringthe year by the company.

(xii) Nidhi Company

The contents of Paragraph 3(xii) of CARO 2020 are not applicable sincethe Company is not a Nidhi Company.

(xiii) Related party transactions & compliance with S.177 & 188

All the transactions with related parties are in compliance withSections 177 if applicable & 188 of the CA 2013 and details thereof have beendisclosed in the financial statements as required by the applicable accounting standards.

(xiv) Internal Audit

(a) The company has an internal audit system commensurate with the sizeand nature of its business.

(b) The reports of the Internal Auditors for the period under auditwere considered by the statutory auditor.

(xv) Non-cash transactions with directors etc. & compliance withS.192

The contents of paragraph 3(xv) of CARO 2020 are not applicable sincethe company has not during the financial year under review entered into any non-cashtransactions with directors or persons connected with him.

(xvi) Compliance with S.45IA of RBI Act

The contents of paragraph 3(xvi) of CARO 2020 are not applicable since

(a) the company is not required to register itself with RBI undersection 45IA of the RBI Act.

(b) the company has not conducted any Non-Banking Financial or HousingFinance activities without a valid Certificate of Registration (CoR) from the Reserve Bankof India as per the Reserve Bank of India Act 1934;

(c) the company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India

(d) the Group does not have a CIC

(xvii) Cash losses

The company has not incurred cash losses in the financial year underreview and in the immediately preceding financial year.

(xviii) Resignation of statutory auditors

The contents of paragraph 3(xviii) of CARO 2020 are not applicablesince there has been no resignation of the statutory auditors during the year

(xix) Material uncertainty about the company's capability of meetingits liabilities

On the basis of the financial ratios ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements the auditor's knowledge of the Board of Directorsand management plans the auditor is of the opinion that no material uncertainty exists ason the date of the audit report that the company is capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date.

(xx) Unspent CSR funds

The contents of paragraph 3(xx) of CARO 2020 are not applicable since

(a) the company was not required to transfer unspent amount in respectof other than ongoing projects to a Fund specified in Schedule VII to the Companies Act2013

(b) the company was not required to transfer unspent amount pursuant toany ongoing project to a special account in compliance with the provision of sub-section(6) of section 135 of the said Act.

(xxi) Qualifications or adverse remarks by the respective auditors inthe Companies (Auditor's Report) Order (CARO) reports of the companies included in theconsolidated financial statements

The contents of paragraph 3(xxi) of CARO 2020 are not applicable sincethe Company is not required to prepare consolidated financial statements.

For Gokhale Tanksale & Ghatpande
Firm Registration No: 103277W
Chartered Accountants
S. M. Ghatpande
Partner
Place: Pune Membership No. 30462
Date: 11th May 2022 UDIN: 22030462AKWUNX5314

Annexure B Referred to in Paragraph (b)(vi) under the heading"Report on other legal and regulatory requirements" of Our Report of Even Date

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Rajkumar Forge Ltd. ("the Company") as of 31st March 2022 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on 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(‘ICAI?).

These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India.

Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and itsoperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(a) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(b) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(c) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and may notbe detected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were generally operating effectively as at 31 March2022 based on 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 Gokhale Tanksale & Ghatpande
Firm Registration No: 103277W
Chartered Accountants
S. M. Ghatpande
Partner
Membership No. 30462
UDIN: 22030462AKWUNX5314
Place: Pune
Date: 11th May 2022

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