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Rajratan Global Wire Ltd.

BSE: 517522 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE451D01011
BSE 00:00 | 26 Feb 304.00 -6.00
(-1.94%)
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306.00

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312.00

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NSE 05:30 | 01 Jan Rajratan Global Wire Ltd
OPEN 306.00
PREVIOUS CLOSE 310.00
VOLUME 1152
52-Week high 402.86
52-Week low 244.28
P/E 12.65
Mkt Cap.(Rs cr) 309
Buy Price 304.00
Buy Qty 44.00
Sell Price 312.00
Sell Qty 45.00
OPEN 306.00
CLOSE 310.00
VOLUME 1152
52-Week high 402.86
52-Week low 244.28
P/E 12.65
Mkt Cap.(Rs cr) 309
Buy Price 304.00
Buy Qty 44.00
Sell Price 312.00
Sell Qty 45.00

Rajratan Global Wire Ltd. (RAJRATANGLOBAL) - Auditors Report

Company auditors report

To

The Members of

M/s. Rajratan Global Wire Limited

Indore

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the standalone financial statements of Rajratan Global Wire Limited("the Company") which comprise the balance sheet as on 31st March 2019 thestatement of profit and loss including statement of other comprehensive income statementof changes in equity and statement of cash flows for the year the ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2019 its profit changes in equity and in cashflows for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under Section 143(10) of the Companies Act2013. Our responsibilities under those Standards are further described in the‘Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordance withthe ‘Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Companies Act 2013 and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Standalone Ind ASfinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Ind AS financial statements for the financialyear ended 31st March 2019. These matters were addressed in the context of our audit ofthe Standalone Ind AS financial statements as a whole and in forming our opinion thereonand we do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the Standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the Standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying Standalone Ind AS financialstatements.

Key Audit Matters How our audit addressed the Key Audit Matters
Revenue Recognition (as described in note 2.1(n) of the standalone Ind AS financial statements)
The management is of the opinion that it controls the goods before transferring them to the customer. We assessed the Company's process to identify the impact of adoption of new Revenue Accounting Standard (Ind AS 115). Our audit approach included assessment of design and testing of operating effectiveness of internal controls related to revenue recognition calculation of discounts and rebates and other substantive testing. We carried out:
The variety of terms that define when control are transferred to the customer as well as the high value of the transactions give rise to the risk that revenue is not recognized in the appropriate accounting period. •Evaluation of the design of internal controls relating to implementation of new revenue accounting standard. How our audit addressed the Key Audit Matters
Revenue is measured net of returns and allowances trade discounts and volume rebates (collectively Key Audit Matters ‘discount and rebates'). There is a risk that these discount and rebates are incorrectly recorded as it also requires acertain degree of estimation resulting in understatement of the associated expenses and accrual. • Selection of samples of both continuing and new contracts for
-testing of operating effectiveness of the internal control
Accordingly due to the significant risk associated with revenuerecognition in accordance with terms of Ind AS 115 ‘Revenue from Contracts with Customers' it was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. - identification of contract wise performance obligations and
- determination of transaction price.
• Verification of individual sales transaction on sample basis and traced to sales invoices sales orders and other related documents. Further the samples were checked for revenue recognition as per the shipping terms.
• Sample of sales transactions were selected pre- and post- year end agreeing the period of revenue recognition to third party support such as transporter invoice and customer confirmation of receipt of goods.
• Direct confirmations were obtained from customers to support existence assertion of trade receivables andassessed the relevant disclosures made in the financial statements; to ensure revenue from contracts with customers are in accordance with the requirements of relevant accounting standards.
• In the cases where direct confirmations are not available additional procedures were applied in respect of receipts in the subsequent period.

We have determined that there are no other key audit matters to communicate in ourreport.

Information Other than the Financial Statements and Auditor's Report Thereupon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report 2018-19 but does notinclude the Standalone Ind AS financial statements and our auditor's report thereon.

Our opinion on the Standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether suchother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibilities for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements the Board of Directors isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected toinfluence the economic decisions of userstaken on the basis of these Standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the Standalone Ind ASfinancial 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.

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3) (i) ofthe Companies Act 2013 we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

- Evaluate the overall presentation structure and content of the Standalone Ind ASfinancial statements including the disclosures and whether the Standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

(c) The Balance Sheet the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Reportare in agreement with the books of account (d) In our opinionthe aforesaid standalone financial statements comply with theIndian Accounting Standardsspecified under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended.

(e) On the basis of the written representation received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164(2) of the Companies Act 2013.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure-B" to this report.

(g) With respect to the other matters to be included in the Auditor's Reportinaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 42 to the financial statements ii.The Company did not have any long-term contracts including derivative contracts for whichthere were anymaterial foreseeable losses. iii. There has been no delay in transferringamounts required to be transferred to theInvestor Education and Protection Fund by theCompany.

For D S Mulchandani & Co.
Chartered Accountants
FRN 021781C
(CA. Deepak S Mulchandani)
Place :Indore Proprietor
Dated:10.05.2019 M.No. 404709

Annexure - A to the Auditors' Report

As referred to in our Independent Auditor's Report of even date to the members ofRajratan Global Wire Limited for the year ended 31st March 2019

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) As informed and explained to us the management during the year has physicallyverified the items of the property plant and equipment of the Company at reasonableinterval and no significant discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As informed and explained to us the inventory has been physically verified duringthe year by the management. In our opinion the frequency of verification is reasonable.No material discrepancies were noticed on such physical verification.

(iii) The Company has granted unsecured loans amounting to र 1002.51 Lakhs (PreviousYear र 946.86 Lakhs) to Wholly Owned Subsidiary covered in the register maintained underSection 189 of the Companies Act 2013 ("the Act").

(a) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest. (b) The terms of arrangements do not stipulate any repayment scheduleand the loans are repayable on demand.

(c) Accordingly paragraph 3(iii)(c) of the Order is not applicable to the Company inrespect of repayment of the principal amount.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) According to the information and explanations given to us the Company has notaccepted any deposits under sections 73 to 76 or any other relevant provisions of theCompanies Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained.

(vii) (a) According to the books of accounts and records examined by us as per thegenerally accepted auditing practices in India in our opinion the Company has beenregular in depositing undisputed statutory dues. According to the information andexplanations given to us there were no undisputed amounts payable in respect of ProvidentFund Employees State Insurance Income tax Sales Tax Customs Duty Excise Duty ServiceTax Cess and other material statutory dues which have remained outstanding as at 31stMarch 2019 for a period of more than six months from the date they became payable.

(b) There are no disputed dues on account of Custom Duty Wealth Tax/ Cess that havenot been deposited. The disputed dues on account of the Sales Tax Income Tax Excise Dutyand the Service Tax are as under:-

Particulars Period Amount ( र in lakhs) Forum where the dispute is pending
Income Tax 2014-15 7.93 CIT (A) -II Indore
Income Tax 2015-16 8.15 CIT (A) -II Indore
Central Sales Tax 2011-12 5.07 Appellate Board Bhopal
Central Sales Tax 2012-13 2.48 Appellate Board Bhopal
Central Sales Tax 2013-14 7.92 Appellate Board Bhopal
Central Sales Tax 2015-16 1.81 Before Commercial Tax Officer Villupuram
VAT 2014-15 4.32 Additional CCT(A) Indore
Service Tax Apr 14 -Feb 15 & Mar 15 –Dec 15 46.81 Customs Central Excise & Service Tax Appellate Tribunal New Delhi
Excise 2005-06 2.70 CESTATMumbai
Excise Feb 10 –Nov 10 & Dec 10 –Aug 11 0.81 CESTAT New Delhi
Excise 2017-18 6.58 Assistant Commissioner Pithampur
Excise Apr 16 -Jun 17 2.99 CESTAT New Delhi

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institutions banks or debenture holders.

(ix) Paragraph 3(ix) of the Order is not applicable to the Company in respect ofinitial public offer or further public offer.

(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the year under audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a chit fund or a Nidhi mutual benefit fund/society. Therefore the provisions of clause (xii) of Para 3 of the said order are notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For D S Mulchandani & Co.
Chartered Accountants
FRN 021781C
(CA. Deepak S Mulchandani)
Place :Indore Proprietor
Dated:10.05.2019 M.No. 404709

Annexure - B to the Auditors' Report

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 RajratanGlobal Wire Limited ("the Company") as of 31st March 2019 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 company's policies the safeguarding ofits 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the Ind ASfinancial 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 internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 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 D S Mulchandani & Co.
Chartered Accountants
FRN 021781C
(CA. Deepak S Mulchandani)
Place :Indore Proprietor
Dated:10.05.2019 M.No. 404709