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Rapicut Carbides Ltd.

BSE: 500360 Sector: Engineering
NSE: N.A. ISIN Code: INE350D01015
BSE 00:00 | 26 Sep 55.95 -3.30
(-5.57%)
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NSE 05:30 | 01 Jan Rapicut Carbides Ltd
OPEN 57.35
PREVIOUS CLOSE 59.25
VOLUME 2019
52-Week high 75.95
52-Week low 29.00
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 57.35
CLOSE 59.25
VOLUME 2019
52-Week high 75.95
52-Week low 29.00
P/E
Mkt Cap.(Rs cr) 30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Rapicut Carbides Ltd. (RAPICUTCARBIDES) - Auditors Report

Company auditors report

To

The Members of

Rapicut Carbides Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Rapicut Carbides Limited("the Company") which comprise the Balance Sheet as at March 312022 theStatement of Profit and Loss including Other Comprehensive income the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards specified under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 312022 and total comprehensive income(comprising of profit and other comprehensive income) changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditors' Responsibilities for the Audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave 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.

Information Other than the Financial Statements and Auditors' Report Thereon

The Company's Board of Directors is responsible for preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion and Analysis andShareholder's Information but does not include the financial statements and our auditors'report thereon. The above-referred information is expected to be made available to usafter the date of this audit report.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read the information if we conclude that there is a material misstatementtherein we are required to communicate the matter to those charged with governance andtake appropriate actions necessitated by the circumstances and the applicable laws andregulations.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the accountingprinciples

generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof 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 that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

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 auditors' report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. •

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matters orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("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" a statement on the matters specified inparagraphs 3 and 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 purposes of our audit;

(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 other comprehensiveincome the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards (Ind AS) prescribed under Section 133of the Act;

(e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 from being appointed as a Director in terms of Section 164(2) of theAct;

(f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B";

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with the requirements of section 197(16) of the Act as amended;

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and;

(h) 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:

i. The Company does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long-term contracts including derivative contracts asat March 31 2022 for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv (a) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (a) and(b) above contain any material misstatement.

v. The Company has not declared or paid any dividend during the year.

For K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Pritesh J. Amin
Partner
Membership No. 105926
UDIN: 22105926AJYEVX8137
Place: Vadodara
Date: May 28 2022

ANNEXURE-A

TO THE INDEPENDENT AUDITOR'S REPORT

The annexure referred to in our Independent Auditors' Report to the members of RapicutCarbides Limited ("the Company") on the financial statements for the yearended March 312022 we report that:

i. In respect of the Company's Property Plant and Equipment:

(a) (A) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(B) The Company has generally maintained proper records showing full particulars ofintangible assets.

(b) The Company has a regular programme of physical verification of its Property Plantand Equipment by which Property Plant and Equipment are verified in a phased manner overa period of three years. In accordance with this programme certain Property Plant andEquipment were verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of records of the Company the title/lease deeds of all the immovableproperties (other than properties where the Company is the lessee and the lease agreementare duly executed in favour of the lessee) disclosed in the financial statements are heldin the name of the Company.

(d) The Company has not revalued any of its Property Plant and Equipment during theyear and hence reporting under clause 3(i)(d) of the Order is not applicable to theCompany.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 312022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. (a) The Inventories have been physically verified by the management during the yearand in our opinion the coverage and procedure for such verification is reasonable. Asexplained to us there were no discrepancies of 10% or more in the aggregate for eachclass of inventory on physical verification of inventory as compared to the book records.

(b) According to the information and explanations given to us the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate from bankson the basis of security of current assets. The Company had submitted preliminaryquarterly returns initially thereafter the Company had resubmitted the quarterly returnswith the final numbers which are in agreement with the books of accounts of the Company.

iii. The Company has not made investment in provided any guarantee or security orgranted any loans or advance in nature of loans secured or unsecured to companiesfirms Limited Liability Partnership or other parties covered in register maintained undersection 189 of Companies Act 2013 and therefore reporting under this clause of the orderis not applicable to the Company.

iv. The Company has not granted any loans or provided any guarantees or security to theparties covered under section 185 of the Act. In our opinion and according to theinformation and explanation given to us the Company has complied with the provisions ofsection 186 of the Act in respect of the Investments made.

v. According to the information and explanations given to us the Company has notaccepted any deposits during the year from the public within the meaning of provisions ofsection 73 to 76 of the Act and the rules framed thereunder or under the directivesissued by the Reserve Bank of India and therefore reporting under clause (v) of the Orderis not applicable to the Company.

vi. In our opinion and according to the information and explanations given to us inview of Rule 3 of the Companies (Cost Records and Audit) Amendments Rules 2014 themaintenance of cost records under sub-section (1) of section 148 of the Companies Act2013 is not applicable to the Company and therefore reporting under clause (vi) of theOrder is not applicable to the Company.

vii. (a) In our opinion and according to the information and explanations given to usthe Company has been regular in

depositing with appropriate authorities undisputed statutory dues including providentfund income-tax duty of customs cess goods and services tax and any other statutorydues applicable to it. Further no undisputed amounts payable in respect of income taxduty of customs duty of excise goods and service tax cess and other statutory dues werein arrears as at 31st March 2022 for a period of more than six months from the date theybecome payable.

(b) According to the information and explanations given to us there are no statutorydues as referred to in sub clause (a) above which have not been deposited on account ofany dispute.

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the assessments under theIncome Tax Act 1961 (43 of 1961).

ix. (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or other borrowings or in the paymentof interest thereon to any lender.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or Government or any Government Authority.

(c) The Company has not taken any term loan during the year and there are nooutstanding term loans at the beginning of the year and hence reporting under clause3(ix)(c) of the Order is not applicable to the Company.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) The Company does not have any subsidiaries associates or joint ventures and hencereporting under this clause of the order is not applicable.

(f) The Company has not raised any loans during the year and hence reporting underclause 3(ix)(f) of the Order is not applicable to the Company.

x. (a) According to information and explanation given to us the Company has not raisedany money by way of initial public offer or further public offer (including debtinstruments) during the year and hence reporting under clause 3(x)(a) of the Order is notapplicable to the Company.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause 3(x)(b) of the Order is not applicable to the Company.

xi. (a) To the best of our knowledge and according to information and explanationsgiven to us no material fraud by the Company or on the Company has been noticed orreported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

xii. In our opinion the Company is not a Nidhi Company and therefore reporting underclause (xii) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to ustransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and the details of such transactions have been disclosed in thefinancial statements as required by the applicable Indian accounting standards.

xiv. (a) In our opinion and based on our examination the Company has an adequateinternal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into non-cash transactions with directors or persons connectedwith him. Accordingly reporting under clause (xv) of the Order are not applicable to theCompany.

xvi. (a) In our opinion and according to the information and explanations given to usthe Company is not required to be registered under Section 45-IAof the Reserve Bank ofIndia Act 1934. Hence reporting under clause 3(xvi)(a) (b) and (c) of the Order is notapplicable to the Company.

(b) In our opinion and according to the information and explanations given to us thereis no core investment Company within the Group [as defined in the Core InvestmentCompanies (Reserve Bank) Directions 2016] and accordingly reporting under clause3(xvi)(d) of the Order is not applicable to the Company.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit but the Company has incurred cash losses of Rs. 42.02 Lakhs during the immediatelypreceding financial year.

xviii. There has been no resignation of the statutory auditors of the Company duringthe year and accordingly this clause is not applicable.

xix. In our opinion and according to the information and explanations given to us onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements and our knowledge of the Board of Directors and Management plans and based onour examination of the evidence supporting the assumptions nothing has come to ourattention which causes us to believe that any material uncertainty exists as on the dateof the audit report indicating that Company is not 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. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx. According to the information and explanations given to us section 135 of the Actis not applicable to the Company and therefore reporting under this clause of the Orderis not applicable to the Company;

xxi. The Company is not required to prepare consolidated financial statements andtherefore reporting under this clause of the Order is not applicable to the Company.

For K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Pritesh J. Amin
Partner
Membership No. 105926
UDIN: 22105926AJYEVX8137
Place: Vadodara
Date: May 28 2022

ANNEXURE-B

TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Rapicut Carbides Limited onthe financial statements of even date)

Report on the Internal Financial Controls with reference to financial statements underClause (i) of Subsection 3 of Section 143 of the Act.

We have audited the internal financial controls with reference to financial statementsof Rapicut Carbides Limited ("the Company") as of March 312022 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 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements were 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 with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditors' judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 withreference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A Company's internal financial controls with reference to financial statements 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 controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 312022 based onthe internal 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 K.C. Mehta & Co.
Chartered Accountants
Firm's Registration No. 106237W
Pritesh J.Amin
Partner
Membership No. 105926
UDIN: 22105926AJYEVX8137
Place: Vadodara
Date: May 28 2022

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