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Rathi Graphic Technologies Ltd.

BSE: 524610 Sector: Industrials
NSE: N.A. ISIN Code: INE886C01010
BSE 00:00 | 27 Jan Rathi Graphic Technologies Ltd
NSE 05:30 | 01 Jan Rathi Graphic Technologies Ltd
OPEN 0.97
PREVIOUS CLOSE 0.97
VOLUME 505
52-Week high 3.95
52-Week low 0.97
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.97
Buy Qty 675.00
Sell Price 0.97
Sell Qty 405.00
OPEN 0.97
CLOSE 0.97
VOLUME 505
52-Week high 3.95
52-Week low 0.97
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.97
Buy Qty 675.00
Sell Price 0.97
Sell Qty 405.00

Rathi Graphic Technologies Ltd. (RATHIGRAPHIC) - Auditors Report

Company auditors report

To The Members

RATHI GRAPHIC TECHNOLOGIES LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of RATHIGRAPHIC TECHNOLOGIES LIMITED ("the Company") which comprise the Balance

Sheet as at 31 March 2018 the Statement of Profit and

Loss and the Cash Flow Statement for the year then ended and asummary of significantaccounting the policies and other explanatory information.

Management's Responsibility for the Ind-AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these Ind As financial statements that give a true andfair view of the financial position financial performance and cash flows of the inaccordance with the accounting principles generally accepted in India including theIndian Accounting

Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Stands) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financialcontrols that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Our responsibilityis to express an opinion on these IndAS financial statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the 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 the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the Ind AS financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the

Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of the

Ind AS financial statements whether due to fraud or error.

In making those risk assessments the auditor considers the internalfinancial control relevant to the Company's preparation of the Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on whether the Companyhas in place an adequate internal financial controls system over financial reporting andthe operating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficientandappropriate to provide a basis for our audit opinion on the IndAS financial statements.

Other Matter

In our opinion and to the best of our information and according to theexplanation given to us these financial statement do not comply with the IND ASprescribed under section 133 of the companies act 2013 .There fore we expresses adisclaimer opinion.

The working capital limit and term loan has become Non Performing assetduring the FY 2017-2018. Banks has been initiated the proceedings under the provision ofThe Securitization and reconstruction of financial statement and enforcement of securityInterest

(SARFAESI) Act2002

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements do not give the informationrequired by the Act in the manner so required and not give a true and fair view inconformity with the accounting principles generally accepted in India: a) In the case ofBalance Sheet of the state of affairs of the Company as at 31st March 2018; b) In thecase of Statement of Profit & Loss of the

Loss for the year ended on the date; c) In the case of Cash FlowStatement of the cash flows for the year ended on the date.

In our opinion to the best of our information and according to theexplanation given to us the aforesaid financial statements are not give the informationrequired by the Act in the manner so required and not give a true . and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018.

Report on Other Legal and Regulatory Requirements

1. In our opinion and to the best of our information and according tothe explanation given to us the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure ‘A' statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Companies Act 2013 we reportthat: a. We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit. b. in ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; c. the balance sheet the statement ofprofit and loss and the cash flow statement dealt with by this Report are in agreementwith the books of account; d. in our opinion the aforesaid Ind AS financial statementsdoes not comply with the

Accounting Standards specified under Section

133 of the Act read with the Companies (Indian Accounting Standards)Rules 2015 as amended. e. on the basis of the written representations received from thedirectors as on 31 March 2018 taken on record by the Board of

Directors none of the directors is disqualified as on 31 March 2018from being appointed as a director in terms of Section 164 (2) of the Act; f. With respectto the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in"Annexure B". g. with respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statement. Refer to the note of the financialstatement.

ii. the Company has made necessary provision in its financialstatements under the applicable law or accounting standards wherever required; iii. Thereis no amount which is required to be transferred to the Investor Education and protectionfunds by the Company. Hence there is no question of delay arise.

For Shalin Poddar & Associates

Chartered Accountants

Firms Registration No.020397C

(Shalin Poddar)

Partner

Membership No. 515616

Date: 29th May 2018 Place: New Delhi

Annexure ‘A' to Independent Auditors' Report

REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHERLEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

1. In respect of Fixed assets: a) The company has not updated properrecords showing full particulars including quantitative details and situation of thefixed assets. b) As explained to us fixed assets have been physically verified by themanagement during the year in accordance with the phased programmed of verificationadopted by the management which in our opinion provides for physical verification of allthe fixed assets at reasonable intervals. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification and the same havebeen properly dealt with in the books of accounts. c) As per the records and informationand explanations given to us title deeds of immovable properties are in the name ofcompany.

2. In respect of its inventory: a) As explained to us the inventoriesof finished goods semi-finished goods stores spare parts and raw materials werephysically verified at regular intervals by the Management. b) In our opinion andaccording to the information and explanation given to us the procedures of physicalverification of inventories followed by the Management were reasonable and adequate inrelation to the size of the Company and the nature of its business. c) In our opinion andaccording to the information and explanations given to us the Company has maintainedproper records of its inventories and no material discrepancies were noticed on physicalverification of stocks as compared to book records.

3. According to the information and explanation given to us theCompany has not granted any loans to companies firms limited liabilities partnership orother parties covered in the Register maintained under Section 189 of the CompaniesAct2013; and therefore paragraph 3(iii) of the Order is not applicable.

4. The Company has not made any transaction in respect of loans coveredunder section 185 of the Companies Act 2013 and in respect of loans investmentsguarantees and security covered under section 186 of the Companies Act 2013 theprovisions of the said section 186 have been duly complied.

5. The Company has not accepted any deposits from the public andconsequently the directives issued by Reserve Bank of India the provisions of sections73 to 76 of the Companies Act 2013 and rules framed there under are not applicable.

6. In accordance with the information given by the management themaintenance of cost records has not been prescribed by the Central Government undersection 148 (1) of the Companies Act 2013 read with Companies (Cost Records and Audit)Rules 2014 for the goods/ products manufactured by the Company.

7. According to the records of the Company and information andexplanations given to us the company has generally been regular in depositing theundisputed statutory dues including Provident fund Employees StateInsurance(ESI)Investor Education and Protection Fund Income tax Tax deducted at sourceProfessional Tax Sales tax Value Added Tax (VAT) Service Tax Custom Duty Excise DutyCess and any other statutory dues as applicable with the appropriate authorities.

According to the information and explanations given to usundisputedamounts of Rs 5715942 payable in respect of duty of excise and VAT were in arrears as at31st March 2018 for a period of more than six month from the date they become Payable.

Particulars

Amount (Rs)

Period to which amount relates
Delhi Vat

2884462

Upto June-2017
Rajasthan vat

2491588

Upto June-2017
UP Vat

221105

Upto June-2017
Excise Duty

118787

Upto June-2017
Total

5715942

Upto June-2017

According to the information and explanations given to us there are nomaterial dues of duty of excise duty of customs value added tax and cess which have notbeen deposited with the appropriate authorities on account of any dispute. Howeveraccording to information and explanations given to us the following dues of income taxVAT have not been deposited by the Company on account of disputes:

Name of the Statute

Nature of dues

Amount

Period to which amount relates

Forum where dispute is pending

Income tax Act

Income tax

29214759

AY 2013-14

CIT(A) Delhi

8. The working capital limit of Rs 79729492 and term loan of Rs1883990 has become Non Performing asset during the FY 2017-2018. Banks has initiated theproceedings under the provision of

The Securitization and reconstruction of financial statement andenforcement of security Interest (SARFAESI) Act2002

9. According to the information and explanations given to us theCompany has not raised any term loans and by way of further public offer during the yearhence clause 3 (ix) of the Order is not applicable.

10. According to the information and explanations given to us no fraudby the company or no fraud on the Company by the Company's officers or employees has beennoticed or reported during the year.

11. According to the information and explanations given to us and basedon our examination of the records of the company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

12. In our opinion and according to the information and explanationsgiven to us the company is not a Nidhi Company. Therefore the provision of clause 3(xii) of the Order are not applicable.

13. The transactions with the related parties made by the Company arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14. According to the information and explanation given to us and basedon our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence clause 3 (xiv) of the Order is not applicable.

15. According to the information and explanation given to us and basedon our examination of the records of the Company the company has not entered into anynon- cash transactions with directors or persons connected with him and hence clause 3(xv) of the Order are not applicable.

16. In our opinion and according to the information and explanationgiven to us the company is not required to be registered under section 45 IA of theReserve Bank of India Act1934.

For Shalin Poddar & Associates

Chartered Accountants

Firms Registration No. 020397C

(Shalin Poddar)

Partner

Membership No. 515616

Date: 29th May 2018 Place: New Delhi

"Annexure B" to the Independent Auditor's Report of even dateon the Financial Statements of RATHI GRAPHIC TECHNOLOGIES LIMITED

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 RATHI GRAPHIC TECHNOLOGIES

LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the financial 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 andmaintaining internal financial controls based on internal control over financial reportingcriteria established by the company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the 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 financial controls over financial reporting based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 theiroperating 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 Ind AS financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficientand 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 aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 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 not bedetected. 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 operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the guidance noteissued by the ICAI

For Shalin Poddar & Associates
Chartered Accountants
Firms Registration No. 020397C
(Shalin Poddar)
Partner
Membership No. 515616
Date: 29th May 2018
Place: New Delhi