You are here » Home » Companies » Company Overview » Ratnamani Metals & Tubes Ltd

Ratnamani Metals & Tubes Ltd.

BSE: 520111 Sector: Metals & Mining
NSE: RATNAMANI ISIN Code: INE703B01027
BSE 00:00 | 20 Feb 1316.60 -3.25
(-0.25%)
OPEN

1331.15

HIGH

1344.00

LOW

1300.10

NSE 00:00 | 20 Feb 1315.10 -6.40
(-0.48%)
OPEN

1324.00

HIGH

1345.00

LOW

1301.10

OPEN 1331.15
PREVIOUS CLOSE 1319.85
VOLUME 562
52-Week high 1359.95
52-Week low 824.30
P/E 20.28
Mkt Cap.(Rs cr) 6,155
Buy Price 1302.00
Buy Qty 1.00
Sell Price 1318.00
Sell Qty 1.00
OPEN 1331.15
CLOSE 1319.85
VOLUME 562
52-Week high 1359.95
52-Week low 824.30
P/E 20.28
Mkt Cap.(Rs cr) 6,155
Buy Price 1302.00
Buy Qty 1.00
Sell Price 1318.00
Sell Qty 1.00

Ratnamani Metals & Tubes Ltd. (RATNAMANI) - Auditors Report

Company auditors report

To the Members of Ratnamani Metals & Tubes Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statementsof Ratnamani Metals & Tubes Limited (the “Company”) which comprise theBalance sheet as at March 31 2019 the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas the “Standalone Ind AS Financial Statements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS Financial Statements give theinformation required by the Companies Act 2013 (the “Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019its profit including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Ind AS Financial Statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the 'Code of Ethics'issued 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 ful lled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone Ind AS Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most signi cance in our audit of the Standalone Ind AS Financial Statements forthe financial year ended March 31 2019. These matters were addressed in the context ofour audit of the Standalone Ind AS Financial Statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have ful lled the responsibilities describedin the 'Auditor's responsibilities for the audit of the Standalone Ind AS FinancialStatements' section of our report including in relation to these matters. Accordinglyour audit included the performance of procedures designed to respond to our assessment ofthe risks of material misstatement of the Standalone Ind AS Financial Statements. Theresults of our audit procedures including the procedures performed to address the mattersbelow provide the basis for our audit opinion on the accompanying Standalone Ind ASFinancial Statements.

Key audit matters How our audit addressed the key audit matter
Recoverability of Trade Receivable balances - Trade receivables (as described in note 6 of the Standalone Ind AS Financial Statements)
Year-end outstanding trade receivables represent balance outstanding from domestic and export customers. Our audit procedures among other things included the following:
Trade receivables by nature carry certain risks in general which include overdue balances customers in weaker economic and geopolitical environment customer's ability to pay provision in relation to expected credit loss assessment of recovery process and compliance with risk management controls. - Understood and tested on a sample basis the design and operating effectiveness of management control over the customer acceptance process collection and the assessment of the recoverability of receivables;
- tested on a sample basis the ageing of trade receivables at year end;
- in respect of material trade receivables balances inspected relevant contracts and correspondence with the customers;
Procedures to mitigate such risks includes element of management judgment and are important to access recoverability of trade receivables. - In respect of material trade receivables balances which are past due additional procedures were performed to evaluate their historical payment trends terms & conditions of customer contracts assessed whether the customers are experiencing financial dif culties and assessed expected credit loss assessment provided by the management;
Trade receivables has been considered a key audit matter in the audit due to size of the outstanding balance of trade receivables. - Compared the collateral in the nature of bank guarantees/letter of credits provided by customers as applicable and;
- evaluated the level of provisions made by management for trade receivables.

Other Information

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the Standalone Ind AS Financial Statements and our auditor'sreport thereon.

Our opinion on the Standalone Ind AS Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Ind AS FinancialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone Ind AS Financial Statements management 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 management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Charged with Governance are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Ind AS Financial Statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Ind AS FinancialStatements.

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

Identify and assess the risks of material misstatement of theStandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

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 Act 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 thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the 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 theStandalone Ind AS Financial Statements including the disclosures and whether theStandalone Ind AS Financial

Statements represent the underlying transactions and events in a mannerthat achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit ndingsincluding 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 signi cance in the audit of the Standalone IndAS Financial Statements for the financial year ended March 31 2019 and are therefore thekey audit matters. We describe these matters in our auditor's 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

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 of the Act we give in the “Annexure 1” a statement on thematters specified in paragraphs 3 and 4 of the Order.

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

(a) 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;

(b) 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;

(c) 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;

(d) In our opinion the aforesaid Standalone Ind AS FinancialStatements comply with the Accounting Standards specified under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from thedirectors as on March 31 2019 taken on record by the Board of Directors none of thedirectors is disquali ed as on March 31 2019 from being appointed as a director in termsof section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these Standalone Ind ASFinancial Statements and the operating effectiveness of such controls refer to ourseparate Report in “Annexure 2” to this report;

(g) In our opinion the managerial remuneration for the year endedMarch 31 2019 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(h) 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 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements Refer Note 26 to theStandalone Ind AS Financial Statements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts Refer Note 14 to the Standalone Ind AS FinancialStatements;

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

For S R B C & CO LLP For Kantilal Patel & Co.
Chartered Accountants Chartered Accountants
ICAI Firm registration number: ICAI Firm registration number:
324982E/E300003 104744W
per Pritesh Maheshwari per Jinal A. Patel
Partner Partner
Membership No.: 118746 Membership No.: 153599
Place: Mumbai Place: Ahmedabad
Date: May 29 2019 Date: May 29 2019

Annexure-1 to Independent Auditor's Report

Annexure 1 referred to in Paragraph 1 of Report on Other Legal andRegulatory Requirements of our report of even date for the year ended March 31 2019

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of xed assets;

(b) All xed assets have not been physically veri ed by the managementduring the year but there is a regular programme of veri cation which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such veri cation;

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment are held in the name of the Company.

(ii) The management has conducted physical veri cation of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical veri cation. There was no inventory lying with third parties.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies rms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and(c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanationsgiven to us there are no loans investments guarantees and securities granted inrespect of which provisions of section 185 and 186 of the Companies Act 2013 areapplicable and hence not commented upon.

(v) The Company has not accepted any deposits within the meaning ofsections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3 (v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the manufacture ofsteel tubes and pipes and are of the opinion that prima facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax duty of custom goods and servicetax cess and other statutory dues have generally been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax duty of custom goods and service tax cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues outstanding ofvalue added tax sales tax excise duty and employee state insurance scheme on account ofany dispute are as follows:

Name of the Statute Nature of the dues (in lacs) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty and Penalty 7.74 April 2011 to March 2012 Commissioner (Appeals)
214.92 April 2011 to March 2013 Central Excise and Service Tax Appellate Tribunal
7.00 April 2012 to March 2013 Commissioner (Appeals)
7.39 March 2013 to February 2015 Commissioner (Appeals)
Employee State Insurance Scheme Tax 398.69 November 1991 to March 2019 Hon'ble High Court of Gujarat
Central Sales Tax Act 1965 Tax 69.10 April 2008 to March 2011 Appellate Tribunal
223.79 April 2010 to March 2013 Dy. Commissioner (Appeals)
419.68 April 2013 to March 2014 Joint Commissioner (Appeals)
Gujarat Value Added Tax 2003 Tax and Interest 230.78 April 2010 to March 2015 Dy. Commissioner (Appeals)

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a bank. The Company did not have any outstanding loans or borrowings dues in respect ofa financial institution or to government or dues to debenture holders during the year.

(ix) According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer / debt instruments and term loans hence reporting under clause (ix) is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standardsexcept for transaction with Shree Mahavir Education Trust aggregating र 195 lacsfor which as explained to us the Company has obtained approval of audit committee undersection 177 of the Companies Act 2013 for subsequent modi cation to the contract in thecurrent year.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the Company and hence not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in section 192 of Companies Act 2013.Accordingly reporting requirements under clause 3(xv) are not applicable to the Companyand hence not commented upon.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company and hence not commented upon.

For S R B C & CO LLP For Kantilal Patel & Co.
Chartered Accountants Chartered Accountants
ICAI Firm registration number: ICAI Firm registration number:
324982E/E300003 104744W
per Pritesh Maheshwari per Jinal A. Patel
Partner Partner
Membership No.: 118746 Membership No.: 153599
Place: Mumbai Place: Ahmedabad
Date: May 29 2019 Date: May 29 2019

Annexure-2 to Independent Auditor's Report

Annexure 2 referred to paragraph 2 of Report on Other Legal RegulatoryRequirements of Independent Auditor's report of even date for year ended March 31 2019.

Report on the Internal Financial Controls under Clause (i) of sub-

section 3 of section 143 of Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financialreporting of Ratnamani Metals & Tubes Limited (the “Company”) as of March31 2019 in conjunction with our audit of the Standalone Ind AS Financial Statements ofthe 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 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. 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 the Company's policies the safeguardingof its 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these Standalone Ind ASFinancial Statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the“Guidance Note”) and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these Standalone Ind ASFinancial Statements 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 over financial reporting with reference tothese Standalone Ind AS Financial

Statements and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting with reference to these StandaloneInd AS 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 auditor's 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 andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these Standalone Ind AS Financial Statements.

Meaning of Internal Financial Controls Over Financial Reporting

With Reference to these Standalone Ind AS Financial Statements

A company's internal financial control over financial reporting withreference to these Standalone Ind AS Financial Statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these Standalone Ind AS Financial Statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these Standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these Standalone Ind AS Financial Statementsincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingwith reference to these Standalone Ind AS Financial Statements to future periods aresubject to the risk that the internal financial control over financial reporting withreference to these Standalone Ind AS Financial Statements may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these StandaloneInd AS Financial Statements and such internal financial controls over financial reportingwith reference to these Standalone Ind AS Financial Statements were operating effectivelyas at March 31 2019 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.

For S R B C & CO LLP For Kantilal Patel & Co.
Chartered Accountants Chartered Accountants
ICAI Firm registration number: ICAI Firm registration number:
324982E/E300003 104744W
per Pritesh Maheshwari per Jinal A. Patel
Partner Partner
Membership No.: 118746 Membership No.: 153599
Place: Mumbai Place: Ahmedabad
Date: May 29 2019 Date: May 29 2019