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Reliance Chemotex Industries Ltd.

BSE: 503162 Sector: Industrials
NSE: N.A. ISIN Code: INE750D01016
BSE 00:00 | 24 May 76.65 1.15
(1.52%)
OPEN

74.10

HIGH

77.95

LOW

74.10

NSE 05:30 | 01 Jan Reliance Chemotex Industries Ltd
OPEN 74.10
PREVIOUS CLOSE 75.50
VOLUME 3252
52-Week high 106.50
52-Week low 57.00
P/E 7.50
Mkt Cap.(Rs cr) 31
Buy Price 76.65
Buy Qty 6.00
Sell Price 77.00
Sell Qty 10.00
OPEN 74.10
CLOSE 75.50
VOLUME 3252
52-Week high 106.50
52-Week low 57.00
P/E 7.50
Mkt Cap.(Rs cr) 31
Buy Price 76.65
Buy Qty 6.00
Sell Price 77.00
Sell Qty 10.00

Reliance Chemotex Industries Ltd. (RELCHEMOTEX) - Auditors Report

Company auditors report

To The Members of Reliance Chemotex Industries Limited Report on the Ind AS FinancialStatements

We have audited the accompanying Ind AS financial Statement of Reliance ChemotexIndustries Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounfing policies and other explanatory informafion.Management's Responsibility for the Financial Statements The Company's Board of Directorsis responsible for the matters stated in Sectton 134(5) of the Companies Act 2013("the Act") with respect to the preparatton of these Ind AS financial statementsthat give a true and fair view of the state of affairs(financial positton) profit or loss(financial performance including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounfing principles generally accepted inIndia including the Indian Accounfing Standards (Ind AS) prescribed under secfion 133 ofthe Act.

This responsibility also includes maintenance of adequate accounfing records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor prevenfing and detecfing frauds and other irregularifies; selecfion and applicafion ofappropriate accounfing policies making judgments and esfimates that are reasonable andprudent; and design implementafion and maintenance of adequate internal financialcontrols that were operafing effecfively for ensuring the accuracy and completeness ofthe accounfing records relevant to the preparafion and presentafion of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounfing and audifingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit of the Ind ASfinancial statements in accordance with the Standards on Audifing specified under Secfion143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparafion of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluafing the appropriateness of the accounfing policies used and the reasonableness ofthe accounfing esfimates made by the Company's Directors as well as evaluafing theoverall presentafion of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our informafion and according to the explanafionsgiven to us the aforesaid Ind AS financial statements give the informafion required bythe Act in the manner so required and give a true and fair view in conformity with theaccounfing principles generally accepted in India including the Ind AS of the state ofaffairs (financial posifion) of the Company as at 31st March 2018 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Other Matter

The comparafive financial informafion of the Company for the year ended 31stMarch 2017 and the transifion date opening Balance Sheet as at 1st April 2016included in these Ind AS financial Statements are based on the previously issuedstatutory financial statements prepared in accordance with the Companies (AccounfingStandards) Rule 2006 audited by G.P. Kejriwal & Co. Chartered Accountants for theyear ended 31.03.2016 and 31.03.2017 whose reports dated 24.05.2016 and 27.05.2017respecfively expressed an unmodified opinion on those financial statements as adjusted forthe differences in the accounfing principles adopted by the Company on transifion to theInd As which have been audited by us. Our opinion is not modified in respect of thismatter.

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 in terms of Secfion 143(11) of the Act we give in"Annexure A"

a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

a) We have sought and obtained all the informafion and explanafions 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 examinafion of those books.

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounfing Standards prescribed under secfion 133 of the Act.

e) On the basis of the written representafions received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Secfion 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporfing of the Company and the operafing effecfiveness of such controls refer to ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our informafion and according to the explanafions given to us:

i. The Company has disclosed the impact of pending lifigafions on its financialposifion in its Ind AS financial statements;

ii. As per informafion & explanafion given to us the Company did not have any longterm contracts including derivafive contracts for which there were any materialforeseeable losses.

iii. There has been no delay in transferring amount required to be

transferred to the investor educafion and protecfion fund by the company.

For Jain Pramod Jain & Co.

Chartered Accountants (Firm Registrafion No. 016746N)

(P.K.JAIN)

Partner M No.010479

Date: 17th May 2018

Place : Mumbai

"Annexure A" to the Independent Auditors' Report

Industries Limited (Referred to in Paragraph 1 under the heading of "Report

on Other Legal and Regulatory Requirements" of our report of even date)

i. (a) The Company has maintained proper records showing full particulars

including quantitative details and situation of fixed assets;

(b) Fixed assets have been physically verified by the management according to theregular programme of periodical verification in phased manner designed to cover all itemsover a period of 3 years which in our opinion is reasonable having regard to the size ofthe company and the nature of its fixed assets. No material discrepancies were noticed onsuch verification;

(c) The title deeds of immovable properties are held in the name of the company.

ii. The inventories of the Company at all its locations (except stock in transit) havebeen physically verified by the management at reasonable intervals and the discrepancieswhich were noticed on physical verification of inventory as compared to book records werenot material;

iii. The Company has not granted any loan to companies firms or other parties coveredin the Register maintained under section 189 of the Act. Therefore the provisions ofclause 3 (iii) of the order are not applicable to the company and hence not commentedupon.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with provisions of section 185 and 186 of the Companies Act 2013with respect of loans investments guarantees and securities. .

v. The Company has not accepted any deposit from public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under Section148(1) of the Companies Act 2013 and are of the opinion that prima-facie prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the said records with a view to determine whether they are accurate andcomplete;

vii. (a) According to the information and explanations and records of the

Company the company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income tax Sales tax Service tax CustomDuty Excise Duty Value Added Tax Cess and other statutory dues with the appropriateauthorities. There are no arrears of outstanding statutory dues for a period of more thansix months from the date they became payable as on 31st March 2018;

(b) According to the records and information and explanations given to us there are nodues in respect of custom duty that have not been deposited on account of any dispute. Inour opinion and according to the information and explanations given to us the dues inrespect of income tax or sales tax or service tax or excise duty or value added tax thathave not been deposited with the appropriate authority on account of dispute and the forumwhere the dispute is pending are given below:

viii. The Company has not defaulted in repayment of loans or borrowings to a financialinstitution banks or government.

ix. In our opinion the term loans have been applied for the purpose for which

the loans were raised

Nature of Statute Nature of dues Amount involved in Rs. Period to which it relates to (Year ended) Forum where dispute is pending
Income Tax Act 1961 Income

Tax

15433480 FY 2011-12 The Commissioner of Income Tax Appeals Kolkata
Income Tax Act 1961 Income

Tax

556540 FY 2013-14 The Commissioner of Income Tax Appeals Kolkata
Service Tax Act Service

Tax

240837 16.07.2017 to

16.10.2018

The Asst. commissioner (Appeals ) Central Excise Udaipur
Central Excise Act Excise

Duty

23567 FY 1979-80 The Asst. Commissioner Central Excise Udaipur
Central Excise Act Excise

Duty

6073552 FY 2012-13 to 2015-16 Commissioner (Appeals) Jodhpur

x. Based upon the audit procedure performed and information and

explanation given to us we report that no fraud by the company or any fraud on thecompany by its officers or employees has been noticed or reported during the course of ouraudit.

xi. Managerial Remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provision of Section 197 read with schedule V of the CompaniesAct 2013.

xii. Provision of Nidhi Company is not applicable to the Company..

xiii. According to the information and explanation give to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with Section 177 and 188 of the Companies Act 2013 and the details havebeen disclosed in the financial statements etc as required by the applicable accountingstandard.

xiv. The company has not made any preferential allotment or private placements ofshares or fully or partly convertible debentures during the year under review.

xv. The company has not entered into any non-cash transaction with Directors or personsconnected with him.

xvi. The company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934.

For Jain Pramod Jain & Co.

Chartered Accountants (Firm Registration No. 016746N)

(P.K.JAIN)

Partner M No.010479

Date: 17th May 2018

Place : Mumbai

Annexure "B" To The Independent Auditor's Report of Even Date on TheStandalone Financial Statements of Reliance Chemotex Industries Limited.

Report on the Internal Financial Controls under Clause (i) of sub -section 3 of section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of RelianceChemotex Industries Limited. as at March 312018 in conjunction with our audit of thestandalone 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 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 "the Internal Financial Controls Over FinancialReporting 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 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 Guidance note on Audit of Internal Financial Controls over Financial Reporting(the" Guidance Note" ) and the Standard on Auditing issued by ICAI prescribedunder section 143 (10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those standards andthe Guidance Note require that we Comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate Internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 and 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statement 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable details accurately andfairly reflect the transactions and disposition of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statement in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitation 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 respect an adequate internal financialcontrols systems over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2018 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 Jain Pramod Jain & Co.

Chartered Accountants (Firm Registration No. 016746N)

(P.K.JAIN)

Partner M No.010479

Date: 17th May 2018

Place : Mumbai