The Members of
Report on the Financial Statements
1. We have audited the accompanying financial statements of RISHABDEV TECHNOCABLELIMITED('the company') which comprises Balance Sheet as at 31st Mar 2016 theStatement of Profit and Loss account and Cash Flow Statement for the year then ended anda Summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that givea true and fair view of the financial positionfinancial performance and cash flows of the Companyinaccordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision 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; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial Statements thatgive a true and fair view and are free from materials misstatement whether due to fraudor error.
3. Our responsibility is to express an opinion on these financial statements based onour audit.
We have taken into account the provision of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedure selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessment theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemand the operating effectiveness of such control. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
Basis of Qualified Opinion
a) As the documents on the Internal Financial Control (IFC) were not provided to us weare unable to express our opinion on the adequacy of the Internal Financial Control overfinancial reporting reported in our Report on Other Legal and Regulatory RequirementsPoint No. 6
b) Out of the total depreciation of Rs. 31.53 crore depreciation amounting to Rs.30.77crore is due to charging full depreciation on Plant & Machinery and Software(groupedin capital wip) as the assets were obsolete due to not in use for more than 6 months.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the matter described in the Basis of Qualified Opinionparagraph the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its loss and its cash flowfor the year ended on that date.
Emphasis of Matter
a) As referred in note number 33 to the financial statement the company have notcomplied with section 203 & section 134 (1) of Companies Act 2013. Our opinion is notqualified in respect of this matter
b) There is no manufacturing activity in the company since last six months and thecompany has written off complete block of plant and machinery. Going ahead it mayseverely affect operations & performance of the company.
Report on Other Legal and Regulatory Requirements
4. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government in terms of Section 143 (11) of the Act we enclosed in theannexure a statement on matters specified in paragraph 3 & 4 of the said order.
5. 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 purpose 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 and the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) In respect of matter having adverse effect on functioning of Company refer Basis ofQualified Opinion
f) On the basis of the written representations received from the directors as on 31stMar 2016 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st Mar 2016 from being appointed as adirectors in terms of section 164(2) of the Act.
g) We are unable to report on the adequacy of Internal Financial Control over financialreporting Qf the company and the operating effectivenessof such controls as the documentson the Internal Financial Control (IFC) were not provided to us.
h) 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 information and according to the explanations given to us:
i. As informed to us the Company have pending litigations which would impact itsfinancial position refer Note No 36 Of the financial statements
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For DMKH & CO.
CHARTED ACCOUNTANTS FRN 0116886W ^ .
CA. Manish Kankanr^ M.No.158020 \
Place: Mumbai Date: 6th SEP;2016
ANNEXURETO INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal andRegulatory Requirements" of our report of even date
On the basis of such checks as we considered appropriate and in terms of theinformation and explanations given to us we state that: -
a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b. As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the company.
ii. As explained to us inventories have been physically verified during the year bythe management at reasonable intervals. No material discrepancy was noticed on physicalverification of stocks by the management as compared to book records.
iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013.Consequently theprovisions of clauses iii (a) (b) and (c)of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to uscompany has complied with the provision of section 185 and 186 of the Companies Act 2013In respect of loans investment guarantees and security.
v. The company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provision of sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 withregards to the deposits accepted from the public are not applicable.
vi. As per information & explanation given by the management maintenance of costrecords has not been specified by the Central Government under sub-section (1) of section148of the Companies Act 2013.
vii. a. According to information and explanations given to us and on basis of ourexamination of the books of account and records the company has been generally regularin depositing undisputed statutory dues including Income-tax Sales-tax Service TaxCustom Duty Excise Duty value added tax cess and any other statutory dues with theappropriate authorities. However company have undisputed statutory dues amounts of Rs.424795/- which includes Rs. 15000/- of Professional Tax Rs. 42407/- of CST &367388 of TDS not deposited for a period of more than six months from the date theybecome payable.
b. According to the information and explanations given to us there is no amountpayable in respect of income tax service tax sales tax customs duty excise duty valueadded tax and cess whichever applicable which have not been deposited on account of anydisputes other than following
|Name of the statute ||Nature of the dues ||Amount (Rs.) ||Period to which the amount related ||Forum where dispute pending |
|Income Tax Act 1961 % ||Income Tax ||Rs. 123053/- ||A.Y. 2009-10 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 117915090/- ||A.Y. 2009-10 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax ||Rs. 12618940/- ||A.Y. 2010-11 ||ITAT Mumbai |
|Income Tax Act 1961 ||Income Tax and Interest thereon ||Rs. 342560/- ||A.Y. 2012-13 ||Assessing Officer |
|Income Tax Act 1961 ||Income Tax and Interest thereon ||Rs. 10839210/- ||A.Y. 2013-14 ||Assessing Officer |
|MVAT Act 2002 ||Sales Tax thereon ||Rs. 2449651/- ||A.Y. 2010-11 ||Assessing Officer |
|MVAT Act 2002 ||Sales Tax thereon ||Rs. 2070062/- ||A.Y. 2011-12 ||Assessing Officer |
viii. According to the records of the company examined by us and the information andexplanation given to us The company has taken term loan from financial institution bankfor which company has defaulted in repayment of dues as given below :
|Name of the Financial Institution ||Type of Loan ||Overdue Amount |
|IDBI Bank Ltd. ||Term Loan ||37846207.48 |
|IDBI Bank Ltd. ||Cash Credit ||100000000.00 |
|IDBI Bank Ltd. ||WCDL ||88309616.50 |
|IDBI Bank Ltd. ||Letter of Guarantee ||14500000.00 |
|IDBI Bank Ltd. ||Bank Guarantee ||4900000.00 |
|SBBJ Bank ||Cash Credit ||99788701.28 |
|BOM ||Cash Credit ||100000000.00 |
|BMW Financial Services Ltd ||Vehicle Loan ||Nil* |
*The lender has taken the possession of the vehicle to sale and recovers the dues.Company has adjusted the balance loan amount of Rs. 24 lac against the surrender ofvehicle. However we are not in position to ascertain the balance loan due amount whichdepends on the sale consideration of the vehicle.
ix. Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.
x. According to the information and explanations given to us we report that no fraudby the company or any fraud on the Company by its officers or employees has been noticedor reported during the year..
xi. According to the information and explanations given to uswe report that managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act.
xii. The company is not a Nidhi Company. Therefore clause (xii) of the order is notapplicable to the company.
xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or person connected with him. Accordingly the provision of clause 3 (xv) of theOrder are not applicable to the Company and hence not commented upon.
xvi. In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. And accordingly the provisions of clause 3 (xvi)of the Order are not aoDlicable to the Corrmanv and hence not commented upon.
For DMKH & CO. CHARTED ACCOUNTANTS
CA. Manish Kankanr
Date: 6th SEP2016