You are here » Home » Companies » Company Overview » RMC Switchgears Ltd

RMC Switchgears Ltd.

BSE: 540358 Sector: Engineering
NSE: N.A. ISIN Code: INE655V01019
BSE 00:00 | 19 Feb 18.00 0
(0.00%)
OPEN

18.00

HIGH

18.00

LOW

18.00

NSE 05:30 | 01 Jan RMC Switchgears Ltd
OPEN 18.00
PREVIOUS CLOSE 18.00
VOLUME 2000
52-Week high 57.25
52-Week low 16.00
P/E 2.92
Mkt Cap.(Rs cr) 11
Buy Price 16.10
Buy Qty 4000.00
Sell Price 20.95
Sell Qty 2000.00
OPEN 18.00
CLOSE 18.00
VOLUME 2000
52-Week high 57.25
52-Week low 16.00
P/E 2.92
Mkt Cap.(Rs cr) 11
Buy Price 16.10
Buy Qty 4000.00
Sell Price 20.95
Sell Qty 2000.00

RMC Switchgears Ltd. (RMCSWITCHGEARS) - Auditors Report

Company auditors report

To the Members of RMC SWITCHGEARS LIMITED Report on the Standalone FinancialStatements

Opinion

We have audited the standalone financial statements of RMC SWITCHGEARS LIMITED("the Company") which comprise the balance sheet as at 31st March 2019 and thestatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and profit and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Management's Responsibility for the Standalone Financial Statements

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 standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity)i and cash flows of theCompany in accordance withii the accounting principles generally accepted inIndia including the accounting Standards specified under section 133 of the Act. 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 appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement 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. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's 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 auditor's 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.

Emphasis of Matter:

We draw your attention to following note to the financial statements:

Providing deferred Tax Liability at the rate prescribed u/s 115JB of the Income TaxAct 1961 as described in Note No. 1(vi)(b) of the Financial Statements in place ofregular rate of income tax as suggested under Accounting Standard-22

Report on Other Legal and Regulatory Requirements

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 ofthe Companies Act 2013 we give in the Annexure `A' a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable. As required by Section143(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 [and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.iii ]

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with 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) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2019 from being appointed as a director in terms ofSection 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B". g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 27 to 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 has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

For SARASWAT & COMPANY
Chartered Accountants
Firm's registration number: 004846C
CA PRAVIN SARASWAT
Jaipur
Partner
Dated: 29/05/2019 Membership number: 072679

Annexure – A to the Auditors' Report

The Annexure referred to in the Independent Auditors' Report to the members of thecompany on the Financial Statements for the year ended 31stMarch 2019 wereport that:

1. (a) The company is maintaining proper records showing full particulars includingquantitative details & situation of Fixed Assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals; No such material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties arc held in the name of the companyexcept Leasehold / Freehold Lands which are in the old name of company i.e. RFH MetalCastings Private Ltd.

2. The Physical Verification of Inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed;

3. The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

4. In respect of loans investments guarantees and security all the provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

5. The company has not accepted any deposit from the public within the meaning ofSection 73 to 76 of the Act and Rules framed there-under to the extent notified.

6. The maintenance of Cost Records has been specified by the Central Government undersub-section (1) of section l48 of the Companies Act 2013 and such accounts and recordshave been so made and maintained by the Company.

7. (a) The company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales-tax service taxduty of customs duty of excise value added tax cess Goods and Services Tax (GST) andany other statutory dues to the appropriate authorities.

(b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However the following dues of CentralExcise are under dispute:

Name of Statute Nature of dues Amount (in Rs.) (Net of Deposit) Period to which amount relates Forum where Dispute is pending
Central Excise Act 1944 Excise Duty & Penalty 123129/- March 2011 CESTAT New Delhi

8. The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank government or dues to debenture holders.

9. No moneywas raised during the year by way of initial public offer by the company.Term Loans raised have been used by the company for the purpose for which they weresanctioned and raised.

10. No Fraud by the Company or fraud on the company by its Officers or employees hasbeen noticed or reported during the year.

11. The Managerial Remuneration has been paid and provided in accordance with requisiteapprovals mandated by the provisions of section 197 read with Schedule V of the CompaniesAct 2013.

12. The company is not a Nidhi Company and hence reporting under clause 12 of the CARO2016 Order is not applicable.

13. All 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 theFinancial Statements etc. as required by the applicable accounting standards.

14. The company has not made any preferential allotment of shares during the year underreview .

15. The Company has not entered into any non-cash transaction with the Directors orperson connected with him/her under the provisions of section 192 of Companies Act 2013.16. According to the information and explanation given to us the company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

For SARASWAT & COMPANY
Chartered Accountants
Firm's registration number: 004846C
CA PRAVIN SARASWAT
Jaipur
Partner
Dated: 29/05/2019 Membership number: 072679

Annexure – B to the Auditors' Report

Report on the Internal Financial Control under clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the Internal Financial Control over Financial Reporting of RMCSWITCHGEARS LTD. ("the Company") as on 31 March 2019 in conjunction with ouraudit 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 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 Companies Act 2013.

Auditor's 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 an 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

Meaning of Internal Financial Control 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations 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 respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019based on the 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 SARASWAT & COMPANY
Chartered Accountants
Firm's registration number: 004846C
CA PRAVIN SARASWAT
Jaipur
Partner
Dated: 29/05/2019 Membership number: 072679