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RTS Power Corporation Ltd.

BSE: 531215 Sector: Engineering
NSE: N.A. ISIN Code: INE005C01017
BSE 00:00 | 21 Feb 33.50 0.85
(2.60%)
OPEN

32.00

HIGH

34.45

LOW

31.80

NSE 05:30 | 01 Jan RTS Power Corporation Ltd
OPEN 32.00
PREVIOUS CLOSE 32.65
VOLUME 5822
52-Week high 62.80
52-Week low 23.85
P/E 4.52
Mkt Cap.(Rs cr) 27
Buy Price 33.50
Buy Qty 116.00
Sell Price 34.85
Sell Qty 100.00
OPEN 32.00
CLOSE 32.65
VOLUME 5822
52-Week high 62.80
52-Week low 23.85
P/E 4.52
Mkt Cap.(Rs cr) 27
Buy Price 33.50
Buy Qty 116.00
Sell Price 34.85
Sell Qty 100.00

RTS Power Corporation Ltd. (RTSPOWERCORPN) - Auditors Report

Company auditors report

To the Members of

RTS POWER CORPORATION LIMITED Report on the nancial statements

We have audited the accompanying nancial statements of RTS Power Corporation Limited("the Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Prot and Loss (Including Other Comprehensive Income) the Cash Flow Statementand the statement of changes in Equity for the year then ended and a summary of thesignicant accounting policies and other explanatory notes for the year ended on that date(hereinafter referred as "Ind AS nancial statements").

Management's Responsibility for the Ind AS nancial 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 Ind AS nancial statements that give a true and fair view of the state of affairs(nancial position) Prot or Loss (nancial performance including other comprehensiveincome) Cash Flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards speciedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal nancial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Ind AS nancial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS nancial statements based onour audit. We have taken into account the provisions of the Act the Accounting andAuditing Standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS nancial statements in accordance with theStandards on Auditing specied under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS nancial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS nancial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS nancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal nancial control relevant to the Company'spreparation of the Ind AS nancial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS nancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS nancial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in Indiaof the state of affairs of the companyas at March 31 2018 and its Prot (including other comprehensive income) its cash ows andthe changes in Equity for the year ended on that date.

Other Matters

The comparative nancial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in these IndAS nancial statements are based on the previously issued statutory nancial statementsprepared in accordance with Companies (Accounting Standards) Rule 2006 audited bypredecessor auditor M/s. A.C. Bhuteria & Co. whose report for the year ended 31stMarch 2017 and 31st March 2016 dated 30th May 2017 and 30th May 2016 respectively whoexpressed unmodied opinion on those nancial statements as adjusted for the company ontransition to the Ind AS which have been audited by us. Reliance has been placed by us onthe said nancial statements and the report issued thereupon for the purpose of thisnancial statements and the report issued by us.

Our opinion is not modied in respect of this matter. Report on Other Legal andRegulatory 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 ofthe Act we give in the "AnnexureA" a statement on the matters specied inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) The Balance Sheet the Statement of Prot and Loss includingOther Comprehensive Income the Statement of changes in Equity and the Statement of CashFlows dealt with by this Report are in agreement with the books of account; d) In ouropinion the Balance Sheet the Statement of Prot and Loss including Other ComprehensiveIncome the Statement of changes in Equity and the Statement of Cash Flows comply with theIndian Accounting Standard specied under section 133 of the Act; e) On the basis of thewritten representations received from the directors as on March 31 2018 and taken onrecord by the Board of Directors none of the directors is disqualied as on March 312018 from being appointed as a director in terms of section 164 (2) of the Act. f) Withrespect to the adequacy of the Internal Financial Controls Over Financial Reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure B". and g) With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014in 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 its nancialposition in its Ind AS nancial statements – refer Note no. 42 of the Ind AS nancialstatements; ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company.

For Lodha & Co
Chartered Accountants
Firm's ICAI Registration No.:301051E
H. K.Verma
Place: Kolkata Partner
Date: May 30 2018 Membership No: 055104

The Statement referred to in paragraph 1 with the heading ‘Report on other legaland regulatory requirements' of our Report of even date to the members of RTS PowerCorporation Limited on the Ind AS nancial statements of the Company for the year ended31st March 2018 we report that:

i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets.

b. There is a phased programme of verication of such assets based on which physicalverication of xed assets is being carried out by the management. Discrepancies in respectof xed assets veried during the year were not material.

c. Based on verication of title deeds produced to us by the management and according tothe information and explanations given to us in our opinion the title deeds/lease deedsof immovable properties are held in the name of the company.

ii) As explained to us inventories have been physically veried during the year atreasonable interval by the management. As far as ascertained discrepancies noticed onverication between the physical stocks and the book records were not material and the samehas been properly dealt with in the books of account.

iii) The Company has not granted any loans secured or unsecured to companies rmslimited liability partnership or other parties listed in the register maintained underSection 189 of the Act. Hence clause 3(iii) of the Order are not applicable to thecompany.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 186 of the Act with respect to theinvestments made. The Company has neither issued any guarantee given any loan nor hasprovided any security on behalf of any party. Further according to the information andexplanations given to us the company has not entered into any transactions as referred toin section 185 of the Act.

v) The Company has not accepted any deposits. Consequently the directives issued bythe Reserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under are not applicable tothe Company. vi) We have broadly reviewed the books of account maintained by the companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder Section 148 (1) of the Act in respect of the Company's products to which the saidrules are made applicable and are of the opinion that prima facie the prescribed recordshave been maintained. We have however not made a detailed examination of the said recordswith a view to determine whether they are accurate or complete.

vii) a. According to the information and explanations given to us during the year theCompany has generally been regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax goods andservices tax customs duty excise duty value added tax cess Goods and services tax andany other material statutory dues as applicable to it with the appropriate authorities.However according to the information and explanations given to us there is no undisputedamounts payable in respect of these which were in arrears as on March 31 2018 for aperiod of more than six months from the date they became payable. b. According to theinformation and explanations given to us the details of disputed dues of income taxsales tax service tax custom duty excise duty and Value added Tax if any as at March31 2018 not deposited on account of any dispute are as follows:

Name of the Statute Nature of Dues Period to which the Amount relates Amount (Rs) Forum Where dispute is Pending
Value Added Tax and Central VAT CST 2007-08 1499495 Revision pending before Tax Board
Sales Tax Act 1956 Interest on Freight & Insurance 2008-09 2084185 Rajasthan
2009-10 1944064
2010-11 2412822
2011-12 4972531
The Central Excise Act 1944 Duty on Commission on sale Apr-15 to Jan-16 166992 Revision pending before Appeals Commissioner
The Central Excise Act 1944 Service tax on Man power Apr-15 to Mar-16 1533277 Revision pending before Appeals Commissioner
The Central Excise Act 1944 Duty on Freight Charges Feb-16 to June-17 3201993 Revision pending before Appeals Commissioner
The Central Excise Act 1944 Duty on Freight Charges Apr-14 to Sept-16 2089489 Revision pending before Appeals Commissioner
The Central Excise Act 1944 Excise duty on Freight & Insurance April 11 to Jan-16 12553997 Revision pending before CESTAT
West Bengal Value Added tax Act 2003 Value Added tax 2009-10 4046172 Revision pending before Appellate
Authority of Sales Tax
West Bengal Value Added tax Act 2003 Central Sales Tax 2013-14 328509 Revision pending before Appellate
Authority of Sales Tax
West Bengal Value Added tax Act 2003 Central Sales Tax 2015-16 144601 Revision pending before Appellate
Authority of Sales Tax
The Central Excise Act 1944 Service tax 2010-11 to 2013- 14 3941342 Revision pending before Customs
The Central Excise Act 1944 Excise Duty 2005-06 & 2006- C 237928 Excise and Service Tax Appellate Tribunal (CESTAT) Writ petition to be led to High Court
Duty already paid Penalty Liabilities is contingent.

viii) In our opinion and on the basis of information and explanations given to us bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to banks and governments. As explained the company does not have any loan orborrowings from any nancial institution or any dues to debenture holders. ix) The Companydid not raise any money by way of initial public offer or further public offer (includingdebt instruments). In our opinion and according to the information and explanations givento us the term loans have been applied for the purpose for which they were raised. x)During the course of our examination of books of account carried out in accordance withgenerally accepted auditing practices in India we have neither come across any incidenceof fraud by the Company or on the Company by its ofcers or employees nor have we beeninformed of any such cases by the management.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act. xii) In our opinion and according to theinformation and explanations given to us the Company is not a Nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable. xiii) According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the nancialstatements as required by the applicable accounting standards. xiv) According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. xv) According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with them. Accordingly paragraph 3(xv) of the Order is not applicable.xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For Lodha & Co
Chartered Accountants
Firm's ICAI Registration No.:301051E
H. K.Verma
Place: Kolkata Partner
Date: May 30 2018 Membership No: 055104

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

We have audited the internal nancial controls over nancial reporting of RTS PowerCorporation Limited ("the Company") as at March 31 2018 in conjunction with ouraudit of the Ind AS nancial 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 internalnancial controls based on the internal control over nancial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal nancial controls that wereoperating effectively for ensuring the orderly and efcient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable nancial information as required under theCompanies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting 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 issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal nancial controls both applicable to an audit of Internal Financial Controls andboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal nancial controls over nancial 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 nancial controls system over nancial reporting and their operatingeffectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating 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 Ind AS nancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufcient and appropriate toprovide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of Ind AS nancial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal nancial control overnancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASnancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASnancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal nancialcontrols system over nancial reporting and such internal nancial controls over nancialreporting were operating effectively as at March 31 2018 based on the internal controlover nancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Lodha & Co
Chartered Accountants
Firm's ICAI Registration No.:301051E
H. K.Verma
Place: Kolkata Partner
Date: May 30 2018 Membership No: 055104