Rubber Products Ltd.
|BSE: 526496||Sector: Others|
|NSE: N.A.||ISIN Code: INE430C01017|
|BSE 00:00 | 25 Feb||Rubber Products Ltd|
|NSE 05:30 | 01 Jan||Rubber Products Ltd|
|BSE: 526496||Sector: Others|
|NSE: N.A.||ISIN Code: INE430C01017|
|BSE 00:00 | 25 Feb||Rubber Products Ltd|
|NSE 05:30 | 01 Jan||Rubber Products Ltd|
To The Members of the Rubber Products Limited
Report on the audit of the financial statements Opinion
We have audited the accompanying financial statements of The Rubber Products Limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Statement of other Comprehensive income)Statement of Cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.In our opinion and to the best of our information and according to the explanations givento us the aforesaid financial statements give the information required by the CompaniesAct 2013 (Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and cash flows for the year ended on thatdate.
Basis for opinion
We conducted our audit in accordance with the standards on auditing specified undersection 143 (10) of the Companies Act 2013. Our responsibilities under those Standardsare further described in the Auditor's responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with thecode of ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules thereunder and we have fulfilled 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 opinion on these financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended 31stMarch 2019. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Information other than the financial statements and auditors' report thereon TheCompany's Board of Directors is responsible for the preparation of the other information.The other information comprises the information included in the Board's Report includingAnnexures to Board's Report Business Responsibility Report but does not include thefinancial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information we are required to reportthat fact. We have nothing to report in this regard.
Management's responsibility for the financial statements
The Company's board of directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting standards specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror. 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. The 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.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assessthe risks of material misstatement of the financial statements whether due to fraud orerror design and perform audit procedures responsive to those risks and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 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 the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
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 mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable. As required bySection 143(3) of the Act we report that: (a) We have sought and obtained all theinformation and explanations which to the best of our knowledge and belief were necessaryfor the purposes of our audit; (b) In our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks; (c) The balance sheet the statement of profit and loss and the cash flowstatement dealt with by this report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under section 133 of the Act read with rule 7 of the Companies(Accounts) Rules 2014; (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 disqualified 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 Financialcontrols over the financial reporting of the company and the operating effectiveness ofsuch controls refer to our separate report in Annexure B; (g) With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us; a. The Company has filed application with NCLATwhich would have impact on the Company's financial position. b. The Company did not haveany long-term contracts including derivative contracts for which there were any materialforeseeable losses; and c. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
Annexure "A" to the Independent Auditor's Report*
(Referred to in paragraph 1 under Report on other legal and regulatoryrequirements' section of our report to the members of The Rubber Products Limited of evendate) On the basis of sample checks and according to the information and explanationsgiven to us during the course of our audit we report that: (i) The Company does not holdany Fixed Assets and accordingly clause (i) of the Order is not applicable and hence notcommented upon (ii) (a)As explained to us Inventories have been physically verifiedduring the year by the management. (b) In our opinion and on the basis of our examinationof the records the Company is generally maintaining records of its inventories. Nomaterial discrepancy was noticed on physical verification of stocks by the management ascompared to book records. We have not conducted physical verification of stock and reliedon the Management Information. (iii) In respect of the Loans secured or unsecuredgranted to Companies firms or other parties covered by clause (76) of section 2 of theCompanies Act 2013 According to the information and explanations given to us theCompany has given loan to one associate concern. In respect of the said loans the maximumamount outstanding at any time during the year was Rs 25.00 Lacs and the year end balanceis Rs. 25.00 Lacs. In our opinion and according to the information and explanations givento us the rate of interest and other terms and conditions of the loans given by theCompany are not prima facie prejudicial to the interest of the Company in view of belowexplanations in 3(c). The Principal amounts are repayable but due to order of BIFR was setaside by AAIFR vide it's order dated 06.09.2012 and also directed BIFR to consider thescheme submitted by the Cosmos India Rubber Works (P) Ltd of revival cum Merger but withthe releasement of SICA the matter before BIFR stands abated. Reference is invited to NoteNo 6 of Notes forming part of account. In respect of the said loans and interest thereonthere are no overdue amounts. (iv) In our opinion and according to the information andexplanations given to us the company has complied with the provisions of section 185 and186 of the Companies Act 2013 with respect to loans and investments made.
(v) The Company has not accepted any deposit from the public. Therefore provision ofclause (v) of paragraph 3 of the CARO 2016 are not applicable to the Company. (vi)According to the information and explanations given to us Central Government has notprescribed the maintenance of cost records under sub-section (1) of the section 148 of theCompanies Act 2013. (vii)(a) According to the information and explanations given to usthe Company was not regular in depositing undisputed statutory dues including providentfund income tax employee state insurance sales tax service tax provision tax duty ofexcise value added tax TCS cess GST and any other statutory dues to the appropriateauthorities.
Successful Resolution Applicant has after receiving the certified copy of the Hon'bleNCLT Mumbai bench order dated 19.02.2019 found few errors of omission and certain reliefsthat is not being granted by the Hon'ble NCLT. Hence the Successful Resolution applicantmoved the Hon'ble NCLAT New Delhi and appealed against the order dated 19.02.2019 passedby the Hon'ble NCLT Mumbai bench u/s. 61 of the Insolvency and Bankruptcy code 2016. TheHon'ble NCLAT New Delhi asked the Successful Resolution applicant to file a "RevisedRe-distribution chart" showing how the interest of each stakeholder shall be dealtwith. Whilst the "Revised Re-distribution chart" was submitted and that theHon'ble NCLAT approved the same thereby modifying the impugned order of the Hon'ble NCLTMumbai bench dated 19.02.2019 to that extent including those which are appealed against.The details of modifications which are now Contingent Liability is as follows:
Notes: The Company's pending Contingent Liabilities comprises of claims against thecompany and proceedings pending with Statutory/ Government Authorities. The Company hasreviewed all its pending litigations and proceedings and has made adequate provisions anddisclosed contingent liabilities where applicable in its financial statements. TheCompany does not expect the outcome of these proceedings to have a material impact on itsfinancial positions.
(viii) According to the information and explanations given to us and our Auditprocedures the Company has loans and borrowing from financial institution bank duringthe year. The Company has repayment of loan principal and interest amount payable to StateBank of India (Cash Credit) Rs. 16526171 and repaid completely on 2nd April 2019.
(ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly clause(ix) of the Order is not applicable and hence not commented upon.
(x) According to the information and explanations given to us no material fraud by thecompany or any fraud on the company by its officers or employees has been noticed orreported during the year.
(xi) According to the information and explanations given to us the Company has notpaid/ provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company. Accordingly clause (xii) of the Order is not applicableand hence not commented upon.
(xiii) According to the information and explanations given to us all transactions withrelated parties are in compliance with sections 177 and 188 of the Companies Act 2013where applicable and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or full or partlyconvertible debentures during the year under review.
(xv) According to the information and explanations given to us and based on ourexamination of the record of the company the company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly clause (xv) ofthe Order is not applicable and hence not commented upon.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the clause (xvi) of the Order is not applicable tothe Company and hence not commented upon.
Annexure- B to the Independent Auditor's Report
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 financial controls over financial reporting of The RubberProducts Limited (the Company") as of 31st March 2019 in conjunction with ouraudit of the financial statements of the Company for the period 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 (ICAI) of India. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements 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 detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements 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.
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.
In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2019 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.