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|
The Members of The Rubber Products Limited Report on the Audit of the FinancialStatements
1. We have audited the financial statements of The Rubber Products Limitedwhich comprise the Balance Sheet as at 31st March 2020 and thestatement of Profit and Loss (including Statement of Other comprehensive Income) the cashflow statement for the period then ended and notes to the financial statements includinga summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31st March 2020 and cash flowstatement for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs)specified under section 143(10) of the Companies Act 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial 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 Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics.
4. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Key Audit Matters
5. Key audit matters are those matters that in our professional judgment were ofmost significance in our audit of the financial statements for the financial year ended31st March 2020. These matters were addressed in the context of our audit of thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. There are not any specific matters to be communicatedin our report as Key Audit matter.
Information other than the financial statements and auditors' report thereon
6. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditor's report thereon.
7. Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
8. In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.
9. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
10. The management and Board of Directors of the Company are responsible for thematters stated in Section 134(5) of the Companies Act 2013 (the act') with respectto the preparation of these financial statements that give a true and fair view of thefinancial position financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of Companies (Accounts) Rules 2014. Thisresponsibility includes maintenance of adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation and maintenance of adequate internal financial controls that areoperating 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 material misstatement whether due to fraud orerror.
11. In preparing the financial statements the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
12.Those Board of Directors are also responsible for overseeing the company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
13.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
14.As part of an audit in accordance with SAs we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:
a) Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
b) Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
c) Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
d) Conclude on the appropriateness of management's use of the going concern basisof accounting 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.
e) Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
15.We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
16.We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.
17. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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
18. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
19.As required by section 143(3) of the Act we further 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 appears from our examination of those books;
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 financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31st March2020 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2020 from being appointed as a director in terms of Section164(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 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. The Company has filed application with NCLAT which would have impact on thecompany's financial position.
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
ANNEXURE A to the Auditor's Report
(Referred to in paragraph 18 under Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members on the financialstatements of "The Rubber Products Limited" for the year ended 31stMarch 2020).
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
I. FIXED ASSETS:
The Company does not hold any Fixed Assets and accordingly clause (i) of the Order isnot applicable and hence not commented upon .
a. As explained to us Inventories have been physically verified during the year by themanagement.
b. In our opinion and on the basis of our examination of the records the Company isgenerally maintaining records of its inventories. No material discrepancy was noticed onphysical verification of stocks by the management as compared to book records.
c. We have not conducted physical verification of stock and relied on the
III. LOANS GIVEN BY COMPANY:
The company has not given any loans secured or unsecured to Companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. According to the information and explanations given to usthe Company has given loan to one associate concern. In respect of the said loans themaximum amount outstanding at any time during the year was Rs 25.00 Lacs and the year endbalance is Rs. 25.00 Lacs. In our opinion and according to the information andexplanations given to us the rate of interest and other terms and conditions of the loansgiven by the Company are not prima facie prejudicial to the interest of the Company inview of below explanations in 3(c). The Principal amounts are repayable but due to orderof BIFR was set aside by AAIFR vide it's order dated 06.09.2012 and also directed BIFR toconsider the scheme submitted by the Cosmos India Rubber Works (P) Ltd of revival cumMerger but with the releasement of SICA the matter before BIFR stands abated. In respectof the said loans and interest thereon there are no overdue amounts.
IV. LOAN TO DIRECTOR AND INVESTMENT BY THE COMPNY:
In our opinion and according to the information and explanation given to us theCompany has not advanced any loan to a specified person given any guarantee or providedany security in connection with loan taken by specified person as per the provisions ofSection 185 of Companies Act 2013. The company has complied with the provisions ofSection 186 of Companies Act 2013 with respect to Investments made.
The Company has not accepted any deposits from the public covered under Section 73 to76 of the Companies Act 2013.
VI. COST RECORDS:
According to the information and explanations given to us the Central Government hasnot prescribed the maintenance of cost records under section 148(1) of the Companies Act2013 for any of the products of the Company. The said clause 3(vi) of the order is notapplicable to said company.
VII. STATUTORY DUES:
According to the information and explanations given to us the Company was not regularin depositing undisputed statutory dues including provident fund income tax employeestate insurance sales tax service tax provision tax duty of excise value added taxTCS cess GST and any other statutory dues to the appropriate authorities. As perApproved Resolution plan and further as per the order from Hon'ble NCLAT Delhi Bench andoutstanding payment due as on 31st March 2020 are as follows :
VIII. REPAYMENT OF LOAN:
According to the records of the company examined by us and as per the information andexplanations given to us the company has not availed any loans from any financialinstitutionsbanks and government or debenture holders during the year. Accordinglyparagraph 3(viii) of the order is not applicable.
IX. UTILIZATION OF IPO AND FURTHER PUBLIC OFFER:
The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable.
X. REPORTING OF FRAUD:
According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
XI. APPROVAL OF MANAGERIAL REMUNERATION:
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013.
XII. NIDHI COMPANY:
In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
XIII. RELATED PARTY TRANSACTION:
According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.
XIV. PRIVATE PLACEMENT OF PREFERENTIAL ISSUES:
According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.
XV. NON CASH TRANSACTION:
According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.
XVI. REGISTER UNDER RBI ACT 1934:
The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.
Annexure B to the Auditors' Report
(Referred to in paragraph 19(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members on the financialstatements of "The Rubber Products Limited" for the year ended 31stMarch 2020).
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 TheRubber Products Limited which comprise the Balance Sheet as at 31st March 2020in conjunction with our audit of the financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
1. The Company's management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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.
2. 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.
3. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
4. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
5. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that i. pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company;
ii. 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 authorisations of management and directors of the company; and
iii. provide reasonable assurance regarding prevention or timely detection ofunauthorised 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
6. Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
7. 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 2020 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.