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Rubfila International Ltd.

BSE: 500367 Sector: Others
NSE: RUBFILINTL ISIN Code: INE642C01025
BSE 16:01 | 20 Feb 37.95 -0.05
(-0.13%)
OPEN

38.10

HIGH

39.25

LOW

37.80

NSE 05:30 | 01 Jan Rubfila International Ltd
OPEN 38.10
PREVIOUS CLOSE 38.00
VOLUME 6755
52-Week high 90.00
52-Week low 36.00
P/E 9.58
Mkt Cap.(Rs cr) 179
Buy Price 37.95
Buy Qty 156.00
Sell Price 38.45
Sell Qty 200.00
OPEN 38.10
CLOSE 38.00
VOLUME 6755
52-Week high 90.00
52-Week low 36.00
P/E 9.58
Mkt Cap.(Rs cr) 179
Buy Price 37.95
Buy Qty 156.00
Sell Price 38.45
Sell Qty 200.00

Rubfila International Ltd. (RUBFILINTL) - Auditors Report

Company auditors report

To the members of Rubfila International Limited

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of Rubfila InternationalLimited (hereinafter referred to as "the Company") comprising the Balance Sheetas at 31st March 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity for the yearended 31.03.2018 and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (hereinafter referred to as "the Act") withrespect to the preparation of these Ind AS financial statements that give a true and fairview of the financial position financial 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 (Ind AS)prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. While conducting the audit we have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the Ind AS financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31st March 2018 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the transition date openingbalance sheet as at 1st April 2016 included in these standalone Ind AS financialstatements are based on the previously issued statutory financial statements prepared inaccordance with the Companies (Accounting Standards) Rules2006 audited by the predecessorauditor whose report for the year ended 31st March 2016 dated 13.05.2016 expressed anunmodified opinion on those financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (hereinafter referred toas "the Order") issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Companies Act 2013 we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order to theextent applicable.

2. 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 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.

c) The Balance Sheet the Statement of Profit and Loss including Other Comprehensive

Income the Statement of Cash Flows and the Statement of Changes in Equity dealt withby this Report are in agreement with the books of account..

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 system withreference to financial statements reporting of the Company and the operating effectivenessof such controls refer to our separate 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 disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note No 42 to the Ind ASfinancial 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.

Place: Thiruvananthapuram

Date: 10 May 2018

ANNEXURE A TO AUDITORS' REPORT

REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" OF OUR INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF RUBFILA INTERNATIONAL LIMITED FOR THE YEAR ENDED 31st MARCH 2018

(i) a. The Company is maintaining proper records showing full particulars includingquantitative details and situation of Fixed Assets.

b. We are informed that fixed assets have been physically verified by the management atreasonable intervals and that no material discrepancies were noticed on such verification.

c. According to the information and explanation given to us the records of the companyexamined by us the title deeds of immovable properties of the Company are held in the nameof the Company.

ii. We are informed that the physical verification of inventory has been conducted atreasonable intervals by the management and that no material discrepancies were noticed onsuch verification..

iii. According to the information and explanations given to us and the records of thecompany examined by us the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act. Accordingly the reporting requirements underclauses (iii) (a) to (c) of paragraph 3 of the Order are not applicable.

iv. According to the information and explanations given to us and the records of thecompany examined by us the company has not granted any loans or given any guarantee orsecurity for which the provisions of sections 185 and 186 of the Act are applicable andthe company has complied with the provisions of section 186 of the Act in respect ofinvestments made by it.

v. The Company has not accepted any deposits from the public during the year and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the rules framed thereunder are notapplicable.

vi. According to the information and explanations given to us the Central Governmenthas prescribed maintenance of cost records under Section 148(1) of the Companies Act 2013in respect of manufacturing activities of the Company. We have broadly reviewed theaccounts and records of the Company in this connection and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever carried out a detailed examination of the same.

vii. a. As per the information and explanations given to us and according to ourexamination of the records of the Company the Company has been generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax Goods and Service Tax duty of customs duty ofexcise value added tax cess and other statutory dues as applicable to the Company to theappropriate authorities during the year.

There are no arrears of undisputed statutory dues outstanding as on the last day of thefinancial year for a period of more than six months from the date on which they becamepayable.

b. According to the information and explanations given to us and the records of theCompany examined by us there are no disputed amounts due to be deposited under Sales TaxService Tax Duty of Excise and Value Added Tax and the following disputed demands ofIncome Tax and Duty of Customs have not been deposited with the authorities as at 31stMarch 2018 viii. In our opinion and according to the information and explanations given tous and the records of the

Company examined by us the Company does not have any loans and borrowings to thebanks. The company has not taken any loans or borrowing from Financial Institutions andGovernment or raised any money by way of issue of debentures.

ix. According to the information and explanations given to us and the records of theCompany examined by us the company has made preferential issue of 20 Lakhs number ofshares of face value Rs. 5/- at a premium of Rs. 42.50/- thereby raising Rs.950 Lakhsduring the year. Other than this no money has been raised by way of initial public offeror further public offer (including debt instruments).

x. During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof material fraud by the Company or on the Company by its officers or employees noticedor reported during the year nor have been informed of any such case by the Management.

xi. According to the information and explanations given to us and the records of theCompany examined by us The Company has made preferential issue of 40 lakhs number ofshare warrants out of which 20 lakhs no.of shares of face value Rs. 5/- at a premium ofRs.42.50/- has been allotted during the year. There by raising Rs. 950 lakhs. Other thanthis no money has been raised by way of initial public offer or further public offer(including debt instruments) and term loans availed by the Company.

xii. The Company is not a Nidhi company. Accordingly the reporting requirements underclause (xii) of paragraph 3 of the Order are not applicable.

xiii. According to the information and explanations given to us and the records of theCompany examined by us all transactions with the related parties are in compliance withSections 177 and 188 of the Act where applicable and the details of such transactions havebeen disclosed in Note No 40 to the Ind AS financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations given to us and based on theexamination of the records of the Company the Company has made any preferential allotmentof 40 Lakhs number of share warrant of which 20 lakhs shares of face value Rs. 5/- at apremium of Rs. 42.50 per shares has been allotted during the year and share applicationmoney of Rs.237.50 lakhs is outstanding in the books

xv. According to the information and explanations given to us and the records of theCompany examined by us the Company has not entered into any non-cash transactions withdirectors or persons connected with the directors. Accordingly the reporting requirementunder clause (xv) of paragraph 3 of the Order is not applicable.

xvi. According to the information and explanations given to us and the records of theCompany examined by us the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934. Accordingly the reporting requirement underclause (xvi) of paragraph 3 of the Order is not applicable.

Place: Thiruvananthapuram

Date: 10 May 2018

ANNEXURE B TO AUDITORS' REPORT

REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE INDAS FINANCIAL STATEMENTS OF RUBFILA INTERNATIONAL LIMITED FOR THE YEAR ENDED 31st MARCH2018

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 RUBFILAINTERNATIONAL LIMITED ("the Company") as of 31 March 2018 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal controls with reference to financialstatements 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 ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols system with reference to financial statements reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls system withreference to financial statements reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements reportingand their operating effectiveness. Our audit of internal financial controls system withreference to financial statements reporting included obtaining an understanding ofinternal financial controls system with reference to financial statements 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 systemwith reference to financial statements reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial controls system with reference to financial statementsreporting is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls system with reference to financial statements reporting includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflectthe transactions and dispositions of the assets ofthe company;(2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls system withreference to financial statements reporting including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols system with reference to financial statements reporting to future periods aresubject to the risk that the internal financial controls system with reference tofinancial statements reporting may become inadequate because of changes in conditions orthat the 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 with reference to financial statements reporting and suchinternal financial controls system with reference to financial statements reporting wereoperating effectively as at March 31 2018 based on the internal control with referenceto financial statements 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.

For Cyriac & Associates

Chartered Accountants

Jim Cyriac

(Partner)

Mem No. 230039. Firm No.014033 S

Place: Thiruvananthapuram

Date: 10 May 2018