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Shree Rama Multi-Tech Ltd.

BSE: 532310 Sector: Industrials
NSE: SHREERAMA ISIN Code: INE879A01019
BSE 00:00 | 03 Apr 3.38 -0.06
(-1.74%)
OPEN

3.36

HIGH

3.60

LOW

3.27

NSE 00:00 | 03 Apr 3.40 -0.15
(-4.23%)
OPEN

3.40

HIGH

3.40

LOW

3.40

OPEN 3.36
PREVIOUS CLOSE 3.44
VOLUME 1325
52-Week high 7.80
52-Week low 2.71
P/E 5.28
Mkt Cap.(Rs cr) 21
Buy Price 3.28
Buy Qty 9.00
Sell Price 3.59
Sell Qty 500.00
OPEN 3.36
CLOSE 3.44
VOLUME 1325
52-Week high 7.80
52-Week low 2.71
P/E 5.28
Mkt Cap.(Rs cr) 21
Buy Price 3.28
Buy Qty 9.00
Sell Price 3.59
Sell Qty 500.00

Shree Rama Multi-Tech Ltd. (SHREERAMA) - Auditors Report

Company auditors report

To

The Members of

SHREE RAMA MULTI-TECH LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Shree RamaMulti-Tech Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including Other Comprehensive Income)Cash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Standalone Ind AS Financial Statements").

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

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 standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the standalone 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 standalone Ind AS financial statements.

Basis for Qualified Opinion:

1. The Company has made borrowings in the form of loans debentures etc. in earlieryears which are under settlement. During the year the Company has not provided interest ofRs. 854.72 lakhs (Previous Year Rs. 854.72 lakhs) on such outstanding borrowings. Theaccumulated interest on such borrowings not provided for past several years up to31/3/2018 is Rs. 13828.49 lakhs (Previous Year Rs. 12973.77 lakhs).

If the provision for interest is made the loss for the current year would haveincreased by Rs 854.72 lakhs and accumulated losses upto 31/3/2018 would have increased byRs 854.72 lakhs and accordingly net loss for the current year would have been Rs.1123.27lakhs and accumulated losses up to 31/3/2018 would have been Rs 45503.34 lakhs (Refer noteNo. 53.6 of Financial Statements).

2. Non consolidation of accounts of Shree Rama (Mauritius) Limited (Wholly OwnedSubsidiary) as per Sec. 129 of the Act & Ind AS 110 of ICAI (Refer note No. 42 ofFinancial Statements).

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the matters described in the basis for qualified opinion paraabove the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its loss total comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

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 purpose 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 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 AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on March 312018 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2018 from being appointed as a director in terms of Section 164 (2) of theAct.

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 disclosed the impact of pending litigations on its financialposition in its financial statements (Refer to Note No. 53 to the financial statement).

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company except dividend mentioned in Note No. 53.3.

For and on behalf of
CHANDULAL M. SHAH & Co
Chartered Accountants
Firm Reg. No. 101698W
Place : Ahmedabad Arpit D. Shah
Date : 24/05/2018 Partner
Mem. No. 135188

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading 'Report on Other Legal & RegulatoryRequirements' of our report of even date to the financial statements of the Company forthe year ended March 31 2018:

1. In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of five years which in our opinionis reasonable having regard to the size of the company and nature of its business.According to information and explanation given to us no material discrepancies werenoticed on such verification.

(c) The title deeds of immovable properties as disclosed in note 2 on Property Plantand Equipment to the financial statement are mortgaged with lenders and as informed to ussame are in the name of the company.

2. In respect of Inventories:

According to information and explanation given to us physical verification ofinventories has been conducted in reasonable interval by the Management and no materialdiscrepancies were noticed on physical verification during the year.

3. According to information and explanation given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the Register maintained under section 189 of the Act.Accordingly the provisions of clause 3 (iii) (a) to (C) of the Order are not applicableto the Company and hence not commented upon.

4. In our opinion and according to the information and explanations given to us thecompany has not granted loan or given guarantee or provided security as provided in thesection 185 and 186 of the Companies Act 2013 In respect of loans investmentsguarantees and security.

5. According to information and explanation given to us the Company has not acceptedany deposits from the public and hence the directives issued by the Reserve Bank of Indiaand the provisions of Sections 73 to 76 or any other relevant provisions of the Act andthe Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits acceptedfrom the public are not applicable.

6. The Central Government has prescribed maintenance of Cost Records under section148(1) of the Companies Act 2013 in respect of manufacturing activities of the Company.We have broadly reviewed the accounts and records of the Company in this connection andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have however not made a detailed examination of the same.

7. According to information and explanations given to us in respect of statutory duesand on the basis of our examination of the books of account and records;

(a) The Company has been 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 and any other statutory dues withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at March 31 2018for a period of more than six months from the date on when they become payable.

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax and service tax value added tax wealth tax duty ofcustoms and Cess which have not been deposited with the appropriate authorities on accountof any dispute except in respect to income tax penalty and excise duty the followingdues have not been deposited by the Company on account of disputes:

Name of the Statute Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where the dispute is pending
Central Excise Act 1944 Excise Duty 3893.72 1999-00 to CESTAT
2001-02
293.42 1998-99 Gujarat High Court
Income Tax Act 1961 Penalty 331.06 A.Y2002-03 CIT (Appeal)
Sec. 271(1)(c) 453.46 A.Y2003-04
291.98 A.Y2004-05
71.27 A.Y2009-10
Gujarat Value Added VAT/CST 11.14 F.Y 2013-14 Commissioner
Tax Act 2006 & Central Sales Tax 1956 Commercial Tax (Appeal)

8. (i) The Company had defaulted in respect of past borrowing loans debentures etc forwhich the company has filed scheme of Arrangement and Compromise as mentioned in Note No.53.5 of the Notes on Accounts.

(ii) There is no current default in repayment of dues to Financial Institutions orbanks or debenture holders.

9. According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term loans during the year. Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company.

10. Based on the audit procedures performed for the purpose of reporting the true andfair view of financial statements and according to the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11. According to the information and explanations given by the management themanagerial remuneration has been paid or provided in due compliance of section 197 readwith Schedule V to the Companies Act;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3 (xii) of the Order are not applicable to the Company.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required under Ind AS 24 Related Party Disclosures specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2015.

14. According to the information and explanations given by the management the Companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15. According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim. Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

16. In our opinion the Company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For and on behalf of
CHANDULAL M. SHAH & Co
Chartered Accountants
Firm Reg. No. 101698W
Place : Ahmedabad Arpit D. Shah
Date : 24/05/2018 Partner
Mem. No. 135188

"Annexure B" Annexure to the Independent Auditors' report of even date on thefinancial statements of Shree Rama Multi - Tech Limited

Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of Sec.143of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Shree RamaMulti-Tech Limited ("the Company") as of March 31 2018 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient 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 financial information as required underthe Act.

Auditors' 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems 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.

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 purpose 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 authorizations ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 of procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting was operating effectively as on March 312018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reports issued by the Institute of CharteredAccountants of India.

For and on behalf of
CHANDULAL M. SHAH & Co
Chartered Accountants
Firm Reg. No. 101698W
Place : Ahmedabad Arpit D. Shah
Date : 24/05/2018 Partner
Mem. No. 135188