| We have audited the accompanying financial statements of Rajasthan
Cylinders & Containers Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement, and a summary of significant accounting
policies and other explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with respect
to preparation of these financial statements that give a true and fair
view of financial position, financial performance and cash flows of the
Company in accordance with the accounting principles generally accepted
in India, including the Accounting Standards specified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014.This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into the account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion on the
financial statements.
Basis for Qualified Opinion
(i) Non provision of demand by Competition Commission of India Rs
2,30,84,886/- (Previous Year ended 31/03/2014 Rs. 2,30,84,886/-)
pending litigation refer Note No. 2.30
(ii) Non provision of gratuity for the year Rs. 3,70,071/- and
Cumulative upto 31/03/2015 Rs. 18,33,509/- (Previous Year Rs.
(2,36,854)/- and Cumulative upto 31/03/2014 Rs. 14,63,438/-) refer note
No. 2.34.
(iii) Non provision of accrued leave pay for the year Rs. 1,96,364/-
and Cumulative upto 31/03/2015 Rs. 10,16,094/- (Previous Year Rs.
(52,396)/- and Cumulative upto 31/03/2014 Rs. 8,19,730/-) refer note
No. 2.35.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the aforesaid
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India,
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 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 and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
(d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the aforesaid
financial statements comply with the Accounting Standards specified
under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(e) The matter described in the Basis for Qualified Opinion paragraph
above, in our opinion, may have an adverse effect on the functioning of
the company.
(f) On the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
(g) The qualification relating to the maintenance of accounts and other
matters connected there with are stated in the Basis for Qualified
Opinion paragraph above.
(h) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rule,
2014 in our opinion and to the best of our information and according to
the explanation given to us:
i. The Company has disclosed the impact of pending litigation on its
financial position in its financial statements- Refer Note No. 2.30 to
the financial statements.
ii. The Company does not have any long term contracts including
derivative, contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE FORMING PART OF THE INDEPENDENT AUDITOR'S REPORT OF Rajasthan
Cylinders & Containers Limited
Referred to in paragraph under the heading of "Report on other Legal &
Regulatory Requirements" of our report of even date to the Members of
Rajasthan Cylinders & Containers Limited on the financial statement for
the year ended March 31st 2015;
i (a) As explained to us, the Company generally maintains proper
records showing full particulars including quantitative details and
situation of fixed Assets.
(b) As informed to us, part of the assets have been physically verified
by the management in accordance with a phased programme of
verification; however such physical verification reports were not
available for our verification. As informed to us, no material
discrepancies have been noticed on such verification.
ii (a) As per information furnished, the inventory lying at its
location has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination, in our opinion, the company is
maintaining proper records of inventory. The discrepancies noticed on
verification between the physical stocks and the book records were not
material.
iii. According to information and explanations given to us, company has
given advances to 4 Companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act 2013.
(a) The principal and interest (wherever charged) amounts are repayable
on demand and there is no repayment schedule. Out of four parties, the
company has not charged interest from three parties on the balance
outstanding at the beginning of the year.
(b) The said advances are repayable on demand and there is no overdue
amount exceeding one lakh at the year end.
iv. In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business for purchases of
inventory and fixed assets and for the sale of goods & services. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control.
v. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits. Therefore, the
provision of Sections 73 to 76 or any other relevant provisions of
companies act and the rules framed thereunder and the directives issued
by Reserve Bank of India are not applicable.
vi. As explained to us, the Central Government has prescribed
maintenance of the cost records u/s 148(1) of the Companies Act, 2013
in respect to the company's products. We are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained by the company. However we have not made detailed
examination of such records.
vii. (a) According to the records of the company produced for our
verification, the company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues with appropriate authorities wherever
applicable. According to the information and explanation given to us,
no undisputed arrears of statutory dues were outstanding as at
31/03/2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, disputed
amounts payable in respect of certain statutory dues and demands
outstanding at the year end were as follows :-
Name of statute Nature of Dues Amount Period to which
(Rs.) the amount Appropriate authorities
Disputed
Rajasthan Deferment Difference Rs. 38,82,397 2011-12 &
VAT/CST against VAT Credit & (Against which 2012-13
Pending C-Form Rs. 1,25,000/-
Deposited)
Name of statute Dispute Pending with
Rajasthan Dy..Commissioner of
VAT/CST Sales Tax (Appeals)
(c). According to the information and explanation given to us, there is
no amount which was required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of Companies Act, 1956 (1 of 1956) and rules made
thereunder.
viii. The company does not have accumulated losses as at 31/3/2015. The
company has incurred cash losses during the financial year covered
under audit but not in the immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution and bank.
x. In our opinion and according to the information given to us, the
terms and conditions of Guarantee given by the company for the
loans/limits taken by Agribiotech Industries Ltd., an associate company
from the bank outstanding since earlier year were not prejudicial to
the interest of the company. However, the guarantee so given has been
withdrawn during the year.
xi. According to the information and explanation given to us and
records examined by us, the company has not taken any term loan during
the year.
xii. Based upon the audit procedures performed and information and
explanations given by the management, no fraud on or by the company has
been noticed or reported during the year in the course of audit.
For S.S. SURANA & CO.
Chartered Accountants
(FRN. 001079C)
Place: Jaipur Sd/-
Date: 14/05/2015 (Prahalad Gupta)
Partner
Membership No. 074458
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