We have audited the accompanying standalone financial statements of
ROYAL INDIA CORPORATION LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the Accounting principal
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 the
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 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 standalone
financial statements based on our audit.
We have taken into 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
there under. 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 misstatements. 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 the 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 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 audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
OTHER MATTERS
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 the paragraph 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
purposes of our audit;
b) 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) In our opinion, the aforesaid standalone 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) On the basis of the written representations received from the
directors as on March 31, 2015, 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.
f) With respect to the other matters 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 and
according to the explanations given to us.
I. The Company does not have any pending litigations which would
impact its financial position.
II. The Company has made provision, as required under the applicable
law or accounting Standards, for material foreseeable losses, if any,
on long-term contracts including Derivative contracts- Refer Note 9 to
the financial statements.
III. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date On the basis of
such checks as we considered appropriate and in terms of the
information and explanations given to us, we state that: -
I. a) The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) We have been informed that the fixed assets of the Company have been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification. In our opinion,
this periodicity of physical verification is reasonable having regards
to the size of the company and the nature of its assets.
II. a) As explained to us, inventories have been physically verified by
the management during the year. In our opinion, the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of Inventories
referred to in 2(a) above followed by the management, are reasonable
and adequate in relation to the size of the Company and the nature of
its business.
c) In our opinion and according to the information and explanation
given to us, the company has maintained proper records of inventories.
As per the information and explanation provided to us and having regard
to the size of the company, no material discrepancies were noticed on
physical verification of inventory as compared to book records.
III. According to the information and explanations given to us and on
the basis of examination of the books of account by us, the company has
not granted loan to parties covered in the Register maintained under
section 189 of the Companies Act, 2013. Therefore, the provision of
clause 3(iii), (iii)(a) and (iii)(b) of the said order are not
applicable to the company.
IV. In our opinion and according to the 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 with
regards to the purchase of inventory, fixed assets and sale of goods
and services. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
V. The Company has not accepted any Deposits from any party, therefore
following provisions of Companies Act Sec 73 to 76 and rules made there
under and permission of Reserve Bank of India, the question does not
arise.
VI. The maintenance of cost records is not prescribed for the company
by the central government under sub section (1) of sec 148 of the
Companies Act, 2013. Therefore the company has not maintained any cost
records during the year.
VII. a) According to the information and explanation given to us the
Company is generally regular in depositing with 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 and others material statutory
dues, as applicable, with the appropriate authorities.
b) According to the information and explanation given to us, no
undisputed amount payable in respect of provident fund, employees'
state insurance, sales tax, wealth tax, service tax, duty of customs,
duty of excise, value added tax and cess which have not been deposited
with the appropriate authorities on account of any dispute. However,
accordingly to information and explanations given to us, the following
dues of income tax and stamp duty have not been deposited by the
company on account of dispute:
Name of the statute Nature of the dues Amount (Rs.)
Income Tax Act,1961 Income Tax and Interest 9,77,02,258/-
thereon (Substantive
Addition)
Income Tax Act,1961 Income Tax and Interest 53,21,748/-
thereon
Income Tax Act,1961 Income Tax and Interest 47,60,610/-
thereon
Name of the statute Period to which the Forum where dispute
amount related pending
Income Tax Act,1961 A. Y. 2010-11 Commissioner of
Income Tax (Appeal)
Income Tax Act,1961 A.Y. 2008-09 Commissioner of
Income Tax (Appeal)
Income Tax Act,1961 A.Y. 2012-13 Commissioner of
Income Tax (Appeal)
c) The amounts required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956(1 of 1956) and rules made there under has been
transferred to such fund within time.
VIII. The company has no accumulated loss as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
IX. According to the records of the company examined by us and the
information and explanation given to us, The Company has not taken any
loan form financial institution, bank or debenture holders. Therefore,
the provision of clause 3(ix) of the said order is not applicable to
the company.
X. In our opinion, and According to the information and explanation
given to us, the company has not given any guarantee for others for
loans taken by them from banks and financial institutions during the
year. Therefore, the provision of clause 3(x) of the said order is not
applicable to the company.
XI. There are no term loans taken by the company, therefore the
question of applying the loans for the purpose for which loans taken
does not arise.
XII. According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of audit.
For DMKH & Co.
Chartered Accountants
FRN : 116886W
Sd/-
(CA Devki Nandan Mantri)
Place : Mumbai Partner
Date : May 28, 2015 M.No. 162327 |