| We have audited the accompanying Consolidated/Standalone financial
statements of THE RUBBER PRODUCTS March, 2015, which comprise the
Balance Sheet as at March 31.2015, 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 company's Management is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013 with respect to me
preparation of these 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 Standards generally
accepted in India including the Accounting Stands is specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies(Accounts) Rule,2014. This responsibility includes maintenance
of adequate accounting records in accordance with the provision of the
Act for safeguarding the assets of me company and for preventing and
detecting frauds and other irregularities, selection and application of
appropriate accounting policies, making judgements and estimates that
are reasonable and prudent and design, implementation and maintenance*
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
materia! misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these
consolidated/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
our 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 control relevant to the Company's preparation and
fair presentation of the financial statem nts in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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/consolidated financial statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, subject to NOTE- 3
regarding provision of excise/ custom duty, Note , Note 6 regarding dues
from 'COSMOS India Rubber Work Ltd' and 'BIFR' matter, Note 7 regarding
Sundry Debtors including non provision for doubtful debts, Note No. 9 on
short provision for gratuity.
Note No.11 on Interest provision and read together with other notes Note
1), the 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 Profit and Loss Account, of the loss of the
company 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 & 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 (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(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) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the bopks
ofaccount.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Sec 133 of the
Companies Act, 2013.
e) On the basis of written representations received from the directors
as on March 31,2015, 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 clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of THE RUBBER PRODUCTS LIMITED on the accounts of the
company for the year ended 313: March, 2015.
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; which in our opinion is
reasonable, having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial fixed asset has been disposed during the
year and therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the company to/ from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 2013
(a) According to the information and explanations given to us, the
Company has given loan to one associate concern. In respect of the said
loans, the maximum amount outstanding at any time during the year was
Rs. .25,00 Lacs and the yearend balance is Rs.'25.00 Lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the company, are not prirna facie prejudicial to the
interest of the company in view of below explanation in3(C)
(c) The principal amounts are repayable but due to order of BIFR was
set aside by AAIFR vide it's order dated 06.09.2012 and also directed
BIFR to consider the scheme submitted by the Cosmos India Rubber works
(P) of revival cum Merger with the company. The terms and conditions of
the said loan are primafacie, not prejudicial to the interest of the
company. Reference is invited to Note No. 7 of Notes forming part of
account.
(d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The company has taken loan from two companies and one parties
covered in the Register maintained under section 301 of the Companies
Act, 1956.The number of parties and amount involved in the transactions
are enclosed herewith this statement.
SR No Name of the Person Maximum amount
outstanding Closing balance
at any time during (Rs. In Lacs)
the year { Rs.
In Lacs)
1 Boving Fouress Ltd 50,00 50.00
2 Fouress Engineering(I) Ltd 49,69 49 69
3 MrSameerShetty 145.00 145.00
The above include interest free loan Rs.65.00 Lac.
(f) !n our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans taken by the company, are riot prima facie prejudicial to the
interest of the company.
(g) The principal amount are repayable over a period of time.
(h) In respect of the said loans and interest thereon, there are no
overdue amounts.
(i) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section
(j) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act exceeds five lac rupees in a financial year have been
made at prices which appear reasonable as per information available
with the company.
4. in our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and. the nature of its.
business, for the purchase of inventories and fixed assets and payment
for expenses and for sale of goods. During the course of our audit, we
have not observed any major weakness in such internal control system.
As per information and explanation given by the management, the company
has an internal audit system commensurate with its size and the nature
of its business for the purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct, major weakness in such
internal system.
5. The Company has not accepted any deposits from the public
Therefore, provision of ctause(v)of paragraphs of the CARO 2015 are not
applicable to company
6. As per information & explanation given by the management. The Company
has not maintain cost record as describe by the central government.
7. (a) According to the records, the company is not regular in
depositing, undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' Slate Insurance, Income-tax,
VAT/CST, Profession Tax, Service Tax, Excise Duty, TCS & TNGST cess to
the extent applicable with the appropriate authorities. According to the
information and explanations given to us there were outstanding
statutory dues as on 31st of March, 2015 for a period of more than six
months from the date they became payable. The details are as follows :
Sr. No. Particulars Amount (In Rs,) Outstanding for
more than 6 month.F.Y, 2014-15
1 Service Tax 10,78,348/-
2 VAT/CST NIL
3 TNGST 73,387/-
4 ESIC 45,219/-
5 Profession Tax 11,81,400/-
7 TCS 18,937/-
Sr. No. Particulars Amount (in Rs.) Outstanding for
more than 6 month.F.Y. 2013-14
1 Service Tax 7,29,623/-
2 VAT/CST 3,42,417/-
3 TNGST 73,387/-
4 ESIC 45,219/-
5 Profession Tax 8,12,975/-
7 TCS 8,651/-
b) Details of dues of sales tax, excise duty which have not been
deposited as on 31st March,2015 on account of disputes are given below
Sr Name of the Nature of the Dues Amount
No Statute (in Lacs)
1. Central Excise Excise duty (Including 68.91
Act,1944 interest and penalty)
----do---- 2.06
---do---- 74.14
2. Central Sales CST & VAT(lncluding
tax interest and penalty) 606.62
29.29
31.49
3 The Income Income tax 76.31
tax act,1961 Appeals.
Total 894,66
Sr Name of the Period to which the Forum where
No Statute amount relates dispute is pending
1. Central Excise Feb 2000-2003 Appellate Tribunal,
Act,1944 West Zonal Bench.
2006-07 & 2007-08 Appellate Tribunal,
West Zonal Bench.
March 94-July 2007 Appellate Tribunal,
West Zonal Bench.
2. Central Sales
tax FY 2008-09 Commissioner of
2009-10 Appeals
2010-11
3 The Income AY-2011-12 Commissioner of
tax act,1961
Total
c) The company has not transferred the unclaimed dividend amount to
investor protection fund.
8. The company has accumulated loss at the end of the financial year
which have exceeded .50% of Net worth. The company has incurred cash
loss during the financial year under audit but there were no cash loss
in the immediately proceeding financial year.
9. Based-on our audit procedures and on the information and
explanations given by the management,1 we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank.or debenture holders.
10. The company has not given any guarantee for loans taken by others
from banks and Fis.
11. Based on the information and explanations given to us and on an
overai' examination of the Balance Sheet of the Company as at 31st
March, 2015, we report that no funds raised on short-term basis have
been used for long-term investment by the Company or vice versa.
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For J. R. JAIN & Co.
Chartered Accountants
FRN: 103915W
J.P. JAIN
Mumbai 28"1 August 2015 (PARTNER)
Membership No.: 7293 |