INDEPENDENT AUDITOR
To the members of Rado Tyres Limited Report on the Financial Statements
We have audited the accompanying financial statements of RADOTYRES LIMITED ("the
Company"), which comprise the Balance Sheet as at March 31, 2014, 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.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position and financial performance of the Company in
accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act")read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles generally accepted in
India. This responsibility includes the 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 material misstatement, whether due to fraud or
error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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 auditors
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 entitys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entitys internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of 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.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, 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, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss for the year ended on
that date
(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 (Auditors Report) Order, 2003 ("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 Paragraph 4 and 5
of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have 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 books of account and records;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956 read with General Circular 15/2013 dated 13th September
2013 of the Ministry of Corporate Affairs in respect of the Companies Act, 2013.
e) on the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
For Paulson & Company |
|
Chartered Accountants |
|
CA. K.R Paulson LLB, FCA, DISA, CISA (USA), CA (UK) |
| Cochin -17 |
Membership No. 21855; FR No. 002620S |
| 22.04.2014 |
Partner |
Annexure referred to in paragraph 1 of Report on Other Legal and Regulatory
Requirements of our Report of even date
(i) (a) The Company has maintained proper records to show full particulars including
quantitative details and situation of its fixed assets.
(b) These fixed assets have been physically verified by the management at reasonable
intervals during the year and no discrepancies between the book records and the physical
assets have been noticed.
(c) The Company has not disposed of any fixed asset during the year.
(ii) (a)The inventory of consumable stores and spare parts have been physically
verified during the year by the management. In our opinion, the frequency of verification
is reasonable.
(b) In our opinion 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) The company is maintaining proper records of inventory. As explained to us, no
material discrepancies have been noticed on verification between the physical stocks and
book records.
(iii) (a) The company has not granted any loans, secured or unsecured to companies,
firms or other parties listed in the Register, maintained under section 301 of the
Companies Act, 1956. Accordingly, sub clauses (b),(c) and (d) are not applicable, (e) The
Company has taken unsecured loans from a company covered in the register maintained under
section 301 of the Act. The maximum amount outstanding during the year was Rs. 61,957,690
and balance outstanding at the year end is Rs.18,916,668. Other than the above, the
Company has not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under Section 301 of the Act. (f) According to
the information and explanations given to us, we are of the opinion that, the rate of
interest and other terms and conditions of the aforesaid loans are not, prima facie,
prejudicial to the interest of the Company.
f) According to the information and explanations given to us, the Company has been
regular in repaying the principal amounts and in the payment of interest.
(iv) In our opinion and according to the information and explanations given to us,
there are adequate internal control system commensurate with the size of the Company and
nature of its business for the purchase of inventory, fixed assets and with regard to sale
of services.We have not observed any continuing failure to correct major weaknesses in
internal controls, during the course of our audit.
(v) (a) As per information available and explanations given to us, there are
transactions that are entered in the registers maintained under Section 301 of the
Companies Act, 1956.
(b) For reasons stated in sub-clause (v)(a) above, this sub-clause, regarding
reasonableness of prices are not applicable to the company.
(vi) The Company has not accepted during the year any deposits from the public in terms
of Sections 58A, 58AA, or any other relevant provisions of the Companies Act, 1956 and
therefore, the provisions of this clause are not applicable to the company.
(vii) In our opinion, the company has an internal audit system commensurate with the
size and nature of its business. However, it requires to be further strengthened and
streamlined, to make it more effective.
(viii) As per Companies (Cost Accounting Record Rules) the Company is not required to
maintain cost records under section 209(l)(d)of the Companies Act 1956.
(ix) (a) According to the records of the company, the Employees Provident Fund and the
Employees State Insurance Act dues have been regularly deposited with appropriate
authorities and no undisputed amounts payable in respect of Investor Education and
Protection Fund, Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs duty, Excise
duty, Cess and other statutory dues, which are outstanding, as on 31st March, 2014, for a
period of more than six months from the date they became payable.
(b)According to the records made available to us and the information and explanations
given by the management, there are no dues of Income Tax/Sales Tax/Wealth Tax/ Service
Tax/Customs Duty/Excise Duty/Cess which have not been deposited with appropriate
authorities on account of any dispute.
(x) In our opinion, the accumulated losses of the Company are not more than fifty
percent of its net worth (Accumulated losses are not considered a part of Free Reserve).
The Company has incurred cash losses during current and immediately preceding financial
years.
(xi) According to the information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institutions or banks, and there are no
debenture holder.
(xii) According to the information and explanations given to us, the company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of sub clauses (a) to (d) are not applicable to
the company.
(xiv) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of this clause are not
applicable to the company.
(xv) According to the information and explanations given to us, the company has not
given guarantees for loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations given to us and
on the basis of our examination of the books of account, the term loans obtained by the
Company were applied for the purpose for which such loans were obtained.
(xvii) In our opinion and according to the information and explanations given to us,
and on an overall examination of the balance sheet of the Company, we report that funds
raised on short-term basis estimated at Rs. 2,516,204 have been used for long term
purpose.
(xviii) According to the information and explanations given to us, the company has not
made preferential allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
(xix) According to the information and explanations given to us, the company has not
issued any debentures, during the year.
(xx) According to the information and explanations given to us, the company has not
raised any fund through public issue and hence this clause is not applicable to the
company.
(xxi) According to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
|
For Paulson & Company |
|
Chartered Accountants |
|
CA. K.R Paulson LLB, FCA, DISA, CISA (USA), CA (UK) |
| Cochin -17 |
Membership No. 21855; FR No. 002620S |
| 22.04.2014 |
Partner |
+91-9892691696
