The Members of,
RISHABHDEVTECHNOCABLEUMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of RISHABDEV TECHNOCABLE
LIMITED(the company), which comprises Balance Sheet as at 31st Mar 2016, the
Statement of Profit and Loss account 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
2. The Companys 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 financial statements that givea true and fair view of the financial position,
financial performance and cash flows of the Companyinaccordance 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 provision of the Act for safeguarding of 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 materials misstatement, whether due to fraud
or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on these financial statements based on
our audit.
We have taken into account the provision 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
the disclosures in the financial statements. The procedure 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 assessment, the
auditor considers internal financial control relevant to the Companys 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
and the operating effectiveness of such control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Companys 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.
Basis of Qualified Opinion
a) As the documents on the Internal Financial Control (IFC) were not provided to us, we
are unable to express our opinion on the adequacy of the Internal Financial Control over
financial reporting, reported in our Report on Other Legal and Regulatory Requirements
Point No. 6
b) Out of the total depreciation of Rs. 31.53 crore, depreciation amounting to Rs.30.77
crore is due to charging full depreciation on Plant & Machinery and Software(grouped
in capital wip) as the assets were obsolete due to not in use for more than 6 months.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the matter described in the Basis of 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 of the state of affairs of the Company as at 31st
March, 2016, and its loss and its cash flowfor the year ended on that date.
Emphasis of Matter
a) As referred in note number 33 to the financial statement, the company have not
complied with section 203 & section 134 (1) of Companies Act, 2013. Our opinion is not
qualified in respect of this matter
b) There is no manufacturing activity in the company since last six months and the
company has written off complete block of plant and machinery. Going ahead, it may
severely affect operations & performance of the company.
Report on Other Legal and Regulatory Requirements
4. As required by the Companies (Auditors Report) Order, 2016 (the Order) issued by
the Central Government in terms of Section 143 (11) of the Act, we enclosed in the
annexure a statement on matters specified in paragraph 3 & 4 of the said order.
5. 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) 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 and the Statement of Profit and Loss and 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) In respect of matter having adverse effect on functioning of Company refer Basis of
Qualified Opinion
f) On the basis of the written representations received from the directors as on 31st
Mar 2016 and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st Mar 2016 from being appointed as a
directors in terms of section 164(2) of the Act.
g) We are unable to report on the adequacy of Internal Financial Control over financial
reporting Qf the company and the operating effectivenessof such controls as the documents
on the Internal Financial Control (IFC) were not provided to us.
h) With respect to the other matters to be included in the Auditors 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. As informed to us the Company have pending litigations which would impact its
financial position refer Note No 36 Of the financial statements
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
For DMKH & CO.
CHARTED ACCOUNTANTS FRN 0116886W ^ .
CA. Manish Kankanr^ M.No.158020 \
Place: Mumbai Date: 6th SEP;2016
ANNEXURETO INDEPENDENT AUDITORS REPORT
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 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; no material discrepancies were noticed on such verification.
c. The title deeds of immovable properties are held in the name of the company.
ii. As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals. No material discrepancy was noticed on physical
verification of stocks by the management as compared to book records.
iii. According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has not granted any loans, secured or
unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in
the register maintained under Section 189 of the Companies Act, 2013.Consequently, the
provisions of clauses iii (a), (b) and (c)of the order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us,
company has complied with the provision of section 185 and 186 of the Companies Act, 2013
In respect of loans, investment, guarantees, and security.
v. The company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provision of sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules,2015 with
regards to the deposits accepted from the public are not applicable.
vi. As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148of the Companies Act, 2013.
vii. a. According to information and explanations given to us and on basis of our
examination of the books of account, and records, the company has been generally regular
in depositing undisputed statutory dues including Income-tax, Sales-tax, Service Tax,
Custom Duty, Excise Duty, value added tax, cess and any other statutory dues with the
appropriate authorities. However company have undisputed statutory dues amounts of Rs.
4,24,795/- which includes Rs. 15000/- of Professional Tax, Rs. 42,407/- of CST &
3,67,388 of TDS not deposited for a period of more than six months from the date they
become payable.
b. According to the information and explanations given to us, there is no amount
payable in respect of income tax, service tax, sales tax, customs duty, excise duty, value
added tax and cess whichever applicable, which have not been deposited on account of any
disputes other than following
| Name of the statute |
Nature of the dues |
Amount (Rs.) |
Period to which the amount related |
Forum where dispute pending |
| Income Tax Act, 1961 % |
Income Tax |
Rs. 1,23,053/- |
A.Y. 2009-10 |
ITAT Mumbai |
| Income Tax Act, 1961 |
Income Tax |
Rs. 11,79,15,090/- |
A.Y. 2009-10 |
ITAT Mumbai |
| Income Tax Act, 1961 |
Income Tax |
Rs. 1,26,18,940/- |
A.Y. 2010-11 |
ITAT Mumbai |
| Income Tax Act, 1961 |
Income Tax and Interest thereon |
Rs. 3,42,560/- |
A.Y. 2012-13 |
Assessing Officer |
| Income Tax Act, 1961 |
Income Tax and Interest thereon |
Rs. 1,08,39,210/- |
A.Y. 2013-14 |
Assessing Officer |
| MVAT Act 2002 |
Sales Tax thereon |
Rs. 24,49,651/- |
A.Y. 2010-11 |
Assessing Officer |
| MVAT Act 2002 |
Sales Tax thereon |
Rs. 20,70,062/- |
A.Y. 2011-12 |
Assessing Officer |
viii. According to the records of the company examined by us and the information and
explanation given to us, The company has taken term loan from financial institution, bank
for which company has defaulted in repayment of dues as given below :
| Name of the Financial Institution |
Type of Loan |
Overdue Amount |
| IDBI Bank Ltd. |
Term Loan |
3,78,462,07.48 |
| IDBI Bank Ltd. |
Cash Credit |
10,00,00,000.00 |
| IDBI Bank Ltd. |
WCDL |
8,83,09,616.50 |
| IDBI Bank Ltd. |
Letter of Guarantee |
1,45,00,000.00 |
| IDBI Bank Ltd. |
Bank Guarantee |
49,00,000.00 |
| SBBJ Bank |
Cash Credit |
9,97,88,701.28 |
| BOM |
Cash Credit |
10,00,00,000.00 |
| BMW Financial Services Ltd |
Vehicle Loan |
Nil* |
*The lender has taken the possession of the vehicle to sale and recovers the dues.
Company has adjusted the balance loan amount of Rs. 24 lac against the surrender of
vehicle. However we are not in position to ascertain the balance loan due amount which
depends on the sale consideration of the vehicle.
ix. Based on our audit procedures and according to the information given by the
management, the company has not raised any money by way of initial public offer or further
public offer (including debt instruments) or taken any term loan during the year.
x. According to the information and explanations given to us, we report that no fraud
by the company or any fraud on the Company by its officers or employees has been noticed
or reported during the year..
xi. According to the information and explanations given to us,we report that managerial
remuneration has been paid or provided in accordance with the requisite approvals mandated
by the provisions of section 197 read with Schedule V to the Companies Act.
xii. The company is not a Nidhi Company. Therefore clause (xii) of the order is not
applicable to the company.
xiii. According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013
where applicable and the details have been disclosed in the Financial Statements etc. as
required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations
given by the management, the company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year under
review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to
the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanations
given by the management, the company has not entered into any non-cash transactions with
directors or person connected with him. Accordingly, the provision of clause 3 (xv) of the
Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934. And accordingly, the provisions of clause 3 (xvi)
of the Order are not aoDlicable to the Corrmanv and hence not commented upon.
For DMKH & CO. CHARTED ACCOUNTANTS
FRN 0116886W
CA. Manish Kankanr
M.No.158020
Place: Mumbai
Date: 6th SEP,2016
+91-9892691696
