BSE: 512618 | NSE: | ISIN: INE629C01014
Market Cap: [Rs.Cr.] 4.12 | Face Value: [Rs.] 10
Industry: Textiles - Products
To the Members of RLF Limited
Report on the Financial Statements
We have audited the accompanying financial statements of RLF Limited (theCompany), which comprise the Balance Sheet as at March 31, 2013, and theStatement of Profit and Loss and Cash Flow statement for the year then ended, and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance of the Company inaccordance with the Accounting Standards referred to in sub-section (3C) of section 211 ofthe Companies Act, 1956 (the Act). This responsibility includes the design,implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on our judgment,including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, we considerinternal control relevant to the Company's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Basis of Qualified Opinion
As per AS 15 Employee Benefits, a listed company is required to get actuarialcertificate at least once during the financial year for retirement and other benefits.Also Defined benefit obligations in nature of Gratuity and Leave encashmentare to be accounted on accrual basis. The company though provides for Provident Fund onaccrual basis, Leave encashment and Gratuity are accounted on cash basis and not onaccrual basis as per an actuarial certificate. Neither the company has obtained anactuarial certificate during the financial year.
In our opinion and to the best of our information and according to the explanationsgiven to us, except for the effects of the matter described in the Basis for QualifiedOpinion paragraph, the financial statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India.
Emphasis of Matter
We like to draw attention to note number 31 of Notes to FinancialStatements. The company has won the case for refund of Cenvat Credit amounting toRs. 27,05,026. The case was decided by Hon'ble Punjab & Haryana High Court vide orderdated 30.07.2009.The effect of the refund has not been accounted for in the books ofaccounts, as the application for refund is pending with department.
Per Note number 34 of Notes to Financial Statements, there is dispute withThe Central Bank of India, regarding rate of interest, charged by the bank on a loan. Thecompany has reversed the excess interest charged by the bank in its books of accounts.Although representations have been made by the company, the same has not been accepted bythe bank. The amount of reversal stands at Rs. 11,57,502.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2013;
b) in the case of the Statement of Profit and Loss, of the Loss for the year ended onthat date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
Report on Other legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 (the Order)issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 theCompany so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act, 1956
e) on the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors, none of the directors is disqualifiedas on March 31, 2013, from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act, 1956.
|For Sharma Goel & Co.|
|Place: New Delhi||Amar Mittal|
|Date: May 30, 2013||Partner|
|Membership No. 017755|
ANNEXURE TO AUDITORS REPORT
Annexure to the Auditors' Report of even date to the members of RLF Limited, on thefinancial statements for the year ended March 31, 2013. (Refer to in our report of evendate)
Based on the Audit Procedures performed for the purpose of reporting a true and fairview on the financial statements of the company and taking into the consideration theinformation and explanation given to us and the books of account and other recordsexamined by us in the normal course of audit, we report that:
i) In respect of fixed assets of the Company:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancy has been noticed on such verification.
c) No substantial part of the fixed assets has been disposed off during the year, whichhas a bearing on the Going Concern assumption.
ii) In respect of inventories of the Company:
a) The inventory (excluding stocks with third parties) has been physically verified bythe management during the year. In respect of inventory lying with third parties, thesehave substantially been confirmed by them. In our opinion, the frequency of verificationis reasonable.
b) In our opinion, the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) In our opinion and according to the information and explanations given to us, theCompany is maintaining proper records of inventory and no material discrepancies werenoticed on verification between the physical stocks and the book records.
iii) During the year, the company has not granted any loans secured or unsecured toCompanies, firms or other parties covered in the register maintained under section 301 ofthe Companies Act, 1956. Further the Company has taken loan from 2 parties covered in theregister maintained under section 301 of the Companies Act, 1956.The maximum amountinvolved during the year was Rs.3,83,21,462/- and the year-end balance of loans taken fromsuch parties was Rs.3,65,46,673/-. The rate of interest and other terms and conditions ofthe loan taken, are prima facie not prejudicial to the interest of the Company.
iv) In our opinion and according to the information and explanation given to us, thereis an adequate internal control system, commensurate with the size of the Company and thenature of its business with regard to purchase of inventories, fixed assets and sale ofgoods & Services. We have not observed any major weakness in the internal controlsystem during the course of the audit.
v) The particulars of contracts or arrangements that are needed to be entered into theregister maintained under Section 301 of the Companies Act 1956 have been so entered andthese transactions prima facie have been made at prices which are reasonable having regardto the prevailing market price.
vi) In our opinion and according to the information and explanation given to us, theCompany has complied with the directions issued by the Reserve Bank of India and theprovision of Section 58A and section 58AA or any other relevant provisions of theCompanies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard tothe deposits accepted from the public.
vii) The internal audit of the Company has been conducted by its own internal staff andin our opinion, the Company has an internal audit system, commensurate with the size andnature of its business.
viii) The Central Government has not prescribed the maintenance of cost records by theCompany under section 209(1)(d) of the Companies Act, 1956, therefore the provision ofclause 4(viii) of the Companies (Auditor's Report) Order, 2003 is not applicable to theCompany.
ix) In respect of disputed and undisputed Statutory Dues of the Company and accordingto information and explanations given to us and on the basis of our examination of therecords of the Company:
a. Amounts deducted/accrued in the books of accounts in respect of Provident Fund,Investor Education and Protection Fund, Employees' State Insurance, Income tax, Sales Tax,Wealth Tax, Service Tax, Customs Duty, Excise Duty and any other material Statutory Dueshave generally been regularly deposited during the year by the Company with theappropriate authorities, to the extent applicable. There were no dues on account of Cessunder Section 441A of the Companies Act, 1956 since the aforesaid section has not yet beenmade effective by the Central Government. According to the information and explanationsgiven to us, no undisputed amounts payable in respect of aforesaid dues were in arrears,as at March 31, 2013 for a period of more than six months from the date they becamepayable.
b. There are no dues of Income-Tax, Sales Tax, Service Tax, Customs Duty, Wealth Tax,Excise Duty and Cess to the extent applicable, which have not been deposited on account ofany dispute except Sales Tax demand of Rs.28.64 Lacs against which the Company has goneinto Appeal.
x) The accumulated losses of the Company are not more than 50 % of its net worth.Further the Company has not incurred cash losses during the current financial year and inthe immediately preceding financial year as well.
xi) According to the records of the Company examined by us and the information andexplanations given to us, the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.
xii) The Company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities, during the year. Accordingly, theprovisions of paragraph 4 clause (xii) of the Order are not applicable.
xiii) The Company is not a Chit Fund or a Nidhi/Mutual Benefit fund/Society.Accordingly, the provisions of paragraph 4 clause (xiii) of the Order are not applicableto the Company.
xiv) The Company has maintained proper records of transactions and contracts in respectof dealing in shares and other investments and that timely entry have been made therein.All shares and other investments have been held by the Company in its own name.
xv) In our opinion, and according to the information and explanations given to us, theterms and conditions on which the Company has given guarantee for loans taken by othersfrom banks or financial institutions are not prejudicial to the interest of the Company.
xvi) In our opinion, and according to the information and explanations given to us, onan overall basis, the term loans have been applied for the purposes for which they wereobtained.
xvii) According to the information and explanation given to us and on overallexamination of the Balance sheet of the Company, we report that funds raised on short-termbasis, prima facie, have not been used for the long-term investment by the Company.
xviii) The Company has not made any preferential allotment of shares to any personduring the year.
xix) The Company does not have any outstanding debentures. Therefore, the provision ofclause 4(xix) of the Companies (Auditor's Report) Order, 2003 is not applicable to theCompany.
xx) The Company has not raised any money by way of public issue during the year.
xxi) To the best of our knowledge and belief and according to the information andexplanations given to us, no material fraud on or by the Company has been noticed orreported during the year.
|For Sharma Goel & Co.|
|Place: New Delhi||Amar Mittal|
|Date: May 30, 2013||Partner|
|Membership No. 017755|
|No Related Research Found|
|No Related Research Found|
Anil Kumar Khanna , Chairman
Ashwini Kumar , Director
B L Khurana , Director
Suman Kapur , Director
Company Head Office / Quarters:
Link Intime India Pvt Ltd
A-40 II Flr Phase-II,Naraina Indl Area,Near Batra Banquet,New Delhi - 110 028
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