To the Members of
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, 2014, the Statement ofProfit and Loss and the Cash Flow statement for the year then ended, and a summary ofsignificant 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 cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 (the Act) read with the generalcircular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respectof section 133 of the Companies Act, 2013. 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 onAuditing issued by theInstitute of CharteredAccountants 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, but not for the purpose of expressing an opinion on the effectiveness ofentity's internal control.An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well 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.
As per AS 15, an 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. Neither the company has obtained an actuarial certificate during thefinancial 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 under the paragraph onQualified Opinion, 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.
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2014;
b) in the case of the Statement of Profit and Loss, of the Profit for the year ended onthat date;
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
Emphasis of Matter
We like to draw attention to note number 25 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.
Report on Other legal and Regulatory Requirements
i) 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.
ii) As required by section 227(3) of theAct, 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 sub-section (3C) of section211 of the Companies Act, 1956(the Act) read with the general circular 15/2013dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 ofthe CompaniesAct, 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 disqualifiedas on March 31, 2014, from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the CompaniesAct, 1956.
|For Sharma Goel & Co. LLP|
|Place: New Delhi||(Partner)|
|Date: May 27, 2014||Membership No.017755|
Annexure to the Auditors' Report of even date to the members of RLF LIMITED, on thefinancial statements for the year ended March 31, 2014 (Referred to in our report of evendate)
Based on the Audit Procedures performed for the purpose of reporting a true and fairview on the financials 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 FixedAssets of the Company and in our opinion:
a. The Company has maintained proper records, showing full particulars, includingquantitative details and situation of fixed assets.
b. The Company has a regular programme of physical verification of its fixed assets bywhich they are verified annually. In accordance with this programme, fixed assets wereverified during the year and no discrepancies were noticed on such verification. In ouropinion, the frequency of the physical verification is reasonable having regards to thesize of the company and nature of fixed assets.
c. The Company has not disposed off substantial part of any fixed assets during theyear. Therefore the going concern assumption is not affected.
ii) In respect of Inventories of the Company and in our opinion
a. Inventories have been physically verified by management during the year and thefrequency of verification is reasonable.
b. The procedures for physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c. The Company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification of inventory.
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 CompaniesAct, 1956.
a) The Company has taken unsecured loan from two party covered in the registermaintained under section 301 of the Companies Act, 1956.The maximum amount involved duringthe year was Rs.82,12,570/- and the year-end balance of such loan amount to Rs.47,49,000/-
b) The rate of interest and other terms conditions of loans taken by the Company arenot, prima facie, prejudicial to the interest of the Company.
c) In respect of loans taken, the principal amount is repayable on demand in accordancewith the terms and conditions, and the payment of interest has been regular in accordancewith such terms and conditions.
iv) In our opinion, there is an adequate internal control system commensurate with thesize of the Company and nature of its business with regard to purchase of inventory, fixedassets and for the sale of goods & services. We have not observed any major weaknessin the internal control system during the course of the audit.
v) a) In our opinion, the particulars of all contracts or arrangement that are neededto be entered into the register maintained under section 301 have been so entered.
b) In our opinion, the transaction made in pursuance of such contracts and arrangementswith parties with whom transactions exceeding value of Rupees Five Lakh have been enteredduring the financial year are reasonable having regard to prevailing market price atrelevant. For price justification reliance is placed on the information and explanationgiven by the management.
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) In our opinion, the company has an internal audit system commensurate with thesize and nature of its business.
viii) In our opinion the maintenance of cost records as prescribed under section209(1)(d) of the Companies Act,1956, are applicable and the company has duly made andmaintained such accounts and records.
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, WealthTax, Service Tax, Customs Duty, Excise Duty and any other material Statutory Dues havegenerally been regularly deposited during the year by the Company with the appropriateauthorities, to the extent applicable. There were no dues on account of Cess under Section441A of the Companies Act, 1956 since the aforesaid section has not yet been madeeffective by the Central Government. According to the information and explanations givento us, no undisputed amounts payable in respect of aforesaid dues were in arrears, as atMarch 31, 2014 for a period of more than six months from the date they became payable,except SalesTax liability of Rs. 12,37,874/- which has not been deposited by the companyduring the year.
b. The sales tax department had created a demand on the company in respect of cases for2 years against which the company has preferred appeals to the appropriate appellateauthorities aggregating to Rs 28,64,433/- (PreviousYear Rs 28,64,433).
x) The accumulated losses of the company at the end of the current financial year arenot more than 50 % of its net worth. It has not incurred cash losses in the currentfinancial year and immediately preceding financial year as well.
xi) In our opinion, the Company has not defaulted in repayment of dues to financialinstitutions or banks or debenture holders.
xii) The Company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities.Accordingly, the provisions ofparagraph 4 clause (xii) of the Order are not applicable to the Company.
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) In our opinion the company is not dealing or trading in shares, debentures, andother investments. Accordingly, the provisions of paragraph 4 clause (xiv) of the orderare not applicable to the company.
xv) In our opinion, the terms and conditions on which the Company has given guaranteefor loan taken by others from banks or financial institutions are not, prima facie,prejudicial to the interests of the company.
xvi) In our opinion and to the best of our knowledge and belief, proceeds of term loanstaken were, prima facie, applied for the purpose which they were obtained.
xvii) In our opinion and on an overall examination of the balance sheet of the Company,funds raised on short-term basis, prima facie, have not been used for the long-terminvestment by the Company.
xviii) In our opinion, the Company has not made any preferential allotment of shares toparties or companies covered in the register maintained under Section 301 of theCompaniesAct, 1956.
xix) In our opinion and the records examined by us, no debentures were issued duringthe year.
xx) The Company has not raised any monies by way of public issue during the year.Accordingly, the provisions of paragraph 4 clause (xx) of the Order are not applicable.
xxi) In our opinion, no material fraud on or by the Company has been noticed orreported during the period covered in our audit.
|For Sharma Goel & Co. LLP|
|Place: New Delhi||(Partner)|
|Date: May 27, 2014||Membership No.017755|
|No Related Research Found|
|No Related Research Found|
Anil Kumar Khanna , Chairman & Managing Director
Ashwini Kumar , Director
B L Khurana , Director
Suman Kapur , Director
Company Head Office / Quarters:
Link Intime India Pvt Ltd
Narang Tower,44 Community Centre,Naraina Ind Area,New Delhi-110028