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Raj Rayon Industries Ltd.

BSE: 530699 | NSE: RAJRAYON | Series: BZ | ISIN: INE533D01024 | SECTOR: Textiles - Processing

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30-Day
65,616
9,467
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Aug 04, 15:31
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242,665
10-Day
196,095
30-Day
361,277
142,241
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Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2007

Auditor's Report

We have audited the accompanying financial statements of Raj Rayon Industries Limited (the Company), which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss for the year then ended and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements The Company''s Board of Director 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 give a true and fair view of the financial position and financial performance of the Company in accordance 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 provisions 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 control, 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 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 have taken into account the provisions 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 there under. 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 the 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 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 the internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design and 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 control system over financial reporting and the operating effectiveness of such controls. An audit also include evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s 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 financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, 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, 2015, its Loss for the year ended on that date, and cash flow statement for year ended on that date. Emphasis of Matter We draw attention to Note 2 of the accompanying financial statements in respect of contingency related to compensation payable in lieu of bank sacrifice, the outcome of which is materially uncertain and cannot be determined currently. Our opinion is not qualified in respect of this matter. Report on Other Legal and Regulatory Requirements As required by the Companies (Auditor''s Report) Order, 2015(the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 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 purposes 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 Statement of Profit and Loss dealt with by this Report are in agreement with the books of account. (d) In our opinion, the aforesaid 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) On the basis of the written representations received from the directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2015 from being appointed as a director in terms of section 164 (2) of the Act. (f) The Company has adequate internal financial control and in our opinion the same is operating effectively. (g) With respect to the other matters to be included in the Auditor''s 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 explanation given to us : i. The Company has disclosed the impact of pending litigations on its financial position in its 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company. ANNEXURE REFERRED TO THE INDEPENDENT AUDITORS'' REPORT (Referred to in paragraph 1 under the heading of ''Report on Other Legal and Regulatory Requirements'' section of our report of even date) (i) a. In our opinion,the Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets. b. As explained to us, the fixed assets have been physically verified by the management according to a programme of verification which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification. (ii) a. As explained to us, physical verification of inventory has been conducted by the management at reasonable intervals. In our opinion frequency of verification is reasonable; b. In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. c. On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in books of accounts. (iii) The Company has not granted any Unsecured Loan to Companies as covered in the register maintained under section 189 of the Companies Act, 2013. (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the internal control systems. (v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit within the meaning of section 73 to 76 of the Companies Act, 2013, and the rules framed there under. (vi) We have broadly reviewed the cost records maintained by the Company in respect of products, pursuant to the rules made by the Central Government, the maintenance of Cost records have been prescribed under section 148 (1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete. (vii) a. According to the records of the Company and the information and explanations given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise duty, Value Added Tax, Cess and other statutory dues to the extent applicable to it. There are no undisputed statutory dues as referred to above as at 31st March, 2015 outstanding for a period of more than six months from the date they become payable. b. The disputed statutory dues that have not been deposited on account of matters pending before the appropriate authority are as under - Name of Nature of the Amount Rs. in Lacs the Statute Dues (Excluding penalties and interest, if any) Central Excise Duty 23.89 Excise Duty 32.09 38.30 25.82 7.40 127.50 0.09# 2.95 3.35 2.84# 70.87 190.07 187.08 332.04 Textile Cess 0.35 Committee Act 0.88 2.13 3.10 1.37 7.82 Income Tax Income Tax 25.47 Act Gujarat Tax Entry tax 558.83 on Entry of Specified Goods into Local Area Act, 2001 Name of the Period to Forum where dispute is pending Statute which the amount relate Central 1995-1996 Excise Duty 1996-1997 1997-1998 1998-1999 1999-2000 Additional Directorate of Anti Evasion. 1999-2000 The Company is in the process of refund. 2003-2004 Appellate Tribunal of Central Excise. 2003-2004 The Company has filed reply to & show Cause Notice received from 2004-2005 Superintendent of Central Excise. 2003-2004 The Company has filed the Appeal in the Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad. 2005-2006 The Company has filed the reply to & Show cause notice received from 2006-2007 the Commissioner of Central Excise & Custom, Vapi. 2006-2007 The Company has filed the reply to & Show cause notice received from 2007-2008 the office of the Commissioner of Central Excise & Custom, Vapi. 2007-2008 The Company has filed the reply to Show cause notice received from the Commissioner of Central Excise & Custom, Vapi. 2009-2010 The Company has filed Appeal & Stay application with Custom Excise & Service Tax Appellate Tribunal, Ahmedabad. Textile Cess 1997-1998 Textile Cess Appellate Tribunal. Committee Act 1998-1999 1999-2000 2000-2001 2001-2002 Income Tax 2004-2005* Application for giving effect to Act the order of CIT (A) is pending before the Assessing Officer. The Appeal was decided in favour of the Company. Gujarat Tax 01.04.2012 The Company has filed reply to the on Entry of to Show Cause Notice issued by the Specified 31.01.2014 Commercial Tax Officer,Ahmedabad. Goods into Local Area Act, 2001 # Payment made under protest * Assessment year c) The amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of The Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund with in time (viii) The accumulated losses of the Company at the end of the financial year are more than fifty per cent of its net worth. The Company has accumulated losses at the end of the financial year in the statement of Profit & Loss. It has incurred cash losses in the current financial year covered by the Audit and also incurred in immediately preceding financial year. (ix) Based on our audit procedures and accordingly to the information and explanation given by the management, we are of the opinion that the company has generally not defaulted in repayment of dues to bank / financial institution except delay in making payment towards interest and principal. (x) According to the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial institutions. (xi) In our opinion and as per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained. (xii) Based on the audit procedure performed and information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For K. M. Garg & Co. Chartered Accountants (FRN - 120712W) Sd/- (CA. K K Garg) Place: Mumbai Partner Date: 30th May, 2015 M No. 033940