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Ravi Kumar Distilleries Ltd.

BSE: 533294 | NSE: RKDL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE722J01012 | SECTOR: Breweries & Distilleries

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BSE Live

Feb 26, 16:00
7.08 1.18 (20.00%)
Volume
AVERAGE VOLUME
5-Day
1,688
10-Day
13,485
30-Day
4,876
38,104
  • Prev. Close

    5.90

  • Open Price

    5.98

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 26, 15:48
6.70 1.10 (19.64%)
Volume
AVERAGE VOLUME
5-Day
5,513
10-Day
27,883
30-Day
12,770
42,462
  • Prev. Close

    5.60

  • Open Price

    5.40

  • Bid Price (Qty.)

    6.70 (40500)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2015 2014 2013 2012 2011 2009

Auditor's Report

We have audited the accompanying financial statements of ''RAVIKUMAR DISTILLERIES LIMITED'' (the Company); which comprise the Balance Sheet as at 31st March, 2014, and the statement of Profit & Loss Account & Cash flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information. Management 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, financial performance and cash flows 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). 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. Auditor''s 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 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 internal control relevant to the company''s 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 entity''s 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. Emphasis of Matters Without qualifying our opinion, we draw attention to the following: a. Reference is invited to Note No. 17 regarding pending confirmations and reconciliations with sundry debtors and sundry creditors; Note No. 5.3 regarding balances of tie-up parties and Note No. 14.1 regarding amounts transferred to various parties post IPO, which have been classified as ''Long Term Loans and Advances'' (Under Recovery Proceedings); which might require adjustments in the financial statements. Though the company has filed various cases against the parties and initiated action for recovery, we are unable to comment on realisabilityl recoverability of these debts and advances given and no -provision for doubtful debts is considered necessary by the company. The impact on the lossfor the year and current assets, if any, is unascertainable. b. Reference is invited to Note No. 13 regarding ''Investment in Liquor India Limited'' and ''Advance received from ''Lemonade Shares & Securities Private Limited'' (Refer Note No. 10.1) which is considered as disputed and no adjustment for sale thereofhave been incorporated in the financial statements by the Company. The sale agreement entered into with ''Lemonade Shares & Securities Private Limited'' for sale of entire undertaking has been challenged and civil suit has been filed before Und Additional District Judge, Ranga Reddy District, L B Nagar, Hyderabad, with prayers inter-alia to rescind the agreement as being void and restore the parties back to the position prior to MOU Dated 05- 09-2012. Management does not anticipate any liability on this account. However, since the matter is pending before court, we are unable to comment whether, any adjustments are needed or the recoverability of investment thereof. Accordingly, impact on lossfor the year and Investments thereof, if any, is unascertainable. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements, subject to our observations noted in part (a) and (b) ''Emphasis of Matters'' Paragraph above, 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 Profit and Loss Account, of the loss for the year ended on the date; and c) In the case of the Cash Flow statement, of the cash flow for the year ended on that date. 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 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 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) That Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; e) On the basis of written representation received from the auditors 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 section 274 of the Companies Act, 1956. f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules for cess payable by the Company. ANNEXURE TO THE AUDITORS'' REPORT The Annexure referred to in paragraph 1 of our Report of even date to the members of RAVIKUMAR DISTILLERIES LIMITED; on the accounts of the company for the year ended March 31,2014. i. In respect of its fixed assets: a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. b. As explained to us, fixed assets have been physically verified by the Management at reasonable intervals. We have been informed that no material discrepancies were noticed on such physical verification. c. No substantial part of the fixed assets has been disposed off during the year, which has bearing on the going concern status of the company. ii. In respect of its inventories: a. As explained to us, inventories have been physically verified during the year by the Management at reasonable intervals. b. In our opinion and according to the information and explanations given to us, 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. In our opinion and on the basis of our examination of the records, the company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records. iii. a. According to the information and explanations given to us and on the basis of our examination of the books of accounts, the company has granted unsecured loans to parties covered in the register maintained u/s 301 of the Companies Act, 1956. Maximum amount outstanding during the year ended 31st March 2014 was Rs. 2613 Lacs and the year ended balance was Rs. 2613 Lacs. b. According to the information and explanations given to us and on the basis of our examination of the books of accounts, the company has taken interest free, unsecured loan from a director covered in the register maintained under section 301 of the Companies Act 1956. Maximum amount outstanding during the year ended 31st March 2014 was Rs. 794 Lacs and the year ended balance was Rs. Nil. c. According to information and explanations provided to us, the terms and conditions of the said unsecured loans are prima facie not prejudicial to the interest of the Company. d. According to information provided to us there is no stipulation of time schedule for repayment of principal and hence provision of clause 4(iii) (g) of the order is not applicable. iv. In our opinion and according to information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and nature of its business with regards to purchase of inventory and fixed assets and for the sale of inventories. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system of the company. v. a. Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section. b. In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements exceeding the value of Rupees Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. vi. The Company has not accepted deposits from public within the meaning of section 58-A or Section 58-AA of the Companies Act, 1956. vii. In our opinion and according to the information and explanations given to us the Company does not have an internal audit system commensurate with the size and nature of its business. viii. According to the information and explanations given to us, the Central Government has prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in terms of ''Cost Accounting Record Rules, 2011'' which are applicable w.e.f. Financial Year 2011-2012 for products of the company. We are prima facie of the opinion that, such records are not maintained by the company. ix. According to the records of the company, the company is not regular in depositing the undisputed statutory dues relating to the contributions under provident fund Act, Employees State Insurance Act and the remittance in respect of TDS, Income Tax wherever applicable to it with appropriate authorities. The company is generally regular in depositing statutory tax dues including Excise Duty Customs Duty and other applicable dues with appropriate authorities. There is no amount payable in respect of the above undisputed dues are in arrears, as at 31st March, 2014 for the period of more than six months from the date on which they become payable due. According to the information and explanations given to us and the records of the company examined by us there are no dues of income tax, sales tax, Wealth tax, service tax, custom duty, and excise duty which have not been deposited on account of any dispute pending before any forum other than the following amounts: Sl Name of the Nature of Amount Perios to which Forum wherer the .no Statute dues (in lakhs) the amount rela dispute is pendi tes ng 1 Pondicherry Turnover Tax 25.89 2002-2004 Appellate Assist General Sales ant Assistant Tax Act Commissioner Pondicherry 2 Pondicherry Turnover Tax 84.70 2004-2008 High Court, General Sales Madras Tax Act 3 Pondicherry Turnover Tax 27.04 1999-2002 High Court, General Sales Madras Tax Act 4 Kerala Turnover Tax & 84.92 2001-2004 High Court, General Sales Interest the Madras Tax Act reon 5 Income Tax Non Deduction 138.94 2009-2010 Commissioner Act 1961 of Tax Deduc Tax(Appeals), ted at Source Chennai - Disallowance u/s 40(a)(ia) x. In our opinion, The Company has accumulated losses as at the end of financial year. The Company has incurred cash loss of Rs. 531 Lacs during the Financial Year 2013-2014. (Previous Year Rs. 132 Lacs). xi. Based on the audit procedures and on the basis of information and explanations given by the management, we are of the opinion that, the company has defaulted in repayment of dues to financial institution or bank to the tune of Rs. 2,894.44 Lacs. xii. In our opinion and according to the records of the Company, the Company has not granted any loans & advances on the basis of security by way of pledge of shares, debentures and other securities and hence the provisions of clause 4(xii) of the Order are not applicable to the Company. xiii. The company is not a chit fund, nidhi, mutual benefit fund or a society and clause 12 of the order is not applicable. Therefore the provision of clause 4 (xiii) of the Companies (Auditor''s report) order, 2003 are not applicable to the company. xiv. As the company is not dealing or trading in shares, securities, debentures and other investments so clause (xiv) of the said order is not applicable to the company. xv. According to the information and explanations given to us, the Company has given guarantee for loan taken by others from bank or financial institutions, the terms of which are not prejudicial to the interest of company. xvi. In our Opinion & on the Basis of the Review of utilization of funds pertaining to term loan & related information as made available to us, the term loan taken by the company from Sundaram Finance Limited, (Non Banking Financial Institution) of Rs. 70 Lacs for the purpose of Machinery have been utilized for working capital purpose. xvii. According to the information and explanations given to us, and on the basis of an overall examination of the Balance Sheet and Cash Flow Statement of the Company, we report that no funds raised on short-term basis have been used for long term investment. xviii. According to the information and explanation given to us, during the year, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act; hence question of issue price of shares prejudicial to interest of the company does not arise. xix. During the year covered by our audit report, the company has not issued any Secured debentures. Hence the creation of security in respect of debenture is not applicable. xx. The Company has not made any invitation to public to subscribe to share of the Company during the financial year 2013-2014. xxi. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the course or our audit during the year. For Ramanand & Associates Chartered Accountants FRN: 117776W Place: Mumbai CA Ramanand Gupta/ Partner Date: May 29, 2014 Membership No: 103975