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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

BSE Live

Apr 03, 16:00
4.91 0.23 (4.91%)
Volume
AVERAGE VOLUME
5-Day
4,460
10-Day
2,826
30-Day
14,869
9,300
  • Prev. Close

    4.68

  • Open Price

    4.89

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 03, 15:42
4.70 0.20 (4.44%)
Volume
AVERAGE VOLUME
5-Day
15,253
10-Day
15,346
30-Day
27,820
12,457
  • Prev. Close

    4.50

  • Open Price

    4.70

  • Bid Price (Qty.)

    4.70 (2764)

  • 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 ''RAVI KUMAR DISTILLERIES LIMITED''(the Company), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. 2. Management''s Responsibility for the Financial Statements The management and Board of Directors of the Company are 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, financial performance and cash flows 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 Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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; design, implementation and maintenance of adequate internal financial controls, that are 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. 3. Auditor''s 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 4. 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 financial control relevant to the Company''s 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 over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s management and Board of Directors, as well as evaluating the overall presentation of the financial statements. 5. 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 advances to suppliers which might require adjustments in the financial statements. Further, in case of'' Advances to Suppliers'' which have been classified as'' Long Term Advances''; though the company has filed various cases against the parties and initiated action for recovery, we are unable to comment on readability! recover ability of these debts and advances given and no provision for doubtful debts is considered necessary by the company. The impact on the loss for 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 & slrities Private Limited'' (Refer Note Ll01) which is considered as dispute dand no adjustmm 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 End Additional District Judge, Ranga Reddy District, LB Nag J, Hyderabad, with prayers inter-alia Rescind the agreement as being dander store the parties act 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 for the recoverability of investment thereof. Accordingly, impact on loss for the year and Investments thereof if any'' is unascertainable. c. The Company has not complied with the provisions of Section 203 of the Companies Act, 2013 in respect of appointment of Chief Financial Officer and Company Secretary. 6. 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 and its cash flows for the year ended on that date 7. 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 Sectionl43 of the Act the Order. 8. 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 appears from our examination of those books; c. the 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 aforesaid financial statements comply with the applicable Accounting Standards specified under Section l33 of the Act,read with Rule7 of the Companies(Accounts) Rules2014. e. on the basis of written representations received from the directors as on March 31,2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act. f. In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014: (i) The Company has various pending litigations as referred to in Note No. 40 and 41; which in our opinion would impact its financial position (ii) The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise. (iii) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question delay in transferring such sums does not arise. Annexure referred to in paragraph 7 Our Report of even date to the members of Ravi Kumar Distilleries Limited on the accounts of the company for the year ended 31st March, 2015. On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course Of our audit, were port that: i. 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 nonmaterial discrepancies were noticed on such physical verification. 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. In our opinion, having regard to the nature and location of stocks, the frequency of verification is reasonable. 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 rereasonable and adequatein 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. Nonmaterial is creamy was notice don 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 accounts, the company has granted unsecured loans to parties covered in the register maintained u/s 189 of the Companies Act, 2013. Maximum amount outstanding during the year ended 31st March 2015 was Rs 5028 Lacs and the year ended balance was Rs. 5028 Lacs. (Previous Year Rs. 2,613 Lacs) No interest has been charged on these loans on prudence basis. However, in our opinion non-charging of interest on loans and advances to parties covered in the register u/s 189 of the Companies Act, 2013 is prejudicial to the interest of the company as company has to bear the interest cost. According to information provided to us, there is no stipulation of time schedule for repayment of principal and no interest has been charged on these loans on prudence basis. The company has taken reasonable steps for recovery of these loans during the year. 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) The Company has not accepted any deposits from the public covered under Section 73 to 76 of the Companies Act, 2013. (vi) According to the information and explanations given to us, the Central Government has prescribed maintenance of cost records under sub-section (1) of Section 148 of the Companies Act, 2013 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. vii. (a) 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, Service Tax wherever applicable to it with appropriate authorities. (b) There were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance Scheme, Income Tax, Service Tax, Excise Duty, Value Added Tax, Central Sales Tax, Cess and other material statutory dues in arrears as at 31st March, 2015 for the period of more than six months from the date they became payable, except for Provident Fund dues amounting to Rs. 8.13 Lacs for the period from May 2014 to August 2014. (c) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise as at 31st March, 2015. (d) 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:: Name of the Statute Forum where the Period to which the Amount dispute is pending. Amount relates (in Lakhs) Kerala General Sales Tax Act High Court, Kerala 2001-2004 116.24 income Tax Act l961 ITAT Chennai 2006-2007 AY 2007-08 238.20 Income Tax Act l961 ITAT Chennai 2009-2010 AY 2010-11 138.94 Income Tax Act l961 Commissioner of Income Tax 2010-2011 AY 2011-12 1,209.99 (Appeals),Chennai (viii) In our opinion, the company has accumulated losses as at the end of financial year. The Company has incurred cash loss of Rs. 543 Lacs during the Financial Year 2014-2015. (Previous Year Rs. 531 Lacs). The accumulated losses as at the end of the financial year are not less then SO percent of its net worth; (ix) 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 3,336 Lacs as on 31st March 2015. (Previous Year Rs. 2,894 Lacs) (x) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks and financial institutions are not, prima facie prejudicial to the interests of company. (xi) In our opinion, and according to the information and explanations given to us, the term loans have been applied by the company for the purposes for which they were obtained. (xii) During the course of our examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of any such instance by the Management For Ramanandfe Associates Chartered Accountants FRN: 117776W Place: Chennai CA Ramanand G t Partner Date : 25.05.2015 Membership No: 103975