RANE BRAKE LINING Auditors Report

Report on the Standalone Financial Statements


We have audited the accompanying standalone financial statements of Rane Brake Lining Limited (''''the Company''''), which comprise the Balance Sheet as at March 31, 2017, Profit and Loss Statement and the Cash flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.


Management''''s Responsibility For the Standalone Financial Statements


The Company''''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act”) with respect to the preparation of these standalone 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 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 judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, 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,


Auditor''''s Responsibility


Our responsibility is to express an opinion on these standalone 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 thereunder,


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,


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 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. An audit also includes 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 standalone financial statements.


Opinion


In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 March 31, 2017 and its Profit and its cash flows for the year ended on that date.


Report on Other Legal and Regulatory Requirements


1. As required by the Companies (Auditor''''s Report) Order, 2016 ("the Order”) issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act, we give in the "Annexure A” a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.


2. 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) I n 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, the Profit and Loss Statement and the Cash flow Statement dealt with by this Report are in agreement with the books of account;


(d) In our opinion, the aforesaid standalone 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 March 31, 2017 taken on record by the


Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act; and


(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in "Annexure B”.


(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 explanations given to us:


i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note-23 to the standalone financial statements;


ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and


iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.


iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 9th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer Note No. 40 to Financial Statements.


Referred to in Paragraph 1 under the heading "Report on Other Legal And Regulatory Requirements” of our Independent Audit Report of even date on the Standalone Financial Statements of Rane Brake Lining Limited for the year ended March 31, 2017.


(i) a. The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.


b. We are informed that fixed assets have been physically verified by the Management at reasonable intervals and that no material discrepancies were noticed on such verification.


c. According to the information and explanations given to us and based on the examination of the records of the company and also having regard to the confirmation received from banks in respect of title deeds deposited with them wherever applicable and also legal opinion received in a case, we report that the title deeds of immovable properties are held in the name of the company.


(ii) We are informed that the physical verification of inventory has been conducted by the management at reasonable intervals and no material discrepancies were noticed on such verification.


(iii) The Company has not granted any loans, secured or unsecured, to companies / firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013, and hence, the relative reporting requirements under Clause 4(iii) of the Order is not commented upon.


(iv) According to the information and explanations given to us and based on the records of the company examined by us, the company has not made any investments, granted any loans or given any security or guarantee for which the provisions of section 185 and 186 of the Act are applicable.


(v) The Company has not accepted any deposit from the public during the year In respect of deposits accepted by the Company in the earlier years and repaid during the current year, the company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder.


(vi) To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act for the company.


(vii) a. As per the information and explanations furnished to us, and according to our examination of the records of the Company, the Company has been regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable to the Company with the appropriate authorities during the year and no undisputed amounts in respect of material statutory dues were in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.


b. According to the information and explanations given to us and based on the records of the Company examined by us, the particulars of dues of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax that have not been deposited on account of any dispute as at March 31, 2017 are as follows:









































Statute



Nature of dues



Amount (Rs. in Cr)



Period to which the amount relates



Forum where the dispute is pending



Income Tax Act, 1961



Income Tax



1.20



April 2000 to March 2002, April 2004 to March 2005 and April 2006 to March 2007



Income Tax Appellate Tribunal, Chennai



Income Tax Act, 1961



Income Tax



0.02



April 2003 to March 2004



High Court of Judicature, Madras



Income Tax Act, 1961



Income Tax



0.44



April 2010 to March 2013



Commissioner of Income Tax (Appeals), Chennai



Central Sales Tax Act, 1956



Sales Tax



0.34



April 2004 to March 2005, April 2008 to March 2011



Sales Tax Appellate Tribunal, Hyderabad













































































Statute



Nature of dues



Amount (Rs. in Cr)



Period to which the amount relates



Forum where the dispute is pending



Central Sales Tax Act, 1956



Sales Tax



0.01



April 2011 to March 2012



Joint Commissioner (CT)- II, Hyderabad



Puducherry Value Added Tax Act, 2007



Sales Tax



0.01



April 2008 to March 2009 and April 2011 to March 2012



Puducherry Value Added Tax Appellate Tribunal, Puducherry



Central Sales Tax Act, 1956



Sales Tax



0.24



April 2008 to March 2009 and April 2011 to March 2012



Puducherry Value Added Tax Appellate Tribunal, Puducherry



Kerala Value Added Tax, 2003



Sales Tax



0.01



April 2010 to March 2011



The Deputy Commissioner (Appeals-I), Ernakulam



Maharashtra Value Added Tax Act, 2002



Sales Tax



0.03



April 2008 to March 2009



The Joint Commissioner of Sales Tax (Appeal), Pune



Central Sales Tax Act, 1956



Sales Tax



0.13



April 2008 to March 2009 and The Joint Commissioner of Sales April 2010 to March 2011 Tax (Appeal], Pune



Central Excise Act , 1944



Excise Duty (including interest and penalty)



0.86



April 2001 to March 2005, March 2009 to April 2010 and December 2011



Customs, Excise And Service Tax Appellate Tribunal, Chennai



Finance Act, 1994



Service Tax (including interest and penalty



0.82



September 2004 to May 2008, April 2010 to March 2011 and August 2012



Customs, Excise And Service Tax Appellate Tribunal, Chennai



Finance Act, 1994



Service Tax (including interest and penalty)



0.73



April 2013 to March 2016



Commissioner of Central Excise (Appeals), Chennai




viii. I n our opinion and according to the information and explanations given to us and based on the records of the Company examined by us, the Company has not defaulted in repayment of loans to banks and government. The Company has neither taken any loans or borrowings from any financial institution nor has issued any debentures.


ix. According to the information and explanations given to us and based on the records of the Company examined by us, no monies were raised by way of initial public offer or further public offer (including debt instruments) or by way of term loans during the year and hence relative reporting requirements under clause 3(ix) of the Order are not commented upon.


x. During the course of our examination of the books and records of the company carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instances of material fraud by the company or on the company by its officers or employees which has been, noticed or reported during the year, nor have we been informed of any such case by the management.


xi. According to the information and explanations given to us and based on the records of the Company examined by us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.


xii. The Company is not a Nidhi Company. Accordingly, the reporting requirements under clause 3(xii) of the Order are not applicable.


xiii. According to the information and explanations given to us and based on the records of the Company examined by us, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and the details thereof have been duly disclosed in Note 38 to the standalone financial statements as required by the applicable accounting standard.


xiv. According to the information and explanations given to us and based the records of the Company examined by us, the company has not made any preferential allotment / private placement of shares or fully or partially convertible debentures during the year under review and hence the requirements of Section 42 of the Act are not Applicable.


xv. According to the information and explanations given to us and based the records of the Company examined by us, the company has not entered into any non-cash transactions with directors or persons connected with the directors. Accordingly, the reporting requirements under clause 3(xv) of the Order is not applicable.


xvi. According to the information and explanations given to us and the records of the Company examined by us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the reporting requirement under clause 3(xvi) of the Order is not applicable.


For VARMA & VARMA


Chartered Accountants


Firm Registration Number : 004532S


P R PRASANNA VARMA


Place : Chennai Partner


Date : May 17, 2017 Membership Number : 025854

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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