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Artemis Electricals & Projects Ltd.

BSE: 542670 Sector: Engineering
NSE: N.A. ISIN Code: INE757T01017
BSE 00:00 | 19 Jan 49.35 -1.20
(-2.37%)
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51.80

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51.80

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49.25

NSE 05:30 | 01 Jan Artemis Electricals & Projects Ltd
OPEN 51.80
PREVIOUS CLOSE 50.55
VOLUME 881
52-Week high 69.70
52-Week low 34.15
P/E
Mkt Cap.(Rs cr) 124
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 51.80
CLOSE 50.55
VOLUME 881
52-Week high 69.70
52-Week low 34.15
P/E
Mkt Cap.(Rs cr) 124
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Artemis Electricals & Projects Ltd. (ARTEMISELECTRI) - Auditors Report

Company auditors report

Independent Auditor's Report to the Members of Artemis Electricals Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of Artemis Electricals Limited(‘the

Company') which comprise the Balance Sheet as at 31 March 2020 and the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flow for the year then ended and a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2020 and its profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibility for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Emphasis of Matter

a) Attention is drawn to the fact that we have not participated in physicalverification of inventories of raw material finished goods work in progress goods andstock in trade. We have relied on physical verification certificate issued by managementas well as certificate of the valuation of finished goods and work in progress for all theperiod included in the financial statements.

b) We draw attention to note 41 to the financial statements disclosure under Ind AS108 - 'Operating Segments' could not be provided as sufficient information relating to thesame was not available with the management. Further the Company conducts its business inonly one Geographical Segment viz. India.

c) Attention is drawn to the fact that the Company has communicated to the suppliersrelated to categorization of MSME parties on the basis of the information available withthe Company the

Company has classified outstanding dues of Micro and Small enterprise and outstandingdues of creditors other than Micro and Small Enterprises. Further the Company has notprovided the interest on the same as reconciliation and settlement was pending with theparties. Adjustments required upon such reconciliation and confirmation if any are notascertainable and hence interest has not been provided for.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr.
Key Audit Matter How our audit addressed the key audit matter
Revenue recognition as per Ind AS 115
1 Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods to a customer. The revenue recognition occurs at a point in time when the control of the goods is transferred to the customer. As part of our audit procedures we:
Read the Company's accounting policy for revenue recognition and assessed compliance with the requirements of Ind AS 115.
We focused on this area as a key audit matter due to the amount of Revenue being regarded by Management as a key performance indicator in assessing performance. We believe there exists a risk of revenue being recognized before the control is transferred including risk of incorrect timing of estimation related to recording the discounts and rebates. Evaluated the design tested the implementation and operating effectiveness of the Company's internal controls including general IT controls and key IT application controls over recognition of revenue and measurement of rebates discounts and returns.
On a sample basis tested supporting documentation for sales transactions and rebates/discounts recorded during the year which included sales invoices customer contracts shipping documents and customer correspondences for rebates/discounts.
Refer Note 22 to the financial statements. Tested revenue samples focused on sales recorded immediately before the year-end obtained evidence as regards timing of revenue recognition based on terms and conditions of sales contracts and delivery documents.
Compared current year sales discounts and rebates with historical trends.
Assessed disclosures in financial statements in respect of revenue as specified in Ind AS 115.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe Financial

Statements and our auditors' report thereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of the misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 section 143(11) of the Act we givein Annexure A a statement on the matters specified in the paragraph 3 and 4 of the order;

2(A) 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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and loss and the statement of cash flowsdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with relevant rule issued thereunder;

(e) on the basis of the written representations received from the directors as on 31March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in

"Annexure B"; and

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid/provided by the Company to its Directors during the year is inaccordance with the provisions of Section 197 of the Act.

(B) withrespecttotheothermatterstobeincludedintheAuditor'sReportinaccordancewithRule 11of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

(C) With respect to the matter to be included in the Auditors' Report under Section197(16) of the

Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For Mittal Agarwal & Company
Chartered Accountants
(Firm Registration No. 131025W)
Sd/-
P7iyush Agarwal
Place: Mumbai Partner
Dated: 22/09/2020 Membership No. 135505
UDIN: 20135505AAAABI8122

Annexure A to the Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

1a The company has not updated its records showing quantitative details and situationof the fixed assets.

1b As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. No material discrepancieswere noticed on such physical verification.

1c The title deeds of immovable properties other than self-constructed immovableproperty (buildings) as disclosed in fixed assets to the Financial Statements are heldin the name of the Company.

2 As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

3 According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct except as stated in financial statements:

a. the terms and conditions of the grant of such loan are not prejudicial to thecompany's interest;

b. the schedule of repayment of principal and payment of interest has been stipulatedand the repayments or receipts are regular;

c. No amount is overdue on such loan as on the date of financial statements.

4 In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

5 The Company has not accepted deposits during the year and does not have any unclaimeddeposits as at 31 March 2020 and therefore the provisions of clause 3 (v) of the Orderare not applicable to the Company.

6 The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. However we have not reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under sub-section (1) of Section 148 ofthe Companies Act 2013 we relied on the certificate issued by the cost auditor of thecompany regarding the compliance with the Companies (Cost Records and Audit) Rules 2014.

7a According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company is regular in depositing theundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods and Services Tax Duty of Custom Cess and Other Material Statutory Duesapplicable to it with the appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofProvident fund Employees' State Insurance Income Tax Goods and Service Tax Duty ofCustoms Cess and Other Material Statutory Dues were in arrears as at 31 March 2020 for aperiod of more than six months from the date they became payable except in respect ofIncome Tax of Rs. 483.85 lakhs (including current year's advance tax of Rs. 160.71 lakhs).

7b According to the information and explanations given to us there are no dues ofincome tax sales tax value added tax service tax goods and service tax duty ofcustoms duty of excise which have not been deposited with the appropriate authorities onaccount of any dispute.

8 According to the information and explanations given to us the Company has notdefaulted in the repayment of loans or borrowings to banks. The Company did not have anyoutstanding loans or borrowings from financial institutions or government and there are nodues to debenture holders during the year.

9 According to information and explanations given by the management money raised bythe Company by way of initial public offer was applied for the purpose for which they wereraised. Further the Company has not raised moneys by way of further public offer(including debt instruments) or term loan during the year.

10 To the best of our knowledge and according to the information and explanations givento us no material fraud by the Company or no fraud on the Company by its officers oremployees has been noticed or reported during the course of our audit.

11 According to the information and explanations given to us and based on examinationof the records of the Company the Company has paid/provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act 2013.

12 The Company is not a Nidhi Company and therefore the provisions of clause 3 (xii)of the Order are not applicable to the Company.

13 In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

14 During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and therefore theprovisions of clause 3 (xiv) of the Order are not applicable to the Company.

15 According to the information and explanations given to us during the year theCompany has not entered into any non-cash transactions with its Directors or personsconnected to its Directors and hence provisions of Section 192 of the Act are notapplicable.

16 The Company is not required to be registered under Section 45-I of the Reserve Bankof India Act 1934 and therefore the provisions of clause 3 (xvi) of the Order are notapplicable to the Company.

For Mittal Agarwal & Company
Chartered Accountants
(Firm Registration No. 131025W)
Sd/-
Piyush Agarwal
Place: Mumbai Partner
Dated: 22/09/2020 Membership No. 135505
UDIN: 20135505AAAABI8122

Annexure B to the Independent Auditors' Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of ArtemisElectricals Limited

(‘the Company') as of 31 March 2020 in conjunction with our audit of the financialstatements of the Company for the year ended and as on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (the

‘Guidance Note'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Note to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with the ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditors' judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Disclaimer of Opinion

The information and explanations provided by the management on system of InternalFinancial Controls over financial reporting were not complete to enable us to determine ifthe Company has established adequate Internal Financial Controls over financial reportingand whether such Internal Financial Controls were operating effectively as at 31 March2020.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the financial statements of the Company forthe year ended 31 March 2020 and the disclaimer does not affect our opinion on thefinancial statements of the Company.

For Mittal Agarwal & Company
Chartered Accountants
(Firm Registration No. 131025W)
Sd/-
Piyush Agarwal
Place: Mumbai Partner
Dated: 22/09/2020 Membership No. 135505
UDIN: 20135505AAAABI8122

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