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ETT Ltd.

BSE: 537707 Sector: Infrastructure
NSE: N.A. ISIN Code: INE546I01017
BSE 00:00 | 19 Apr 47.50 -2.50
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NSE 05:30 | 01 Jan ETT Ltd
OPEN 47.50
PREVIOUS CLOSE 50.00
VOLUME 10
52-Week high 65.00
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.50
CLOSE 50.00
VOLUME 10
52-Week high 65.00
52-Week low 30.50
P/E
Mkt Cap.(Rs cr) 49
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ETT Ltd. (ETTLTD) - Auditors Report

Company auditors report

To the Members of ETT Limited

Report on the Audit of the Financial Statements

Opinion

1. We have audited the financial statements of ETT Limited (“the Company”)which comprise the Balance Sheet as at 31st March 2020 the Statement of Profit and Loss(including Other Comprehensive Income) Statement of Changes in Equity and the Statementof Cash Flows for the year then ended and Notes to the financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as “the financial statements”).

2. 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 in the manner so required and give a true and fair view in conformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended (“Ind AS”) andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 the LOSS and total comprehensive income changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the financial statements in accordance with the Standardson Auditing specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

Key Audit Matters

4. 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.

5. We have determined the matters described below to be the key audit matters to becommunicated in our report.

S Key Audit Matter No How our audit addressed the Key Audit Matter
i) Valuation of current financial investments
The Company has made short term investments in quoted shares and exchange traded funds during the year which have been valued at Rs 139.66 Lacs as at 31 March 2020 (2019: Rs 0.16 Lacs). See Note 1(c) for the accounting policy and Note 7 to the financial statements. We reviewed management's assessment of the values quoted shares and exchange traded funds and the unquoted shares. We also considered the adequacy of the disclosures in the financial statements in respect of this matter. The fair value of quoted shares and exchange traded funds have been categorised as level 1 and the unquoted shares have been categorised as level 3.
We identified the valuation of current financial investments as a key audit matter due to the significance of the balance to the financial statements as a whole and due to the significant element of judgement and estimation associated with determination of the fair value. Based on our procedures we found management's valuation to be appropriate. We also found the disclosures of current financial investments in the financial statements to be adequate.

Information Other than the Financial Statements and Auditor's Report Thereon

6. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report Report on Corporate Governance but does notinclude the financial statements and our auditor's 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 the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

7. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

8. 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.

9. The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

10. 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 withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

11. As part of an audit in accordance with Standards on Auditing we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

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

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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

13. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

14. From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when 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

15. As required by Section 197(16) of the Act we report that the Company did not payany remuneration to its directors during the year.

16. As required by the Companies (Auditor's Report) Order 2016 (the 'Order') issued bythe Central Government of India in terms of Section 143(11) of the Act we give in the“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder.

17. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 (including Other ComprehensiveIncome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 3 of the Companies(Indian Accounting Standards) Rules 2015;

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st 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 with reference tothe financial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in “Annexure B”.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements (Refer Note 42);

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

iii. The Company was not required to transfer any amount to the Investor Education andProtection Fund.

For M/s. Ram Rattan & Associates
Chartered Accountants
(FRN. 004472N)
(Ram Rattan Gupta)
Partner
M. No. 083427
Place: Gurugram
Dated : 30th June 2020.
UDIN: 20083427AAAACK5336

‘Annexure - A' To the Independent Auditors' Report

(Referred to in paragraph 16 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of ETT Limited of even date) we report that:

(i) In respect of the Company's fixed assets

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment investment propertyand capital work in progress.

b) A major portion of the fixed assets comprising of property plant and equipmentinvestment property and capital work in progress have been physically verified by themanagement during the year. No material discrepancies were noticed on such verification.In our opinion the frequency of verification of the fixed assets comprising of propertyplant and equipment investment property and capital work in progress is reasonable havingregard to the size of the Company and the nature of its assets.

c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold and which have been taken on long-term lease and disclosed as fixed assets areheld in the name of the Company as at the balance sheet date.

(ii) The Company has a regular programme of physical verification of its inventories.No material discrepancies were noticed on such verification. In our opinion the frequencyof verification of the inventories is reasonable having regard to the size of the Companyand the nature of its assets.

(iii) The Company has not granted any loans secured or unsecured to companies or otherparties 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 inrespect of guarantees and securities the provisions of section 185 of the Companies Act2013 and section 186 of the Companies Act 2013 read with Companies (Meetings of Board andits powers) Rules 2014 are not applicable to the Company.

(v) According to the information and explanations given to us the company has notaccepted any deposit from the public and therefore the provision of clause (v) ofparagraph 3 of the Order is not applicable to the Company.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any of the activities rendered by theCompany.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records

the company is regular in depositing with appropriate authorities undisputed statutorydues including Goods and Services Tax Provident Fund Employees' State InsuranceIncome-Tax Cess and any other statutory dues. According to the information andexplanation given to us no undisputed amounts of statutory dues were in arrears as at31.03.2020 for a period of more than six months from the date they became payable.

(b) According to the records and information and explanations given to us the duesoutstanding in respect of Sales Tax & Entry Tax on account of any dispute are asfollows:

S No. Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
1 Commercial Taxes under UPVAT Act 2007 Entry Tax 0.37 F.Y 2007 - 2008 Assistant Commissioner Ward - 3 Commercial Tax Noida

There were no amounts outstanding due to disputes in respect of income-tax excise dutyand Goods and Services tax

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of borrowing to financial institutions or banks. However thecompany did not take any loans or borrowings from government or debenture holders duringthe year.

(ix) According to the information and explanations given to us the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) and term loans during the year as such clause (ix) of paragraph 3 of theOrder is not applicable.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanations given to us the Company has notpaid any managerial remuneration to the directors. Accordingly the clause (xi) ofparagraph 3 of the Order is not applicable.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly the clause (xii) of paragraph 3 of the Orderis not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records the Company's transactions with its related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where ever applicable anddetails of related party transactions have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into noncash transactions with its directors or persons connectedwith him and therefore the clause (xv) of paragraph 3 of the Order is not applicable.

(xvi) In our opinion and according to the information and explanations provided to usthe Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

For M/s. Ram Rattan & Associates
Chartered Accountants
(FRN. 004472N)
(Ram Rattan Gupta)
Partner
M. No. 083427
Place: Gurugram
Dated : 30th June 2020.
UDIN: 20083427AAAACK5336

‘Annexure - B' To the Independent Auditors' Report

(Referred to in paragraph 17(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of ETT Limited of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls with reference to the financialstatements of ETT Limited (“the Company”) as of 31 March 2020 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

1. 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 with reference to thefinancial statements issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

2. Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial statements based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal financial controls withreference to the financial statements (the “Guidance Note”) issued by theInstitute of Chartered Accountants of India and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to the financialstatements was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls with reference to thefinancial statements included obtaining an understanding of internal financial controlswith reference to the financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system over financial reporting.

3. Meaning of Internal financial controls with reference to the financial statements

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

i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

iii) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

(a) Inherent Limitations of Internal financial controls with reference to the financialstatements

Because of the inherent limitations of internal financial controls with reference tothe financial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to the financial statements to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

(b) Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls with reference to thefinancial statements were operating effectively as at March 312020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of Internalfinancial controls with reference to the financial statements issued by the Institute ofChartered Accountants of India.

For M/s. Ram Rattan & Associates
Chartered Accountants
(FRN. 004472N)
(Ram Rattan Gupta)
Partner
M. No. 083427
Place: Gurugram
Dated : 30th June 2020.
UDIN: 20083427AAAACK5336

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