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LEEL Electricals Ltd.

BSE: 517518 Sector: Engineering
NSE: LEEL ISIN Code: INE245C01019
BSE 00:00 | 22 Oct 3.09 -0.16
(-4.92%)
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3.09

HIGH

3.09

LOW

3.09

NSE 00:00 | 22 Oct 3.15
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OPEN

3.15

HIGH

3.15

LOW

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OPEN 3.09
PREVIOUS CLOSE 3.25
VOLUME 11458
52-Week high 87.40
52-Week low 3.09
P/E 0.25
Mkt Cap.(Rs cr) 12
Buy Price 3.09
Buy Qty 100.00
Sell Price 3.09
Sell Qty 10139.00
OPEN 3.09
CLOSE 3.25
VOLUME 11458
52-Week high 87.40
52-Week low 3.09
P/E 0.25
Mkt Cap.(Rs cr) 12
Buy Price 3.09
Buy Qty 100.00
Sell Price 3.09
Sell Qty 10139.00

LEEL Electricals Ltd. (LEEL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

LEEL ELECTRICALS LIMITED

Report on the Consolidated Indian Accounting Standards (IND AS) Financial Statements

1. We have audited the accompanying consolidated Ind AS financial statements of LEELElectricals Limited (hereinafter referred to as the "Holding Company" or"Parent Company") and its subsidiaries (the Holding Company and its subsidiariestogether referred to as "the Group") comprising of the consolidated balancesheet as at 31st March 2018 the consolidated statement of profit and loss (includingother comprehensive income) the consolidated statement of cash flows for the year thenended and the consolidated statement for changes in equity for the year then ended and asummary of significant accounting policies and other explanatory information preparedbased on the relevant records (hereinafter referred to as "the consolidated Ind ASfinancial statements").

Management's Responsibility for the Consolidated Ind AS Financial Statements

2. The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated Ind AS financial statements in terms of the requirements of the CompaniesAct 2013 (hereinafter referred to as "the Act") that give a true and fair viewof the consolidated financial position consolidated financial performance (includingother comprehensive income) consolidated cash flows and consolidated statement of changesin equity of the Group in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the Companies (IndianAccounting Standards) Rules 2015 (as amended) under Section 133 of the Act. The HoldingCompany's Board of Directors is also responsible for ensuring accuracy of recordsincluding financial information considered necessary for the preparation of consolidatedInd AS financial statements. The respective Board of Directors of the companies includedin the Group are responsible for maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Group and forpreventing and detecting frauds and other irregularities; the selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the 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 which have been used for the purpose of preparation of theconsolidated Ind AS financial statements by the Directors of the Holding Company asaforesaid.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these consolidated Ind AS financialstatements based on our audit. While conducting the audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder.

4. We conducted our audit of the consolidated Ind AS financial statements in accordancewith the Standards on Auditing specified under section 143(10) of the Act and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those standards and pronouncements require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe consolidated Ind AS financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the consolidated Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the consolidated Ind AS financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Holding Company's preparation of the consolidated Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Holding Company's Board of Directors as well as evaluating the overall presentationof the consolidated Ind AS financial statements.

6. We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in sub-paragraph 8 of the OtherMatters paragraph below other than the unaudited financial statements and unauditedconsolidated financial statements/information as certified by the management and referredto in sub-paragraph 9 of the Other Matters paragraph below is sufficient and appropriateto provide a basis for our audit opinion on the consolidated Ind AS financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid consolidated Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the consolidated state ofaffairs of the Group as at 31st March 2018 and their consolidated Profit (financialperformance including other comprehensive income) their consolidated cash flows and theconsolidated changes in equity for the year ended on that date.

Other Matters

8. We did not audit the financial statements/financial information of threesubsidiaries whose financial statements/financial information reflect total assets of '272.41 crores and net assets of ' 98.27 crores as at March 31 2018 total revenues of '342.87 crores and net cash inflow amounting to ' 1.67 crores for the year ended on thatdate as considered in the consolidated financial statements whose financialstatements/information have not been audited by us. These financial statements/financialinformation have been audited by other auditors whose reports have been furnished to us bythe management and our opinion on the consolidated Ind AS financial statements insofar asit relates to the amounts and disclosures included in respect of these subsidiaries andour report in terms of subsection (3) of Section 143 of the Act insofar as it relates tothe aforesaid subsidiaries is based solely on the reports of the other auditors.

All of these subsidiaries are located outside India whose financial statements/financial information have been prepared in accordance with accounting principlesgenerally accepted in their respective countries and which have been audited by otherauditors under generally accepted auditing standards applicable in their respectivecountries. The Company's management has converted the financial statements of suchsubsidiaries located outside India from accounting principles generally accepted in theirrespective countries to accounting policy generally accepted in India. We have audit theseconversion adjustments made by the Company's management. Our opinion in so far as itrelates to the balances and affairs of such subsidiaries located outside India is based onthe report of other auditors and the conversion adjustments prepared by the management ofthe Company and audited by us.

9. We did not audit the consolidated financial statements/ financial information of onewholly owned foreign subsidiary and financial statements/ financial information of onewholly owned foreign subsidiary that reflect total assets of ' 28.23 crores and net assetof ' (2.69) crores as at March 31 2018 and total revenues of ' 51.87 crores and net cashoutflow amounting to ' 2.44 crores for the year ended on that date as considered in theconsolidated financial statements. These unaudited consolidated financial statements/financial statements / financial information have been furnished to us by the managementand our opinion on the consolidated Ind AS financial statements insofar as it relates tothe amounts and disclosures included in respect of these subsidiaries and our report interms of subsection (3) of Section 143 of the Act insofar as it relates to the aforesaidsubsidiaries is based solely on such unaudited consolidated financial statements/financial statements/ information. In our opinion and according to the information andexplanations given to us by the Management these consolidated financial statements/financial statements/ information are not material to the Group.

10. Our opinion on the consolidated Ind AS financial statements and our report on OtherLegal and Regulatory Requirements below is not modified in respect of the other matterscovered in para 8 and 9 with respect to our reliance on the work done and the reports ofthe other auditors and the consolidated financial statements/ financial statements/information certified by the Management.

Report on Other Legal and Regulatory Requirements

11. As required by sub-section 3 of Section 143 of the Act we report to the extentapplicable 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 of the aforesaidconsolidated Ind AS financial statements.

b. In our opinion proper books of account as required by law maintained by the HoldingCompany its subsidiaries included in the Group including relevant records relating topreparation of the aforesaid consolidated Ind AS financial statements have been kept sofar as it appears from our examination of those books and records of the Holding Companyand the reports of the other auditors.

c. The consolidated balance sheet the consolidated statement of profit and loss(including other comprehensive income) the consolidated statement of cash flows andconsolidated statement of changes in equity dealt with by this Report are in agreementwith the relevant books of account maintained by the Holding Company and its subsidiariesincluded in the Group including relevant records relating to the preparation of theconsolidated Ind AS financial statements.

d. In our opinion the aforesaid consolidated Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from the directors of theHolding Company as on 31st March 2018 taken on record by the Board of Directors of theHolding Company none of the directors of the Holding Company is disqualified as on 31stMarch 2018 from being appointed as a director in terms of sub-section (2) of Section 164of the Act. None of the subsidiaries of the Holding Company is incorporated in India assuch provisions of section 164(2) of the Companies Act 2013 are not applicable on thesesubsidiaries.

f. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Group and the operating effectiveness of such controls referto our separate report in "Annexure A".

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 consolidated Ind AS financial statements disclose the impact if any of pendinglitigations as at March 31 2018 on the consolidated financial position of the Group.Refer Note 36 to the consolidated Ind AS financial statements;

ii. The Group did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Group during the year ended March 312018 as applicable; and

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Group for the year ended March 31 2018.

For Goel Garg & Co. Chartered Accountants

Firm's Registration Number 000397N

Place of Signature: New Delhi

Date: May 30 2018

Ashok Kumar Agarwal Partner

Membership Number 084600

Annexure A to the Independent Auditors' Report

Referred to in paragraph 11(f) of the Independent Auditors' Report of even date to themembers of LEEL Electricals Limited on the consolidated Ind AS financial statements as ofand for the year ended March 31 2018.

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

In conjunction with our audit of the consolidated financial statements of the Companyas of and for the year ended March 31 2018 we have audited the internal financialcontrols with reference to financial statements of LEEL ELECTRICALS LIMITED (hereinafterreferred to as "the Holding Company"). Reporting under clause (i) of sub section3 of Section 143 of the Act in respect of the adequacy of the internal financial controlswith reference to financial statements is not applicable to its subsidiaries being allincorporated outside India.

Management's Responsibility for Internal Financial Controls

The Holding Company's Board of Directors are responsible for establishing andmaintaining internal financial controls based on internal control over financialreporting criteria established by Holding Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the respective company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors 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 with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by ICAI and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth issued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to 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'sjudgment including the assessment of the risks of material misstatement of the Ind ASfinancial statements whether due to fraud or error.

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 systemwith reference to financial statements.

Meaning of Internal financial controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal financial controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial 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 financial statements to future periods are subject

to the risk that the internal financial control with reference to financial statementsmay become inadequate because of changes in conditions or that the degree of compliancewith the policies or procedures may deteriorate.

Opinion

In our opinion the Holding Company have in all material respects an adequateinternal financial controls system with reference to financial statements and suchinternal financial controls with reference to financial statements were operatingeffectively as at March 31 2018 based on the internal control over financial reportingcriteria established by the Holding Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For Goel Garg & Co.

Chartered Accountants

Firm's Registration Number 000397N

Place of Signature: New Delhi

Date: May 30 2018

Ashok Kumar Agarwal

Partner

Membership Number 084600