Redex Protech Ltd.
|BSE: 523650||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE823D01011|
|BSE 00:00 | 21 May||Redex Protech Ltd|
|NSE 05:30 | 01 Jan||Redex Protech Ltd|
|BSE: 523650||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE823D01011|
|BSE 00:00 | 21 May||Redex Protech Ltd|
|NSE 05:30 | 01 Jan||Redex Protech Ltd|
The Members of Redex Protech Limited
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Redex ProtechLimited ("the Company") which comprise the Balance Sheet as at 31stMarch2018 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Ind AS Financial Statements
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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and Rules made thereunder.
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial Statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in thelnd AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial Statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31stMarch 2018 its profit total comprehensive income its cash flowsand the changes in equity 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 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order.
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 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 the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.
(d) In our opinion the aforesaid Ind AS financial Statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015.
(e) On the basis of the written representations received from the directors as on 31stMarch2018 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2018 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
(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 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements (refer note no.29 to the Ind AS financialstatements).
ii. The Company 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 Company.
Annexure 'A' to Independent Auditors/ Report
[Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date]
1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year by the managementin accordance with a program of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties as disclosed in note no. 9 on fixed assetsto the financial statements are held in the name of the Company.
2. The Company's business does not involve inventories and accordingly this clause isnot applicable to the Company.
3. (a) The Company has not granted any loans to related parties covered in the registermaintained under section 189 of the Companies Act 2013 during the year. However it hasopening balances of loans granted to six related parties covered in the registermaintained under section 189 of the Companies Act 2013 aggregating to Rs 26844091/-andthe corresponding balance of such loans as on 31st March 2018 is Rs.22199591/-. We are informed by the company that these loans granted are interest freeand accordingly in our opinion the terms and conditions of the loan are prejudicial tothe interest of the company.
(b) In respect of the loan granted to parties covered in the register maintained undersection 189 of the Companies Act 2013 the schedule of repayment of principal andpayment of interest has not been stipulated.
(c) As the company has not entered into any specific agreement for repayment of theprincipal and interest we are neither able to trace due date of payment nor comment onthe same.
4. The Company has not granted any loans or made any investments or provided anyguarantees or securities to the parties covered under section 185 and 186 of the CompaniesAct 2013. Therefore the provisions of Clause 3(iv) of the said Order are not applicableto the Company.
5. The Company has not accepted deposits from the public within the meaning of section73 to 76 of the Companies Act 2013 and the Rules framed there under.
6. According to the information and explanation given to us the maintenance of costrecords has not been prescribed under sub-section (1) of Section 148 of the Companies Act2013.
7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account Undisputed statutory dues including income-taxservice tax cess and other statutory dues have generally been regularly deposited withthe appropriate authorities though there has been a slight delay in a few cases.
(b) According to the information and explanations given to us undisputed dues inrespect of professional tax outstanding at the year end for a period of more than sixmonths from the date they became payable are as follows:
(c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise value added tax and cess on account of any disputeare as follows:
8. The Company did not have any outstanding loans or borrowing dues in respect of afinancial institution or bank or to government or dues to debenture holders during theyear.
9. According to the information and explanations given by the management the Companyhas not raised any money way of initial public offer / further public offer / debtinstruments) and term loans hence reporting under clause (ix) is not applicable to theCompany and hence not commented upon.
10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of fraud by the Company or on the Company by its officer or employees noticed orreported during the year nor have we been informed of any such case by the Management.
11. According to the information and explanations given by the management the companyhas not provided/ paid any managerial remuneration.
12. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it; hence the provisions of Clause 3(xii) of the Order are not applicable to theCompany.
13. The Company has entered into transactions with related parties in compliance withthe provisions of section 177 and section 188 of the Act. The details of such relatedparty transactions have been disclosed in the financial statements as required underAccounting Standard (AS) 18 Related Party Disclosures specified under section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.
14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.
15. The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Qause 3(xv) of the Order arenot applicable to the Company.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
Annexure 'B' to Independent Auditors' Report
[Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' 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 RedexProtech Limited ("the Company") as of 31stMarch 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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 interne' 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India.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 company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act. 2013.
Our responsibility is express an opinion on the Company's internal financial controlsover financial reporting based on our audit we conducted our audit in accordance With theGuidance Note issued by the Institute of Chartered Accountants of India and the Standardson Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial control overfinancial reporting was established and maintained and if such controls operatedeffectively 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 proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial 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 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 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 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 orfraud 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 over financialreporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theInstitute of Chartered Accountants of India.