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REIL Electricals India Ltd.

BSE: 505817 Sector: Auto
NSE: N.A. ISIN Code: INE814K01015
BSE 05:30 | 01 Jan REIL Electricals India Ltd
NSE 05:30 | 01 Jan REIL Electricals India Ltd

REIL Electricals India Ltd. (REILELECTRICALS) - Auditors Report

Company auditors report

To

The Members

REIL Electricals India Limited

Hyderabad.

Report on the Standalone Financial Statements

We have audited the accompanying standalone Ind AS financial statements of REILElectricals India Limited ("the Company") which comprise the Balance Sheetas at March 312018 the Statement of Profit and Loss including the statement of OtherComprehensive Income the cash flow statement and the statement of changes in Equity forthe year then ended on that date and a summary of the significant accounting policies andother explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of these IndAS financial statements to give a true and fair view of the financial position financialperformance including the statement of changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards specified in the (Indian Accounting Standards) Rules 2015 (as amended) underSection 133 of the Act. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Institute of CharteredAccountants of India. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditors' 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 preparation of the Ind AS financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany's Directors as well as evaluating the overall presentation of the Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

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 and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2018 its profit includingother comprehensive income its cash flows and the statement of changes in equity for theyear ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 2017 andthe transition date opening Balance Sheet as at April 1 2016 included in these Ind ASfinancial statements are based on the previously issued statutory financial statementsfor the years ended March 31 2017 and March 31 2016 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended). The adjustments to thosefinancial statements for the differences in accounting principles adopted by the Companyon transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in term of sub-section (11) of section 143 of the Act and on thebasis of such checks of the books and records of the Company as we considered appropriateand according to the information and explanations given to us we give in the Annexure Aa statement on the matters specified paragraphs 3 and 4 of the Order to the extentapplicable.

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 appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act.

e. On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors are disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of the internal financial controls the company and theoperating effectiveness of such controls refer to our separate report in "AnnexureB".

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 no pending litigations that will impact its financial position as atMarch 31 2018;

ii. The Company did not have any long-term contracts including derivative contracts asat March 31 2018;

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

For D.V. ADITYA & CO
Chartered Accountants
(CA. D.V. Aditya)
Place : Hyderabad Partner
Date : 31.05.2018 Membership No.022646

Annexure A to the Independent Auditors' Report

The Annexure A referred to in our Independent Auditor's Report to the members of theCompany on the Standalone financial statements for the year ended 31 March 2018 we reportthat:

(i) In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the fixed assets have been physically verified by the managementat reasonable intervals. No material discrepancies were noticed on such physicalverification

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) In respect of Inventories:

a. The Inventory has been physically verified by the management during the year.

b. In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and the nature of its business.

c. According to the information and explanation given to us the company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to book records were not material.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partrnerships or other parties covered in the register maintained undersection 189 of the Act during the year ended March 31 2018.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofthe grant of loans making investments providing guarantees and securities as applicable

(v) Company has not accepted any deposits from public

(vi) The Central Government has prescribed the maintenance of cost records undersection 148(1) of the Act for its products. However the Company is exempt frommaintenance of cost records as the turnover is below the limit specified in Rule 4 ofCompanies (Cost Records andAudit) Rules 2014.

(vii) In respect of statutory dues:

a. According to the information and explanations given to us and on the basis ofexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess Goods and Service Tax and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amounts arepayable in respect of income tax sales tax service tax duty of customs duty of excisevalue added tax or cess entry tax Goods and Service Tax and other material statutorydues which were in arrears as at March 312018 for a period of more than six months fromthe date they became payable.

b. According to the information given to us and records of the Company examined by usthe particulars of Income Tax Sales Tax Value added Tax Wealth Tax Service TaxCustoms Duty Excise Duty or Cess Goood and Service Tax as at 31st March 2018 which havenot been deposited on account of any disputes pending are as under:

Name of the statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Central Excise 108 2008-09 High Court Tamil Nadu

(viii) According to the information and explanations given to us and on the basis ofexamination of the records the company has not defaulted in the repayment of loans alongwith interest to any financial institution or Banks or dues to debenture holders as at thebalance sheet date.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of public issue (including debt instruments).Accordingly paragraph 3(ix) of the Order is not applicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud on or by the Company and no material fraud on the Companyby its officers or employees has been noticed or reported during the year that causes thefinancial statements to be materially misstated.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

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

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For D.V. ADITYA & CO
Chartered Accountants
(CA. D.V. Aditya)
Place : Hyderabad Partner
Date : 31.05.2018 Membership No.022646

Annexure - B to the Auditors' Report

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 over financial REIL ElectricalsIndia Limited ("the Company") as of 31 March 2018 in conjunction with ouraudit of the Standalone financial the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management isresponsibleforestablishingandmaintaininginternalfinancialcontrols based established by theCompany considering the essential on the internal control over financial 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 maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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.

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 Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 proceduresselected depend on the auditor's judgment 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 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

The company needs to document its procedure and control vis--vis Internal Controlsover Financial Reporting.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For D.V. ADITYA & CO
Chartered Accountants
(CA. D.V. Aditya)
Place : Hyderabad Partner
Date : 31.05.2018 Membership No.022646