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Reliance Industrial Infrastructure Ltd.

BSE: 523445 Sector: Engineering
NSE: RIIL ISIN Code: INE046A01015
BSE 00:00 | 24 May 326.90 5.55
(1.73%)
OPEN

324.00

HIGH

329.70

LOW

322.30

NSE 00:00 | 24 May 327.30 6.25
(1.95%)
OPEN

322.10

HIGH

329.90

LOW

321.45

OPEN 324.00
PREVIOUS CLOSE 321.35
VOLUME 52046
52-Week high 496.30
52-Week low 260.50
P/E 63.35
Mkt Cap.(Rs cr) 494
Buy Price 326.90
Buy Qty 218.00
Sell Price 326.90
Sell Qty 31.00
OPEN 324.00
CLOSE 321.35
VOLUME 52046
52-Week high 496.30
52-Week low 260.50
P/E 63.35
Mkt Cap.(Rs cr) 494
Buy Price 326.90
Buy Qty 218.00
Sell Price 326.90
Sell Qty 31.00

Reliance Industrial Infrastructure Ltd. (RIIL) - Auditors Report

Company auditors report

To the Members of Reliance Industrial Infrastructure Limited Report onthe Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of RelianceIndustrial Infrastructure Limited ("the Company") which comprise theBalance Sheet as at 31st March 2018 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Standalone FinancialStatements").

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Financial Statements that give a true and fair view of theFinancial Position Financial Performance including Other Comprehensive Income Cash Flowsand Changes in Equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 Standalone 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 StandaloneFinancial Statements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the Standalone Financial Statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Standalone

Financial Statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theStandalone Financial Statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Board of Directors as well as evaluating theoverall presentation of the Standalone Financial Statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 and its Profit including Other ComprehensiveIncome its Cash Flows and the Statement of Changes in Equity for the year ended on thatdate.

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 in terms of Section 143(11) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as appearsfrom our examination of those books. c) The Balance Sheet the Statement of Profit andLoss including Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account. d)In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended; e) On the basis of written representationsreceived from the directors as on 31st March 2018 taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2018 from beingappointed as a director in terms of section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting. g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rules 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company does not have any pending litigations which wouldhave impact on its financial position. ii. The Company did not have material foreseeablelosses on long term contracts including derivative contracts that require provision underany law or accounting standards for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company except ` 2.88lakh which are held in abeyance due to pending legal cases.

For D T S & Associates

Chartered Accountants (Registration no. 142412W)

Ashish G. Mistry

Partner

Membership No.: 132639

Mumbai

Date: 12th April 2018

"Annexure A" to the Independent Auditors' Report

(Referred to in Paragraph 1 under "Report on Other Legal andRegulatory Requirements" of our report of even date)

(i) In respect of its fixed assets : a) The Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets on the basis of available information. b) As explained to us all the fixedassets have been physically verified by the management in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the Company and nature ofits assets. No material discrepancies were noticed on such physical verification. c)According to the information and explanations given to us and the title deeds / leasedeeds and other records examined by us we report that the title deeds / lease deeds inrespect of all the immovable properties of lands which are freehold immovable propertiesof land that have been taken on lease and disclosed as fixed assets in the financialstatement and buildings are held in the Company's name or in the Company's erstwhile nameas at the balance sheet date.

(ii) As explained to us physical verification of the inventories havebeen conducted at reasonable intervals by the management which in our opinion isreasonable having regard to the size of the Company and nature of its inventories. Nomaterial discrepancies were noticed on such physical verification. (iii) The Company hasnot granted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Consequently the requirement of clause (iii) (a) to clause (iii) (c) of paragraph 3of the Order is not applicable to the Company. (iv) The Company has not directly orindirectly advanced loan to the persons covered under Section 185 of the Act or givenguarantees or securities in connection with the loan taken by such persons. The Companyhas complied with provisions of Section 186 of the Act with respect to investments made.The Company being infrastructure facilities provider as defined under Section 186 of theAct read with Schedule VI to the Act the provisions of Section 186 of the Act withrespect to loans given guarantees and security provided are not applicable. (v) Accordingto the information and explanations given to us the Company has not accepted any depositswithin the meaning of provisions of sections 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under. Therefore the clause (v) of paragraph 3 of theOrder is not applicable to the Company. (vi) We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014prescribed by the Central Government under subsection (1) of Section 148 of the Actapplicable in respect of certain activities undertaken by the company and are of theopinion that prima facie the prescribed cost records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

(vii) In respect of Statutory dues : a) According to the records of theCompany undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax goods and services tax duty of customs duty ofexcise value added tax cess and any other statutory dues have been regularly depositedwith appropriate authorities. According to the information and explanations given to usno undisputed amounts payable in respect of the aforesaid dues were outstanding as atMarch 31 2018 for a period of more than six months from the date they became payable. b)According to the information and explanations given to us there are no dues of incometax sales tax service tax goods and services tax duty of customs duty of excisevalue added tax cess on account of any dispute which have not been deposited.

(viii) The Company has not raised loans from financial institutions orbanks or government or by issue of debentures and hence clause (viii) of paragraph 3 ofthe Order is not applicable to the Company.

(ix) The company has not raised money by way of initial public offer orfurther public offer (including debt instruments) or term Loan and hence clause (ix) ofparagraph 3 of the Order is not applicable to the Company.

(x) Based on the audit procedures performed for the purpose ofreporting the true and fair view of the Standalone Financial Statements and as perinformation and explanations given to us no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. (xi) In our opinionand according to the information and explanations given to us managerial remuneration hasbeen paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act. (xii) In our opinion theCompany is not a nidhi Company. Therefore the provisions of clause (xii) of paragraph 3of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any transactions with related parties thatrequire approval under section 177 and section 188 of the Act and the rules madethereunder. Hence clause (xiii) of paragraph 3 of the Order is not applicable to theCompany.

(xiv) In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year and hence clause (xiv) ofparagraph 3 of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transaction with the directorsor persons connected with them and covered under section 192 of the Act. Hence clause(xv) of the paragraph 3 of the Order is not applicable to the Company.

(xvi) To the best of our knowledge and as explained the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For D T S & Associates

Chartered Accountants (Registration no. 142412W)

Ashish G. Mistry

Partner

Membership No.: 132639 Mumbai Date: 12th April 2018

(Referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" of our report of even date) Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the Internal Financial Control over financial reportingof Reliance Industrial Infrastructure Limited ("the Company") as of 31stMarch 2018 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note issued by ICAI and the Standards on Auditing prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting 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 StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the StandaloneFinancial Statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For D T S & Associates

Chartered Accountants (Registration no. 142412W)

Ashish G. Mistry

Partner

Membership No.: 132639

Mumbai

Date: 12th April 2018