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Relaxo Footwears Ltd.

BSE: 530517 Sector: Others
NSE: RELAXO ISIN Code: INE131B01039
BSE 00:00 | 23 May 796.40 -21.60
(-2.64%)
OPEN

812.60

HIGH

830.15

LOW

769.00

NSE 00:00 | 23 May 798.75 -17.25
(-2.11%)
OPEN

815.35

HIGH

834.25

LOW

781.25

OPEN 812.60
PREVIOUS CLOSE 818.00
VOLUME 2867
52-Week high 957.00
52-Week low 660.05
P/E 56.32
Mkt Cap.(Rs cr) 9,883
Buy Price 773.00
Buy Qty 2.00
Sell Price 840.00
Sell Qty 25.00
OPEN 812.60
CLOSE 818.00
VOLUME 2867
52-Week high 957.00
52-Week low 660.05
P/E 56.32
Mkt Cap.(Rs cr) 9,883
Buy Price 773.00
Buy Qty 2.00
Sell Price 840.00
Sell Qty 25.00

Relaxo Footwears Ltd. (RELAXO) - Auditors Report

Company auditors report

TO THE MEMBERS OF RELAXO FOOTWEARS LIMITED

Report on the IND AS Financial Statements

We have audited the accompanying Ind AS financial statements of Relaxo FootwearsLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 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 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 state of affairs(financial position) profit (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe 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 Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditors' 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 andauditing 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 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 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 control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fairview 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 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2018 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity fortheyear ended on that date.

Other Matters

The comparative Ind AS financial statements of the Company for financial year ended on31st March 2017 included in these Ind AS financial statements have beenaudited by predecessor auditors whose report for the year ended on 31st March2017 dated 12Ih May 2017 expressed an unmodified opinion on those financialstatements.

Our opinion on the Ind AS financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2018 ("the Order")issued by the Central Government of India in terms of section 143 (11) of the Act we givein the Annexure 'A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 purpose 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 the Cash Flow Statement andStatement 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 IndianAccounting Standards prescribed under section 133 of the Act.

(e) On the basis of written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof section 164 (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'.

(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 Ind AS financial statements - Refer Note 37to the Ind AS financialstatements;

ii. The Company did not have any long term contracts including any derivative contractsfor which 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.

For B R Maheswari & Co LLP

Chartered Accountants Firm's Registration No. 001035N/N500050

Sudhir Maheshwari
Place: Delhi Partner
Date: 11th May 2018 Membership No.081075

Annexure'A1 to the Independent Auditors' Report

(Referred to in Paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date)

1) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us fixed assets have beenphysically verified by the management in a phased periodical manner which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) Based upon the audit procedure performed and according to the records of theCompany the title deeds of all the immovable properties are held in the name of theCompany

2) In respect of its inventories:

(a) The management has physically verified the inventories. In our opinion thefrequency of verification is reasonable.

(b) The discrepancies noticed on verification between the physical stocks and the bookrecords were not material and such discrepancies have been properly dealt with in thebooks of accounts.

3) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered intheregistermaintainedundersection189 of the Act.

4) In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescover under section 185 of the Act. In respect of investments made by the Company theprovisions of section 18G of the Act have been complied with.

5) According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year in terms of the provisions of section73 to 76 of the Act or any other relevant provisions of the Companies Act 2013 and therules made thereunder.

6) In our opinion and according to the information and explanations given to us themaintenance of cost records has not been specified by the Central Government under section148(1) of the Companies Act 2013 for the business activities carried out by the Company.Thus reporting under clause 3(vi) of the order is not applicable to the Company.

7) (a) According to the information and explanations given to us the

Company has generally been regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees' 5tate Insurance IncomeTax Sales Tax value Added Tax Service Tax Custom Duty Excise Duty Cess & othermaterial statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March2018 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us the following disputedstatutory dues aggregating to X 2.76 Crores that have not been deposited on account ofmatters pending before appropriate authorities are as under: -

( Rs in Crores)
S.No. Name of the Statute Nature of the Dues Amount Period to which the amount relates Forum where dispute is pending
1. Haryana General Sales Tax Act 1973 Purchase Tax 0.20 2001-02 Jt. Commissioner
0.15 2002-03 Jt. Commissioner
2. Delhi Value Added Tax Act 2005 Input Tax 0.03 2005-06 Appellate Tribunal
0.22 2013-14 Delhi
3. Maharashtra Value Added Tax Act 2002 Value Added Tax 0.01 2013-14 Dy. Commissioner of
Sales Tax.
4. Karnataka Value Added Tax Act 2003 Value Added Tax 0.08 2012-13 CTO
0.01 2014-15 Jt. Commissioner- Commercial Taxes Bangalore.
5. Income Tax Act 1961 Income Tax(*) 2.02(*) Assessment Years 2013-14 2015-16 and 2016-17 Assessing Officer
TDS 0.04 2008-09 to 2011-12 2013-14 to 2015-16 2017-18 and 2018-19 Commissioner (A) ITAT Assessing Officer
Total 2.76

(*) The above demands are on account of Dividend Distribution Tax (DDT) credit notgiven by Income Tax Department while issuing intimations under section 143(1) of theIncome Tax Act 1961. Company has disputed the same demands as Company has alreadydeposited the DDT on time and has also submitted the proof for payment of same to IncomeTax Department for deleting the said demands.

8) Based on the information and explanations given to us we are of the opinion thatthe Company has not defaulted in repayment of loans and borrowings to banks. The Companydid not have any outstanding loans and borrowings from government and debenture holdersduring the year.

9) The company has not raised any money by way of initial public offer further publicoffer (including debt instruments) during the year. In our opinion the term loans havebeen applied for the purpose for which they were obtained.

10) In our opinion and according to the information and explanations given to us nofraud on or by the Company by its officers or employees has been noticed or reportedduring the year.

11) In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act.

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the details have been disclosed inthe Ind A5 Financial Statements as required by the applicable Indian accountingstandards.

14) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year therefore reporting underclause 3(xiv) of the Order are not applicable.

15) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has notentered into any non- cash transaction with directors or persons connected with himtherefore reporting under clause 3(xv) of the Order are not applicable.

16) In our opinion the Company is not required to be registeredundersection45-IAofthe Reserve Bankof India Act 1934.

For B R Maheswari & Co LLP

Chartered Accountants Firm's Registration No. 001035N/N500050

Sudhir Maheshwari
Place: Delhi Partner
Date: 11th May 2018 Membership No.081075

Annexure'B1 to the Independent Auditors' Report

(Referred to in Paragraph 2(f) under the heading "Report on other legal andregulatory requirements" of our report 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 over financial reporting of RelaxoFootwears Limited ("the Company") as of 31st March 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 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 Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 overfinancial 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 overfinancialreporting 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.

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 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For B R Maheswari & Co LLP

Chartered Accountants Firm's Registration No. 001035N/N500050

Sudhir Maheshwari
Place: Delhi Partner
Date: 11th May 2018 Membership No.081075