ON STANDALONE FINANCIAL STATEMENTS
To the Members of RELIC TECHNOLOGIES LIMITED Report on the Standalone FinancialStatements
We have audited the accompanying Standalone financial statements RELIC TECHNOLOGIESLIMITED ( "the Company") which comprise the Balance Sheet as at March 31 2019the Statement of Profit and Loss including the Statement of Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information
In our opinion and to the best of our information and according to the explanationsgiven to us the Standalone financial statements give the information required by the Actin 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 March 31 2019 its loss including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.
2. Basis for Opinion
We conducted our audit of standalone financial statements in accordance with thestandards on Auditing specified under Section 143(10) of the Act Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the standalone Financial Statements section of our report We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the Independence requirements that are relevantto our audit of the Standalone financial statements under the provisions of the Act andthe Rules there under and we have fulfilled our ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Standalone financial statements.
3- Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificant In our audit of the financial statement s of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
1. Accuracy of recognition measurement presentation and disclosure of revenue andother related balances in view of adoption of lnd AS 115 "Reveneue from Contractswith Custoiners''(new revenue accounting standards)
The application of the new revenue accounting standards involves certain key judgementsrelating to identification of distinct performance obligations determination oftransaction price of the identified performance obligations effects of variableconsideration and the appropriateness of the basis used to recognise revenue at a point intime or over a period of time.
we assessed the Company's process to identify the Impact of adoption of the new revenueaccounting standards.
Our audit approach consisted testing of the design and operating effectiveness of theinternal controls and substantive testing as follows:
i. Evaluated the design of internal controls relating to implementation of the newrevenue accounting standards.
ii Selected a sample of continuing and new contracts and tested the operatingeffectiveness of the internal control relating to identification of the distinctperformance obligations and determination of transaction price. We carried out acombination of procedures involving enquiry and observation reperformance and inspectionof evidence in respect of operation of these controls
Hi Tested the relevant information technology systems access and changes managementcontrols relating to contracts and related information used in recording and disclosingrevenue in accordance with the new revenue accounting standard.
Our procedures did not identify any materials exceptions.
2. Defined benefit obligation
The valuation of the retirement benefit schemes in the Company is deter mi ned withreference to various actuarial assumptions including discount rate future salaryincreases rate of inflation mortality rates and attrition rates Due to the size ofthese schemes small changes in these assumptions can have a material impact on theestimated defined obligation Our Response:
We have examined the key controls over the process involving member data formulationof assumptions and the financial reporting process in arriving at the provision forretirement benefits. We tested the controls for determining the actuarial management. Wefound these key controls were designed implemented and operated effectively andtherefore determined that we could place reliance on these key controls for the purpose ofour audit
We tested the employee data used In calculating the Obligation and where material wealso considered the treatment of curtailments settlements past service costsre-measurements benefits paid and any other amendments marie to obligations during theyear. From the evidence obtained we found the data and assumptions used by management inthe actuarial valuations for retirement benefit obligations to be appropriate.
4. Information other than Standalone financial Statement and Auditors Report thereon
The Company's Hoard of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included In the Board'sReport including Annexure to Board's Report .Management Discussion and Analysis Report onCorporate Governance but docs not include the standalone financial statement andauditor's report thereon.
Our opinion on standalone financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact We havenothing to report in this regards
5. Management's Responsibility for the Standalone 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 standalone 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 accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act. read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 the design implementation and maintenance of adequateinternal financial control 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.
6. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone financial statementsbased 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 ofthe standalone financial statements in accordance with the Standards or Auditing issuedby the Institute of Chartered Accountants of India as specified under Section 143(10) ofthe Act Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the 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 accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the standalone financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.
7. 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 we give in the "Annexure IT 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 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 Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;
(e) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of section 164 (2) ofthe 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 2" to this report;
(g) With respect to other matters to he included in Auditor's Report in accordance withthe requirements of Sec 197( 16) of the Act as amended in our opinion and to the best ofour information and according to the explanation given to us the remuneration paid by theCompany to its Directors during the year is in accordance with the provisions of Sec 197of the Act
(h) 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 standalone financial statements
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii There were no amounts which were required to be transferred to the investorEducation and Protection Fund by the Company.
For MULRAJ D. GALA Chartered Accountants
(MULRAJ D GALA) PROPRIETOR