To the Members of RELSON INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of RKSI.ON INDIA UM11 I .D("the Company") which comprise the Balance Sheet as at March 31 2017 and theStatement of Profit and I oss and (.ash flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) ol 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 and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsprescribed under section 133 of the Act read with Rule 7 of the Companies (.Accounts)Rules 2014. 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 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 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 standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which arc required to be included in the audit report under theprovisions of the Net and the Rules made there under.
W'e conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. 1 hose Standards require that wc comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements arc free Irom material misstatement.
An audit involves perlorming procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. 1 he procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation ot thefinancial statements that give a true and fair view in order to design audit proceduresthat arc appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationol the financial statcmcnisAVe believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to rite best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the informant>nrequired by (he \ct in the manner so required and give a true and fair view in conformin'with the accounting principles generally accepted in India of the state of affairs of theCompany as at March 3121117 and its profit and its cash flows lor the year ended on thatdate.
Report on Other Legal and Regulatory' Requirements
I As required by the Companies (Auditor's Report) Order. 2016 (CARO 21H6) issued b\ theCentral Government of India in terms of sub-section (11) of section 143 of the CompaniesAct 2013 we give in the "Annexure - A" statement on the matters specified inparagraph 3 and 4 of the Order to the extent applicable.
2. As required by section 143 (3) of the Act we report that:
(a) \X'e have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books.
(c) The Balance Sheet Statement of Profit and Loss and Cash Mow Statement deali withbv this Report are in agreement with the books of account.
(d) In our opinion the Balance Sheet the Statement of Profit and Loss and the CashPlow Statement comph with the Accounting Standards specified under section 133 of (heCompanies Act 2013 read with Rule 7 of rite Companies (Accounts) Rules 2014 the extentapplicable.
(e) On the basis of written representations received from the Directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164 (2) ofthe Companies Act. 2013.
(I) With respect to the adequacy of file internal financial controls over financialreporting ot 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 explanations given to us :
i. The Company does not have pending litigations which would impact ns financialposition.
ii The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any. The Company did not have long termcontracts including derivative contracts except forward contract.
iii there were no amounts which were required to be transferred to the InvestorLducntfon and Protection l und bv the Companv.
iv. The Company has provided requisite disclosures in the financial statements as tothe holdings as well as dealing in Specified Bank Notes during the period from 30November 2016 to 31 December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with the hooksol account as maintained anti produced to us by the Management.
| ||For AVS & CO |
| ||Chartered Accountants |
| ||FRN No. 113109W |
| ||Saujav Kumar Minda |
|Place: Mumbai ||Partner |
|Date: 30/05/2017 ||M. No. 046535 |
ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT
Referred lo in paragraph I under Report on Other Legal and RegulatoryRequirements in the Independent Auditor's Report of even date to the members of RelsonIndia Limited on the standalone financial statements for the year ended March 31 2017.
i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets
b) The f ixed Assets have been phvsicalh verified by the management at reasonableintervals which in our opinion is reasonable having regard to the size of the companvand nature of its business further during the verification no material discrepanciesbetween the book records and the physical fixed assets have been noticed.
c) The Company does not possess any immovable properly and consequently clause 3 (i)(c) of the order is not applicable.
n. As explained to us the inventories have been physically verified bv the management.The intervals at which the inventories have been verified arc in our opinion reasonablein relation to the size of the Company and the. nature of the business; The Company ismaintaining proper records of inventory and no material discrepancies were noticed onphysical verification.
iti. According to the information and explanations given to us the companv has notgranted any loans secured or unsecured to Companies firms. Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of die CompaniesAct 21)13. Accordingly no comments are required ro be made on clause 3 (iii) (a) (b)and (c) of the order.
iv. In our opinion and according to the information given to us in respect of loansinvestments guarantees and security the Company is not required to comply with theprovisions of Section 185 and the provisions of Section 186 of the Companies Act 2013.
v. In our opinion and according ro the information and explanations given to us. theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and the provisions of Sections 73 ro 76 or any other relevantprovisions of the Act and the Companies (Acceptance ot Deposit) Rules 2015 with regard tothe deposits accepted from the public arc not applicable.
vi. As informed to us the maintenance ol Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
vii. (a) According to the information given to us and the records examined by us theundisputed statutory dues including provident fund employees' state insuranceincome-tax. sales-rax. service tax duty of custom duty ol excise value added tax cesshave generally been regularly deposited with the appropriate authorities though there hasbeen a slight delay in a few cases. I he extent of the arrears of outstanding statutorydues as on the last day of the financial year concerned for a period ol more than sixmonths from the date they became payable are indicated as below:
|Name of the Statute ||Nature of the Dues ||Amount (Rs.) ||Period to which the amount relates ||Date of Payment |
|M'aharashlj'a State lax on ||Profession tax ||2500 ||2007-10 ||Not Paid |
|Professions Trades Callings and Employments Act 1975 ||Implover ||2500 ||2008-09 || |
| || ||2500 ||2009-10 || |
|Mahnrashrfa State fax on ||Profession lax ||27310 ||Since ||Not Paid |
|Professions Trades Callings and Employments Act 1975 finance Act ||Payable || ||2008-09 || |
| ||Service Tax ||2089 ||2009-10 ||Not Paid |
|Income Tax Act 1961 ||I DS on Contract ||1177 ||2007-08 ||Not Paid |
b) According to rlie mtormation anti explanation given to us anti the record.- ol thet.ompany examined by us there are no dues ol income tax. Sales fax Wealth fax and nostatutory tine; required to be deposited on account of am dispute.
viii. In our opinion and according to the information and explanations given to us theCompany has not taken any loan either from Banks financial institutions or from thegovernment and has not issued any debentures and consequently clause 3 (viii) of the orderis nor applicable.
is. Based upon the audit procedures performed and the information anil explanationsgiven by the management the company has not raised moneys bv wav of initial public otferor further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the order are not applicable.
x. Based upon the audit procedures performed and the examination of the records wereport that no fraud by the Company or on the company bv its officers or employees hasbeen noticed or reported during the year.
xi In our opinion and according lo the information and explanations given to us thereis no managerial remuneration being paid and hence the Company is noi required to complywith provision of Section 197 read with Schedule V to the Companies Act 201.3.
xii. In our opinion die Company is not a Nidhi Company and therefore the provisionsof clause 3(xii) of the Order are not applicable to the Company.
xiii. Based upon the audit procedures performed and the examination of the recordsthere are no related party transaction with the Company therefore compliance with section177 and 1S8 of Companies Act 2013 is not applicable to the Company.
xiv. In our opinion the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3(xiv) ol the Order are not applicable lothe Company and hence noi commented upon.
xv. According to the information and explanations given to us the company has notentered into any non-cash transactions with Directors or persons connected with him.Accordingly the provisions of clause 3(xv) of the Order are not applicable to the Companyand hence not commented upon.
xvi. in our opinion the company is not required to be registered under section 45-1.\of the Reserve Bank of India Act 19.34.
| ||For AVS & CO. |
| ||Chartered Accountants |
| ||FRN No. 113109W |
| ||Sanjay Kumar Minda |
|Place: Mumbai ||Partner |
|Date: 30/05/2017 ||M. No. 046535 |
"ANNEXURE B"TO THE INDEPENDENT AUDITOR'S 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 reporting of llelsonIndia limited ("the Company") as of March 31 2017 in conjunction with our auditof the standalone financial statements of the Company for the year ended 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 rhe Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants ot India t hese 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 ol reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. W e conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 1-13(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and. both issued bv the Institute of Chartered Accountantsof India. 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 ll such controls operated effectively' in all material respects.
Our audit involves performing procedures to obtain audit evidence about rhe 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 rhe 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 rhe risks ofmaterial misstatement of the financial statements whether due to fraud or error.
W e 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 designet!to provide reasonable assurance regarding rhe reliability ol 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 anti 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 ot the company are being made only in accordance with authorizations otmanagement and directors ol the company; and (.3) provide reasonable assurance regardingprevention or timely detection ol unauthorized acquisition use or disposition ol 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 01 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 mnv become inadequate because of changes in conditions or thatthe degree ot compliance with the policies or procedures may deteriorate.
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 March 31 2017 based on theinternal control over financial reporting criteria established bv the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal f inancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For AVS & CO.
FRN No. 113109W
Sanjay Kumar Minda
M. No. 046535