TO THE MEMBERS OF REMI EDELSTAHL TUBULARS LIMITED Report on the standalone FinancialStatements
I have audited the financial statements of REMI EDELSTAHL TUBULARS LIMITED(gthe Companyh) which comprise the balance sheet as at March 31 2020and the statement of profit and loss (including other comprehensive income) statement ofchanges in equity and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information
(Collectively referred to as standalone financial statements ).
in my opinion and to the best of my information and according to the explanations givento us the aforesaid standalone financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at March 31 2020 and its profit (financialperformance including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date.
a. In the case of the balance sheet of the state of affairs of the company as at 31stMarch 2020
b. In the case of the statement of profit and loss of the profit (financialperformance including other comprehensive income) ; and
c. In the case of the cash flow statement of the cash flow statement for the yearended on that date.
Basis for Opinion
I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. My responsibilities under those Standards arefurther described in the Auditor s Responsibilities for the Audit of the FinancialStatements section of my report. I am independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules there under and I have fulfilled myother ethical responsibilities in accordance with these requirements and the Code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my opinion.
Key Audit Matters
Key audit matters are those matters that in my professional judgment were of mostsignificance in my audit of the financial statements of the current period. These matterswere addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon.
I have determined that there are no key audit matters to communicate in my report.
The Company s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and my auditor's report thereon.
My opinion on the financial statements does not cover the other information and I donot express any form of assurance conclusion thereon.
In connection with my audit of the financial statements my responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or my knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work I haveperformed I conclude that there is a material misstatement of this other information Ihave required to report that fact. I have nothing to report in this regard.
Responsibility of Management 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) changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the. Indian Accounting Standards ( Ind AS ) specified undersection 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance 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.
In preparing the financial statements the Board of Directors is responsible forassessing the Company s ability to continue as a going concern disclosing as applicablematters related. to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Boards of Directors are also responsible for overseeing the company s financialreporting process.
Auditor s Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor s report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with Standards on Auditing ( SAs ) I exerciseprofessional judgment and maintain professional skepticism throughout the audit. I also:
Identify and assess the risks of material misstatement of the financial statementswhether due. to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis formy opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3} of theAct I am also responsible for expressing my opinion on whether the company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company sability to continue as a going concern. If I conclude that a material uncertainty existsI am required to draw attention in my auditor s report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my auditor sreport. However future events or conditions may cause the
Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. I considerquantitative materiality and qualitative factors in (i) planning the scope of my auditwork and in evaluating the results of my work; and (ii) to evaluated the effect of anyidentified misstatements in the financial statements.
I communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
I also provide those charged with governance with a statement that I have complied withrelevant ethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance I determine thosematters that were of mist significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. I describe these matters inmy auditor s report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstance I determine that a matter should not becommunicated in my report because the adverse consequences of doing so would reasonably beexpected to outweigh the public interest benefits of such communication.
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 A" a statement on the matters specified inparagraphs
3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a. I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purposes of my audit.
b. In my opinion proper books of account as required by law have been kept by thecompany so far as it appears from my examination of those books;
c. The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are inagreement with thebooks of accounts;
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 Standard)Rules 2016.
e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of section164(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 myseparate 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 my opinionand to the best of our information and according to the explanations given to me :
(i) The Company does not have any pending litigations which would impact its financialposition.
(ii) The Company did not have any long term contract including derivative contract ; assuch the question of commenting on any material foreseeable losses thereon does not arise;
(iii) There has not been any occasion in case of the Company during the year underreport to transfer any sums to the investor education and protection fund. The question ofdelay in transferring such sums does not arise.
ANNEXURE gAh TO THE AUDITORS REPORT
[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of my report of even date]
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) According to the information and explanations given to me all the assets have notbeen physically verified by the management during the year but there is a regular programof verification which in my opinion is reasonable having regard to the size of theCompany and the nature of its assets. To the best of my knowledge no materialdiscrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of Company.
(ii) According to the information and explanations given to me physical verificationof inventory has been conducted at reasonable intervals by the management. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material having regard to the size of the operations of the Company and the samehave been properly dealt with in the books of account.
(iii) According to the information and explanations given to me the Company has notgranted any secured or unsecured loans to Companies/Firm/Limited LiabilityPartnerships/Other Persons covered in the register maintained under section 189 of theCompanies Act 2013.
(iv) According to the information and explanations given to me the Company hascomplied with the provisions of sections 185 and 186 of the Companies Act 2013 in respectof loans investments guarantees and security.
(v) In my opinion and according to the information and explanations given to me theCompany has not accepted any deposits from the public and hence the directives issued bythe Reserve Bank of India and provisions of the Companies Act 2013 and rules framed thereunder are not attracted.
(vi) I have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the company as specified by the Central Government undersub-section (1) of Section 148 of the Companies Act 2013 and I am of the opinion thatprima facie the prescribed accounts and records have been made and maintained. I have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.
(vii) (a) According to the information and explanations provided to me the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Provident Fund Employees State
Insurance Income tax VAT GST Excise duty Custom duty Goods & Service TaxCess and other statutory dues as applicable to it with appropriate authorities and therewere no undisputed arrears as at 31st March 2020 for a period of more than six monthsfrom the date they become payable.
(b) According to the information and explanations given to me the particulars of duesof Income tax VAT GST Excise duty Custom duty and Cess as at 31st March 2020 whichhave not been deposited on account of a dispute are as follows: -
|Name of the Statute ||Nature of dues & Period ||Amount (Rs.) ||Form where dispute is pending |
|1. The Central Sales Tax Act ||CST Interest & Penalty F.Y. 2005-06 ||12676/- ||Maharashtra Sales Tax Tribunal |
(viii) In my opinion and according to the information and explanations given to me theCompany has not defaulted in repayment of dues to a financial institutions banksGovernment or debenture holders.
(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer including debt instruments and term loans in year under review.
(x) To the best of my knowledge and belief and according to the information andexplanations given to me no fraud on or by the Company has been noticed or reportedduring the course of my audit.
(xi) In my opinion and according to information and explanations given to me theCompany paid or provided managerial remuneration with requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013.
(xii) In my opinion and according to the information and explanations given to me theCompany is not a Nidhi Company. Accordingly paragraph 3(XII) of the order is notapplicable. .
(xiii) In my opinion and according to the information and explanations given to me alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.
(xiv) In my opinion and according to information and explanation given to me theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review.
(xv) In my opinion and according to the information and explanations given to me theCompany has not entered to any non-cash transactions with directors or persons connectedwith him.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE - gBh TO THE AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (gthe Acth)
I have audited the internal financial controls over financial reporting of RemiEdelstahl Tubulars Limited ("the Company") as of 31 March 2020 inconjunction with my audit of the financial statements of the Company for the year ended onthat 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 ( ICAI ). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for myr 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.
In my 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 2019 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.