TO THE MEMBERS OF REMI EDELSTAHL TUBULARS LIMITED
Report on the standalone Financial Statements
I have audited the financial statements of REMI EDELSTAHL TUBULARS LIMITED("the Company") which comprise the balance sheet as at March 31 2019 andthe 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 financialstatements') in my opinion and to the best of my information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs (financial position) of the Company as at March 31 2019 and itsprofit (financial performance other comprehensive income) changes in equity and its cashflows for the year ended on that date. a. In the case of the balance sheet of the stateof affairs of the company as at 31st March 2019 b. In the case of the statement of profitand loss of the profit (financialperformance including other comprehensive income) ; andc. In the case of the cash flow statement of the cash flow statement for the year endedon 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 myreport.
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') specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement 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 foroverseeing the company's financial reporting 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 I 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 financialstatements whether due. to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for my opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal controlObtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances. Under section 143(3} of the Act Iam also responsible for expressing my opinion on whether the company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions thatmaycastsignificantdoubt 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 asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements considerquantitative materiality and may be influenced. qualitative factors in (i) planning thescope of my audit work and in evaluating the results of my work; and (ii) to evaluated theeffect of any identified 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 andobtained all the information and explanations which to the best of my knowledge and beliefwere necessary for the purposes of my audit. b. In my opinion proper books of account asrequired by law have been kept by the company so far as it appears from my examination ofthose books; c. The Balance Sheet the Statement of Profit and Loss the Statement ofChanges in Equity and the Cash Flow Statement dealt with by this Report are inagreementwith the books of accounts; d. In our opinion the aforesaid standalone financialstatements comply with the Indian Accounting Standards prescribed under Section 133 of theAct read with Companies (Indian Accounting Standard) Rules 2016. e. On the basis of thewritten representations received from the directors as on 31st March 2019 taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2019 from being appointed as a director in terms of section 164(2) of the Act ; f. Withrespect to the adequacy of the internal financial controls over financial Reporting of theCompany and the operating effectiveness of such controls Refer to my separate Report in"Annexure B". g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in my opinion and to the best of our information and according to the explanationsgiven 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.
For YATIN KUMAR SHAH CHARTERED ACCOUNTANTS
(YATIN KUMAR SHAH) PROPRIETOR
Membership Number 159796
PLACE : MUMBAI DATED : 30th May 2019
ANNEXURE "A" TO THE AUDITORS' REPORT
[Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements' section 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 undersubsection (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 dutyCustom duty Goods & Service Tax Cess and other statutory dues as applicable to itwith appropriate authorities and there were no undisputed arrears as at 31st March 2019for a period of more than six months from 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 2019 whichhave not been deposited on account of a dispute are as follows: -
|Name of the Statute ||Nature of dues & Period ||Amount (`) ||Form where dispute is pending |
|1. The Central Sales Tax Act ||CST Interest & Penalty F.Y. 2005-06 ||12676/- ||Maharashtra Sales Tax Tribunal |
|2. The Income Tax Act 1961 ||Income Tax A.Y. 2006-07 ||18711/- ||Asst Comm. of Income Tax |
|3 Central GST & Central Excise ||Excise Service Tax & Penalty ||13531887/- ||Comm. of GST Central Excise (A) |
(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 theReserve Bank of India Act 1934.
For YATIN KUMAR SHAH
(YATIN KUMAR SHAH)
Membership Number 159796
PLACE : MUMBAI DATED : 30th May 2019
ANNEXURE - "B" TO THE AUDITORS' REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
I have audited the internal financial controls over financial reporting of RemiEdelstahl Tubulars Limited ("the Company") as of 31 March 2019 in conjunctionwith my audit of the 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 my 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 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.
For YATIN KUMAR SHAH CHARTERED ACCOUNTANTS
(YATIN KUMAR SHAH) PROPRIETOR
Membership Number 159796
PLACE : MUMBAI
DATED : 30th May 2019