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Remi Sales & Engineering Ltd.

BSE: 504360 Sector: Others
NSE: N.A. ISIN Code: INE130I01010
BSE 05:30 | 01 Jan Remi Sales & Engineering Ltd
NSE 05:30 | 01 Jan Remi Sales & Engineering Ltd

Remi Sales & Engineering Ltd. (REMISALESENG) - Auditors Report

Company auditors report

To

The Members of REMI SALES AND ENGINEERING LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of REMI SALES AND ENGINEERINGLIMITED which comprise the balance sheet as at 31st March 2018 and the statement ofprofit and loss and cash flow statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information. Theses consolidatedfinancial statements has been prepared after considering financial statement of Headoffice at Mujmbai and Branches situated at Ahmedabad Bangaluru Kolkata New DelhiChennai Hyederabad Vijayawada Kochi Nagpur Indore Kanpur Margao (Goa) and Jaipur.The report on the accounts of the branch office stated above have been audited by branchauditors which were forwarded to us and have been dealt with in preparing our report inthe manner considered necessary by us.

Management s Responsibility for the 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 andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards specified in the companies ( Indian Accounting Standard) Rules 2015 (asamended) 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 financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are 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 financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company s preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe company s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

i. in the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2018

ii. in the case of the Statement of Profit and Loss of the Profit for the year endedon that date; and

iii. in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A a statement on the matters specified inparagraph 3 and 4 of the Order to extent applicable.

2. As required by section 143(3) of the Act we report that:

a. we 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 and statement of profit and loss dealt with by this report are inagreement with the books of account and returns.

d. in our opinion the aforesaid financial statements comply with the Companies (IndianAccounting Standard) Riles 2015 (amended) 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 terms of clauseof sub-section (2) of section 164 of the Companies Act 2013.

f. in our opinion the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls refer to our separate report in"Annexure B".

g. with respect to the other matters to be included in the Auditors 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 financial statements.

ii) the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For YATIN KUMAR SHAH
CHARTERED ACCOUNTANTS
Sd/-
(YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRIETOR
DATED : 30th May2018. Membership Number 159796

ANNEXURE A TO THE AUDITORS REPORT

(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 us all the assets have notbeen physically verified by the management during the year but there is a regularprogramme of verification which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. To the best of our 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 us 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 us 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 us 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 our opinion and according to 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 provisions of the Companies Act 2013 and rules framed thereunder are not attracted.

(vi) We 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 we are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. We havenot however made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

(vii) (a) According to the information and explanations provided to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Provident Fund Employees State Insurance Income tax Sales tax Service taxDuty of Customs Duty of Excise Value Added Tax Cess and other statutory dues asapplicable to it with appropriate authorities and there were no undisputed arrears as at31st March 2018 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 particulars of duesof Income tax Sales Tax Service tax Duty of Customs Duty of Excise Value Added Taxand Cess as at 31st March 2018 which have not been deposited on account of a disputeare as follows: -

Sr. No. Name of the Statute Assessment Year Nature of dues & Period Amount in Form where dispute is pending
(Rs.)
1 The Kerala Value Added Tax 2005 2010-11 VAT 87017 The Dy. Commissioner (Appeals)
2 Income tax Act 1961 2011-12 Income Tax & Interest 103523 The Commissioner of Income tax (Appeal)
3 Income tax Act 1961 2014-15 Income Tax & Interest 7360810 The Commissioner of Income tax (Appeal)

(viii) In our opinion and according to the information and explanations given to usthe Company 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 current year and also inimmediately preceding year.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the course of our audit.

(xi) In our opinion and according to information and explanations given to us 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 our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(XII) of the order is notapplicable.

(xiii) In our opinion and according to the information and explanations given to usall transactions 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) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) In our opinion and according to the information and explanations given to us 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.

For YATIN KUMAR SHAH
CHARTERED ACCOUNTANTS
Sd/-
(YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRIETOR
DATED : 30th May2018. Membership Number 159796

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")

We have audited the internal financial controls over financial reporting of RemiElektrotechnik Limited ("the Company") as of 31st March 2018 in conjunction withour 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 ). 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.

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 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.

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 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.

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 31 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 YATIN KUMAR SHAH
CHARTERED ACCOUNTANTS
Sd/-
(YATIN KUMAR SHAH)
PLACE : MUMBAI PROPRIETOR
DATED : 30th May2018. Membership Number 159796