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Remsons Industries Ltd.

BSE: 530919 Sector: Auto
NSE: REMSONSIND ISIN Code: INE474C01015
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VOLUME 1123
52-Week high 313.80
52-Week low 102.00
P/E 31.83
Mkt Cap.(Rs cr) 135
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 239.00
CLOSE 238.35
VOLUME 1123
52-Week high 313.80
52-Week low 102.00
P/E 31.83
Mkt Cap.(Rs cr) 135
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Remsons Industries Ltd. (REMSONSIND) - Auditors Report

Company auditors report

To

The Members of REMSONS INDUSTRIES LIMITED

Report on theAudit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of REMSONSINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity the Statement of Cash Flows for the year then endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information ("the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing ("Sas") specified under section143(10) of the Act. Our responsibilities under those Standards are further described inthe 'Auditor's Responsibility for the Audit of the Standalone financial statements'section of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit matter How our audit addressed the key audit matter
Provision for slow moving and non -moving inventories
The company carries a sizeable portion of inventory which is a material portion of the total assets of the company. The management has the process of identifying the slow moving and non-moving inventories. This estimate has inherent uncertainty as it involves estimation/ judgment on the part of the management. Our procedures included discussion with the management on the control on the data and its effectiveness. Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
• Evaluated the design of internal controls relating to identifying the slow moving and non-moving items and tested the controls pertaining to the same.
• Reviewed the age-wise inventory reports and movement of inventory and production of items in which such inventories are being used.
• Discussed with the operating personnel about the alternate use of such items.
• Reviewed the net realizable value of such non -moving and slow moving items.
• Performed analytical procedures and test of details for reasonableness of the provisions.

Other Information

The Company's management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's Annual Report but does not include the standalone financial statements and ourAuditors' Report thereon. Our opinion on the standalone financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone financial statements

The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of Act with respect to the preparation and presentationof these 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 Accounting Standards specified under Section 133 of the Act("Ind AS"). This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

The management and Board of Directors are responsible foroverseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

3Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(I) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2.As required by Section 143(3) of the Act based on our audit wereport that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law relatingto preparation of the aforesaid standalone financial statements have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of theAct read with Rule7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164(2) of theAct.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements-Refer Note No. 35;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 31March 2021.

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of theAct as amended:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under section 197(16) whichare required to be commented upon by us.

For M L BHUWANIA AND CO LLP
Chartered Accountants
FRN: 101484W/W100197
Vijay Kumar Jain
Partner Membership No. 108374
UDIN: 21108734AAAAHQ9358
Place: Mumbai
Date: June 28 2021

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 of 'Report on other Legal and RegulatoryRequirements' in our Report of even date on the accounts of REMSONS INDUSTRIES LIMITED forthe year ended March 31 2021

i. (a) The Company is generally maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. Pursuant to theprogram certain fixed assets were physically verified during the year and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties included in property plant and equipment are held in the name of the Company.In respect of immovable properties taken on lease and disclosed as right-of-use-assets inthe standalone financial statements the lease agreements are in the name of the Company.

ii. During the year the inventories have been physically verified bythe management. In our opinion the frequency of verification is reasonable. Thediscrepancies noticed on physical verification of inventories as compared to the bookrecords have been properly dealt with in the books of accounts.

iii. According to the information and explanations given to us theCompany has not granted any secured loans to companies firms or other parties covered inthe Register maintained under Section 189 of the Companies Act 2013. In respect ofunsecured loans to companies covered in the Register maintained under Section 189 of theCompanies Act 2013:

(a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.

(b) There are no stipulations with respect to the repayment of the loanand the interest thereon.

(c) There is no overdue amount remaining outstanding as at the balancesheet date.

iv. In our opinion and according to information and explanationsprovided to us the Company has complied with provisions of sections 186 of the CompaniesAct 2013 in respect of investments made/loans given. Section 185 of the Companies Act2013 is not applicable as there were no loans securities and guarantees given during theyear.

v. According to the information and explanations provided to us theCompany has not accepted any deposits from the public within the meaning of Sections 7374 75 and 76 of the Act and the rules framed there under to the extent notified andtherefore clause 3(v) is not applicable.

vi. The Central Government has not prescribed maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 for any of theproducts of the company. Accordingly clause 3 (vi) of the Order is not applicable to theCompany.

vii. (a) According to the information and explanations provided to usand on the basis of our examination of the records the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees' state insurance income tax sales tax service tax duty of custom dutyof excise duty value added tax cess Goods & Service Tax and any other materialstatutory dues applicable to it. According to the information and explanations given tous no undisputed arrears of statutory dues were outstanding as at March 31 2021 for aperiod of more than six months from the date they became payable.

(b) According to the records of the Company there are no dues ofService Tax Custom Duty Excise Duty Cess Sales Tax and Goods and Services Tax whichhave not been deposited on account of any dispute.

The disputed amounts that have not been deposited in respect of IncomeTax and ValueAdded Tax are as under:

Name of the Statue Nature of the Dues Amount (Rs. In lacs) Financial Year to which the amount relates Forum where dispute is pending
The Haryana Value Added Tax Act 2003 Value Added Tax Dues 4.35 2015-16 Excise & Taxation officer Gurugram
The Haryana Value Added ` Tax Act 2003 Value Added Tax Dues 3.80 2016-17 Excise & Taxation officer Gurugram
The Haryana Value Added Tax Act 2003 Value Added Tax Dues 0.98 2017-18 Excise &Taxation officer Gurugram
The Daman & Diu Value Added Tax Regulation 2005 Value Added Tax Dues 0.73 2015-16 Deputy Commissioner of VAT Daman
The Daman & Diu Value Added Tax Regulation 2005 Value Added Tax Dues 2.52 2016-17 Deputy Commissioner of VAT Daman
Income Tax Act 1961 Income Tax Demand 0.23 2017-18 Asstt. Commissioner of Income Tax Mumbai
Income Tax Act 1961 Income Tax Demand 0.09 2018-19 Asstt. Commissioner of Income Tax Mumbai

viii. In our opinion and according to information and explanationsprovided to us the Company has not defaulted in repayment of dues to banks during theyear. The company has not taken any loan or borrowing from government financialinstitution and has not issued debentures during the year.

ix. In our opinion and according to information and explanationsprovided to us term loans have been applied for the purposes for which they wereobtained. The company has not raised money by way of Initial Public Offer or furtherpublic offer (including debt instruments) during the year

x. To the best of our knowledge and according to the information andexplanation given to us no fraud by the Company and no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanationsgiven to us the managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with schedule V to theCompanies Act 2013.

xii. In our opinion and according to the information and explanationsgiven to us the nature of the activities of the company does not attract any specialstatue applicable to Nidhi Company. Accordingly clause 3(xii) of the order is notapplicable to the company.

xiii. According to the information and explanation given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Section 177 and 188 of Companies Act 2013 where applicableand details of such transactions have been disclosed in the standalone financialstatements as required by the applicable accounting standards.

xiv. According to the information and explanations provided to us andbased on our examination of the records of the Company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.Accordingly clause 3 (xiv) of the Order is not applicable tothe Company.

xv. According to the information and explanations given to us andbased on our examination of the records of the Company the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyclause 3 (xv) of the Order is not applicable to the Company.

xvi. According to information and explanations provided to us theCompany is not required to be registered under Sec 45-IAof the Reserve Bank of IndiaAct1934.Accordingly clause 3(xvi) of the Order is not applicable to the Company.

For M L BHUWANIA AND CO LLP
Chartered Accountants
FRN: 101484W/W100197
Vijay Kumar Jain
Partner Membership No. 108374
UDIN: 21108734AAAAHQ9358
Place: Mumbai
Date: June 28 2021

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013 ("the Act")

Referred to in paragraph 2(f) of 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report on the standalone financial statementsof the company for the year ended March 31 2021.

Opinion

We have audited the internal financial controls over financialreporting of REMSONS INDUSTRIES LIMITED ("the Company") as of March 31 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

In our opinion to the best of our knowledge and according to theinformation and explanations provided to us the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312021 based on the criteria for internal financial control over financial reportingestablished 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.

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia ('ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and the StandardsonAuditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Actto the extent applicable to an audit of internal financial controls and both issued bythe ICAI. Those Standards and the

Guidance Note require that we 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.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A Company's internal financialcontrol over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of standalone financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of theCompany are being made only in accordance with authorizations of management and directorsof the Company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

For M L BHUWANIA AND CO LLP
Chartered Accountants
FRN: 101484W/W100197
Vijay Kumar Jain
Partner Membership No. 108374
UDIN: 21108734AAAAHQ9358
Place: Mumbai
Date: June 28 2021

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