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Revathi Equipment Ltd.

BSE: 505368 Sector: Engineering
NSE: REVATHI ISIN Code: INE617A01013
BSE 11:53 | 30 Sep 435.00 7.90
(1.85%)
OPEN

435.00

HIGH

435.00

LOW

435.00

NSE 11:49 | 30 Sep 430.00 4.55
(1.07%)
OPEN

434.25

HIGH

437.05

LOW

426.40

OPEN 435.00
PREVIOUS CLOSE 427.10
VOLUME 1
52-Week high 554.50
52-Week low 250.00
P/E 9.52
Mkt Cap.(Rs cr) 134
Buy Price 428.00
Buy Qty 10.00
Sell Price 435.00
Sell Qty 20.00
OPEN 435.00
CLOSE 427.10
VOLUME 1
52-Week high 554.50
52-Week low 250.00
P/E 9.52
Mkt Cap.(Rs cr) 134
Buy Price 428.00
Buy Qty 10.00
Sell Price 435.00
Sell Qty 20.00

Revathi Equipment Ltd. (REVATHI) - Auditors Report

Company auditors report

To the Members of Revathi Equipment Limited

Report on the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of RevathiEquipment Limited ("the Company") which comprise the balance sheet as atMarch 31 2019 the statement of profit and loss (including other comprehensive income)cash flow statement and the statement of changes in equity for the year then ended andnotes to the Ind AS financial statements including a summary of significant accountingpolicies and other explanatory information (hereinafter referred to as "theStandalone Ind AS financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 2019 and its profit(including other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the audit of the standalone Ind AS Financial Statements section ofour report. We are independent of the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone Ind AS financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentyear. These matters were addressed in the context of our audit of the standalone Ind ASfinancial 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.

SR. NO. KEY AUDIT MATTER AUDITOR'S RESPONSE
1 Recognition of Revenue measurement presentation and disclosure as per Ind AS- 115 "Revenue from Contracts with Customers". (Refer Sub-note N of Note 2 of Accounting Policy). Our procedures included but were not limited to the following:
• We performed walkthroughs to understand the key processes and identify key controls related Ind AS 115 "Revenue from Contracts with Customers"
• On a sample basis we performed testing to verify physical deliveries of product in the year to ascertain transfer of control.
• We performed revenue cut-off testing by reference to bill dates of sales recorded either side of the financial year end had legally completed; and
• Selected a sample of sales contracts and read analysed and identified the distinct performance obligations in these contracts.
Based on our audit procedures we have concluded that revenue is appropriately recognized and that there was no evidence of management bias.

Information Other than the Standalone Ind AS Financial Statements and Auditor's ReportThereon

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 includein the standalone Ind AS financial statements and our auditor's report thereon. The AnnualReport is expected to be made available to us after the date of this Auditors' Report. Ouropinion on the standalone Ind AS financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone Ind AS financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the Annual Report if we conclude that there is a material misstatementtherein we are required to report the matter to those charged with governance.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read withrelevant Rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management 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 unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone Ind AS financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the Standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We 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.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships 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 we determine thosematters that were of most significance in the audit of the consolidated financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould 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 section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.

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

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law 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 other comprehensiveincome) the cash flows statement and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevantRules issued thereunder;

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct;

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 ourseparate Report in "Annexure B";

g) In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and

h) 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 the explanations given to us:

i. The Company has disclosed the impact of pending litigation on its financial positionin its standalone Ind AS financial statements-Refer note 33 of the standalone Ind ASFinancial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There is no amount required to be transferred to Investor Education and ProtectionFund by the Company.

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
FRN - 000756N
AMIT GOEL
Place: New Delhi Partner
Date: 29.05.2019 Membership No. 500607

Annexure A to the Independent Auditor's Report to the members of Revathi EquipmentLimited dated May 29 2019.

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of 'Report on Other Legal and Regulatory Requirements' section

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets has been physically verified by the management during the yearthe frequency of which in our opinion is reasonable having regard to the size of thecompany and nature of its assets. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and on the basis of thedocuments verified by us we report that the title deeds of all immovable properties areheld in the name of the Company.

(ii) According to the information and explanations given to us inventories has beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable. No material discrepancies were noticed on such physicalverification.

iii) According to the information and explanations given to us the Company has notgranted loans secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under section 189 of the Act.Accordingly provisions of clauses 3 (iii) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usprovisions of sections 185 and 186 of the Act as applicable in respect of loans toDirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees given have been complied with by theCompany.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from public within the meaning of the directivesissued by the Reserve Bank of India and provisions of sections 73 to 76 or any otherprovisions of the Act and rules framed there under.

(vi) We have broadly reviewed the cost accounting records maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been maintained. We are however not required tomake a detailed examination of such books and records.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of employee's provident fund employees' stateinsurance income tax goods & services tax customs duty cess and other materialstatutory dues as applicable with the appropriate authorities during the year. Furtherthere were no undisputed amounts outstanding at the year- end for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us there are no dues inrespect of income tax goods & service tax duty of custom and cess which have notbeen deposited on account of any dispute.

(viii) According to the information and explanations given to us and as per the booksand records examined by us the Company has not defaulted on repayment of loans to banksand financial institutions. The Company neither have any borrowings from the Governmentnor has it issued any debentures.

(ix) According to the information and explanations given by the management the Companyhas not raised any monies by way of initial public offer or further public offer duringthe financial year. Further the term loans have been applied for the purposes for whichthose were obtained.

(x) In our opinion and on the basis of information and explanations given to us nocases of fraud by the Company or fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid/provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company therefore the provision of clause (xii) of the Order isnot applicable to the Company and hence not commented upon.

(xiii) In our opinion and according to the information and explanations given to usthe transactions with the related parties are in compliance with section 177 and 188 ofthe Act and the details have been disclosed in the notes to the standalone Ind ASfinancial statements as required by the applicable Indian Accounting Standards.

(xiv) As the Company has not made any preferential allotment and private placement ofshares or fully & partly convertible debentures during the year under audit therequirement of section 42 of the Act are not applicable.

(xv) In our opinion and on the basis of information and explanations given to us theCompany has not entered into non-cash transactions with directors and persons connectedwith him as referred to in section 192 of Act.

(xvi) In our opinion and on the basis of information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
FRN - 000756N
AMIT GOEL
Place: New Delhi Partner
Date: 29.05.2019 Membership No. 500607

Annexure B to the Independent Auditor's Report to the members oF Revathi EquipmentLimited dated May 29 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of'Report on Other Legal and Regulatory Requirements' section

We have audited the internal financial controls over financial reporting of RevathiEquipment Limited (the "Company") as of March 31 2019 in conjunction with ouraudit of the standalone Ind AS 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 FinancialReporting issued by the Institute of Chartered Accountants of India". 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 the Company's policies the safeguardingof its 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 Act.

Auditor's 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act 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.

An 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

a) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone Ind AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

c) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the co pany's assets that could have amaterial effect on the standalone Ind AS 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 March 312019 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India"

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
FRN - 000756N
AMIT GOEL
Place: New Delhi Partner
Date: 29.05.2019 Membership No. 500607