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Revathi Equipment Ltd.

BSE: 505368 Sector: Engineering
NSE: REVATHI ISIN Code: INE617A01013
BSE 00:00 | 18 Jan 840.50 -34.50
(-3.94%)
OPEN

890.00

HIGH

890.00

LOW

833.00

NSE 00:00 | 18 Jan 837.60 -38.60
(-4.41%)
OPEN

886.00

HIGH

886.00

LOW

830.00

OPEN 890.00
PREVIOUS CLOSE 875.00
VOLUME 705
52-Week high 957.00
52-Week low 455.50
P/E 23.99
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 890.00
CLOSE 875.00
VOLUME 705
52-Week high 957.00
52-Week low 455.50
P/E 23.99
Mkt Cap.(Rs cr) 258
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Revathi Equipment Ltd. (REVATHI) - Auditors Report

Company auditors report

To the Members of Revathi Equipment Limited

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of REVATHIEQUIPMENT LIMITED ('the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss (including Other Comprehensive Loss) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the standalone financial statements including a summary of the significantaccounting policies and other explanatory information (herein after referred to as"standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the company as at March 31 2021 the profit and totalcomprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act (SAs). Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto be communicated in our report.

Information other than the Standalone Financial Statements and Auditor's Report thereon

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 include the standalone financial statementsand our auditor's report thereon.

The Annual Report is expected to be made available to us after the date of thisauditor's report. And Director's Report including its annexures which is one of componentof the Annual Report which we obtained prior to the date of the auditor's report.

Our opinion on the standalone 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 financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. Based on therecords information and explanation provided we have nothing to report in this regard.

When we read the annual report other than Director's report including its annexures ifwe conclude that there is a material misstatement therein we are required to communicatethe matter to those charges with governance.

Management's Responsibility for the Standalone 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 financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards prescribed under section 133 of the Act read with the companies(Indian Accounting Standard) Rules 2015 as amended ("Ind AS").

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatements whether due to fraud or error.

In preparing the standalone 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 unless

management 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 Responsibility for the audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 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 standalonefinancial 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness 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 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 financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the

underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonable knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative and qualitative factors in (i) planning the scope of our audit workand in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone financial statements.

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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of section 143(11) of the Act we give in"Annexure - A" a statement on the matters specified in paragraphs 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 purpose 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 Statement of Profit and Loss Statement of Cash Flows andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;

d. In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act read with relevant rules issued thereunder;

e. On the basis of written representations received from the directors as on March 312021 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312021 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. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

As perthe information and explanation given to us and on the basis of our examinationof the records managerial remuneration has been paid or provided as specified by theprovisions of section 197 read with Schedule V to the Act.

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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) the Company does not have any pending litigation which would impact its financialposition. Refer Note 31 to the standalone financial statements;

ii) there has been no material foreseeable losses on long term contracts includingderivative contracts therefore the Company has not made any provision as required underthe applicable law or Indian Accounting Standards;

iii) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company;

For S. S. KOTHARI MEHTA 8< COMPANY
Chartered Accountants
FRN - 000756N
Place: New Delhi NEERAJ BANSAL Partner
Date: 18.06.2021 Membership No. 095960
UDIN: 21095960AAAAFL7474

Annexure A to the Independent Auditor's Report to the members of Revathi EquipmentLimited

Referred to in paragraph 1 of report on other legal and regulatory

requirement's paragraph of our report on the financial statement

of even date

(i) (a) The company has maintained proper records showingfull

particulars including quantitative details and situation of Property Plant andEquipment (fixed assets);

(b) The property plant and equipment (fixed assets) physically verified by themanagement according to a phased manner program designed to cover all items over a periodof three years which in our opinion is reasonable having regard to the size of theCompany and nature of its assets. According to the information and explanation given tous no material discrepancies were noticed on such verification;

(c) According to the information and explanations given to us and based on the recordsthe title deeds of immovable properties are held in the name of the Company. As explainedby the management one land at Coimbatore is pledged with bank;

(ii) According to the information and explanations given to us inventories have beenphysically verified by the management during the period. In our opinion the frequency ofsuch verification is reasonable. No material discrepancies were noticed on physicalverification of inventories by the management.

(iii) As per the information and explanation given to us and on the basis of ourexamination of the records the Company has not granted any loans secured or unsecured tofirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013.

And the Company has granted loans during the year to one company and one LimitedLiability Partnership. Further the terms and conditions of the grant of such loans arenot prejudicial to the company's interest; the schedule of repayment of principal andpayment of interest has been stipulated and the repayments or receipts are regular; andthere are no overdue amounts as at the reporting date;

(iv) In our opinion and according to the information and explanation given to usprovisions of sections 185 and 186 of the Act as applicable in respect 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 explanation given to us theCompany has not accepted any deposits from the public within the meaning of directivesissued by the Reserve Bank of India and provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed thereunder;

(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 ofIndia under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have not madea detailed examination of the records with a view to determine whether they are accurateand complete;

(vii) (a) According to the information and explanations given to

us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues in respect of provident fundinvestor education and protection fund employees' state insurance income tax customsduty. Goods and

Services Tax Cess and other material statutory dues as applicable with the appropriateauthorities. Further there were no undisputed amounts outstanding at year end for aperiod of more than six months from the date they became payable;

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax custom duty. Goods and ServiceTax Cess and other material statutory dues which have not been deposited on account ofany dispute;

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted on repayment of loans to banks andfinancial institutions. And the Company has neither taken loan from the government norhas it issued any debentures;

(ix) As per the information and explanation given to us and on the basis of ourexamination of the records the company has not raised any money by way of initial publicoffer further public offer or term loan during the financial year;

(x) In our opinion and according to the 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 explanation given to usmanagerial remuneration has been paid or provided as specified by the provisions ofSection 197 of the Act read with Schedule V to the Act;

(xii) In our opinion and according to the information and explanation given to us thecompany is not a Nidhi Company therefore provision clause (xii) of paragraph 3 of theorder is not applicable to the company;

(xiii) As per the information and explanation given to us and on the basis of ourexamination of the records the company has transacted with the related parties which arein compliance with section 177 and section 188 of Companies Act 2013 and the details havebeen disclosed in the standalone financial statements as required by the Ind As 24 RelatedParty Disclosures - Refer note no. 40 to the standalone financial statements;

(xiv) According to the information and explanations given to us and overall examinationof the books of account the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year and hencenot commented upon;

(xv) According to the information and explanation given to us and based on theexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him as referred to in section 192 ofthe Act. Accordingly clause (xv) of paragraph 3 of the order is not applicable to thecompany;

(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 & COMPANY

Chartered Accountants FRN - 000756N

NEERAj BANSAL
Partner
Place: New Delhi Membership No. 095960
Date: 18.06.2021 UDIN: 21095960AAAAFL7474

Annexure B to the Independent Auditor's Report to the members of Revathi EquipmentLimited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (as amended) ("the Act").

We have audited the internal financial controls over financial reporting of RevathiEquipment Limited ("the Company") as at March 31 2021 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on "the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in 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 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these financial statements based onour audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting with reference to these financial statements 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 with reference to thesefinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting with reference to these financial statementsassessing 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 standalone financial statements whether due to fraud orerror.

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 with reference to these financial statements.

Meaning of Internal Financial Controls Over Financial Reporting with Reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to thesefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of standalone financial statementsfor external purposes in accordance with generally accepted accounting principles. Acompany's internal financial control over financial reporting with reference to thesefinancial statements 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 financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 with reference to these financial statements to future periods are subject tothe risk that the internal financial control over financial reporting with reference tothese financial statements may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion based on records the Company has in all material respects an adequateinternal financial controls over financial reporting with reference to these financialstatements and the internal controls over financial reporting with reference to thesefinancial statements are generally operating effectively as at March 31 2021 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 & COMPANY
Chartered Accountants
FRN - 000756N
Place: New Delhi NEERAJ BANSAL
Date: 18.06.2021 Partner
Membership No. 095960
UDIN: 21095960AAAAFL7474

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