You are here » Home » Companies » Company Overview » VRL Logistics Ltd

VRL Logistics Ltd.

BSE: 539118 Sector: Others
NSE: VRLLOG ISIN Code: INE366I01010
BSE 00:00 | 18 Apr 269.60 -5.60
(-2.03%)
OPEN

272.00

HIGH

274.65

LOW

267.50

NSE 00:00 | 18 Apr 270.00 -5.35
(-1.94%)
OPEN

276.50

HIGH

276.50

LOW

267.85

OPEN 272.00
PREVIOUS CLOSE 275.20
VOLUME 2317
52-Week high 459.90
52-Week low 238.00
P/E 29.21
Mkt Cap.(Rs cr) 2,436
Buy Price 267.50
Buy Qty 100.00
Sell Price 270.55
Sell Qty 51.00
OPEN 272.00
CLOSE 275.20
VOLUME 2317
52-Week high 459.90
52-Week low 238.00
P/E 29.21
Mkt Cap.(Rs cr) 2,436
Buy Price 267.50
Buy Qty 100.00
Sell Price 270.55
Sell Qty 51.00

VRL Logistics Ltd. (VRLLOG) - Auditors Report

Company auditors report

Independent Auditor’s Report

To the Members of VRL Logistics Limited Report on the Financial Statements

1. We have audited the accompanying financial statements of VRL Logistics Limited(‘the Company’) which comprise the Balance Sheet as at 31 March 2018 theStatement of Profit

Comprehensive Income) the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies

Act 2013 (‘the Act’) with respect to the preparation of these financialstatements that give a true and fair view of the state of affairs (financialposition)profit (financial performance including other comprehensive loss income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (‘IndAS’) specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Company’spreparation of the financial statements that give a true and fair view in are appropriatein the circumstances. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Ind AS specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31 March 2018 andits profit(financial performance including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms of Section 143(11) of theAct we give in Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order. 10. Further to our comments in Annexure A as required by Section 143(3) of theAct 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 financial statements dealt with by this report are in agreement with theaccount; books of in our opinion the aforesaid financial statements comply with Ind ASspecified

d)

e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as at 31 March2018 from being appointed as a director in terms of Section 164(2) of the Act;

f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as at 31 March 2018 in conjunction with our audit of the financialstatements of the Company for the year ended on that date and our report dated 26 May 2018as per Annexure B expressed an unmodified opinion;

g) 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 has disclosed the impact of pending litigations on its financialposition in the financial statements;

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

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

iv. the disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these financial statements. Hence reporting under this clause is notapplicable.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N / N500013

per Bharat Shetty

Partner

Membership No.: 106815

Place : Hubballi

Date: 26 May 2018

Annexure to the Independent Auditor’s Report of even date to the members of VRLLogistics Limited on the financial statements for the year ended 31 March 2018

Annexure A

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment’) are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has not entered into any transaction covered underSections 185 and 186 of the Act. Accordingly the provisions of clause 3(iv) of the Orderare not applicable.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of sale of power and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees’ state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

(b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Statement of disputed dues

Name of the statute Nature of dues Amount ( Rs. in Lakhs) Amount paid under Protest ( Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Disallowance of prior period expenses expenses incurred towards construction of building notional interest on funds provided to Vijayanand Printers Limited and Interest levied under Section 234B and 234C 149.06 149.06 2003-04 (Assessment year) Income Tax Appellate Tribunal
Demand of tax not deducted at source on body building charges contribution to power evacuation facilities etc. Revenue from sale of power considered as Section 80IA income disallowance of communication expenses disallowance of certain expense treating as personal expenses etc. 105.73 220.46 105.73 Nil 2007-08 (Assessment year) 2008-09 (Assessment year) Income Tax Appellate Tribunal Commissioner of Income Tax (Appeals)
Demand of tax not deducted at source on body building charges. 1.75 1.75 2008-09 (Assessment year) Income Tax Appellate Tribunal
Disallowance of lease rent paid for leased land amortisation of leasehold improvements and disallowance of certain expense treating as personal expenses 3.18 Nil 2010-11 (Assessment year) Income Tax Appellate Tribunal
Disallowance of certain expenditure such as advances claimed as bad debts and disallowance of certain expense treating as personal expenses 25.01 Nil 2012-13 (Assessment year) Income Tax Appellate Tribunal
Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and disallowance of certain expense treating as personal expenses 197.96 Nil 2013-14 (Assessment year) Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Disallowance of Section 80IA deduction for income from Sale of Certified Emission Reductions (CERs) and disallowance of certain expense treating as personal expenses 210.33 Nil 2014-15 (Assessment year) Commissioner of Income Tax (Appeals)
Disallowance of minimum alternate tax credit taken on Education cess and surcharge against the normal tax liability and Interesst levied under Section 234B and 234C 174.19 174.19 2015-16 (Assessment year) Commissioner of Income Tax (Appeals)
Customs Act 1962 Customs duty on import of aircraft and related interest/ penalties/fines 1569.02 688.05 2007-08 (Financial year) Customs Excise and Service Tax Appellate Tribunal (Ahmedabad)
Finance Act 1994 Non-refund of Service tax paid 242.88 - 2000-01 to 2001-02 Customs Excise and Service Tax Appellate Tribunal (Bengaluru)
Service tax arising due to re-classification of services 328.45 - April 2014 to February 2017 Commissioner of Service Tax
Employees’ State Insurance Act1948 Contribution on drivers’ wages 12.92 3.17 October 2005 to January 2006 High Court of Karnataka

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of further public offer (including debtinstruments). In our opinion the term loans were applied for the purposes for which theloans were obtained.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N /

N500013

per Bharat Shetty

Partner

Membership No.: 106815

Place : Hubballi

Date: 26 May 2018

Annexure to the Independent Auditor’s Report of even date to the members of VRLLogistics Limited on the financial statements for the year ended 31 March 2018

Annexure B

Independent Auditor’s report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the financial statements of VRL Logistics Limited(‘the Company’) as at for the year ended 31 March 2018 we have audited theinternal financial controls over financial reporting (IFCoFR) of the Company as at thatdate.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (‘the Guidance Note’) issued by the Institute of CharteredAccountants of India (‘the ICAI’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the Company’s businessincluding 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 Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s IFCoFR based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe ICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor’s judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A Company’s IFCoFR is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements generally accepted accounting principles. A Company’s IFCoFR include thosepolicies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company’s assets that could have a materialeffect on the financial statements.

Annexure to the Independent Auditor’s Report of even date to the members of VRLLogistics Limited on the financial statements for the year ended 31 March 2018 InherentLimitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such controls were operating effectivelyas at 31 March 2018 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.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N / N500013

per Bharat Shetty

Partner

Membership No.: 106815

Place : Hubballi

Date: 26 May 2018