<dhhead>Independent Auditors Report on the IND AS Financial Statements for the financial year ended March 31, 2024</dhhead>
To the Members of,
REVENT PRECISION ENGINEERING LIMITED
(Formerly known as Amtek Auto Limited)
REPORT ON THE AUDIT OF THE IND AS FINANCIAL STATEMENTS
OPINION
1. We have audited the accompanying IND AS Financial Statements of Revent Precision Engineering Limited (the Company), which comprise the Balance sheet as at March 31, 2024, the Statement of Profit and Loss (including the Statement of Other Comprehensive Income) for the year ended March 31, 2024, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as the IND AS Financial Statements).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid IND AS Financial Statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Ind AS specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its loss including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
BASIS FOR OPINION
3. We conducted our audit of the IND AS Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the IND AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the IND AS Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the IND AS Financial Statements.
INFORMATION OTHER THAN THE IND AS FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
4. The Companys management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companys Annual Report but does not include the IND AS Financial Statements and our auditors report thereon. Our opinion on the IND AS Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the IND AS Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Ind AS Financial Statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
MANAGEMENTS RESPONSIBILITY FOR THE IND AS FINANCIAL STATEMENTS
5. The Companys Board of Directors / Management is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards), Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters 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 no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial reporting process.
AUDITORS RESPONSIBILITY FOR THE AUDIT OF THE IND AS FINANCIAL STATEMENTS
6. Our objectives are to obtain reasonable assurance about whether the Ind AS Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standard of Auditing, specified under section 143(10) of the Act, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS Financial Statements.
7. As part of an audit in accordance with Standard of Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Ind AS Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design 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 has adequate internal financial controls with reference to Ind AS Financial Statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the Ind AS Financial Statements made by the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Ind AS Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the Ind AS Financial Statements, including the disclosures, and whether the Ind AS Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Ind AS Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Ind AS Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Ind AS Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
8. As required by the Companies (Auditors Report) Order, 2020 (the Order), issued by the Central Government of India in terms of section 143(11) of the Companies Act, 2013, we give in the Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9. As required by Section 143 (3) of the Companies Act, 2013, we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books; except for the matters stated in paragraph 9(h)(vi) below on reporting under Rule 11(g).
(c) The Balance Sheet, Statement of Profit and Loss (including the statement of Other Comprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the accompanying IND AS Financial Statements comply with Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;
(e) On the basis of written representations received from the Directors as on March 31, 2024, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2024, from being appointed as a Director in terms of under sub-section (2) of Section 164 of the Companies Act, 2013.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure-B.
(g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 9(b) above on reporting under Section 143(3)(b) and paragraph 9(h)(vi) below on reporting under Rule 11(g).
(h) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, issued by the Central Government of India in terms of clause (j) of sub-section (3) of section 143 of the Companies Act, 2013 as amended in our opinion and to the best of our information and explanations given to us:
(i) . The Company (by-virtue-of implementation of resolution plan during the preceding year) does not have
any pending litigations which would impact its financial position. Refer Note No. 32 of the accompanying IND AS Financial Statements.
(ii) . The Company did not have any long-term contracts including derivative contracts for which there were
any material foreseeable losses.
(iii) . There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
(iv) . (a) The Management has represented that, to the best of its knowledge and belief, as disclosed in the
Note No. 47.(x) (A) to the IND AS Financial Statements, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, as disclosed in the Note No. 47 (x) (B) to the IND AS Financial Statements, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that has been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e) of the Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material misstatement.
(v) . The Company has not declared or paid any dividend during the year. Accordingly reporting under rule
11(f) is not applicable to the company.
(vi) . Based on our examination which included test checks and as reported by the respective auditors of subsidiaries incorporated in India whose financial statements have been audited under the Act, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year [Except for the Period from April 1, 2023 to June 20, 2023] for all relevant transactions recorded in the respective accounting software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024
10. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Companies Act, 2013, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration has been paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
For SCV & Co. LLP |
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Chartered Accountants |
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Firm Regn. No. 000235N/N500089 |
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Sd/- |
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(Anuj Dhingra) |
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Partner |
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Place: Gurgaon |
Membership No.: 512535 |
Dated: 23rd August 2024 |
UDIN: 24512535B KCXFT1099 |
Annexure-A to Independent Auditors Report
Referred to in Paragraph 8 of the Independent Auditors Report of even date to the members of Revent Precision Engineering Limited on the Ind AS Financial Statements for the year ended March 31, 2024
(i) . (a) According to the information and explanations provided to us and on the basis of books and records examined by us
in the normal course of audit and to the best of our knowledge and belief, we state that:
(A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of right-of-use assets.
(B) The company has maintained proper records showing full particulars of intangible assets.
(b) To the best of our information and according to the explanations provided to us, a Company has adopted a policy of physical verification of all the items of Property, Plant and Equipment in phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, certain items of Property, Plant and Equipment were verified during the year and all the discrepancies observed on physical verification have been properly dealt with in the books of account.
(c) According to the information and explanation provided to us and on the basis of our examination of the record of the company the title deeds of the immovable properties (other than properties where the company is the lessee and the lease agreement are duly executed in favour of the lessee) disclosed in the financial statements are duly registered or held in the name of the company. It may be noted that the designated original deeds in respect of immovable properties within Assets-held-for-sale (i.e. Pass-through assets) were not made available and we have verified information from the acknowledgement from the holders, and/or copies available with the company.
(d) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, the Company, during the year, has revalued its Property, Plant and Equipment (including Right of Use assets). The revaluation is based on the valuation by a Register Valuer. The said revaluation has been aggregated to change of more than 10% of the net carrying value of each class of Property, Plant and Equipment, Land (Upward Revaluation of 28296.89 Lacs) and Building (Downward Revaluation of Rs. 585.62 Lacs) (Details as per Note 2(ii) of the accompanying IND AS Financial Statements.
(e) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that, no proceedings have been initiated or pending against the Company for holding any property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
(ii) . (a) To the best of our information and according to the explanations provided to us by the Company the physical verification of inventory has been conducted by the management at reasonable intervals during the year including as at the year end. In our opinion, the coverage and procedure of such verification by the management is appropriate. No discrepancies of 10% or more in aggregate for each class of inventory were noticed during the year.
(b) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, and to the best of our knowledge and belief, we state that, the Company has been sanctioned working capital limit in excess of Rs. 5 Crores, in aggregate, at points of time during the year, from a bank on the basis of security of current assets and the quarterly statements filed by the Company with such bank are in agreement with the books of account of the Company
(iii) . To the best of our information and according to the explanations provided to us by the Company and the books of account
and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company has not made investments in, provided any guarantee or security or granted any loans or advances in the nature of loans secured or unsecured to companies, firms, Limited Liability Partnerships or any other parties. Therefore, requirements to report under paragraph 3(iii)(a) to (f) of the order are not applicable to the Company.
(iv) . To the best of our information and according to the explanations provided to us by the Company and the books of account
and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company during the year under audit, has no transactions within the purview of Section 185 & 186 of the Companies Act, 2013. Further, the Company has complied with the provisions of Section 185 & 186 of the Companies Act, 2013, with respect to the loans, investments, guarantees and security for preceding years, as applicable.
(v) . To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the Company has not accepted any deposits or amounts which are deemed to be deposits from the public within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the Rules framed thereunder to the extent applicable. Accordingly, the requirements to report under Paragraph 3(v) of the Order are not applicable to the Company.
(vi) . The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013, for certain products manufactured by the Company. We have broadly reviewed the Cost Records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However, we have not carried out any detailed examination of such accounts and records.
(vii) . (a) On the basis of records of the Company examined by us, in our opinion, undisputed statutory dues including Goods and Services Tax (GST), Provident fund, Employees State Insurance, Duty of Custom, Income-tax, value added tax, Cess have generally been regularly deposited by the Company with the appropriate authorities. Undisputed amounts payable in respect thereof, which were outstanding the year-end for a period of more than 6 months from the date they become payable are as follows:
Statement of Arrears of Statutory Dues Outstanding for More than Six Months :
Name of the Statute |
Nature of the Dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Due Date |
Date of Payment |
Remarks, if any |
Goods & Service Tax Act, 2017 |
GST Interest |
5.76 |
2020-21 |
20th of the following month |
No Payment made in FY |
Remaining balance of Rs. 5.76 Lakhs is yet to be paid |
(b) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, there were no dues referred in subclause (a) above, which have not been deposited on account of disputes.
(viii). According to the information and explanations provided to us and on the basis of books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that, there were no transactions in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961). Accordingly, the requirements to report under paragraph 3(viii) of the Order are not applicable to the Company.
(ix) . According to the information and explanations provided to us and on the basis of books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that,
(a) The Company, in our opinion, has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(b) The Company has not been declared willful defaulter by any bank or financial institution or other lender.
(c) No Term loans have been availed by the Company during the year. Accordingly, the requirements to report under paragraph 3(ix)(c) of the Order are not applicable to the Company.
(d) On an overall examination of the IND AS Financial Statements, funds raised on short-term basis have, prima facie, not been used for long-term purposes by the Company.
(e) The Company has not availed any loan or any other facility from any entity or person on account of or to meet the obligations of subsidiaries, associates, or Joint Ventures as defined under the Companies Act, 2013 and therefore, the requirements to report under Paragraph 3(ix)(e) of the Order are not applicable to the Company.
(f) The Company has not raised loan during the year on pledge of securities held in its subsidiaries, associates, or Joint Ventures as defined under the Companies Act, 2013 and therefore, the requirements to report under Paragraph 3(ix)(f) of the Order are not applicable to the Company.
(x) . In our opinion and according to the information and explanations provided to us by the Company and the books of
account and records examined by us in the normal course of audit, we state that:
(a) the Company has not raised money by way of initial public offer or further public offer (including debt instruments) or term loans and therefore the requirements of this clause of the order are not applicable.
(b) The company, during the year under audit, has made private placement of Equity Share Capital. For such allotment, the requirements of Section 42 of the Companies Act, 2013 have been complied with. Also, the funds raised therefrom have been applied for the purpose for which those were raised. The Company, during the year under audit, has not made any private placement of convertible debentures. Further there were no preferential allotment of shares or convertible debentures (fully, partially of optionally convertible) during the year, therefore compliance with the provisions of Section 62 of the Companies Act, 2013 is not applicable.
(xi) . To the best of our information and according to the explanations provided to us by the Company and the books of account
and records examined by us in the normal course of audit, we state that:
(a) Neither any fraud by the Company, nor any fraud on the Company has been noticed or reported during the course of the audit; nor we have been informed of any such case by the Company.
(b) No report under sub-section (12) of Section 143 of the Companies Act, 2013 has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) No whistle blower complaints received by the Company during the year (and up to the date of this report).
(xii) . According to the information and explanations provided to us and on the basis of books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that, the Company is not a Nidhi Company. Accordingly, requirements to report under Paragraph 3(xii)(a) to (c) of the Order are not applicable to the Company.
(xiii) . According to the information and explanations provided to us and on the basis of books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that, the transactions with related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, and the details of the related party transactions have been disclosed in the Ind AS Financial Statements as required by the applicable Indian Accounting Standards.
(xiv) . (a) According to the information and explanations provided to us and on the basis of books and records examined by us
in the normal course of audit and to the best of our knowledge and belief, we state that, the company has an internal audit system commensurate with the size and nature of its business;
(b) We have considered the internal audit report issued to the company for the period under audit.
(xv) . To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, the Company has not entered into any noncash transactions with its directors or persons connected with its directors and hence, reporting on the compliance of the provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) . (a) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause (xvi)(a) is not applicable to the Company.
(b) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, the company has not conducted any Non-Banking Financial or Housing Finance activities and therefore, the requirements of Clause (b) of the order are not applicable to the Company.
(c) To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, the company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and therefore, the requirements of Clause (c) of the order are not applicable to the Company.
(d) The company does not have any CICs, which are a part of the Group. We have not, however, separately evaluated whether the information provided by the management is accurate and complete. Accordingly, requirements to report under Paragraph 3(xvi) (d) of the Order are not applicable to the Company.
(xvii) . The Company has not incurred cash losses in the current financial year. However, in the immediately preceding financial year company has incurred cash losses [aggregating Rs. 2742.50 Lacs].
(xviii) . There has been no resignation of the statutory auditors during the year. Accordingly, this clause is not applicable to the Company.
(xix) . To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that, and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, and other information accompanying the Ind AS Financial Statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the balance sheet date as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx). To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that the provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company. Accordingly, the requirements to report under Clause (xx) (a) and (b) of the order are not applicable to the Company.
For SCV & Co. LLP Chartered Accountants Firm Regn. No. 000235N/N500089 |
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Place: Gurgaon Dated: 23rd August 2024 |
Sd/- (Anuj Dhingra) Partner Membership No.: 512535 UDIN: 24512535B KCXFT1099 |
Annexure-B to Independent Auditors Report
Referred to in Paragraph 9 (f) of the Independent Auditors Report of even date to the members Revent Precision Engineering
Limited on the IND AS Financial Statements for the year ended March 31, 2024
Independent Auditors 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 IND AS Financial Statements of Revent Precision Engineering Limited (the Company) as at and for the year ended March 31, 2024, we have audited the internal financial controls over financial reporting of the Company as at that date.
Managements Responsibility for Internal Financial Controls
2. The Companys Board of Directors / Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companys business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companys internal control over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls over financial reporting, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal control over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A Companys internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of IND AS Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companys internal control over financial reporting include those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of IND AS Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as of March 31, 2024, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SCV & Co. LLP Chartered Accountants Firm Regn. No. 000235N/N500089 |
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Place: Gurgaon Dated: 23rd August 2024 |
Sd/- (Anuj Dhingra) Partner Membership No.: 512535 UDIN: 24512535B KCXFT1099 |
IIFL Customer Care Number
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