Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of VOLTAS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''''s Responsibility for the Standalone Ind AS Financial Statements
The Company''''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone 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) prescribed under Section 133 of the Act.
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 judgements and estimates that are reasonable and prudent; and 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''''s judgements, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable 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 purposes 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.
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
(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 A" Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''''s internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor''''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(iv) The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
2. As required by the Companies (Auditor''''s Report) Order, 2016 ("Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 2 under ''''Report on Other Legal and Regulatory Requirements'''' section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed / assignment agreement / share certificates / re-development agreement / property taxes receipts / certified true copy of sale deed by sub-registrar / investigation report by solicitors provided to us, we report that, the title deeds comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the Balance Sheet date except for the following:
Particulars
|
Amount
|
Remarks
|
of the
|
Rs. in
|
|
land and
|
Lakhs
|
|
building
|
|
|
16 flats in
|
2.06
|
The said flats were
|
Tata Colony,
|
|
allotted to the
|
Lallubhai
|
|
Company by way of
|
Park,
|
|
common agreement
|
Andheri (W),
|
|
entered into by
|
Mumbai
|
|
the Company with
|
- 400063.
|
|
other Tata Group companies. The title deeds are held by Tata Services Ltd on behalf of all allottees.
|
In respect of immovable properties of land that have been taken on lease and disclosed as lease pre-payment in the standalone Ind AS financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments, and providing guarantees and securities, as applicable except in respect of advances of '''' 87.68 lakhs given to Auto Aircon (India) Ltd., dormant wholly owned subsidiary company, where no interest is payable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year and there are no unclaimed deposits outstanding during/as at the year end. Hence, the provisions of Sections 73 to 76 or any other relevant provisions of the Act are not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Act. 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. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'''' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'''' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31st March, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as on 31st March, 2017 on account of disputes are given below:
Name of Statute
|
Nature of Dues
|
Forum where Dispute is Pending
|
Period to which the Amount Relates
|
Amount Involved (Rs.in Lakhs)
|
Amount Unpaid (Rs. in Lakhs)
|
The Central Excise Act, 1944
|
Excise Duty
|
Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
|
1982-1991, 2010-2015, 2013-2014
|
1,161.71
|
1,093.05
|
Commissioners / Adjudicating Authority
|
1982-1991, 1992-1994, 1999-2001, 2004-2005, 2009-2012, 2013-2014
|
549.45
|
540.64
|
Finance Act, 1994 and Service Tax Laws
|
Service Tax
|
Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
|
2003-2017
|
789.51
|
661.05
|
Commissioners /Adjudicating Authority
|
1999-2014
|
2,912.36
|
2,780.81
|
Sales Tax / VAT/ CST, Entry Tax
|
Sales Tax, VAT, CST and Entry Tax (including Penalty and Interest)
|
Supreme Court
|
1993-1994
|
46.55
|
39.55
|
High Court
|
1988-1992, 1995-2005 , 2008- 2009
|
1,556.11
|
1,321.66
|
Appellate Tribunals
|
1987-1988, 1997- 1998, 1999-2003, 2004-2011, 2013-2015
|
1,148.36
|
772.80
|
Commissioner (Appeals)
|
1990-1991, 1992-1993, 1994-1997, 1998-2015
|
6,325.72
|
5,163.00
|
Deputy Commissioner (Appeals)
|
1996-2001, 2005-2006, 2009-2015
|
1,561.05
|
996.14
|
Assessing Authority
|
1987-1993, 1994-1995, 1996-1997, 1999-2001, 2010-2015
|
183.34
|
174.27
|
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company has not taken any loans or borrowings from financial institutions and government or has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company has been noticed or reported during the year. Further, according to the information and explanations given to us by the management, no fraud on the Company has been noticed or reported during the course of our audit except for one case where the Company has noticed that an employee had misappropriated cash amounting to ?52.29 lakhs. The Company has since recovered the said amount.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone Ind AS financial statements etc. as required by the applicable Accounting Standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence the provisions of Section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm''''s Registration No. 117366W/W-100018)
B. P. Shroff
Mumbai, Partner
23rd May, 2017 (Membership No. 34382)
We have audited the accompanying standalone financial statements of
VOLTAS LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2016, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''''s Responsibility for the Standalone Financial Statements
The Company''''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under Section 133oftheAct,asapplicable.
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 judgements and estimates that are
reasonable and prudent; and 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 standalone
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under Section 143(11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the standalone financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the standalone financial statements.
The procedures selected depend on the auditor''''s judgement, including
the assessment of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company''''s preparation of the standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company''''s Directors, as well as evaluating the overall presentation of
the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2016, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 best of 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 the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards prescribed under Section 133 of
the Act, as applicable.
(e) On the basis of the written representations received from the
Directors as on 31st March, 2016, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as a Director in terms of Section 164(2) of the
Act.
(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 "A". Our
report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''''s internal financial controls over
financial reporting.
(g) With respect to the other matters to be included in the Auditor''''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Notes
28(b) to 28(g) of the standalone financial statements.
(ii) The Company has made provision, as required under the applicable
law or Accounting Standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts - Refer Note
1-A(iii)(c) of the standalone financial statements.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
2. As required by the Companies (Auditor''''s Report) Order, 2016 ("the
CARO 2016 Order") issued by the Central Government in terms of Section
143(11) of the Act, we give in Annexure "B" a statement on the matters
specified in paragraphs 3 and 4 of the Order.
ANNEXURE"B" TO THE INDEPENDENT AUDITORS'''' REPORT
(Referred to in paragraph 2 under ''''Report on Other Legal and Regulatory
Requirements'''' of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to us and the
records examined by us and based on the examination of the registered
sale deed / transfer deed / conveyance deed / assignment agreement /
share certificates / re-development agreement / property taxes
receipts/certified true copy of sale deed by sub-registrar /
investigation report by solicitors provided to us, we report that, the
title deeds comprising all the immovable properties of land and
buildings which are freehold, are held in the name of the Company as at
the balance sheet date except for four immovable properties which are
in the name of erstwhile companies that have since been amalgamated
with the Company and the following.
Particulars of Amount Remarks
the land and Rs.in
building Lakhs
16 flats in 2.06 The said flats were
Tata Colony, allotted to the
Lallubhai Company by way of
Park, Andheri common agreement
(W), Mumbai entered into by
-400063. the Company with
other Tata Group
companies. The title
deeds are held by Tata
Services Ltd. on behalf
of all allottees.
In respect of immovable properties of land that have been taken on
lease and disclosed as fixed assets in the standalone financial
statements, the lease agreements are in the name of the Company, where
the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Act in respect of grant of loans, making
investments, and providing guarantees and securities, as applicable
except in respect of advances ofRs. 87.68 lakhs given to Auto Aircon
(India) Ltd., dormant wholly owned subsidiary company, where no
interest is payable.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit during the year and there are no
unclaimed deposits outstanding during / as at the year end. Hence the
provisions of Sections 73 to 76 or any other relevant provisions of the
Act are not applicable.
(vi) The maintenance of cost records has been specified by the Central
Government under Section 148(1) of the Act. 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. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'''' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, Cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'''' State Insurance, Income-tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, Cess and other material
statutory dues in arrears as at 31st March, 2016 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty and Value Added Tax which have not been deposited as
on 31st March, 2016 on account of disputes are given below:
Name of Statute Nature of Dues Forum where Dispute is
Pending
The Central Excise Duty Customs, Excise & Service
Excise Act, 1944 Tax Appellate Tribunal
(CESTAT)
Commissioners/ Adjudicating
Authority
Finance Act, 1994 Service Tax Customs, Excise & Service
and Service Tax Tax Appellate Tribunal
Laws (CESTAT)
Commissioners/ Adjudicating
Authority
Sales Tax /VAT/ Sales Tax, VAT, Supreme Court
CST, Entry Tax CST and Entry Tax High Court
(including Penalty
and Interest)
Appellate Tribunals
Commissioner (Appeals)
Deputy Commissioner (Appeals)
Assessing Authority
Name of Statute Period to which the Amount
Involved Amount Unpaid
Amount Relates (Rs.in
Lakhs) (Rs.in Lakhs)
The Central Excise
Act, 1944 2010-2015 1134.22 1134.22
1982-1991,1992-1994, 560.33 540.51
1999-2001,2004-2005,
2009-2012,2013-2014
Finance Act, 1994 1998-2010 932.09 802.38
1998-2014 2863.20 2732.91
Sales Tax/VAT/
CST, Entry Tax 1993-1994 46.55 39.55
1988-1992,1995-2005 , 2868.33 2509.05
2008- 2009
1987-1988,1997-1998, 1150.83 722.38
1999-2003,2004-2011,
2013-2015
1990-1991,1992-1993, 5306.48 4073.24
1994-1997,1998-2015
1996-2001,2005-2006, 1563.42 646.69
2009-2014
1987-1993,1994-1995, 275.15 179.68
1996-1997,1999-2001,
2013-2015
(viii) The Company has not taken any loans or borrowings from financial
institutions, banks and government or has not issued any debentures.
Hence reporting under clause (viii) of CARO 2016 Order is not
applicable to the Company.
(ix) The Company has not raised moneys by way of initial public offer
or further public offer (including debt instruments) or term loans and
hence reporting under clause (ix) of the CARO 2016 Order is not
applicable.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company by its officers or employees has been noticed or reported
during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid / provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is in compliance with Sections 188 and 177 of
the Act, where applicable, for all transactions with the related
parties and the details of related party transactions have been
disclosed in the standalone financial statements etc. as required by
the applicable Accounting Standards.
(xiv) During the year the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of CARO 2016 Order is
not applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any
non-cash transactions with its directors or persons connected with him
and hence the provisions of Section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under Section 45-1
of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm''''s Registration No. 117366W/W-100018)
B. P. Shroff
Mumbai, Partner
17th May, 2016 Membership No. 34382
We have audited the accompanying standalone financial statements of
VOLTAS LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 judgements
and estimates that are reasonable and prudent; and 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 financial statements that give a true and fair view
and are free from material misstatement, whether
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
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 best of 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 the Company so far as it appears from our examination of
those books,
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account,
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
(f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note 28(b),
28(c), 28(d), 28(e) and 28(f) to the financial statements.
(ii) The Company has made provision, as required under applicable law
or accounting standards for the material foreseeable losses, if any,
for long term contracts including derivative contracts- Refer Note
1A(iii)(c) to the financial statements.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
an adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit during the year. There was no
unclaimed deposits outstanding during the year or as at 31st March,
2015. Consequently, the provisions of Sections 73 to 76 or any other
relevant provisions of the Companies Act, 2013 with respect to
unclaimed deposit is not applicable to the Company.
(vi) In our opinion and according to the information and explanations
given to us, the cost records are not required to be maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended and prescribed by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess, Value Added Tax and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Cess, Value Added Tax and other
material statutory dues in arrears as at 31st March, 2015 for a period
of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Excise Duty,
Cess and Value Added Tax which have not been deposited as on 31st
March, 2015 on account of disputes are given below :
Name of Statute Nature of Dues Forum where Dispute is
pending
The Central
Excise Act, Excise Duty Supreme Court
1944
Customs, Excise & Service Tax
Appellate Tribunal (CESTAT)
Commissioner / Adjudicating
Authority
Finance Act,
1994 and Service Tax Customs, Excise & Service Tax
Service Tax Laws Appellate
Tribunal (CESTAT)
Commissioner of Central
Excise (Appeals)
Commissioner / Adjudicating
Authority
Sales Tax CST, VAT, GST and Supreme Court
Entry Tax
(including penalty High Court
and interest)
Appellate Tribunals
Commissioner (Appeals)
Deputy Commissioner (Appeals)
Assessing Authority
Name of Statute Period to which amount Amount
relates involved
(Rsin Lakhs)
The Central 1975,1993-1996 45.74
Excise Act, 2013-14 10.01
1944 1982, 1984-2008, 2008-12, 738.25
2013- 14
Finance Act, 1998-2010 451.13
1994 and 2003-2008 1511.54
1998- 2010 890.97
Sales Tax 1993- 1994 39.55
1988- 1992, 1993-2000, 2543.79
2001-2009
1987-1988, 1995-1998, 908.44
1999- 2011
1989- 1991, 1992-1993, 3459.23
1994- 1997, 2002-2014
2005-2006, 2009-2013 374.52
1987-1989, 1990-2009, 238.42
2014- 2015
(d) The Company has been generally regular in transferring amounts to
the Investor Education and Protection Fund in accordance with the
relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules
made thereunder within time.
(viii) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions and banks. The Company has not issued any
debentures.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the Company, has neither obtained nor utilized any term
loan during the year.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm''s Registration No. 117366W/W-100018)
B. P. Shroff
Mumbai, Partner
21st May, 2015 Membership No. 34382
