Mar 31, 2023
Opinion
1. We have audited the accompanying Standalone Financial Statements of Elgi Equipments Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at March 31, 2023, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information in which are included the financial information of two joint operations.
2. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on audited financial information of the joint operations, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âthe Actâ) 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 March 31, 2023, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
3. We conducted our audit 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 âAuditorsâ responsibilities for the audit of the Standalone Financial Statementsâ 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 Standalone Financial Statements under the provisions of the Act and the Rules 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 and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 13 of the Other Matter paragraph below is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial Statements of the current year. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
|
Assessment of carrying value of investment in |
Ou |
ir audit procedures included the following: |
subsidiaries and joint ventures (Refer Note 6 to the Standalone Financial Statements) |
⢠|
Understood and performed procedures to assess the design and tested the operating effectiveness |
As at March 31, 2023, the Company has equity |
of relevant controls related to the annual evaluation |
|
investments of Rs. 1,705.90 million in its subsidiaries and |
on assessment of carrying value of investments. |
|
joint ventures (including Limited Liability Partnership). |
⢠|
Obtained the audited financial statements of the |
The Company reviews the carrying value of these |
subsidiaries and joint ventures and tested the |
|
investments at each reporting period. Where |
Companyâs assessment with regard to key financial |
|
considered necessary, the Company performs a detailed |
indicators including net worth of those respective |
|
assessment as required under Ind AS 36. |
subsidiaries and joint ventures with the carrying |
|
We considered the assessment of carrying value of |
value of the investments made in those entities. |
|
investments as a key audit matter, considering its |
⢠|
In relation to a subsidiary (in respect of investment |
significance to the Standalone Financial Statements, |
and financial guarantees) where future cash |
|
and where applicable, the judgement involved in |
flow projections were prepared, evaluated the |
|
estimating future cash flows, particularly with respect |
reasonableness of these projections by checking |
|
to factors such as discount rates, cash flow projections |
the mathematical accuracy, discussing with the |
|
and terminal growth rates. |
management to understand the assumptions involved, and our knowledge and understanding of the current business conditions. Evaluated, along with the auditorsâ experts, the key assumptions such as discount rate and growth rate used in the preparation of the cash flow projections. |
|
⢠|
Read the subsidiaries and joint ventures financial statements and auditorsâ report and discussed with the auditors of the subsidiary companies in relation to the work performed by them on the subsidiary company financial statements including any impairment evaluation carried out by them at the subsidiary level. |
|
⢠|
Evaluated the adequacy of the disclosures made in the Standalone Financial Statements. |
|
Based on above procedures performed, the managementâs assessment of carrying value of investments in subsidiaries and joint ventures was reasonable. |
5. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility and Sustainability Report and Report on Corporate Governance, but does not include the Standalone Financial Statements and our auditorsâ report thereon.
Our opinion on the Standalone 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 Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and the reports of the other auditors as furnished to us (refer paragraph 13 below), 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.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
6. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of 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, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
7. In preparing the Standalone Financial Statements, management is responsible for assessing the Companyâs 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 Companyâs financial reporting process.
Auditors'' Responsibilities for the Audit of the Standalone Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsâ 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 SAs 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 Standalone Financial Statements.
9. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone 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)0) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to 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 made by management.
⢠Conclude on the appropriateness of managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorsâ report to the related disclosures in the Standalone 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 auditorsâ 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 Standalone Financial Statements,
including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express an opinion on the Standalone Financial Statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of the Company of which we are the independent auditors. For the joint operations included in the Standalone Financial Statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
10. 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.
11. 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.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorsâ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
13. We did not audit the financial statements of two joint operations whose financial statements reflect total assets of Rs. 118.17 million and net assets of Rs. 118.04 million as at March 31, 2023, total revenue of
Rs. Nil, total net loss after tax of Rs. 0.17 million, total comprehensive loss of Rs. 0.17 million and net cash inflows amounting to Rs. 0.38 million for the year ended on that date, as considered in the Standalone Financial Statements. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the Standalone Financial Statements (including other information) insofar as it relates to the amounts and disclosures in respect of these joint operations is based solely on the reports of such other auditors.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
14. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
15. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows 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.
(e) On the basis of the written representations received from the directors as on April 01, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, 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 with reference to financial
statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditorsâ 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 Financial Statements - Refer Note 43 to the Standalone 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.
iv. (a) The management has represented that,
to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds 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 persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 47(ii) to the Standalone Financial Statements);
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 47(ii) to the Standalone Financial Statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for books of account to have the feature of audit trail, edit log and related matters in the accounting software used by the Company, is applicable to the Company only with effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.
16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
Mar 31, 2022
To the Members of Elgi Equipments Limited
Report on the Audit of the standalone financial statements
1. We have audited the accompanying standalone financial statements of Elgi Equipments Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at March 31, 2022, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information in which are included the financial information of two joint operations.
2. 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 Companies Act, 2013 (âthe Actâ) 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 March 31, 2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
3. We conducted our audit 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 âAuditorsâ Responsibilities for the Audit of the Standalone Financial Statementsâ 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 standalone financial statements under the provisions of the Act and the Rules 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 and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 13 of the Other Matter paragraph below is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
|
Assessment of carrying value of investment in |
Ou |
ir audit procedures included the following: |
subsidiaries and joint ventures (Refer Note 6 to the standalone financial statements) |
⢠|
Understood and performed procedures to assess the design and tested the operating effectiveness of |
As at March 31, 2022, the Company has equity |
relevant controls related to the annual evaluation on |
|
investments of Rs. 1,705.90 million in its subsidiaries and |
assessment of carrying value of investments. |
|
joint ventures (including Limited Liability Partnership). |
⢠|
Obtained the audited financial statements of the |
The Company reviews the carrying value of these investments at each reporting period. Where considered necessary, the Company performs a detailed assessment as required under Ind AS 36. |
subsidiaries and joint ventures and tested the Companyâs assessment with regard to key financial indicators including net worth of those respective subsidiaries and joint ventures with the carrying value of the investments made in those entities. |
|
We considered the assessment of carrying value of investments as a key audit matter, considering its significance to the standalone financial statements, and where applicable, the judgement involved in estimating future cash flows, particularly with respect to factors such as discount rates, cash flow projections and terminal growth rates. |
⢠|
In relation to a subsidiary where future cash flow projections were prepared, evaluated the reasonableness of these projections by checking the mathematical accuracy, discussing with the management to understand the assumptions involved, and our knowledge and understanding of the current business conditions. Evaluated, along with the auditorsâ experts, the key assumptions such as discount rate and growth rate used in the preparation of the cash flow projections. |
⢠|
Read the subsidiaries and joint ventures financial statements and auditorsâ report and discussed with the auditors of the subsidiary companies in relation to the work performed by them on the subsidiary Company financial statements including any impairment evaluation carried out by them at the subsidiary level. |
|
⢠|
We evaluated the adequacy of the disclosures made in the standalone financial statements. |
|
Based on above procedures performed, the managementâs assessment of carrying value of investments in subsidiaries and joint ventures was reasonable. |
5. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Board report and Report on Corporate Governance, but does not include the standalone financial statements and our auditorsâ report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and the reports of the other auditors as furnished to us (Refer paragraph 13 below), 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.
Responsibilities of management and those charged with governance for the standalone financial statements
6. The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of 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, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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.
7. In preparing the standalone financial statements, management is responsible for assessing the Companyâs 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 Companyâs financial reporting process.
Auditors'' responsibilities for the audit of the standalone financial statements
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorsâ 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 SAs 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 standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone 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)0) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to 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 made by management.
⢠Conclude on the appropriateness of managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorsâ report to the related disclosures in the standalone 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 auditorâ 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express an opinion on the Standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of the Company of which we are the independent auditors. For the joint operations included in the standalone financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
10. 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.
11. 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.
12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorsâ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
13. We did not audit the financial statements of two joint operations included in the standalone financial
statements of the Company, which constitute Companyâs share of total assets of Rs. 130.87 million and net assets of Rs 124.40 million as at March 31, 2022, total revenue of Rs. nil, total net profit of Rs. 55.37 million, total comprehensive income of Rs. 55.37 million and net cash inflows amounting to Rs. 0.81 million for the year then ended. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion on the standalone financial statements (including other information) to the extent they have been derived from such standalone financial statements is based solely on the report of such other auditors.
Our opinion is not modified in respect of above matter.
Report on other legal and regulatory requirements
14. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
15. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows 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.
(e) On the basis of the written representations received from the directors as on April 01, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditorâs 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 financial statements -Refer Note 43 to the standalone 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 has been no delay in transferring amounts, 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, other than as disclosed in the notes to the accounts, no funds 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 persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 47(ii) to the financial statements);
(b) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 47(ii) to the financial statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Elgi Equipments Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, 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 in which are included the financial information of two joint operations.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to 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 specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 of 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 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.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including 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.
5. 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. 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 auditorsâ judgment, 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their report referred to in sub-paragraph 9 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. 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 March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matters
9. We did not audit the Ind AS financial statements of two joint operations included in the standalone Ind AS financial statements of the Company, which constitute Companyâs share of total assets of Rs.125.44 million and net assets of Rs.124.28 million as at March 31, 2018, total revenue of â NIL, total comprehensive income (comprising of profit and other comprehensive income) of â 0.81 million and net cash flows amounting to â 0.12 million for the year then ended. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion on the standalone Ind AS financial statements to the extent they have been derived from such financial statements is based solely on the report of such other auditors.
10. The Ind AS financial statements of the Company for the year ended March 31, 2017, were audited by another firm of chartered accountants under the Companies Act, 2013 who, vide their report dated May 09, 2017, expressed an unmodified opinion on those financial statements.
Our opinion is not qualified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
11. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
12. 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 accounts 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 the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors of the Company, none of the directors is disqualified as on March 31, 2018 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 42;
ii. The Company has long-term contracts including derivative contracts as at March 31, 2018 for which there were no material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Referred to in paragraph 12(f) of the Independent Auditorsâ Report of even date to the members of Elgi Equipments Limited on the Standalone Ind AS Financial Statements for the year ended March 31, 2018
Report on the Internal Financial Controls with reference to Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financial statements of Elgi Equipments Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal controls 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 its business, including adherence to companyâs 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.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both 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 with reference to financial statements 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 financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 auditorâs 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 Companyâs internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements
6. A companyâs internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements includes 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 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 companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements 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, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2018, based on the internal controls 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.
Referred to in paragraph 11 of the Independent Auditorsâ Report of even date to the members of Elgi Equipments Limited on the Standalone Ind AS financial statements as of and for the year ended March 31, 2018
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items 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. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 3 and 4 on Property, Plant and Equipment and Investment properties respectively to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory excluding stocks with third parties have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has granted unsecured loans, to two other parties covered in the register maintained under Section 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) The aforesaid loans and interest are repayable on demand. The Company has not demanded the repayment of the said loans and hence there does not arise a situation for commenting on the regularity of repayment of principal and payment of interest.
(c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days.
iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income tax, duty of customs, goods and service tax which have not been deposited on account of any dispute. The particulars of dues of sales tax, service-tax, duty of excise and value added tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount In millions (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
The Central Excise Act, 1944 |
Excise duty |
2.57 |
FY 2011-12 |
Additional commissioner |
Finance Act, 1994 |
Service tax/Penalty/ Interest |
3.79 |
FY 2007-13 |
Customs Excise Service Tax Appellate Tribunal |
Finance Act, 1994 |
Service tax/Penalty/ Interest |
2.44 |
FY 2006-07 |
Deputy Commissioner |
Finance Act, 1994 |
Service tax/Penalty/ Interest |
4.50 |
FY 2011-12 |
Commissioner of Service Tax (Appeals) |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
3.81 |
FY 2006-07 |
Central Sales Tax Appellate Tribunal |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
5.31 |
FY 2011-12 |
Honourable High Court of Madras |
The Central Sales Tax Act, 1956 |
Central Sales Tax |
25.60 |
FY 2012-15 |
Joint Commissioner (CT), Appeals |
Tamil Nadu Value Added Tax Act, 2006 |
VAT |
11.27 |
FY 2004-05, 2008-09, 2013-14 |
Honourable High Court of Madras |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government as at the balance sheet date. The Company has not issued any debentures.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Baskar Pannerselvam
Place : Coimbatore Partner
Date : May 28, 2018 Membership Number: 213126
Mar 31, 2017
INDEPENDENT AUDITOR''S REPORT
To the Members of ELGI EQUIPMENTS LIMITED Report on the Standalone Ind AS financial Statements
We have audited the accompanying standalone Ind AS financial statements of ELGI EQUIPMENTS 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) and cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules,2015 (as amended) 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 of 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 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act and the Rules made there under including 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 there under.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the 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 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 Ind AS 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 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 (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matters
The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these Ind AS financial statements are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended), which were audited by us and on which we expressed an unmodified opinion dated May 27,2016 and May 29,2015 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to Ind AS have been audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, ("the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A" 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), and 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 aforesaid standalone Ind AS 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, 2017 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 B".
(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 as at March 31, 2017 on its financial position in its Ind AS financial statements - Refer Note 42 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts as at March 31, 2017, for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017.
iv. The Company has provided requisite disclosures in the Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management -Refer Note 50.
âAnnexure - Aâ to the Independent
Auditor''s Report
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2017, we report that:
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
( c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. (a) The management has conducted the physical verification of Inventory at reasonable intervals.
(b)The discrepancies noticed on physical verification of the inventory as compared to book records which has been properly dealt with in the books of accounts were not material.
3. 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. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
(b) According to the information and explanations given to us, the disputed central excise and sales tax aggregating '' 54.89 million have not been deposited since matters are pending with relevant forum as indicated below:
Name of the Statute |
Nature of the dues |
Demand Amount |
Amount Paid/ Adj. |
Forum where dispute is pending |
Sales Tax |
LST, CST & Penalty |
52.81 |
27.35 |
Department Appeal Authorities |
LST, CST & Penalty |
13.01 |
8.55 |
Tribunal |
|
LST, CST & Penalty |
16.82 |
11.50 |
High Court, Chennai |
|
Central Excise |
Excise Duty & Penalty |
9.66 |
0.01 |
Department Appeal Authorities |
Service Tax & Penalty |
2.73 |
0.30 |
Tribunal Authorities |
|
Service Tax & Penalty |
7.58 |
- |
Department Appeal Authorities |
|
102.61 |
47.72 |
4. In our opinion and according to the information and explanations given to us, the company has not granted any loans or provided guarantees, and security to the parties covered under section 185 and I86 of the Companies Act, 2013. However the Company has made Investments, provided guarantees and loans to its Wholly Owned Subsidiaries which are within the limits specified in the Section 186 of Companies Act,2013.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2017 for a period of more than six months from the date on when they become payable.
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks.
9. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. According to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees noticed or reported during the course of our audit, nor have we been informed of any such case by the Management.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In our opinion the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Elgi Equipments Limited ("the Company") as of 31 March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 (" the Guidance Note") 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 its business, including adherence to company''s 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 Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system 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 auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control 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 company''s internal financial control over financial reporting includes 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
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 control 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
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, 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 RJC ASSOCIATES
Chartered Accountants
Firm Reg. No. 003496S
R. JAYACHANDRAN
Place : Coimbatore Partner
Date : 09/05/2017 Membership No.021848
Mar 31, 2016
We have audited the accompanying Standalone financial statements of
ELGI EQUIPMENTS LIMITED ("the Company") which comprise the Balance
Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow
Statement for the year then ended, and a summary of 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 and presentation 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 judgments 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 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 there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. 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 judgment, 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.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 March 31, 2016, and its Profit/Loss and its Cash Flow for the year
ended on that date.
Emphasis of Matter:
We draw attention to Note No. 36 to the financial statements. The
Company BELAIR SAS subsidiary has filed for protective action with the
Commercial Court in Annecy, France. Pursuant to this the court has
appointed an Administrator on April 26, 2016. The subsidiary is no
longer under the Control of the Company and the Company is under Legal
redress as per French Laws. No provision has been considered in the
value of investment in the subsidiary as the management is of the view
that the same would be evaluated and provided depending upon the
progress of the above said legal proceedings in France.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-Section (11) of section 143 of the Act, we give in the "Annexure
A" 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
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;
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 written representations received from the directors
as on March 31, 2016 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 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 B".
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 financial statements  Refer Note 27 to the
financial statements;
ii. The Company did not have material foreseeable losses,on its
long-term contracts including derivative contracts as at 31st March
2016.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
"Annexure A" to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading ''Report on Other Legal &
Regulatory Requirement'' of our report of even date to the financial
statements of the Company for the year ended March 31, 2016:
1 ) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed on such
verification.
(c) The title deeds of immovable properties are held in the name of the
company.
2) (a) The management has conducted the physical verification of
inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory
as compared to books records which has been properly dealt with in the
books of account were not material.
3) 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.
4) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans,or provided any
guarantees,or security to the parties covered under Section 185 of the
Act. However the Company has made investments, provided guarentees and
loans to its Wholly Owned Subsidiaries, which are within the limits
specified in Section 186 of the Companies Act,2013
5) The Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) Rules, 2015 with regard to the
deposits accepted from the public are not applicable.
6) Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as specified under Section
148(1) of the Act in respect of its products. We have broadly reviewed
the same, and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
7) (a) According to information and explanations given to us and on the
basis of our examination of the books of account, and records, the
Company has been generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income-Tax,
Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added
Tax, Cess and any other statutory dues with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the above were in arrears
as at March 31, 2016 for a period of more than six months from the date
on when they become payable.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, the disputed Central Excise and
Sales Tax aggregating Rs. 99 million have not been deposited since
matters are pending with relevant forum as indicated below:
(Rs. In Million)
Nature of the Demand
Name of the Statute dues Amount
Central Excise Act Excise Duty 9.40
Finance Act (Service Tax) Service Tax 2.57
- DO - - DO - 8.99
Total 20.96
Central Sales Tax Act & TNVAT Central Sales Tax and 74.75
Local Tax (Including VAT)
- DO - - DO - 36.18
Total 110.93
Grand Total 131.89
Name of the Statute Period to which Forum where
Amount Relates dispute is Pending
Central Excise Act 1990, 2000-2002, Departmental
2011 Authorities
Finance Act 2012 CESTAT -TRIBUNAL
- DO - 2012-2015 Departmental Authorities
Central Sales Tax Act 2011-12, 2012-13. High Court
- DO - 1987-88, 1988-89, Tribunal
1994-97, 2002-03
& 2007-08
8) In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in the repayment of dues to any financial institution
or banks. The Company has not issued any debentures.
9) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not raised
moneies by way of initial public offer or further public offer
including debt instruments and term Loans.
10) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the
Company or no fraud on the Company by its officers or employees has
been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has
been paid or provided in accordance with the requisite approvals
mandated by the provisions of section 197 read with Schedule V to the
Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 3 (xii) of the Order are not applicable to the
Company.
13) In our opinion, all transactions with the related parties are in
compliance with Section 177 and 188 of Companies Act, 2013 and the
details have been disclosed in the Financial Statements as required by
the applicable accounting standard AS 18 and Related Party Disclosures
specified under Sec. 133 of the Act.
14) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not made any
preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review.
Accordingly, the provisions of clause 3 (xiv) of the Order are not
applicable to the Company.
15) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not entered into
any non-cash transactions with directors or persons connected with him.
Accordingly, the provisions of clause 3 (xv) of the Order are not
applicable to the Company.
16) In our opinion, the Company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly,
the provisions of clause 3 (xvi) of the Order are not applicable to the
Company.
For RJC ASSOCIATES
Chartered Accountants
Firm Regn.No. 003496S
R. JAYACHANDRAN
Place :Coimbatore Partner
Date :27/05/2016 Membership No.021848
Mar 31, 2016
We have audited the accompanying Standalone financial statements of
ELGI EQUIPMENTS LIMITED ("the Company") which comprise the Balance
Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow
Statement for the year then ended, and a summary of 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 and presentation 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 judgments 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 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 there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. 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 judgment, 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.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 March 31, 2016, and its Profit/Loss and its Cash Flow for the year
ended on that date.
Emphasis of Matter:
We draw attention to Note No. 36 to the financial statements. The
Company BELAIR SAS subsidiary has filed for protective action with the
Commercial Court in Annecy, France. Pursuant to this the court has
appointed an Administrator on April 26, 2016. The subsidiary is no
longer under the Control of the Company and the Company is under Legal
redress as per French Laws. No provision has been considered in the
value of investment in the subsidiary as the management is of the view
that the same would be evaluated and provided depending upon the
progress of the above said legal proceedings in France.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-Section (11) of section 143 of the Act, we give in the "Annexure
A" 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
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;
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 written representations received from the directors
as on March 31, 2016 taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 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 B".
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 financial statements  Refer Note 27 to the
financial statements;
ii. The Company did not have material foreseeable losses,on its
long-term contracts including derivative contracts as at 31st March
2016.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
"Annexure A" to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading ''Report on Other Legal &
Regulatory Requirement'' of our report of even date to the financial
statements of the Company for the year ended March 31, 2016:
1 ) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed on such
verification.
(c) The title deeds of immovable properties are held in the name of the
company.
2) (a) The management has conducted the physical verification of
inventory at reasonable intervals.
b) The discrepancies noticed on physical verification of the inventory
as compared to books records which has been properly dealt with in the
books of account were not material.
3) 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.
4) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans,or provided any
guarantees,or security to the parties covered under Section 185 of the
Act. However the Company has made investments, provided guarentees and
loans to its Wholly Owned Subsidiaries, which are within the limits
specified in Section 186 of the Companies Act,2013
5) The Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and the provisions
of Sections 73 to 76 or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) Rules, 2015 with regard to the
deposits accepted from the public are not applicable.
6) Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as specified under Section
148(1) of the Act in respect of its products. We have broadly reviewed
the same, and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
7) (a) According to information and explanations given to us and on the
basis of our examination of the books of account, and records, the
Company has been generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income-Tax,
Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added
Tax, Cess and any other statutory dues with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the above were in arrears
as at March 31, 2016 for a period of more than six months from the date
on when they become payable.
(b) According to the information and explanations given to us, and the
records of the Company examined by us, the disputed Central Excise and
Sales Tax aggregating Rs. 99 million have not been deposited since
matters are pending with relevant forum as indicated below:
(Rs. In Million)
Nature of the Demand
Name of the Statute dues Amount
Central Excise Act Excise Duty 9.40
Finance Act (Service Tax) Service Tax 2.57
- DO - - DO - 8.99
Total 20.96
Central Sales Tax Act & TNVAT Central Sales Tax and 74.75
Local Tax (Including VAT)
- DO - - DO - 36.18
Total 110.93
Grand Total 131.89
Name of the Statute Period to which Forum where
Amount Relates dispute is Pending
Central Excise Act 1990, 2000-2002, Departmental
2011 Authorities
Finance Act 2012 CESTAT -TRIBUNAL
- DO - 2012-2015 Departmental Authorities
Central Sales Tax Act 2011-12, 2012-13. High Court
- DO - 1987-88, 1988-89, Tribunal
1994-97, 2002-03
& 2007-08
8) In our opinion and according to the information and explanations
given to us and the records of the Company examined by us, the Company
has not defaulted in the repayment of dues to any financial institution
or banks. The Company has not issued any debentures.
9) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not raised
moneies by way of initial public offer or further public offer
including debt instruments and term Loans.
10) Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the
Company or no fraud on the Company by its officers or employees has
been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has
been paid or provided in accordance with the requisite approvals
mandated by the provisions of section 197 read with Schedule V to the
Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the
provisions of clause 3 (xii) of the Order are not applicable to the
Company.
13) In our opinion, all transactions with the related parties are in
compliance with Section 177 and 188 of Companies Act, 2013 and the
details have been disclosed in the Financial Statements as required by
the applicable accounting standard AS 18 and Related Party Disclosures
specified under Sec. 133 of the Act.
14) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not made any
preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review.
Accordingly, the provisions of clause 3 (xiv) of the Order are not
applicable to the Company.
15) Based upon the audit procedures performed and the information and
explanations given by the management, the Company has not entered into
any non-cash transactions with directors or persons connected with him.
Accordingly, the provisions of clause 3 (xv) of the Order are not
applicable to the Company.
16) In our opinion, the Company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly,
the provisions of clause 3 (xvi) of the Order are not applicable to the
Company.
For RJC ASSOCIATES
Chartered Accountants
Firm Regn.No. 003496S
R. JAYACHANDRAN
Place :Coimbatore Partner
Date :27/05/2016 Membership No.021848
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Elgi Equipments Limited ("the Company"), which comprise the Balance
sheet as at 31st March 2015, the statement of Profit & Loss and the
Cash Flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial
Statements
2. The Company''s Board of Directors are responsible for the matters
stated in Section 134(5) of the Companies Act,2013 ("the Act") with
respect to the preparation and presentation of these standalone
financial statements that give a true & fair view ofthe financial
position, financial performanceand cash flows of the Company in
accordance with the accounting principles generally accepted in India,
including the Accounting Standards specified under Section 133 ofthe
Act, read with Rule 7 ofthe Companies (Accounts) Rules, 2014.This
responsibility also includes maintenance of adequate accounting records
in accordance with the provisions ofthe Act for safeguarding the assets
of the Company and for preventing and detecting frauds & 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 are necessary for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation ofthe 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 standalone
financial statements based on our audit. We have taken into account the
provisions of the Act and the Rules, the accounting and auditing
standards and matters which are required to be included in the audit
report under the provisions ofthe Act and the Rules made there under.
4. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) ofthe Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. 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.
5. 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 ofthe financial statements that give 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
control 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.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on
thestandalonefinancial statements.
Opinion
7. In our opinion and to the best of our knowledge 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, ofthe state of affairs ofthe 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
8. As required by ''the Companies (Auditor''s Report) order ,2015'' ("the
Order") issued by the Central Government of India in terms
ofsub-section (11)ofSection 143 ofthe Act, and on the basis of such
checks ofthe books and records ofthe Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in the
paragraph 3 and 4of the order, to the extent applicable.
9. 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
forouraudit.
(b) In ouropinion proper books ofaccountas required by law have been
kept by the Company so far as it appears from our examination ofthose
books;
(c) TheBalancesheet,theStatementofProfitandLossandthe Cash Flow
Statement dealt with by this Report are in agreement with books
ofaccount;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards , specified under Section 133
ofthe Act, read with Rule 7 of theCompanies (Accounts) Rules,2014;
(e) On the basis ofthe written representations received from the
Directors as on 31st March 2015 taken on record by the Board of
Directors, none ofthe Directors is disqualified as on 31st March 2015
from being appointed as a Director in terms of Section 164(2) ofthe
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 knowledge and belief
and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigation as at
March 31,2015 on its financial position in its financial statements as
referred in Note No.26.
ii. The Company did not have material foreseeable loses on its
long-term contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended 31st March,2015.
Annexure to the Auditor''s Report Referred to in paragraph 8of our
report of even date,
i. (a) The Company is maintaining proper record, showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed on such
verification.
ii. (a) The inventory, including stock with certain third parties, has
been physically verified by the Management during the year. In our
opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size
ofthe Company and the nature ofits business.
(c) On the basis of our examination ofthe records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification
ofinventory as compared to the book records were not material.
iii. The Company has not granted any loans unsecured/secured, to any
Company, Firms or other parties covered in the register required to be
maintained underSection 189oftheAct.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size ofthe Company and the nature ofits business
with regard to purchases ofinventory, fixed assets and with regard to
the sale of goods and services. Further on the basis of our
examination of the books and records ofthe Company and according to the
information and explanations given to us, we have neither come across,
nor have been informed of, any continuing failure to correct major
weaknesses in the aforesaid internal control system.
v. The Company has not accepted any deposits from the public within the
meaning of Section 73 and 74 of the Act and the Rules framed there
underto the extent notified.
vi. We have broadly reviewed the books of accounts maintained by the
Company in respect of product costing. Vide notification dated
31.12.2014 by Ministry of Corporate Affairs, Government of India,
requirement of maintenance of books under sub-section(1) of Section 148
ofthe Act, is mandatory only from 01.4.2015. In our opinion, prima
facie, costing accounts and records have been made and maintained. We
have however not made a detailed examination ofthe costing records.
vii. (a) According to the information and explanations given to us,
and the records ofthe Company examined by us, in our opinion, the
Company is regular in depositing undisputed statutory dues, including
Provident Fund, Employees State Insurance, Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty, Value Added Tax and
other material statutory dues as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us, and the
records ofthe Company examined by us, there are no dues of Income Tax
and wealth tax which have not been deposited on account ofany dispute.
(c) According to the information and explanations given to us, and the
records of the Company examined by us, the disputed Central Excise and
Sales Tax aggregating 73.64 million have not been deposited since
matters are pending with relevantforum as indicated below:
[Rs In Million''
Name ofthe Nature of the Demand
Statute dues Amount
Sales Tax LST &Penalty 8.49
Sales Tax LST &Penalty 59.79
Sales Tax CST &Penalty 29.87
Sales Tax CST 3.28
Total 101.43
Central Excise Excise Duty & Penalty 0.29
Central Excise Excise Duty & Penalty 5.46
Total 5.75
GrandTotal 107.18
Name ofthe Forum where dispute is Pending
Statute
Sales Tax ST AT (AB)-CBE
Sales Tax The High Court of Madras
Sales Tax ST AT (AB)-CBE
Sales Tax JC (APPEALS)-CBE
Total
Central Excise Commnr.Appeals
Central Excise CESTAT
(d) According to the information and explanations given to us, and the
records of the Company examined by us, the amount required to be
transferred to Investors Education and Protection fund has been
transferred within the stipulated time in accordance of the provisions
of the Companies Act, 1956 and the Rules made there under.
viii. TheCompany does nothaveanyaccumulated lossesattheend ofthe
Financial year and has not incurred cash losses in the current and in
the immediately preceding financial year.
ix. According to theinformation and explanations given to us, and the
records ofthe Company examined by us, the Company has not defaulted in
repayment of dues to any financial institution or bank as at the
Balance Sheet Date.
x. According to the information and explanations given to us, and the
records ofthe Company examined by us and in our opinion, the terms and
conditions, on which the Company has given guarantee for the loans
taken by Subsidiary Companies from Banks during the year, is not
prejudicial to the interest of theCompany.
xi. According to the information and explanations given to us, and the
records ofthe Company examined by us the company has notavailedany
termloansduringtheyear.
xii. During the course of our examination ofthe books and records ofthe
Company carried out in accordance with the generally accepted Auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we
been informed ofany such case by the Management.
Place: Coimbatore
Date : 29/05/2015
For R J C Associates
Chartered Accountants Firm
Regn. No.: 003496S
R. Jayachandran
Partner
Membership No. 021848
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of ELGI
EQUIPMENTS LIMITED("the Company"), which comprise the Balance Sheet as
at March 31,2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these 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 Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and 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 on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and 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 auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by ''the Companies(Auditor''s Report) (Amendment) Order 2004''
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
(a). we have 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 appears from our examination of
those books;[and proper returns adequate for the purposes of our audit
have been received from branches not visited by us];
(c). the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account [and with the returns received from branches not visited by
us];
(d). in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
(e). on the basis of written representations received from the
directors as on March 31, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
(f). Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
i. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management according to a phased programme designed to cover all
the items over a period, which in our opinion is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of the fixed assets have been disposed
off during the year and therefore does not affect the going concern
assumption.
ii. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
iii. (a) The Company has granted loan to companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 46.63 million and the
year end balance of loans granted to the Company was Rs. 8.09 million.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under Section 301 of the Companies Act, 1956 are not, prima
facie, prejudicial to the interest of the Company.
(c) The Company is in regular receipt of principal repayment and
interest on the above loans.
(d) There is no overdue amount of loans granted to Companies, listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses and for sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in the internal control system.
v. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in to the register maintained under section 301
of the Act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding Rs. 5 lakhs each have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956 and the rules
framed thereunder.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained.
ix. (a) According to the information and explanations given to us and
the records of the company, in our opinion, the Company is regular in
depositing with appropriate authorities, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales- tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income tax, Wealth Tax,
Service Tax, Sales Tax, Customs duty, Excise Duty and cess were in
arrears, as at 31st of March, 2013 for a period of more than six months
from the date they became payable.
(c) Disputed Central Excise and Sales tax aggregating Rs. 24.23 million
have not been deposited since matters are pending with relevant forum
as indicated below:
(Rs. In Million)
Name of the Nature of the Demand Forum where
Statute dues Amount dispute is pending
Sales Tax LST & Penalty 8.49 STAT (AB)-CBE
Sales Tax CST & Penalty 29.87 STAT (AB)-CBE
Sales Tax LST 3.02 JC (APPEALS)-CBE
Sales Tax CST 5.14 JC (APPEALS)-CBE
Total 46.52
Central Excise Excise Duty &
Penalty 11.16 Dy. Commnr.Appeals
Central Excise Excise Duty &
Penalty 3.01 CESTAT
Total 14.17
Grand Total 60.69
x. The Company does not have any accumulated loss at the end of the
financial year and has not incurred cash loss during the financial year
covered by our audit and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities/investments.
xiii. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the Para 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 (as amended) is not applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
Shares, securities, debentures, mutual funds and other Investments.
Accordingly, the provisions of Clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 and Companies (Auditor''s Report)
(Amendment) Order 2004 are not applicable to the Company.
xv. In our opinion, the terms and conditions, on which the Company has
given guarantee for the loan taken by other Company from a bank or
financial institution is not prejudicial to the interest of the
Company.
xvi. The Company has not obtained any long term loans during the year
under audit.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long- term investment by the Company.
xviii. The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act.
xix. The Company has not issued any debentures during the year under
audit.
xx. The Company has not raised any money by public issue during the
year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the year, nor have we
been informed of any such case by the management.
For RJC Associates
Regn.No.: 003496S
Chartered Accountants
R.Jayachandran
Place : Coimbatore Partner
Date : 09/05/2013 Membership No. 021848
Mar 31, 2012
1. We have audited the attached Balance Sheet of Elgi Equipments
Limited, as at 31st March, 2012 the Statement of Profit and Loss and
also the Cash Flow Statement of the Company for the year ended on that
date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and
Companies (Auditor's Report) (Amendment) Order, 2004 (together the
Order) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
v) On the basis of the written representations received from the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March, 2012;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditor's Report Referred to in paragraph 3 of our
report of even date,
I. (a) The Company has maintained proper record showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the Management
during the year. No materia discrepancies were noticed on such
verification.
(c) No substantial part of fixed assets were disposed off during the
Year, hence it will not have any effect on the going concern
assumption.
ii. (a) The inventory has been physically verified by the Management
during this year. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No material discrepancies were noticed on physical
verification of inventory.
iii. (a) The Company has granted loan to Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was `. 207.38 millions and the
year end balance of loans granted to the company was `. 76.17 million.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Companies Act,1956, are not, prima
facie, prejudicial to the interest of the Company.
(c) The Company is regular in the receipt of principal and interest.
(d) There is no overdue amount of loans granted to Companies, listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in Interna Control System.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act,1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding Rs. 5 lakhs each have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. In our opinion, the Company has an Internal Audit System to
commensurate with the size and nature of its business.
vii. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Centra Government for the maintenance
of cost records under Section 209 (1) (d) of the Companies Act, 1956
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
viii. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in
arrears, as at 31st March, 2012 for the year or more than six months
from the date they became payable.
(c) Disputed Central Excise and Sales Tax aggregating `. 23.92 million
have not been deposited since matters are pending with relevant forum
as indicated below:-
(`.In Million)
Name of the Nature of Demand Forum where
Statute the dues Amount dispute is pending
Sales Tax LST &Penalty 11.51 ST AT (AB)-CBE
Sales Tax CST 35.01 JC (APPEALS)-CBE
Total 46.52
Central Excise Excise Duty & Penalty 9.48 Dy. Commnr.Appeals
Excise Duty & Penalty 3.01 Tribunal
Total 12.49
Grand Total 59.01
ix. The Company does not have any accumulated losses at the end of the
Financial Year and has not incurred cash losses in the Financial Year
and in the immediately preceding financial Year.
x. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture holders.
xi. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other Investments.
xii. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Therefore the para 4(xiii) of the order is not applicable.
xiii. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiii) of the Companies (Auditor's Report) Order,
2003 and Companies (Auditor's Report) (Amendment) Order, 2004 (together
the Order) are not applicable to the Company.
xiv. In our opinion, the terms and conditions, on which the Company has
given guarantee for the loan taken by other Company from Bank, is not
prejudicial to the interest of the Company.
xv. The Company has not obtained any long term loan during the year
under audit.
xvi. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xvii. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Act.
xviii. The Company has not issued any debentures.
xix. To the best of our knowledge and belief and according to the
information and explanation given to us, no material fraud on or by the
Company was noticed or reported during the year.
For RJC Associates
Regn.No.:003496S
Chartered Accountants
R Jayachandran
Place : Coimbatore Partner
Date : 14/05/2012 Membership No. 021848
Mar 31, 2011
1. We have audited the attached Balance Sheet of Elgi Equipments
Limited, as at 31st March 2011, the Profit and Loss account and also
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financia statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of materia misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and
Companies (Auditors Report) (Amendment) Order, 2004 (together the
Order) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure,a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that
I) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
Directors, as on 31st March 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2011 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March 2011;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
Referred to in paragraph 3 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) All the assets have been physically verified by the Management
during the Year. No materia discrepancies were noticed on such
verification.
(c) No substantial part of fixed assets were disposed off during the
Year, hence it will not have any effect on the going concern
assumption.
ii. (a) The inventory has been physically verified by the Management
during this Year. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) The Company has granted loan to Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the Year was Rs. 168.64 millions and the
Year end balance of loans granted to the company was Rs.168.64 million.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Companies Act,1956, are not, prima
facie, prejudicial to the interest of the Company.
(c) The Company is regular in the receipt of principal and interest.
(d) There is no overdue amount of loans granted to Companies, listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the companies Act, 1956.
iv In our opinion and according to the information and explanations
given to us, there are adequate interna control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in Internal
Control System.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act,1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding Rs 5 lakhs each have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. In our opinion, the Company has an Internal Audit System
commensurate with the size and nature of its business.
vii. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
viii.(a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in
arrears, as at 31st March 2011 for the year or for more than six months
from the date they became payable.
(c) Disputed Central Excise and Sales Tax aggregating Rs.20.97 million
have not been deposited since matters are pending with relevant forum
as indicated below:-
Name of the Nature of Demand Forum where
Statute the dues Amount dispute is pending
Sales Tax LST &Penalty 11.51 Sales Tax Appellate DC
Sales Tax CST 33.15 Sales Tax Appellate DC
Total 44.66
Central Excise Excise Duty & Penalty 7.59 Dy. Commnr.Appeals
Excise Duty & Penalty 3.14 Tribuna
Total 10.73
Grand Total 55.39
ix The Company does not have any accumulated
losses at the end of the Financial Year and has not incurred cash
losses in the Financial Year and in the immediately preceding financia
Year.
x. In our opinion and according to the information
and explanations given to us, the Company has not defaulted in
repayment of dues to a financial institution, bank or debenture
holders.
xi. The Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other nvestments.
xii. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Therefore the para 4(xiii) of the order are not applicable.
xiii. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures, and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 and Companies (Auditors Report) (Amendment) Order, 2004 (together
the Order) is not applicable to the Company.
xiv. In our opinion, the terms and conditions, on which the Company has
given guarantee for the loan taken by other Company from Bank, is not
prejudicial to the interest of the Company.
xv. The Company has not obtained any long term loan during the Year
under audit.
xvi. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xvii. The Company has not made any preferentia allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Act.
xviii. The Company has not issued any debentures.
xix. During the year, the Company issued 78935454 nos. of Bonus Shares
at the ratio of 1:1, by capitalization of Share Premium. Further,
583600 nos. of shares at Re.1 each were issued under Employees Stock
Purchase Scheme to the eligible employees.
xx. To the best of our knowledge and belief and according to the
information and explanation given to us, no material fraud on or by the
Company was noticed or reported during the Year.
For RJC Associates
Regn.No.:003496S
Chartered Accountants
R.Jayachandran
Partner
Membership No. 021848
Place: Coimbatore
Date: 28/04/2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Elgi Equipments
Limited, as at 31st March 2010, the Profit and Loss account and also
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. The financial statements are prepared consequent to
the amalgamation of Elgi Industrial Products Limited with this company
effective from 1st April 2009 duly approved by the Honarable High Court
of Madras vide itsorderdated24thSeptember2010. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and
Companies Auditors Report (Amendment) Order, 2004 (together the Order)
issued by the Central Government of India in terms of Sub-Section (4A)
of Section 227 of the Companies Act, 1956, we enclose in the Annexure.a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to above.we report
that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v) On the basis of the written representations received from the
Directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
vi)ln our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March 2010;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the AuditorsReport:
Referred to in paragraph 3 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) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed on such
verification.
(c) No substantial part of fixed assets were disposed off during the
year, hence it will not have any effect on the going concern
assumption.
ii. (a) The inventory has been physically verified by the Management
during this year. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventories followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) The Company has granted loan to Companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the Year was Rs. 124.04 millions and
the year end balance of loans granted by the company was Rs.114.04
million.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Companies Act, 1956, are not, prima
facie, prejudicial to the interest of the Company.
(c) The Company is regular in the receipt of principal and interest
(d) There is no overdue amount of loans granted to Companies, listed in
the register maintained under section 301 of the CompaniesAct,1956.
(e) The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Amalgamation of EPIL with
the company ICD of 0 95 Million is out standing as long term unsecured
loans.
iv. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in Internal
Control System.
v. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements exceeding Rs 5 lakhs each have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi. In our opinion, the Company has an Internal Audit System
commensurate with the size and nature of its business.
vii. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
viii. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in
arrears, as at 31st March 2010 for the year of more than six months
from the date they became payable.
(c) Disputed Central Excise and Sales Tax aggregating Rs.10.56 million
have not been deposited since matters are pending with relevant forum
as indicated below:-
Name of the Nature of Demand Forum where
Statute the dues Amount dispute is pending
Sales Tax CST & LST &
Penalty 8.49 Sales Tax Appellate DC
Sales Tax CST & LST 17.58 Sales Tax Appellate DC
Total 26.07
Central Excise Excise
Duty & Penalty 7.59 Dy. Commnr.Appeals
Excise Duty & Penalty 3.16 Tribunal
Total 10.75
Grand Total 36.82
ix The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
x. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
xi. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other Investments.
xii. The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Therefore the para 4(xiii) of the order are not applicable.
xiii. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiii) of the Companies (Auditors Report) Order,
2003 and Companies (Auditors Report) (Amendment) Order, 2004 (together
the Order) are not applicable to the Company.
xiv. In our opinion, the terms and conditions, on which the Company has
given guarantee for the loan taken by other Company from Bank, is not
prejudicial to the interest of the Company.
xv. The Company has not obtained any long term loan during the year
under audit. However on amalgamation of EIPL with the company ICD of
Rs. 0.95 Million is outstanding as long term unsecured loans.
xvi. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
xvii. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
301 of the Act.
xviii.The Company has not issued any debentures.
xix. During the year the Company has raised money of Rs 231.52 million
by calling up the balance amount on partly paid up share of Rs12.75 per
share comprising of 85 paise towards face value and Rs. 11.90/- towards
share premium.
xx. To the best of our knowledge and belief and according to the
information and explanation given to us, no material fraud on or by the
Company was noticed or reported during the year.
For RJC Associates
Regn. No. : 003496S
Chartered Accountants
R.Jayachandran
Place : Coimbatore Partner
Date : 28.10.2010 Membership No. 021848
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