Mar 31, 2018
Report on the Standalone IND AS Financial Statements
We have audited the accompanying Standalone IND AS financial statements of Energy Development Company Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information for the year ended on that date (hereinafter referred to as "Standalone Ind AS financial statements").
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 gives a true and fair view of the state of aftairs (financial position), Profit or loss (financial performance including other comprehensive income),cash flows and changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making 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 gives a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' 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, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors'' 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 Company''s preparation of the standalone Ind AS financial statements that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence 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 aftairs (financial position) of the Company as at March 31, 2018, its profit and total comprehensive income, its Cash Flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to Note No. 6A (c) and (d) of the financial statements, considering the transaction for the transfer of 76% of holding in undertakings, which are involved in setting up hydel power plants at various locations, no impairment in the amount of loan of Rs. 6,09,21,035 and investment of Rs. 22,00,03,137 as on 31st March, 2018 representing 24% and 51% of the equity shares in Arunachal Pradesh and Uttarakhand undertaking respectively and 24% in preference shares being strategic in nature, has been considered necessary. Adjustment with respect to these being determinable on the status of implementation of the projects, resultant impact in this respect as such is presently not ascertainable.
Our opinion is not modified in respect of this matter.
Other Matters
The comparative Ind AS financial information of the Company for the corresponding year ended March 31, 2017 and 1st April, 2016 were based on the financial statements audited by the predecessor auditor who expressed unmodified opinion vide their report dated May 29, 2017 and May 30, 2016 respectively and reliance has been placed by us on the same for the purpose of this report. Our opinion is not modified in this respect.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, and according to the information and explanations given to us and also on the basis of such checks as we considered appropriate, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards (Ind AS) specified under section 133 of the Act;
e) On the basis of the written representations received from the directors as on March31, 2018, taken on record by the Board of Directors, 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 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. Pending litigations (other than those already recognised in the financial statements) having material impact on the financial position of the Company have been disclosed in the financial statements as required in terms of relevant accounting standards and provisions of the Act[Note No. 30(a)].
ii. As explained to us, the Company has made provision, as required under the applicable law or accounting standards for material foreseeable losses, if any, on long-term contracts, including derivative contracts [Note No. 33(b)].
iii. During the year, the amounts which were required to be transferred to the Investor Education and Protection Fund have been transferred by the Company within the due date.
iv. The reporting requirement on disclosures relating to specified Bank note is not applicable to the company for the year ended 31st March, 2018.
âANNEXURE - A" TO THE INDEPENDENT AUDITORS'' REPORT referred to in our report of even date
i) a. The Company has maintained proper records showing full particulars, including quantitative details and situations of its fixed assets.
b. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies in respect of the assets verified during the year were noticed.
c. According to the information and explanations given to us, the title deeds of immovable property are held in the name of the company.
ii) The inventory has been physically verified by the management during the year. In our opinion, and according to the information and explanations given to us, the frequency of verification is reasonable. As far as ascertained, discrepancies noticed on physical verification of inventory were not material as compared to the book records and these have been properly dealt within the books of account.
iii) According to information and explanations given to us, the Company has given unsecured loans to companies listed in the register maintained under Section 189 of the Act.
(a) As informed to us, the terms and conditions of such loans are not prejudicial to the Company''s interest.
(b) According to the information and explanations given to us, as per the terms and conditions stipulated for loans given, there were no amount due for repayment during the year.
(c) Further, as informed to us, having regard to terms and conditions of the loan, there are no amount outstanding as on 31.03.2018 which were overdue in respect of such loans.
iv) According to the information and explanations given to us, the Company has given loans and guarantee for loan taken by a subsidiary from banks or financial institutions which are in accordance with the provisions of Section 185 and 186 of the Act and the rules made thereunder, to the extent applicable to the Company.
v) The Company has not accepted any deposits from the public and accordingly, the provisions of Section 73 to 76 or any other relevant provisions of the Act are not applicable.
vi) We have broadly reviewed the cost records and accounts prescribed by the Central Government under Section 148(1) of the Act and are of the opinion that prima-facie, such records have been made and maintained by the Company. However, we have not carried out any detailed examination of such accounts and records.
vii) a. According to the information and explanations given to us, except in respect of tax deducted at source and income tax, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Service Tax, Cess and other statutory dues to the extent applicable to it. According to the information and explanations given to us, there are no undisputed amounts payable in respect of aforesaid dues for a period of more than six months from the date they become payable except Rs. 9,89,047 and Rs. 4,12,410 in respect of tax deducted at source and income tax respectively.
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, Sales Tax, Service Tax, Customs Duty, Excise Duty, Goods & Service Tax and Value Added Tax which have not been deposited on account of dispute except as given below :
Name of the Statute |
Nature of Dues |
Forum where Dispute is Pending |
Amount (Rs.) |
Period to which amount relates |
The Income Tax Act, 1961 |
Income Tax |
CIT (Appeals) |
3,33,40,440 |
FY 2010-11, 2011-12, FY 2014-15, FY 2015-16 |
The West Bengal Value Added Tax Rules, 2005 |
Sales Tax |
Joint Commissioner |
22,52,013 |
FY 2012-13 |
The Finance Act, 1994 |
Service Tax |
CESTAT |
15,41,477 |
FY 2007-08 |
viii) According to the information and explanations given to us, the Company has not defaulted in repayment of borrowings from banks. The Company has no loans or borrowings from financial institutions, government or debenture holders during the year.
ix) In our opinion and according to the information and explanations given to us, term loans have been utilised for the purposes for which they were raised. The Company has not raised any amount by way of public ofter.
x) During the course of our examination of books of account carried out in accordance with generally accepted auditing practices in India, we have neither come across incidence of any material fraud on or by the Company nor have we been informed of any such cases by the management.
xi) According to the information and explanations given to us, the managerial remuneration paid or provided during the year was in accordance with provisions of Section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and accordingly, the provision of Clause 3(xii) of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv) According to the information and explanations given to us and based on our examination of the records, during the year, the Company has not entered into any non-cash transactions with directors or persons connected with the directors and accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provision of Clause 3(xvi) of the Order is not applicable to the Company.
âANNEXURE - B" TO THE INDEPENDENT AUDITORS'' REPORT referred to in our report of even date
((Referred to in paragraph (g) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting 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 Energy Development Company Limited ("the Company") 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.
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 issued by the Institute of Chartered Accountants of India. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Companyâs 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 judgement, including the assessment of the risks of material misstatement of the 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 companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs 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 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 companyâs assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over 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 March 31, 2018, 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 A L P S & Co
Chartered Accountants
Firmâs ICAI Registration No. 313132E
Sd/- A. K. Khetawat
Place : New Delhi Partner
Dated : 7th June, 2018 Membership No. 052751
Mar 31, 2016
INDEPENDENT AUDITDRS'' REPORT
TO THE MEMBERS DF ENERGY DEVELOPMENT CDMPANY LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Energy Development Company Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014 ("the Rules"). 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 the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' 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 circumstance. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note No. 12(b) of the financial statements regarding investment of Rs.5,864.55 lacs as on 31st March, 2016 (Rs. 1,465.95 lacs as on 31st March, 2015) in subsidiaries, which are involved in setting up hydel power plants at various locations. The Company has entered into agreements for disposal of 76% of the investments in these subsidiaries at cost to another strategic investor which are to be implemented by 30th September, 2016. Pending this, no diminution in value of these investments has been considered necessary by the management.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and according to the information and explanations given to us and also on the basis of such checks as we considered appropriate, we give in the "Annexure - A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 Rules.
e) On the basis of the 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. Pending litigations (other than those already recognized in the financial statements) having material impact on the financial position of the Company have been disclosed in the financial statements as required in terms of relevant accounting standards and provisions of the Act [Note No. 26(a)].
ii. As explained to us, the Company has made provision, as required under the applicable law or accounting standards for material foreseeable losses, if any, on long-term contracts, including derivative contracts [Note No. 29(b)].
iii. During the year, the amounts which were required to be transferred to the Investor Education and Protection Fund have been transferred by the Company within the due date.
i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies in respect of the assets verified during the year were noticed.
(c) According to information and explanations given to us, the title deeds of immovable property are held in the name of the Company.
ii) The inventory has been physically verified by the management during the year. In our opinion, and according to the information and explanations given to us, the frequency of verification is reasonable. As far as ascertained, discrepancies noticed on physical verification of inventory were not material as compared to the book records and these have been properly dealt within the books of account.
iii) According to information and explanations given to us, the Company has given unsecured loans to companies listed in the register maintained under Section 189 of the Act.
(a) As informed to us, the terms and conditions of such loans are not prejudicial to the Company''s interest.
(b) According to the information and explanations given to us, the principal amount due for repayment and interest thereon has been regularly received.
(c) As informed to us, having regard to terms and conditions of the loan as mentioned above, there is no overdue amount outstanding in respect of such loan and interest thereon.
iv) According to the information and explanations given to us, the Company has given loans and guarantee for loan taken by a subsidiary from banks or financial institutions which are in accordance with the provisions of Section 185 and 186 of the Act and the rules made there under.
v) The Company has not accepted any deposits from the public and accordingly, the provisions of Section 73 to 76 or any other relevant provisions of the Act are not applicable.
vi) We have broadly reviewed the cost records and accounts prescribed by the Central Government under Section 148(1) of the Act and are of the opinion that prima-facie, such records have been made and maintained by the Company. However, we have not carried out any detailed examination of such accounts and records.
vii) (a) According to the information and explanations given to us, except in respect of tax deducted at source, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other statutory dues applicable to it. According to the information and explanations given to us, there are no undisputed amounts payable in respect of aforesaid dues for a period of more than six months from the date they become payable except Rs. 9,89,047/- in respect of tax deducted at source.
(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, Sales Tax, Service Tax, Customs Duty, Excise Duty and Value Added Tax which have not been deposited on account of dispute except as given below :
Statute |
Nature of Tax |
Forum where Dispute is Pending |
Amount (Rs.) |
Period to which amount relates |
The Income Tax Act, 1961 |
Income Tax |
CIT (Appeals) |
3,51,13,330 |
FY 2010-11 and 2011-12 |
The West Bengal Value |
Sales Tax |
Joint Commissioner |
22,52,013 |
FY 2012-13 |
Added Tax Rules, 2005 |
Revision Board |
93,81,687 |
FY 2010-11 and 2011-12 |
viii) According to the information and explanations given to us, the Company has not defaulted in repayment of borrowings from banks. The Company has no loans or borrowings from financial institutions, government or debenture holders during the year. Accordingly, the provisions of Clause 3(viii) of the Order are not applicable to the Company.
ix) In our opinion and according to the information and explanations given to us, term loans have been utilized for the purposes for which they were raised. The Company has not raised any amount by way of public offer.
x) During the course of our examinations of the books of accounts carried out in accordance with the generally accepted auditing practices in India, we have neither come across any incidence of fraud on or by the Company, nor have we been informed of any such case by the management.
xi) According to the information and explanations given to us, the managerial remuneration paid or provided during the year was in accordance with provisions of Section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and accordingly, the provision of Clause 3(xii) of the Order is not applicable to the Company.
xiii) According to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) During the year, the Company has made preferential allotment of fully paid up equity shares and complied with the requirements of section 42 of the Act with respect to such allotment. The amounts raised have been used for the purposes for which they were raised.
xv) According to the information and explanations given to us and based on our examination of the records, during the year, the Company has not entered into any non-cash transactions with directors or persons connected with the directors and accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provision of Clause 3(xvi) of the Order is not applicable to the Company.
For Lodha & Co.
Chartered Accountants
Firm''s ICAI Registration No. 301051E
Sd/-
H K Verma
Place : Kolkata Partner
Dated : 30th May, 2016 Membership No. 055104
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Energy Development Company Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss ,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act 2013 ("the Act") with respect to
the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act read with Rule 7 of Companies
(Accounts) Rules, 2014. 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
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditors' 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to Note 12(ii) to the financial statements which
describes that the Company has investments in various subsidiaries
which are setting up hydel power plants wherein project survey,
geological investigation and formulation of Detailed Project Report
(DPR) and other allied works are under progress. These investments
being strategic and long term in nature, there is no permanent
diminution, therefore no provision has been considered necessary.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, and according to the
information and explanations given to us and also on the basis of such
checks as we considered appropriate, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of section 164(2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us :
i. Pending litigations (other than those already recognised in the
financial statements) having material impact on the
financial position of the Company have been disclosed in the financial
statements as required in terms of relevant accounting standards and
provisions of the Act;
ii. As explained to us, the Company has made provision, as required
under the applicable law or accounting standards for material fore
-seeable losses, if any, on long-term contracts, including derivative
contracts Note 28(b) to the Financial Statement.
iii. There are no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company
ANNEXURE TO AUDITORS' REPORT
ANNEXURE REFERRED TO IN 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) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its assets. No material discrepancies in
respect of the assets verified during the year were noticed.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and
discrepancies noticed on the physical verification of inventory, as
explained, were not material as compared to the book records.
iii) According to information and explanations given to us the company
has given unsecured loans to thirteen companies listed in the register
maintained under Section 189 of the Act.
(a) According to the information and explanations given to us, the
principal amount due for repayment and interest thereon has been
regularly received.
(b) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest there on.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct weaknesses in the internal control system.
v) The Company has not accepted any deposits from the public and
accordingly, the provisions of Section 73 to 76 or any other relevant
provisions of the Act are not applicable.
vi) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 148(1) of the Act and are of
the opinion that prima-facie, such records have been maintained by the
Company. However, we have not carried out any detailed examination of
such accounts and records.
vii) (a) According to the information and explanations given to us,
except in respect of tax deducted at source, the Company
is generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employee's State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess and other material statutory dues applicable to it. According to
the information and explanations given to us, there are no undisputed
amounts payable in respect of aforesaid dues for a period of more than
six months from the date they become payableexcept Rs. 6,45,945 in
respect of tax deducted at source.
(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,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax and Cess which have not been deposited on account of dispute
except as given below :
Statute Nature of Tax Forum where Amount (Rs)
Dispute is Pending
The Income Tax Income Tax CIT (Appeals) 11,94,30,590
Act, 1961
The west Bengal Sales Tax Joint Commissioner 2,39,19,314
Value Added Tax
Rules,2005
Statute Period to which amount relates
The Income Tax ACt 1961 2005-06, 2010-11, 2011-12
The West Bengal Value 2010-11 and 2011-12
(c) According to the information and explanations given to us, there
are no amounts due to be transferred to Investor Education and
Protection Fund.
viii) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
ix) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
x) The company has given guarantee for loan taken by a subsidiary from
banks or financial institutions. According to the information and
explanations given to us we are of the opinion that the terms and
conditions thereof are not prima-facie prejudicial to the interest of
the Company.
xi) The Company has not obtained any term loan and as such the
provisions of clause 3 (xi) of the Order are not applicable to the
Company.
xii) During the course of our examinations of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any incidence of fraud
on or by the Company, nor have we been informed of any such case by the
management.
For Lodha & Co.
Chartered Accountants
Firm ICAI Registration No. 301051E
Sd/- H K Verma
Place : Kolkata Partner
Dated : 28th May, 2015 Membership No. 55104
Mar 31, 2014
We have audited the accompanying financial statements of ENERGY
DEVELOPMENT COMPANY LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, 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.
2. Management''s Responsibility for the Financial Statements
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") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. 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.
3. Auditors'' Responsibility
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.
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 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 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,
but not for the purpose of expressing an opinion on the effectiveness
of the entity''s internal control. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
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, 2014;
(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.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
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 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 appears from our examination of those
books;
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;
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 read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
and
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Auditor''s Report
Annexure referred to in paragraph 5 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) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its business. No material discrepancies in
respect of the assets verified during the year were noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and
discrepancies noticed on the physical verification of inventory, as
explained, were not material as compared to the book records.
iii) (a) According to information and explanations given to us the
company has given unsecured loans to thirteen companies
listed in the register maintained under Section 301 of the Act. The
maximum amount involved during the year was Rs. 629,768,891 and the
year-end balance of such loans was Rs. 347,176,891.
(b) In our opinion, the rate of interest and other terms and conditions
of the unsecured loans as mentioned in (a) above were prima facie not
prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
principal amount is not due for repayment and interest thereon has been
regularly received.
(d) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest thereon.
(e) According to the information and explanations given to us, the
company had taken unsecured loan from four companies covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs. 696,100,000 and the year-end balance was
Rs. 663,600,000
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
(g) According to the information and explanations given to us, the
principal amount is not due for repayment and the company has been
regular in repayment of interest thereon as applicable.
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 sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct weaknesses in the internal controls.
v) According to the information and explanations provided by the
management, other than the matters referred in clause (iii) above,
there are no transactions that need to be entered, in the Register
maintained under Section 301 of the Act.
vi) The Company has not accepted any deposits from the public under
Section 58A, 58AA or any other relevant provision of the Act and the
rules framed thereunder.
vii) Internal audit of the Company has been carried out by firms of
Chartered Accountants. In our opinion the internal audit system in
respect of the areas covered during the year is commensurate with the
size and nature of the business of the Company.
viii) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 209(1) (d) of the Act and are
of the opinion that prima-facie, such records have been maintained by
the Company. However, we have not carried out any detailed examination
of such accounts and records.
ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education & Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of aforesaid dues for a period of
more than six months from the date they became payable.
(b) According to information and explanations given to us and the
records of the Company examined by us, there are no dues of Sales Tax,
Income Tax, Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess
which have not been deposited on account of any dispute except as given
below:
Statute Nature of Tax Forum where Amount (Rs)
Dispute is Pending
The Income Income Tax CIT (Appeals) 125,300,100
Tax Act, 1961
The West Bengal Deputy
Value Added Tax Sales Tax Commissioner 79,02,703
Rules, 2005
Statute Period to which amount relates
The Income Tax Act, 1961 2005-06, 2010-11
The West Bengal Value Added Tax 2010-11
Rules, 2005
x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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. Accordingly, the provisions of
clause 4 (xii) of the order are not applicable to the company.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
xiv) 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 Order are not applicable to the
Company.
xv) The company has given guarantee for loans taken by a subsidiary
from banks. According to the information and explanations given to us
we are of the opinion that the terms and conditions thereof are not
prima-facie prejudicial to the interest of the Company.
xvi) According to the information and explanations given to us, the
Company has not availed fresh term loans during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, no short-term funds have
been utilized for the long-term investment during the year.
xviii) The Company has not made preferential allotment of shares to the
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable to the Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
xx) The Company has not raised money by public issue during the year.
Accordingly, the provisions of clause 4 (xx) of the order are not
applicable to the company.
xxi) During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
For Lodha & Co.
Chartered Accountants
Firm ICAI Registration No.: 301051E
Sd/- H. K. Verma
Place: Kolkata Partner
Date : 29th May, 2014 Membership No. : 55104
Mar 31, 2013
1. Report on the Financial Statements
We have audited the accompanying financial statements of ENERGY
DEVELOPMENT COMPANY 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.
2. Management''s Responsibility for the Financial Statements
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.
3. Auditor''s Responsibility
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
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 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 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Opinion
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.
5. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
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 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 appears from our examination of
those books;
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;
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; and
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.
Annexure to Auditor''s Report
Annexure referred to in paragraph 5 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) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its business. No material discrepancies in
respect of the assets verified during the year were noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and no
material discrepancies were noticed on the physical verification of
inventory as compared to the book records.
iii) (a) According to information and explanations given to us the
company has given unsecured loans to seventeen companies listed in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs. 680,851,633 and the year-end balance of
such loans was Rs. 423,646,413.
(b) In our opinion, the rate of interest and other terms and conditions
of the unsecured loans as mentioned in (a) above were prima facie not
prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
principal amount is repayable after twelve months and interest in
respect of loan granted as mentioned in (a) above are repayable as at
the year-end.
(d) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest there on.
(e) According to the information and explanations given to us, the
company had taken unsecured loan from two companies covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs. 696,500,000 and the year-end balance was
Rs. 534,000,000.
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
(g) According to the information and explanations given to us, the
company has been regular in repayment of the principal amount and
interest thereon as applicable.
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 sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct weaknesses in the internal controls.
v) (a) According to the information and explanations provided by the
management, particulars of the contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Act and exceeding five lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under
Section 58A, 58AA or any other relevant provision of the Act and the
rules framed there under.
vii) Internal audit of the Company has been carried out by firms of
Chartered Accountants. In our opinion the internal audit system in
respect of the areas covered during the year is commensurate with the
size and nature of the business of the Company.
viii) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 209(1) (d) of the Act and are
of the opinion that prima-facie, such accounts and records have been
maintained by the Company. However, we have not carried out any
detailed examination of such accounts and records.
ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education & Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of aforesaid dues for a period of more than
six months from the date they became payable.
(b) According to information and explanations given to us and the
records of the Company examined by us, as at 31st March, 2013, there
are no amount outstanding in respect of wealth tax, custom duty, excise
duty and cess which have not been deposited on account of dispute other
than income tax dues, in respect of which amounts involved and forums
at which dispute is pending are as follows:
Statute Nature of Tax Forum where Amounts Period to which
Dispute is
Pending amount relates
Income Tax
Act, 1961 Income Tax CIT (Appeals) 30,224,140 2010-11
x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
xiv) 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 Order are not applicable to the
Company.
xv) The company has given guarantee for loans taken by a subsidiary
from banks. According to the information and explanations given to us
we are of the opinion that the terms and conditions thereof are not
prima-facie prejudicial to the interest of the Company.
xvi) According to the information and explanations given to us, the
Company has not availed fresh term loans during the current financial
year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, keeping in view that the
unsecured loan taken by the Company and unsecured loan given to
subsidiaries are related to long term capital projects and these will
be repaid/refunded on long term basis, no short-term funds have been
utilized for the long term investment during the year.
xviii) The Company has not made preferential allotment of shares to the
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable to the Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
xx) The Company has not raised money by public issue during the year.
xxi) During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
For Lodha & Co.
Chartered Accountants
Firm ICAI Registration No, 301051E
Sd/-H.S.Jha
Place :Kolkata Partner
Date : 14th May, 2013 Membership No. : 55854
Mar 31, 2012
We have audited the attached Balance Sheet as at 31st March, 2012 and
the Statement of Profit and Loss along with the Cash Flow Statement for
the year ended on that date of Energy Development Company Limited (the
Company). 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.
We conducted our audit in accordance with 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. 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 in exercise
of the powers conferred by Section 227(4A) of the Companies Act,
1956,("the Act") and according to the information and explanations
given to us and on the basis of such checks as we considered
appropriate, we report that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its business. No material discrepancies in
respect of the assets verified during the year were noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and
discrepancies noticed on the physical verification of inventory, as
explained, were not material as compared to the book records.
iii) (a) According to information and explanations given to us the
company has given unsecured loans to seventeen companies listed in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs.1,131,749,890 and the year-end balance
of such loans was Rs. 615,596,900.
(b) In our opinion, the rate of interest and other terms and conditions
on which the unsecured loans as mentioned in (a) above were prima facie
not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
principal amount and interest in respect of loan granted as mentioned
in (a) above are repayable on demand. These loans are being repaid as
and when recalled.
(d) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest there on.
(e) According to the information and explanations given to us, the
company had taken unsecured loan from one company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year and the year-end balance was Rs.455,000,000.
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
(g) According to the information and explanations given to us, the
company has been regular in repayment of the principal amount and
interest thereon as applicable.
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 sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct weaknesses in the internal controls.
v) (a) According to the information and explanations provided by the
management, particulars of the contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Act and exceeding five lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under
Section 58A, 58AA or any other relevant provision of the Act and the
rules framed there under.
vii) Internal audit of the Company has been carried out by firms of
Chartered Accountants. In our opinion the internal audit system in
respect of the areas covered during the year is commensurate with the
size and nature of the business of the Company.
viii) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 209(1) (d) of the Act and are
of the opinion that prima-facie, such records have been maintained by
the Company. However, we have not carried out any detailed examination
of such accounts and records.
ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education & Protection Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of aforesaid dues for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise
Duty and Cess that have not been deposited with the appropriate
authorities on account of any dispute.
x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
xiv) 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 Order are not applicable to the
Company.
xv) The Company has given guarantee for loans taken by a subsidiary
from banks. According to the information and explanations given to us
we are of the opinion that the terms and conditions thereof are not
prima facie prejudicial to the interest of the company.
xvi) According to the information and explanations given to us, the
Company has not availed fresh term loans during the current financial
year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, keeping in view that the
unsecured loan taken by the Company and unsecured loan given to
subsidiaries are related to long term capital projects and these will
be repaid/refunded on long term basis, no short-term funds have been
utilized for the long term investment during the year.
xviii) The Company has not made preferential allotment of shares to the
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable to the Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
xx) The Company has not raised money by way of public issue during the
year.
xxi) During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
2. Further to the 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) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow statement are in agreement with the books of account;
iii) Proper books of account as required by law have been kept by the
Company so far as it appears from our examination of the books of
account;
iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow statement dealt with by this report are in compliance
with the Accounting Standards referred to in Sub-Section 3(C) of
Section 211 of the Act;
v) On the basis of 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 of the Company 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 Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
notes thereon give the information required by the Act in the manner so
required and read together with the other notes thereon, give a true
and fair view:
(a) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) in case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(c) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Lodha & Co.
Chartered Accountants
Firm ICAI Registration No.: 301051E
Sd/- H. S. Jha
Place : Kolkata Partner
Date : 25th May, 2012 Membership No. : 55854
Mar 31, 2011
We have audited the attached Balance Sheet as at 31st March, 2011 and
the Profit and Loss Account along with the Cash Flow Statement for the
year ended on that date of Energy Development Company Limited. 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.
We conducted our audit in accordance with 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. 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 in exercise of the
powers conferred by Section 227(4A) of the Companies Act, 1956,("the
Act") and according to the information and explanations given to us and
on the basis of such checks as we considered appropriate, we report
that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its business. No material discrepancies in
respect of the assets verified during the year were noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and
discrepancies noticed on the physical verification of inventory, as
explained, were not material as compared to the book records.
iii) (a) According to information and explanations given to us the
company has given unsecured loans to four companies listed in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs.661,933,713 and the year-end balance of
such loans was Rs. 291,828,213.
(b) In our opinion, the rate of interest and other terms and conditions
on which the unsecured loans as mentioned in (a) above were prima facie
not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
principal amount and interest in respect of loan granted as mentioned
in (a) above are repayable on demand. These loans are being repaid as
and when recalled.
(d) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest there on.
(e) According to the information and explanations given to us, the
company had taken unsecured loan from two companies covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year was Rs.229,950,000 and the year-end balance
was Rs.229,850,000.
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
(g) According to the information and explanations given to us, the
company has been regular in repayment of the principal amount and
interest thereon as applicable.
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 sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct weaknesses in the internal controls.
v) (a) According to the information and explanations provided by the
management, particulars of the contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Act and exceeding five lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under
Section 58A, 58AA or any other relevant provision of the Act and the
rules framed there under.
vii) Internal audit of the Company has been carried out by firms of
Chartered Accountants. In our opinion the internal audit system in
respect of the areas covered during the year is commensurate with the
size and nature of the business of the Company.
viii) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 209(1) (d) of the Act and are
of the opinion that prima-facie, such records have been maintained by
the Company. However, we have not carried out any detailed examination
of such accounts and records.
ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education & Protection Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of aforesaid dues for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise
Duty and Cess that have not been deposited with the appropriate
authorities on account of any dispute.
x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
xiv) 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 Order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to the information and explanations given to us, the
Company has not availed fresh term loans during the current financial
year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, keeping in view that the
unsecured loan taken by the Company and unsecured loan given to
subsidiaries are related to long term capital projects and these will
be repaid/refunded on long term basis, no short-term funds have been
utilized for the long term investment during the year.
xviii)The Company has not made preferential allotment of shares to the
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable to the Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
xx) The Company has not raised money by public issue during the year.
xxi) During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
2. Further to the 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) The Balance Sheet, the Profit and Loss Account and the Cash Flow
statement are in agreement with the books of account;
iii) Proper books of account as required by law have been kept by the
Company so far as it appears from our examination of the books of
account;
iv) In our opinion, the Profit and Loss Account and the Balance Sheet
of the Company comply with the accounting standards referred to in
Sub-Section 3(C) of Section 211 of the Act;
v) On the basis of 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 of the Company 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 Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereon, give the information required by the Act in the manner
so required and read together with the other notes thereon, give a true
and fair view :
(a) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(b) in case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Lodha & Co.
Chartered Accountants
Firm ICA1 Registration No: 301051E
Sd/- H. S.Jha
Place: Kolkata Partner
Date : 25th July, 2011 Membership No. : 55854
Mar 31, 2010
We have audited the attached Balance Sheet as at 31st March, 2010 and
the Profit and Loss Account along with the Cash Flow Statement for the
year ended on that date of Energy Development Company Limited. 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.
We conducted our audit in accordance with 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 misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
("the Order") issued by the Central Government in exercise of the
powers conferred by Section 227(4A) of the Companies Act, I 956 ("the
Act") and according to the information and explanations given to us and
on the basis of such checks as we considered appropriate, we report
that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the year, which in our opinion is reasonable having regard to the size
of the Company and nature of its business. No material discrepancies in
respect of the assets verified during the year were noticed.
(c) The Company has not disposed off any substantial part of the fixed
assets during the year.
ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventories and
discrepancies noticed on the physical verification of inventory, as
explained, were not material as compared to the book records.
iii) (a) According to information and explanations given to us the
company has given unsecured loans to companies listed in the register
maintained under Section 301 of the Act. The maximum amount involved
during the year was Rs.55,92,00,000 and the year-end balance of such
loans was Rs.36,00,00,000.
(b) In our opinion, the rate of interest and other terms and conditions
on which the unsecured loans as mentioned in (a) above were prima facie
not prejudicial to the interest of the Company.
(c) According to the information and explanations given to us, the
principal amount and interest in respect of loan granted as mentioned
in (a) above are repayable on demand. These loans are being repaid as
and when recalled.
(d) As informed to us, having regard to terms and conditions of the
loan as mentioned above, there is no overdue amount outstanding in
respect of such loan and interest there on.
(e) According to the information and explanations given to us, the
company had taken unsecured loan from companies covered in the register
maintained under Section 301 of the Act. The maximum amount involved
during the year was Rs. 11,14,50,000 and the year-end balance was
Rs.9,32,00,000.
(f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
(g) According to the information and explanations given to us, the
company has been regular in repayment of the principal amount and
interest thereon as applicable.
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 sale
of goods. During the course of our audit, we have not observed any
continuing failure to correct weaknesses in the internal controls.
v) (a) According to the information and explanations provided by the
management, particulars of the contracts or arrangement referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section. ëæ
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Act and exceeding five lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public under
Section 58A, 58AA or any other relevant provision of the Act and the
rules framed there under.
vii) Internal audit of the Company has been carried out by firms of
Chartered Accountants. In our opinion the internal audit system in
respect of the areas covered during the year is commensurate with the
size and nature of the business of the Company.
viii) We have broadly reviewed the cost records and accounts prescribed
by the Central Government under section 209(1) (d) of the Act and are
of the opinion that prima-facie, such records have been maintained by
the Company. However, we have not carried out any detailed examination
of such accounts and records.
ix) (a) According to the information and explanations given to us, the
Company excepting certain advance tax payments, is generally regular in
depositing with the appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education & Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues applicable to
it. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of aforesaid dues for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise
Duty and Cess that have not been deposited with the appropriate
authorities on account of any dispute.
x) The Company does not have any accumulated losses as at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
xi) In our opinion and on the basis of information and explanations
given by the management, the Company has not defaulted in the repayment
of dues to banks. The Company has not borrowed from any financial
institutions and there were no debenture holders during the year.
xii) According to the information and explanations given to us and
based on the documents and records produced 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.
xiii) In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
xiv) 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 Order are not applicable to the
Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) According to the information and explanations given to us, the
Company has not availed fresh term loans during the current financial
year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet, keeping in view that the
unsecured loan taken by the Company are related to the long term
capital projects and these will be repaid on long term basis, no
short-term funds have been utilized for the long term investment during
the year.
xviii) The Company has not made preferential allotment of shares to the
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, the provisions of clause 4(xviii) of the
Order are not applicable to the Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Order are not
applicable to the Company.
xx) The Company has not raised money by public issue during the year.
xxi) During the course of our examination of the books of account
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
Company nor have we been informed of any such case by the management.
2. Further to the 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) The Balance Sheet, the Profit and Loss Account and the Cash Flow
statement are in agreement with the books of account;
iii) Proper books of account as required by law have been kept by the
Company so far as it appears from our examination of the books of
account;
iv) In our opinion, the Profit and Loss Account and the Balance Sheet
of the Company comply with the accounting standards referred to in
Sub-Section 3(C) of Section 211 of the Act;
v) On the basis of 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 of the Company is disqualified as
on 31 March, 2010 from being appointed as a director in terms of
Clause(g)of Sub-section (l)of Section 274 of the Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon, give the information required by the Act in the manner
so required and read together with the other notes thereon, give a true
and fair view :
(a) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) in case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Lodha & Co.
Chartered Accountants
Firm ICAI Registration No: 301051E
Sd/-
H. S. Jha
Place : Kolkata Partner
Date : 28th September, 2010 Membership No. : 55854