Mar 31, 2023
Genus Power Infrastructures Limited Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Genus Power Infrastructures Limited (âthe Company"), which comprise the Balance Sheet as at March 31,2023, the Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us and on the other financial information of the branch, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended (âthe Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the âCode of Ethics'' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Trade receivables (as described in Note 10 of the standalone financial statements) |
|
As at March 31, 2023, the Company has outstanding trade receivables (including retention money) of INR 47,201.21 Lakhs which represents approximately 28 % of the total assets of the Company. In assessing the recoverability of the trade receivables and determination of allowance for expected credit loss, management''s judgement involves consideration of ageing status, historical payment records, evaluation of claims for deficiencies / defective parts, the likelihood of collection based on the terms of the contract and the credit information of its customers. We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above. |
Our audit procedures included the following: - We obtained an understanding and tested on a sample basis the design and operating effectiveness of management control over the recognition and the recoverability of the trade receivables. - We performed test of details and tested relevant contracts, documents and subsequent settlements for material trade receivable balances that are due on performance of future obligations. - We tested the ageing of receivables as at year end and their classification as due/not due by comparing them with the relevant contractual payment milestones. - We performed additional procedures in respect of material trade receivable balances which are past due i.e. testing of customer acceptances, review of historical payment records, correspondence with customers, etc. - We tested the design, implementation and operative effectiveness of management''s key internal controls over allowance for credit losses. - We assessed the allowance for expected credit loss made by management. |
We have determined that there are no other key audit matters to communicate in our report.
Other Information
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual report is expected to be made available to us after the date of our Audit report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
Responsibilities of Management for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements for the financial year ended March 31, 2023 and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Order"), issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive Income, 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 standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 201 5, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2" to this report;
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended,
In our opinion and as explained in note 46 to the standalone financial statement, the managerial remuneration paid / payable to the Chairman, Managing Director and Joint Managing Director of the Company is INR 794.40 Lakhs as compared to prescribed limits under section 197 read with Schedule V to the Companies Act, 2013 of INR 673.41 Lakhs. As per the provisions of the Act, the excess remuneration is subject to approval of the shareholders which the Company proposes to obtain in the forthcoming Annual General Meeting by way of special resolution.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 34B to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 18 to the standalone financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a) The management has represented that, to the best of
its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, , no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under clause 11(g) is not applicable
For S.R. BATLIBOI & ASSOCIATES LLP For KAPOOR PATNI & ASSOCIATES
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: Firm Registration Number: 019927C
101049W/E300004
per Abhinav Kapoor
per Navneet Rai Kabra Partner
Partner Membership Number: 419689
Membership Number: 102328 UDIN: 23419689BGREXP9314
UDIN: 23102328BGSBMW2355
Place of Signature: Jaipur
Place of Signature: Hyderabad Date: May 23, 2023
Date: May 23, 2023
Mar 31, 2018
Report on the Standalone I nd AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Genus Power Infrastructures Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Row Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility forthe Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from materialmisstatement,whetherdue to fraud or error.
Auditorâs 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and there asonableness of the accounting estimates made by the Companyâs 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 financialstatements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2018, its profit including other comprehensive income, its cash flows and the changes in equity fortheyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we reportthat:
(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 ouraudit;
(b) In our opinion, proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, 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 standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on March 31,2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2018, from being appointed asadirectorintermsof section 164 (2)of theAct;
(f) With respect to the adequacy of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements of the Company and the operating effectiveness of such controls, referto ourseparate Report in âAnnexure 2â to this report; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements- Refer Note 34 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure 1 referred to the Independent Auditorâs Report Re: Genus Power Infrastructures Limited (âthe Companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a regular programme of physical verification of its property, plant and equipment by which all property, plant and equipment are verified in a phased manner over a period of 3 years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable propertiesare held in the name of the Company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) (a) The Company has granted loans, the principal and interest thereof are re-payable on demand, to a company covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations given to us, the terms and conditions of the grants and loans are not prejudicialto the Companyâs interest.
(b) The Company has granted loans that are re-payable on demand, to a company covered in the register maintained under section 189 of the Companies Act, 2013. We are informed that the Company has not demanded repayment of any such loan and interest during theyear, and thus, there has been no default on the part of the parties to whom the money has been lent.
(c) There are no overdue amounts in respect of the loan granted to a company covered in the register maintained under Section 189 of the CompaniesAct,2013.
Gv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of electricals and electronic machinery, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not however, made a detailed examination of the same.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other material statutory dues were outstanding, at theyearend,fora period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax and cess on account of any dispute, are as follows:
Name of the Statue |
Nature of the Dues (including interest and penalty where applicable) |
Forum |
Period to which amount relates (Financial Year) |
Gross Amount (Rs. In Lacs) |
Amount Deposited under Protest (Rs. In Lacs) |
Net Amount (Rs. In Lacs) |
The Finance Act, 1994 |
Service Tax |
Customs, Excise and Service Tax Appellate Tribunal |
2006-2007 2010-2012 |
298.13 |
298.13 |
|
The Central Excise Act, 1994 |
Excise Duty |
Customs, Excise and Service Tax Appellate Tribunal |
2007-2008 2009-2010 |
120.25 |
45.18 |
75.06 |
Commissioner (Appeals) |
2015-2017 |
17.17 |
1.29 |
15.88 |
||
Commissioner of Central Excise |
2014-2015 |
6.04 |
6.04 |
â |
||
The Central Sales Tax Act 1956 |
Sales Tax |
Assessing Officer |
2009-2010 |
3.05 |
0.76 |
2.29 |
Assistant Commissioner |
2010- 2011 |
243.47 |
42.42 |
201.05 |
||
Joint Commissioner (Appeals) |
2008-2009 |
263.62 |
160.00 |
103.62 |
||
Deputy Commissioner (Appeals) |
2010- 2016 |
76.14 |
29.97 |
46.17 |
||
Rajasthan Tax Board |
2007-2009 |
913.61 |
39.93 |
873.68 |
||
The Bihar Value Added Act,2005 |
Value Added Tax |
Joint Commissioner (Appeals) |
2006-2009 2015-2016 |
19.50 |
5.77 |
13.73 |
Assistant Commissioner |
2009-2010 |
40.67 |
10.17 |
30.50 |
||
Commissioner |
2009-2010 |
375.29 |
117.54 |
257.75 |
||
The Madhya Pradesh Value Added Tax Act, 2015 |
Value Added Tax |
Deputy Commissioner (Appeals) |
2009-2011 2012- 2013 |
17.64 |
2.11 |
15.53 |
The Rajasthan Value Added Tax Act,2003 |
Value Added Tax |
Rajasthan Tax Board |
2008-2009 |
40.26 |
0.83 |
39.43 |
Deputy Commissioner Appeals |
2010- 2016 |
63.51 |
28.48 |
35.03 |
The Rajasthan |
Entry Tax |
High Court of Rajasthan |
2008-2009 |
9.25 |
9.25 |
- |
|
Tax on Entry of Goods into Local Areas Act, 1999 |
Deputy Commissioner Appeals |
2010- 2016 |
33.28 |
15.92 |
17.36 |
||
The West Bengal |
Value Added Tax |
Tax Tribunal |
2009-2014 |
470.75 |
5.50 |
465.25 |
|
Value Added Tax Act, 2003 |
Joint Commissioner (Appeals) |
2013-2014 |
89.90 |
13.28 |
76.62 |
||
The Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
Assessing Officer |
2014-2015 |
2.67 |
2.67 |
||
The Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2007-2014 |
230.12 |
116.36 |
113.76 |
(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financia linstitution, debenture holders,bank or government.
(ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management the Company has utilized the monies raised by way of term loans for the purposes for which they were raised. The Company has not raised any money way of initial public offer/further public offer/debt instruments and hence, not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during theyear.
(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule Vto the Companies Act 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xi) of the order are not applicable to the Company and hence notcommented upon.
(xiii) Based on ouraudit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.
(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.
Annexure - 2 to the Independent Auditorâs Report of even date on the standalone Ind AS financial statements of Genus Power Infrastructures Limited
Report on thelnternal FinandalControlsunderClause(i) of Sub-section 3 of Section 143 of the Companies Act, 2013(âthe Actâ)
We have audited the internal financial controls over financial reporting of Genus Power Infrastructures Limited (âthe Companyâ) as at March 31, 2018 in conjunction with ouraudit of thestandalone Ind AS financialstatements of the Company fortheyear ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting with reference to these standalone Ind AS financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these standalone Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
Ouraudit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting with reference to these standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system overfinancial reporting with reference to these standalone Ind AS financialstatements.
Meaning of Internal FinancialCo ntro Is Over Financial Reporting With Reference to these Standalonelnd AS Financial Statements
A companyâs internal financial control over financial reporting with reference to these standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting with reference to these standalone Ind AS financial statements includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition, use,ordisposition of thecompanyâs assets that could haveamaterialeffect on the standalone Ind AS financial statements.
Inherent Limitations of Internal FinancialControls Over Financial Reporting With Referencetothese Standalone Financialstatements
Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone Ind AS financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone Ind AS financial statements 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 with reference to these standalone Ind AS financial statements and such internal financial controls over financial reporting with reference to these standalone Ind AS financial statements 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 Instituteof Chartered Accountantsof India.
For S.R. BATLIBOI & ASSOCIATES LLP For D.KHANNA&ASSOCIATES
ICAI Firm registration number; 101049W/E300004 Firm registration numbenOI 2917N
Chartered Accountants Chartered Accountants
per Shankar Srinivasan per Deepak Khanna
Partner Partner
Membership No.; 213271 Membership No.; 092140
Place of signature Jaipur Place of signature Jaipur
Date: May 11,2018 Date: May 11,2018
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Genus Power Infrastructures Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2017, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Row Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as amended. 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. 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 standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2017, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure l a statement on the matters specified in paragraphs3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, 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 standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015 as amended;
(e) On the basis of written representations received from the directors as on March 31,2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2017, from being appointed as a director in terms of section 164 (2) of the Act
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 34 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. The Company has provided requisite disclosures in Note 57 to these standalone Ind AS financial statements as to the holding of Specified Bank Notes on November 8,2016 and December30,2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30,2016. Based on our audit procedures and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company and as produced to us by the Management.
Annexure 1 referred to the Independent Auditorâs Report Re: Genus Power Infrastructures Limited (âthe Companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) The Company has a regular programme of physical verification of its property, plant and equipment by which all property, plant and equipment are verified in a phased manner over a period of 3 years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) (a) The Company has granted loans, the principal and interest thereof are re-payable on demand, to a company covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations given to us, the terms and conditions of the grants and loans are not prejudicial to the Companyâs interest.
(b) The Company has granted loans that are re-payable on demand, to a company covered in the register maintained under section 189 of the Companies Act 2013. We are informed that the Company has not demanded repayment of any such loan and interest during the year, and thus, there has been no default on the part of the parties to whom the money has been lent.
(c) There are no overdue amounts in respect of the loan granted to a company covered in the register maintained under Section 189 of the CompaniesAct,2013.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of electricals and electronic machinery, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not however, made a detailed examination of the same.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of the Statue |
Nature of the Dues (Including interest and penalty where applicable) |
Forum |
Period to which amount relates (Financial Year) |
Gross Amount (Rs. In Lacs) |
Amount Deposited under Protest (Rs. In Lacs) |
Net Amount (Rs. In Lacs) |
The Bihar Value Added Act, 2005 |
Value Added Tax |
Commissioner |
2009-2010 |
375.29 |
117.54 |
257.75 |
Assistant Commissioner |
2009-2010 |
40.67 |
10.17 |
30.50 |
||
Joint Commissioner (Appeals) |
2006 - 2009 2015-2016 |
19.50 |
5.77 |
13.73 |
||
The Rajasthan Value Added Tax Act, 2003 |
Value Added Tax |
Deputy Commissioner Appeals |
2010-2016 |
63.51 |
28.48 |
35.03 |
Rajasthan Tax Board |
2008-2009 |
40.26 |
0.83 |
39.44 |
||
The Central Sales Tax Act 1956 |
Sales Tax |
Deputy Commissioner Appeals |
2010-2016 |
76.14 |
29.97 |
46.17 |
Rajasthan Tax Board |
2007- 2009 |
913.61 |
39.93 |
873.68 |
||
Assessing officer |
2009-2010 |
3.05 |
0.76 |
2.29 |
||
Assistant Commissioner |
2010-2011 |
243.47 |
42.42 |
201.05 |
||
Joint Commissioner (Appeals) |
2008-2009 |
263.62 |
160.00 |
103.61 |
||
The Madhya Pradesh Value Added Tax, 2015 |
Value Added Tax |
Deputy Commissioner (Appeals) |
2009-2011 2012-2013 |
17.64 |
2.11 |
15.54 |
The Rajasthan Tax on Entry of Goods into Local Areas Act 1999 |
Entry Tax |
HonâbleHigh Court of Rajasthan |
2008-2009 |
9.25 |
9.25 |
â |
Deputy Commissioner Appeals |
2010-2016 |
33.28 |
15.92 |
17.36 |
||
Uttrakhand Value Added Tax, 2005 |
Value Added Tax |
Joint Commissioner (Appeals) |
2016-2017 |
4.62 |
4.62 |
- |
The Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
Assessing Officer |
2014-2015 |
2.67 |
2.67 |
- |
Assistant Commissioner |
2012-2013 |
0.60 |
0.60 |
- |
||
Joint Commissioner (Appeals) |
2008-2009 |
39.33 |
- |
39.33 |
||
Tax Tribunal |
2006 - 2008 |
23.02 |
- |
23.02 |
The West Bengal Value Added Tax Act 2003 |
Value Added Tax |
Joint Commissioner (Appeals) |
2013-2014 |
89.90 |
13.28 |
76.62 |
|
Tax Tribunal |
2009-2014 |
470.75 |
5.50 |
465.25 |
|||
The Central Excise Act, 1994 |
Excise Duty |
Customs, Excise and Service Tax Appellate Tribunal, Delhi |
2004-2010 |
125.79 |
50.18 |
75.61 |
|
Commissioner Appeal |
2007-2008 |
5.34 |
0.40 |
4.94 |
|||
Commissioner of Central Excise |
2012-2015 |
94.54 |
94.54 |
- |
|||
The Finance Act, 1994 |
Service Tax |
Commissioner Appeal |
2011-2013 |
18.34 |
6.52 |
11.82 |
|
Customs, Excise and Service Tax Appellate Tribunal, Delhi |
2010-2012 |
165.44 |
â |
165.44 |
|||
The Income Tax Act 1961 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2007-2009 2010-2012 |
74.91 |
74.91 |
â |
(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, debenture holders, bank or government.
(ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not raised any money way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xi) of the order are not applicable to the Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence not commented upon.
(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
For S.R. BATLIBOI & ASSOCIATES LLP For D. KHANNA&ASSOCIATES
ICAI Firm registration number 101049W/E300004 Firm registration number 012917N
Chartered Accountants Chartered Accountants
Per Shankar Srinivasan per Deepak Khanna
Partner Partner
Membership No.: 213271 Membership No.:092140
Place of signature: Hyderabad Place of signature Jaipur
Date: May 23,2017 Date: May 23,2017
Mar 31, 2016
We have audited the accompanying standalone financial statements of Genus Power Infrastructures Limited ("the Company"), which
comprise the Balance Sheet as at March 31, 2016, 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.
Management''s Responsibility for the 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 accounting principles generally accepted in
India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding 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 control that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into
account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the
Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements.
The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone financial
statements give the information required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2016, its profit,
and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order, 2016 ("the Order") issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and
4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
(c) The Balance Sheet, 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 aforesaid standalone financial statements comply with the Accounting Standards specified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors as on March 31, 2016, and 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 2" to this report;
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements â Refer
Note 31 (d), (e) and (f) to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Company.
Re: Genus Power Infrastructures Limited ("the Company")
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a
phased manner over a period of 3 years. In our opinion, this periodicity of physical verification is reasonable having regard to
the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
according to information and explanations given by the management, the title deeds of immovable properties are held in the name
of the Company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material
discrepancies were noticed on such physical verification.
(iii) (a) The Company has granted loans, the principal and interest thereof are re-payable on demand, to a company covered in the
register maintained under section 189 of the Companies Act, 2013. In our opinion and according to the information and
explanations given to us, the terms and conditions of the grants and loans not prejudicial to the Company''s interest.
(b) The Company has granted loans that are re-payable on demand, to a company covered in the register maintained under section
189 of the Companies Act, 2013. The loans granted are re-payable on demand. We are informed that the Company has not demanded
repayment of any such loan and interest during the year, and thus, there has been no default on the part of the parties to whom
the money has been lent.
(c) There are no overdue amounts in respect of the loan granted to a company covered in the register maintained under Section 189
of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the
Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and
advances given, investments made and, guarantees, and securities given have been complied with by the Company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government
for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of
electrical and electronic machinery, and are of the opinion that prima facie, the specified accounts and records have been made
and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund,
employees'' state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund,
employees'' state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other
material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became
payable.
(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of
excise, value added tax and cess on account of any dispute, are as follows:
Name of the Nature of Dues Amount(Rs.lnLacs)
Statue (including
Gross Amount Net
interest and Amount deposited Amount
penalty where under
protest
applicable)
The Customs Custom Duty 378.73 63.21 315.52
Act,1962
The Finance
Act, 1994 Service Tax 298.13 30.00 268.13
The Central
Excise Excise Duty 126.55 50.68 75.87
Act, 1994
88.50 88.50 -
14.35 6.92 7.43
The Central
Sales Sales Tax 3.05 0.76 2.29
Tax Act,1956 243.47 42.42 201.05
263.62 155.90 107.71
913.61 39.93 873.68
The Bihar
Value Added Value Added
Tax 19.5 5.77 13.73
Act,2005
40.67 10.17 30.50
575.29 117.54 257.75
The Madhya
Pradesh
Value Value Added
Tax 17.64 2.11 15.53
Added Tax
Act.2015
The
Rajasthan
Value Value Added
Tax 40.26 0.83 39.43
Added Tax
Act.2003
The
Rajasthan
Tax on Entry Entry Tax 9.25 9.25 -
of Goodsinto
Local
Areas
Act,1999
The West
BengalValue Value Added
Tax 470.75 5.5 465.25
Added Tax
Act 2003
The Uttar
Pradesh
Value Value Added
Tax 25.02 - 23.02
AddedTax
Act.2008 39.33 39.33 06 06
2.67 2.67
Thelncome
TaxAct,1961 Income Tax 3,343.27 - 3,347.27
218.99 218.99 -
465.33 465.33 -
Name of the Statue Period to which Forum
amount relates
(Financial Year)
The Customs 2013-2014 Customs, Excise
Act,1962 and Service Tax
Appellate Tribunal,
Mumbai
The Finance
Act, 1994 2006-2007 Customs, Excise
2010-2012 and Service Tax
Appellate Tribunal,
Delhi
The Central
Excise 2004-2010 Customs, Excise and
Act, 1994 Service Tax Appellate
Tribunal, Delhi
2012-2015 Commissioner of
Central Excise
2006-2012 Commissioner
(Appeals)
The Central
Sales 2009-2010 Assessing Officer
Tax Act,1956
2010-2011 Assistant Commissioner
2008-2009 Joint Commissioner
(Appeals)
2007-2009 Rajasthan Tax Board
The Bihar
Value Added 2006-2009 Joint Commissioner
aCT,2005
2015-2016 (Appeals)
2009-2010 Assistant
Commissioner
2009-2010 Commissioner
The Madhya
Pradesh
Value 2009-2011 Deputy
Added Tax
Act.2015
2012-2013 Commissioner
(Appeals)
The
Rajasthan 2008-2009 Rajasthan Tax
Board
Tax on Entry
of Goodsinto
Local
Areas
Act,1999
The 2008-2009 Hon''bleHigh
Courtof
Rajasthan Rajasthan
Tax on Entry
of Goodsinto
Local
Areas
Act,1999
The West
BengalValue 2009-2014 Tax Tribunal
Added Tax
Act,2003
The Uttar
Pradesh
Value 2006-2008 Tax Tribunal
Added Tax
Act,2008
2008-2009 Joint Commissioner
(Appeals)
2012-2013 Assistant
Commissioner
2014-2015 Assessing Officer
Thelncome
TaxAct,1961 1999-2007 Hon''ble High Court
of Rajasthan
2007-2008 Income tax appellate
tribunal
2008-2012 Commissioner of
Income tax (appeals)
(viii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted
in repayment of dues to a financial institution, debenture holders, bank or government.
(ix) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
according to the information and explanations given by the management, the Company has not raised any money way of initial public
offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the
Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the
Company by the officers and employees of the Company has been noticed or reported during the year.
(xi) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
according to the information and explanations given by the management, we report that the managerial remuneration has been paid /
provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xi) of the order are not
applicable to the Company and hence not commented upon.
(xiii) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and according to the information and explanations given by the management, transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to
the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company
has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year
under review and hence not commented upon.
(xv) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and
according to the information and explanations given by the management, the Company has not entered into any non-cash transactions
with directors or persons connected with him.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India
Act, 1934 are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Genus Power Infrastructures Limited ("the Company")
as of March 31, 2016 in conjunction with our audit of the standalone 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
the 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 Company''s internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and,
both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system
over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of
the 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
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company''s assets that could have a material effect on the 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, 2016, 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 S.R. BATLIBOI & ASSOCIATES LLP For D. KHANNA & ASSOCIATES
ICAI Firm registration
number: 101049W/E300004 Firm registration number: 012917N
Chartered Accountants Chartered Accountants
per Shankar Srinivasan per Deepak Khanna
Partner Partner
Membership No.: 213271 Membership No.: 092140
Place of signature : Hyderabad Place of signature : Jaipur
Date : May 25, 2016 Date : May 25, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Genus Power
Infrastructures Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and Cash
Row Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with accounting principles generally
accepted in India, including the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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,
issued by the Institute of Chartered Accountants of India, as 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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015, its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure 1,
a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Row Statement dealt with by this Report are in agreement with the books
of account;
d) In our opinion, the aforesaid 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; and
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 31 (d), (e)
and (f) to the financial statements;
II. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
III. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of 3 years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(ii) (a) The Management has conducted physical verification of
inventory at reasonable intervals during the year.
(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 inventory.
Discrepancies noted on physical verification of inventories were not
material, and have been properly dealt with in the books of account.
(iii) (a) The Company has granted loans, the principal and interest
thereof are re-payable on demand, to a company covered in the register
maintained under section 189 of the Companies Act, 2013. We are
informed that the Company has not demanded repayment of any such loan
and interest during the year, and thus, there has been no default on
the part of the parties to whom the money has been lent.
(b) There is no overdue amount of loans granted to a company listed in
the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) To the best of our knowledge and as explained, the Central
Government has not specified the maintenance of cost records under
section 148 (1) of the Companies Act, 2013, for the products of the
Company.
(vii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees' 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.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income-tax, wealth-tax, service tax, sales-tax,
customs duty, excise duty, value added tax, cess and other material
statutory dues were outstanding, at the year end, for a period of more
than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, value added tax and cess on account of any dispute, are as
follows:
Name of the Nature of dues Amount (Rs. In lacs)
statute (Including Gross Amount paid Net
interest and Amount under Amount
penalty where protest
applicable)
The Central
Excise Excise duty 14.35 6.52 7.83
Act, 1944
Excise duty 53.25 49.68 3.57
Excise duty 166.66 88.50 78.16
Finance
Act, 1994 Service tax 298.13 30.00 268.13
The Customs
Act, Custom duty 378.73 63.21 315.52
1962
The Central
Sales Sales tax 525.62 202.37 323.25
Tax Act,
1956
Sales tax 935.70 - 935.70
Sales tax 913.61 39.93 873.68
The Bihar
Value Value added
tax 431.95 130.95 301.00
Added Tax
Act, 2005
The Madhya Value added tax 15.02 1.46 13.56
Pradesh
Value Added
Tax Act,
2002
The
Jharkhand Value added tax 53.15 8.51 44.64
Value Added
Tax Act,
2005
The
Rajasthan Value added tax 40.26 0.83 39.43
Value
Added
Tax Act,
2003
The
Rajasthan
Tax Entry tax 9.25 9.25 -
on Entry
of Goods
into Local
Areas.
Act, 1999
The Uttar
Pradesh Value added tax 41.33 2.00 39.33
Value
Added Tax
Act, 2008
23.02 - 23.02
The West Value added tax 239.57 - 239.57
Bengal Value
Added Tax
Axt 2003
216.50 - 216.50
14.68 5.50 9.18
Income Tax Income tax 3,343.27 - 3,343.27
Act
1961
218.99 218.99 -
465.53 465.53 -
Name of the statute Period to which Forum where dispute
amount relates is pending
(Financial Year)
The Central Excess 2006-2012 Additional
Commissioner of Central
Excise
2004 - 2010 Customs, Excise and
Service Tax Appellate
Tribunal
2009 - 2010 Commissioner of
2012-2015 Central Excise
Finance Act 1994 2006 - 2008 Customs, Excise and
2010 - 2013 Service Tax Appellate
Tribunal
The Custom Act 1962 2013 - 2014 Commissioner of
customs (Appeals)
2008 - 2013 Joint Commissioner
(Appeals)
2006 - 2008 Deputy Commissioner
(Appeals)
2007 - 2009 Rajasthan Tax Board
The Bihar Value
Added Tax Act 2005 2006 - 2010 Joint Commissioner
2005 (Appeals)
The Madhya Pradesh
Value Added Tax
Act 2002 2009 - 2011 Deputy Commissioner
(Appeals)
The Jharkhand Value
Added Tax Act 2005 2010 - 2011 Joint Commissioner
The Rajasthan Tax
Value Added Tax 2003 2008 - 2009 Rajasthan Tax
Board
The Rajasthan Tax
on Entry of Goods
into Local Areas Act
1999 2008 - 2009 Hon'ble High Court
of Rajasthan
The Uttar Pradesh
Value Added Tax
Act 2008 2008 - 2009 Deputy
2012 - 2013 Commissioner
Appeals
2006 - 2008 Tax Tribunal
The West Bengal 2011 - 2012 Additional Commissioner
2009 - 2011 Joint Commissioner
2013 - 2014 Tax Tribunal
Income Tax Act 1999 - 2007 Hon,ble High Court of
Rajasthan
1961
2007 - 2008 Income tax appellate
tribunal
2008 - 2012 Commissioner of
Income tax (Appeals)
(d) According to the information and explanations given to us, the
amount required to be transferred to investor education and protection
fund in accordance with the relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under has been transferred to such
fund within time.
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and
immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(x) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others from banks, the
terms and conditions whereof, in our opinion, are not prima-facie
prejudicial to the interest of the Company. According to the
information and explanations given to us, the Company has not given any
guarantee for loans taken by others from financial institutions.
(xi) Based on the information and explanations given to us by the
Management, term loans were applied for the purpose for which the loans
were obtained.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the year.
For S.R. BATLIBOI & ASSOCIATES LLP For D. KHANNA& ASSOCIATES
ICAI Firm registration number: 101049W Firm registration number:
012917N
Chartered Accountants Chartered Accountants
per Vikas Kumar Pansarl per Deepak Khanna
Partner Partner
Membership No.: 093649 Membership No.: 092140
Place of signature: Hyderabad Place of signature Jaipur
Date: May 27,2015 Date: May 27,2015
Mar 31, 2014
We have audited the accompanying financial statements of Genus Power
Infrastructures 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.
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 September 13, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India 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.
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 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.
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 Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1 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.
2 As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
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
sub-section (3C) of section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated September 13,2013 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 INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
(I) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) The Company has phased programme of physical verification of its
fixed assets at reasonable intervals, which, in our opinion, is
reasonable having regard to the size of the Company and nature of Its
assets During the year, the management has physically verified fixed
assets and no material discrepancies were noticed on such physical
verification.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year and therefore the going concern status of the
Company Is not affected.
(ii) (a) We are Informed that the physical verification of Inventory
has been conducted during the year by the management at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of 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 has maintained proper records of inventory As explained
to us, no material discrepancies noticed on physical verification of
inventory as compared to book records.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956
Accordingly, the provisions of clause 4 (iii) (a) to (d) of the order
are not applicable to the company and hence not commented upon.
(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 purchase of inventory, fixed assets and also
for the sale of goods. During the course of our audit, we have not
observed any major weakness or continuing failure to correct major
weaknesses in internal control system of the company In respect of
these areas.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
for the year have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Companies Act, 1956 in excess of Rs 5,00,000/- in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market price at the relevant time.
(vi) The Company has not accepted deposits from public within the
meaning of the provisions of section 58A and 58AA of the Companies Act,
1956 and rules made there under Therefore, the provisions of Clause
(vi) of paragraph 4 of the Order are not applicable to the Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have been informed that the Central Government has prescribed
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956, for the products manufactured by the Company and company is
maintaining the same.
(ix) (a) According to the information and explanations given to us and
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at March
31,2014 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of Income Tax,
Excise Duty, Service Tax, CST, Vat and Custom Duty as at March 31,2014,
which have not been deposited on account of matters pending before
appropriate authorities, are as unden-
Name of the Nature of Amount Forum where disputes
Statute disputed dues (Rs In lacs) are pending
Income Tax Disallowances 2714.90 ITAT, CIT (Appeals) &
Act, 1961 of Expenses High Court
Excise and Disallowances 108.26 Commissioner, Commissioner
Service Tax of Cenvat credit (Appeals,) CESTAT, Addl.
taken on various Commissioner & Dy.
Items Commissioner
CST and VAT Ex-parte and 2804.92 Hon''ble High Court, Tax
Disallowances Board & Dy. Commissioner
(x) The Company has no accumulated losses and has not incurred any cash
losses in the current financial year or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to the information and explanations given to us, during
the year the Company has not granted any loan on the basis of security
by way of pledge of shares.
(xiii) In our opinion, the Company is not a chit fund, nidhi, mutual
benefit fund or a Society Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments Accordingly clause 4(xiv) of the Companies (Auditor''s
Report) Order 20031s not applicable All shares, securities, debentures
and other investments have been held by the Company in its own name
except the shares held by Genus Shareholders'' Trust, pursuant to the
Scheme of Arrangement duly approved by the Hon''ble High Court.
(xv) According to the information and explanations given to us, the
Company has given guarantee for loans taken by others 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 thelnterest of the Company.
(xvi) The Company has not raised new term loan during the year To the
best of our knowledge, belief and according to the Information and
explanation given to us, the term loan was prlma facie, appliedDy the
Company for the purpose for which the loans were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, fund raised on short term basis have, prima facie, not been used
during the year for long term investments ana vice versa, other than
temporary deployment pending application.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956 However, the Company has issued
and allotted 9,77,19,120 equity shares pursuant to the Scheme of
Arrangement duly approved by the Hon''ble High Court and requisite
compliance made.
(xix) According to information and explanation given to us, the Company
has not Issued any debentures during the year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, was
noticed or reported during the course of our audit.
For D Khanna & Associates
Chartered Accountants
(Firm''s Registration Number: 012917N)
Sd/-
Deepak Khanna
Partner
Jaipur, May 30, 2014 Membership No 092140
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Genus Power
Infrastructures 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.
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.
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. 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.
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 Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
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
sub-section (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 INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of "report on other legal
and regulatory requirements" of our report of even date
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) The Company has phased programme of physical verification of its
fixed assets at reasonable intervals, which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
assets. During the year, the management has physically verified fixed
assets and no material discrepancies were noticed on such physical
verification.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year and therefore the going concern status of the
Company is not affected.
(ii) (a) We are informed that the physical verification of inventory
has been conducted during the year by the management at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of 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 has maintained proper records of inventory. As
explained to us, no material discrepancies noticed on physical
verification of inventory as compared to book records.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956. (iv)
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and the nature of its business with regard to
purchase of inventory, fixed assets and also for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
for the year have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Companies Act, 1956 in excess of Rs. 5,00,000/- in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market price at the relevant time.
(vi) The Company has not accepted deposits from public within the
meaning of the provisions of section 58A and 58AA of the Companies Act,
1956 and rules made there under and requisite compliance made.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have been informed that the Central Government has prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956, for the products manufactured by the Company and company is
maintaining the same.
(ix) (a) According to the information and explanations given to us and
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees'' state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st March,
2013 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of Income Tax,
Excise Duty, Service Tax, CST, VAT and Custom Duty as at 31st March,
2013, which have not been deposited on account of matters pending
before appropriate authorities, are as under:
Name of Nature of Amount Forum where disputes are
pending
the Statute disputed dues (Rs. In
lacs)
Income Tax Disallowances
of Expenses 2344.60 ITAT, CIT (Appeals) & High
Court
Excise and Disallowances
of Cenvat 116.93 Commissioner, Commissioner
(Appeals), CESTAT,
Service Tax credit taken Addl. Commissioner &
Dy. Commissioner
CST and VAT Ex-parte and
Disallowances 1709.83 Hon''ble High Court, Tax
Board &
Dy. Commissioner (Appeals)
(x) The Company has no accumulated losses and has not incurred any cash
losses in the current financial year or in the immediately preceding
financial year. (xi) In our opinion and according to the information
and explanations given to us, the Company has not defaulted in
repayment of dues to financial institution and banks.
(xii) According to the information and explanations given to us, during
the year the Company has not granted any loan on the basis of security
by way of pledge of shares.
(xiii) In our opinion, the Company is not a chit fund, nidhi, mutual
benefit fund or a Society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly clause 4(xiv) of the Companies
(Auditor''s Report) Order 2003 is not applicable.
(xv) According to the information and explanations given to us, the
Company has given guarantee of Rs.18500.00 lacs for loans taken by
other from banks or financial institutions.
(xvi) The Company has not raised new term loan during the year. To the
best of our knowledge, belief and according to the information and
explanation given to us, the term loan was prima facie, applied by the
Company for the purpose for which the loans were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, fund raised on short term basis have, prima facie, not been used
during the year for long term investments and vice versa, other than
temporary deployment pending application.
(xviii) The Company has made not made any preferential allotment of
shares during the Year.
(xix) According to information and explanation given to us, the Company
has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, was
noticed or reported during the course of our audit.
For D. Khanna & Associates
Chartered Accountants
(Firm''s Registration Number: 012917N)
Sd/-
Deepak Khanna
Partner
Membership No. 092140
Jaipur, May 29, 2013
Mar 31, 2011
We have audited the attached Balance Sheet of Genus Power
Infrastructures Limited as at 31st March, 2011 and the Profit and Loss
Account for the year ended on that date annexed thereto and Cash Flow
Statement for the year ended on that date. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India, in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of those books;
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of Clause (g) of
sub-section (i) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011;
b) in the case of Profit & Loss Account, of the profit for the year
ended on that date and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REFFERED TO IN PARAGRAPH 3 OF OUR REPORT OF
EVEN DATE
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) The Company has phased programme of physical verification of its
fixed assets at reasonable intervals, which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
assets. During the year, the management has physically verified fixed
assets and no material discrepancies were noticed on such physical
verification.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year and therefore the going concern status of the
Company is not affected.
(ii) (a) We are informed that the physical verification of inventory
has been conducted during the year by the management at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of 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 has maintained proper records of inventory. As
explained to us, no material discrepancies noticed on physical
verification of inventory as compared to book records.
(iii) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
paragraph 4 (iii)(b),(c) and (d) of the Order are not 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 purchase of inventory, fixed assets and also
for the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
for the year have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Companies Act, 1956 in excess of Rs. 5,00,000/- in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market price at the relevant time.
(vi) The Company has not accepted deposits from public within the
meaning of the provisions of section 58A and 58AA of the Companies Act,
1956 and rules made there under and requisite compliance made.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have been informed that the Central Government has prescribed
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, for the products manufactured by the Company and the Company
is maintaining the same.
(ix) (a) According to the information and explanations given to us and
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees' state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31st March,
2011 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of Income Tax,
Excise Duty, Service Tax, CST, VAT and Custom Duty as at 31st March,
2011, which have not been deposited on account of matters pending
before appropriate authorities, are as under:
Name of the Nature of disputed Amount (Rs. Forum where
Statue dues In lacks) disputes are
pending
Income Tax Disallowances of 3192.46 ITAT, CIT
Expenses (Appeals) & High
Court
Excise and Disallowances of 344.00 Commissioner,
Service Tax Cenvat credit taken Commissioner
(Appeals), CESTAT,
AddI. Commissioner
& Dy. Commissioner
CST and VAT Ex-parteand 411.11 Hon'ble High Court,
Disallowances Tax Board &Dy.
Commissioner
(Appeals)
(x) The Company has no accumulated losses and has not incurred any cash
losses in the current financial year or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to the information and explanations given to us, during
the year the Company has not granted any loan on the basis of security
by way of pledge of shares.
(xiii) In our opinion, the Company is not a chit fund, nidhi, mutual
benefit fund or a Society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly clause 4(xiv) of the Companies
(Auditor's Report) Order 2003 is not applicable.
(xv) According to the information and explanations given to us, the
Company has given guarantee of Rs.5200.00 lacs for loan taken by other
from banks or financial institutions.
(xvi) The Company has not raised new term loan during the year. To the
best of our knowledge, belief and according to the information and
explanation given to us, the term loan outstanding at the beginning of
the year were prima facie, applied by the Company for the purpose for
which the loan were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, fund raised on short term basis have, prima facie, not been used
during the year for long term investments and vice versa, other than
temporary deployment pending application.
(xviii) The Company has made preferential allotment of 40,00,000 equity
shares of Re.1/- each upon conversion of warrants at a price, which is
not prejudicial to the interest of the Company, to one party covered in
the register maintained under Section 301 of the Companies Act, 1956,
during the year.
(xix) According to information and explanation given to us, the Company
has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, was
noticed or reported during the course of our audit.
For D. Khanna & Associates
Firm Registration Number: 012917N
Chartered Accountants
Deepak Khanna
Partner
Membership No. 092140
Jaipur, July 27, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Genus Power
Infrastructures Limited as at 31 st March, 2010 and the Profit and Loss
Account for the year ended on that date annexed thereto and Cash Flow
Statement for the year ended on that date. 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 lndia. 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 management, as well as evaluating the over all financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India, in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said order.
Further to our comments in the Annexure referred to above, we report
that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) In our opinion, the Company has kept proper books of accounts as
required by law so far as appears from our examination of those books;
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on 31 "March, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of Clause (g) of
sub-section (i) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and other notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of BaIance Sheet, of the state of affairs of the Company
as at 31st,March,2010;
b) in the case of Profit & Loss Account, of the profit for the year
ended on that date and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Reports referred to in Paragraph 3 of our
Report of even date
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) The Company has phased programme of physical verification of its
fixed assets at reasonable intervals, which, in our opinion, is
reasonable having regard to the size of the Company and nature of its
assets. During the year, the management has physically verified fixed
assets and no material discrepancies were noticed on such physical
verification.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year and therefore the going concern status of the
company is not affected.
(ii) (a) We are informed that the physical verification of inventory
has been conducted during the year by the management at reasonable
intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of 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 has maintained proper records of inventory. As
explained to us, no material discrepancies noticed on physical
verification of inventory as compared to book records.
(iii) In respect of loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintai ned undeletion 301 of the Companies Act, 1956:
(a) The Company has not granted loans to any party but taken from one
party aggregating to Rs.1.40 lacs during the year.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest wherever applicable and other terms
and conditions are not, prima facie, prejudicial to the interest of the
Company.
(c) The said loan is repayable on demand and there is no repayment
schedule.
(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 purchase of inventory, fixed assets and also
for the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
for the year have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained under Section 301 of
the Companies Act, 1956 in excess of Rs. 5,00,000/- in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market price at the relevant time.
(vi) The Company has not accepted deposits from pubIic with in the
meaning of the provisions of section 58A and 58AA of the Companies Act,
1956 and rules made there under and requisite compliance made.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have been informed that the Central Government has prescribed
maintenance of cost records under section 209(1)
(d) of the Companies Act, 1956, for the products manufactured by the
Company and company is maintaining the same.
(ix) (a) According to the information and explanations given to us and
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it. According to the information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at 31 st
March, 2010 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of Income Tax,
Excise Duty, Service Tax, CST, Vat and Custom Duty as at 31 st March,
2010, which have not been deposited on account of matters pending
before appropriate authorities, are asunder:-
Name of the
Statute Nature of
disputed dues Amount Forum where
(Rs. In
lacs) disputes are pending
Income Tax Disallowances of Exp. 483.27 Honble High Court
Income Tax Disallowances of Exp. 750.00 Commissioner Income
Tax-Ill
Excise &
Service Tax Disallowances of Cenvat 354.16 Commissioner (Anti
Evasion),
credit taken Commissioner (Appeals) &
CESTAT
CST&VAT Ex-parte &
Disallowances 1043.15 Honble High Court, Tax
Board & Dy.
Commissioner (Appeals)
(x) The Company has no accumulated losses and has not incurred any cash
losses in the current financial year or in the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to the information and explanations given to us, during
the year the Company has not granted any loan on the basis of security
by way of pledge of shares.
(xiii) In our opinion, the Company is not a chit fund, nidhi, mutual
benefit fund or a Society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order2003 is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly clause 4(xiv) of the Companies
(Auditors Report) Order 2003 is not applicable.
(xv) According to the information and explanations given to us, the
Company has given guarantee of Rs.5000.00 lacs for loan taken by other
from banks or financial institutions.
(xvi) The Company has not raised new term loan during the year. To the
best of our knowledge, belief and according to the information and
explanation given to us, the term loan outstanding at the beginning of
the year were prima facie, applied by the company for the purpose for
which the loan were raised.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, fund raised on short term basis have, prima facie, not been used
during the year for long term investments and vice versa, other than
temporary deployment pending application.
(xviii) The Company has made preferential allotment of 1100000 warrants
convertible into equity shares at a price, which is not prejudicial to
the interest of the Company, to one party covered in the register
maintained under Section 301 of the Companies Act, 1956 during the
year.
(xix) According to information and explanation given to us, the Company
has not issued any debentures during the year.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, was
noticed or reported during the course of our audit.
For D. Khanna & Associates
Firm Registration Number: 012917N
Chartered Accountants
Deepak Khanna
Partner
M. No. 092140
Jaipur, August 06, 2010