Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of India Nippon Electricals Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that 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.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit, 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) I n our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) I n our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (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 India Nippon Electricals Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
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, 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 of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the criteria for internal financial control over financial reporting 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.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) With respect to immovable properties of land and buildings that are freehold, according to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 1 85 and 1 86 of the Companies Act, 201 3 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year and hence compliance with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted is not applicable to the Company.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Excise Duty, Value Added Tax, Service Tax, Goods and Service Tax, Cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Excise Duty, Value Added Tax, Service Tax, Goods and Service Tax, Cess and other material statutory dues in arrears as at 31st March 2018 for a period of more than six months from the date they became payable.
(c) Details of dues of Service Tax, Local Area Development Tax, Value Added Tax, Sales Tax and Income Tax which have not been deposited as on 31st March 2018 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute |
Period to which the Amount Relates |
Amount Involved (Rs. in lacs) |
Amount Unpaid (Rs. in lacs) |
Service tax under Finance Act,1994 |
Non- payment of service tax on commercial training |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2012-2015 and 2015-2016 |
10.08 |
10.08 |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax credit availed. |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
2005-06 and 2006-07 |
11.49 |
11.49 |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax Credit availed. |
Commissioner of Central Excise (Appeals). |
2006-07 |
0.27 |
0.27 |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax Credit availed. |
Office of the Superintendent Central Excise |
2007-08 2012-13 |
1.50 |
1.50 |
Local Area Development Tax of Haryana state. |
Local Area Development Tax Assessment demand |
Joint Excise Taxation Commissioner |
2003-04 and 2004-05 |
0.41 |
0.41 |
Tamil Nadu VAT Act 2006 |
VAT ineligible credits |
Assistant Commissioner of Commercial Taxes |
2007-08 to 2015-16 |
193.41 |
193.41 |
Central Sales Act 1956 |
Penalty for issuing C-Forms without inclusion of B-Certificate |
Assistant Commissioner of Commercial Taxes |
2010-11 to 2015-16 |
1.63 |
1.63 |
Income Tax Act 1961 |
Deduction under Sec 80IB-with respect to Disallowance of Royalty payment, Apportionment of R&D Expenditure. |
Commissioner of Income Tax (Appeals) |
2012-13 |
64.77 |
64.77 |
(viii) The Company has not taken any loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under clause (viii) of CARO 2016 is not applicable to the Company.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firmâs Registration No. 117366W/W-100018)
Place : Chennai Ananthi Amarnath
Date : 8th May 2018 (Partner)
(Membership No. 209252
Mar 31, 2017
To the Members of India Nippon Electricals Limited
Report on the Standalone IndAS Financial Statements
We have audited the accompanying standalone IndAS financial statements of India Nippon Electricals Limited (the Company) which comprises the Balance Sheet as at March 31, 2017, the statement of Profit and Loss ( including Other Comprehensive Income), the Cash Flow Statement and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information. ( Hereinafter referred to as "the Standalone IndAS financial statements")..
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (''''the Act") with respect to the preparation of these standalone IndAS financial statements that give a true and fair view of the financial position, profit (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 prescribed under Section 1 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone IndAS 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 IndAS 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 hereunder.
We conducted our audit of the standalone IndAS financial statements in accordance with the Standards on Auditing specified under section 1 43(1 0) 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 IndAS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone IndAS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatements of the standalone IndAS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone IndAS 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 Company Directors, as well as evaluating the overall presentation of the standalone IndAS 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 IndAS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IndAS 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 including the IndAS, of the financial position of the Company as at 31st March 2017 and its financial performance including other comprehensive income, its cash flows and the changes in the equity for the year ended on that date.
Report on other Legal and Regulatory Requirements:
As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 201 3, we give in the Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by section 1 43(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, 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 rule 7 of the companies (accounts) Rules 2014;
e. On the basis of the written representations received from the directors as on 31 st March 2017 taken on record by the board of directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Sec 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure-B"; and
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 to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its financial position in its standalone IndAS financial statements - Refer Note : 39 to the Standalone IndAS financial statements disclosing Contingent Liabilities;
ii. The Company has made provisions, 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.
iv. The company has provided requisite disclosures in its Standalone IndAS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the company. Refer Note: 44 to the Standalone IndAS financial statement
Annexure-A referred to in paragraph 1 of our report of even date.
The provisions of the following clauses of Companies (Auditor''s Report) Order, 2016 are not applicable to the Company for the year.
a) Clause 3(v) with regard to acceptance of deposits from the public since the Company has not accepted any deposits.
b) Clause 3(viii) with regard to default in repayment of dues to a financial institution or Bank or Debenture Holders since the Company has not borrowed any amount during the year.
c) Clause 3(ix) with regard to Money raised by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
d) Clause 3(xii) with regard to Compliance by the Nidhi Company.
e) Clause 3(xiv) with regard to preferential allotment (or) private placement of shares since the Company has not made any preferential allotment (or) private placement of shares (or) fully (or) partly convertible debentures during the year.
f) Clause 3(xvi) since the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and the situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets at reasonable intervals. The fixed assets are physically verified by the external agency, which in our opinion, is reasonable having regard to the size of the group and nature of its assets . No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals.
(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) On the basis of the examination of the records of the inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material and have been properly dealt with in the books of accounts.
(iii) The Company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of The Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of Companies Act, 2013, with respect to the loans and investments made
(v) On the basis of the records, we are of the opinion that prima facie cost records and accounts specified by the Central Government of India under sub-section (1) of section 148 of the Companies Act, 2013 have been maintained. However, we are not required to and have not carried out any detailed examination of such accounts and records.
(vi) (a) According to the records of the Company, 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 Customs, Duty of Excise, Value Added Tax, cess and other statutory dues.
(b) Based on the audit procedures and on the information and explanations given by the management, we furnish below the details of dues of Service Tax / Duty of Excise / Local area Development Tax / Income Tax , which have not been deposited on account of disputes.
Statute |
Nature of dues |
Period to which relates (Financial Year) |
Amount due In Rs. Lakhs |
Forum where dispute is pending |
Service tax under Finance Act,1994 |
Non- payment of service tax on commercial training |
2012-2015 and 2015-2016 |
10.08 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax credit availed. |
2005-06 and 2006-07 |
11.49 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT) |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax Credit availed. |
2006-07 |
0.27 |
Commissioner of Central Excise (Appeals). |
Service tax under Finance Act ,1994 |
Disallowance of Service Tax Credit availed. |
2007-08 2012-13 |
1.50 |
Office of the Superintendent Central Excise |
Local Area Development Tax of Haryana state. |
Local Area Development Tax Assessment demand |
2003-04 and 2004-05 |
0.41 |
Joint Excise Taxation Commissioner |
Tamil Nadu VAT Act 2006 |
VAT ineligible credits |
2007-08 to 2015-16 |
193.41 |
Assistant Commissioner of Commercial Taxes |
Central Sales Act 1956 |
Penalty for issuing C-Forms without inclusion of B-Certificate |
2010-11 to 2015-16 |
1.63 |
Assistant Commissioner of Commercial Taxes |
Income Tax Act 1961 |
Deduction under Sec 80IB-with respect to Disallowance of Royalty payment, Apportionment of R&D Expenditure. |
2012-13 |
64.77 |
Commissioner of Income Tax (Appeals) |
(vii) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(viii) Based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(ix) Based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(x) Based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them.
Annexure-B to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (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 India Nippon Electricals Limited ("the Company") as of 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs 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 (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 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 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.
For BRAHMAYYA & CO.,
Chartered Accountants,
Firm Registration No.: 000511S
Place of signature : Chennai (P S Kumar)
Date of signature : 18th May 2017 Partner
Membership Number:15590
Mar 31, 2015
We have audited the accompanying financial statements of India Nippon
Electricals Limited (the Company) which comprises the Balance Sheet as
at March 31, 2015, the statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of 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 the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143 (10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgement, including the assessment of
the risks of material misstatements of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date.
Report on other Legal and Regulatory Requirements:
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 Companies Act 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statements dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act
read with rule 7 of the companies (accounts) Rules 2014.
e) On the basis of the written representations received from the
directors as on 31st March 2015 taken on record by the board of
directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
f) With respect to the other matters to be included in the auditor's
report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules 2014, in our opinion to the best of our information and according
to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its
financial position in its financial statements - Refer Note 34 to the
financial statements disclosing contingent liabilities;
ii. The Company has made provisions, 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 referred to in paragraph 1 of our report of even date
The provisions of the following clauses of Companies (Auditor's Report)
Order, 2015 are not applicable to the company for the year.
a) Clause 3(v) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
b) Clause 3(viii) with regard to accumulated losses since the company's
net-worth is positive and the company has not incurred cash losses
during the year or in the preceding financial year.
c) Clause 3(ix) with regard to default in repayment of dues to a
financial institution or Bank or Debenture Holders since the company
has not borrowed any amounts during the year.
d) Clause 3(x) with regard to guarantee given for loans taken by others
from banks or financial institutions as the company has not given any
guarantees.
e) Clause 3(xi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and the situation of fixed
assets.
(b) The company has a regular programme of physical verification of its
fixed assets at reasonable intervals. As explained to us, the fixed
assets are physically verified by the management according to a phased
programme designed to cover all the items over a period of two years,
which in our opinion, is reasonable having regard to the size of the
group 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.
(b) The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
(iii) The Company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of The Companies Act, 2013.
(iv) In our opinion and according to the information given to us, there
is adequate internal control system commensurate with the size of the
company and the nature of its business with regard to purchase of
inventory, fixed assets and for the sale of goods and services. During
the course of our audit, no major weakness has been noticed in the
internal control system.
(v) On the basis of the records, we are of the opinion that prima facie
cost records and accounts specified by the Central Government of India
under sub-section (1) of Section 148 of the Companies Act, 2013 have
been maintained. However, we are not required to and have not carried
out any detailed examination of such accounts and records.
(vi) (a) According to the records of the company, 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, Duty of Customs, Duty of Excise,
Value Added Tax and cess. There were no dues in arrears for a period of
more than six months as on 31st March, 2015.
(b) Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of Service Tax / Duty of Excise / Local area Development Tax /
Income Tax which have not been deposited on account of disputes.
Statute Nature of dues Period to which
relates
(Financial Year)
Service tax under Disallowance of Service 2005-06 and
Finance Act ,1994 Tax credit availed. 2006-07
Service tax under Disallowance of Service 2006-07
Finance Act ,1994 Tax credit availed.
Service tax under Disallowance of Service 2007-08
Finance Act ,1994 Tax Credit availed.
Central Excise Act Disallowance of CENVAT 2001-02 to
1944 credit on capital goods 2004-05
and non-reversal of CENVAT
credit.
Central Excise Act Non-reversal of CENVAT credit. 2005-06
1944
Central Excise Act Short reversal of CENVAT 2006-07
1944 on Capital Goods.
Local Area Local Area Development 2003-04 and
Development Tax Tax Assessment demand 2004-05
of Haryana state.
Service tax under Disallowance of Service 2011-12
Finance Act ,1994 Tax credit availed.
The Income Tax Disallowance 2010-11
Act, 1961. under Section 14A
Apportionment of R&D
Expenditure and
Disallowance of Royalty
The Income Tax Disallowance 2011-12
Act, 1961. under Section 14A
Apportionment of R&D
Expenditure and
Disallowance of Royalty
Statute Amount due(Rs.) Forum where dispute is pending
Service tax under 12,48,611 CESTAT
Finance Act ,1994
Service tax under 27,142 Commissioner of Central Excise
Finance Act ,1994 (Appeals).
Service tax under 1,49,985 Office of the Superintenden
Finance Act ,1994 Central Excise
Central Excise Act 1,26,601 Assistant Commissioner of
1944 Central Excise
Central Excise Act 12,39,367 Joint Commissioner Central
1944 Excise
Central Excise Act 1,47,653 Deputy Commissioner Central
1944 Excise
Local Area 41,300 Joint Excise Taxation
Development Tax Commissioner
of Haryana state.
Service tax under 14,41,089 Additional Commissioner
Finance Act ,1994 Central Excise
The Income Tax 79,47,960 Commissioner of Income
Act, 1961. Tax (Appeals)
The Income Tax 80,52,340 Commissioner of Income
Act, 1961. Tax (Appeals)
(c ) The Company has, with respect to the amounts required to be
transferred to the Investor Education and Protection Fund, transferred
such funds within time in accordance with the relevant provisions of
the Companies Act 1956 and rules made thereunder.
(vii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chartered Accountants,
Registration no.: 000511S
P S KUMAR
Bengaluru Partner
25th May 2015 Membership No.15590
Mar 31, 2014
We have audited the accompanying financial statements of India Nippon
Electricals Limited (the Company) which comprises the Balance Sheet as
at March 31, 2014, and the statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Managements 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.
Auditor''s Responsibility Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit
in accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor''s judgement, including
the assessment of the risks of material misstatements of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 policies generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) in the case of the Statement of profit and loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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
Statements dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of profit and loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of Section 211 of the Companies Act 1956;
e. on the basis of written representations received from the directors
as on March31, 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.
1. The provisions of the following clauses of Companies (Auditor''s
Report) Order, 2003 as amended are not applicable to the company for
the year.
a) Clause 4(vi) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
b) Clause 4(x) with regard to accumulated losses since the company''s
net-worth is positive and the company has not incurred cash losses
during the year.
c) Clause 4(xii) with regard to the loans granted against pledge of
securities since no loans have been granted by the company.
d) Clause 4(xiii) with regard to the special statutes applicable to the
chit funds and nidhis since the company has not carried on such
business.
e) Clause 4(xiv) with regard to trading in securities since the company
did not carry on such activities.
f) Clause 4(xv) with regard to guarantee given for loans taken by
others from bank or financial institutions as the company has not given
any guarantees.
g) Clause 4(xvi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
h) Clause 4(xvii) with regard to funds obtained on short term basis
used for long term investment since the company has not raised such
fund during the year.
i) Clause 4(xviii) with regard to the preferential allotment of shares
to specified parties since no allotment of shares was made during the
year.
j) Clause 4(xix) with regard to securities to be created in respect of
debentures since no debentures were issued during the year;
k) Clause 4(xx) with regard to money raised by public issue since no
money was raised by public issue during the year.
2. The company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets. The
company has a regular programme of physical verification of its fixed
assets at reasonable intervals. In accordance with this programme, the
fixed assets were verified during the year. No material discrepancies
were noticed on such verification. In our opinion the frequency of
verification is reasonable.
3. The company has not during the year disposed off substantial part
of the fixed assets, which would give rise to the question of
impairment of the status of the company as a going concern.
4. The management has conducted physical verification of inventory at
reasonable intervals.
5. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
6. On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
7. The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of The
Companies Act, 1956.
8. The company has placed an unsecured short term deposit with a
company covered in the register maintained under section 301 of the
Act. The amount involved is Rs. 10 crores which is also the maximum
outstanding during the year. In our opinion, the rate of interest and
other terms and conditions of the deposit placed by the company, are
not prima facie prejudicial to the interest of the company. The payment
of interest is also regular. There are no overdue amounts on the
deposit.
9. In our opinion and according the information given to us, there is
adequate internal control procedure commensurate with the size of the
company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls.
10. Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
11. In our opinion and according the information and explanation given
to us, the transactions made in the pursuance of the contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of Five lakh rupees in respect of any party during
the year have been made at the prices which are reasonable having
regard to the prevailing market prices at the relevant time.
12. In our opinion, the company has an internal audit system
commensurate with the size and the nature of the business.
13. On the basis of the records, we are of the opinion that prima facie
cost records and accounts prescribed by the Central Government of India
under section 209(1) (d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
14. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investors'' Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty. There were no arrears as on 31st March,
2014.
15. Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of Sales Tax / Service Tax / Excise Duty / Cess/Local area
Development Tax, which have not been deposited on account of disputes.
Statute Nature of dues Period to which
relates
(Financial Year)
Service tax
under Disallowance of Service 2005-06 and
Finance Act ,
1994 Tax credit availed. 2006-07
Service tax
under Disallowance of Service 2006-07
Finance Act ,
1994 Tax credit availed.
Service tax
under Disallowance of Service 2007-08
Finance Act ,
1994 Tax Credit availed. 2012-13
Central Excise
Act Disallowance of CENVAT 2001-02 to
1944 credit on capital goods 2004-05
and non-reversal of
CENVAT credit.
Central Excise
Act Non-reversal of CENVAT 2005-06
1944 credit.
Central Excise
Act Short reversal of CENVAT 2006-07
1944 on Capital Goods.
Local Area Local Area Development 2003-04 and
Development
Tax Tax Assessment demand 2004-05
of Haryana
state.
Service tax
under Disallowance of Service 2011-12
Finance Act ,
1994 Tax credit availed.
Tamil Nadu VAT Disallowance of VAT
credit 2008-09 to
Act, 2006. availed 2013-14
Statute Amount Forum where dispute is
pending
due (Rs.)
Service tax
under
Finance Act,
1994 11,49,084 CESTAT
Service tax
under
Finance Act,
1994 27,142 Commissioner of Central
Excise (Appeals).
Service tax
under
Finance Act,
1994 2,52,091 Office of the Superintendent
Central Excise
Central Excise
Act,1944 1,26,601 Assistant Commissioner of
Central Excise
Central Excise
Act,1944
12,39,367 Joint Commissioner
Central Excise
Centra Excise
Act,1944 1,47,653 Deputy Commissioner
Central Excise
Local Aria
Development
Tax of Haryana
state 41,300 Joint Excise Taxation
Commissioner
Service Tax
under
Finance Act,
1994 14,41,089 Additional Commissioner
Central Excise
Tamil Nadu
VAT Act,
2006 24,139 Assistant Commissioner of
Commercial Tax.
16. Based on our verification and according to the information and
explanations given by the management, the Company did not have any dues
to financial institutions nor were there any borrowings from banks. The
Company has not issued any debentures during the year.
17. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chartered Accountants,
Registration no.: 000511S
P S Kumar
Chennai Partner
23rd May 2014. Membership No.:15590
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of India Nippon
Electricals Limited (the Company) which comprises the Balance Sheet as
at March 31, 2013, and the statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the 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 flow of the company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
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 judgement, including the assessment of
the risks of material misstatements 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 uses 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 policies generally accepted in
India:
(a) in the case of the Balance Sheet, of the affairs of the Company as
at March 31, 2013;
(b) in the case of the Statement of profit and loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statements, 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
Statements dealt with by this Report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of profit and loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of Section 211 of the Companies Act 1956;
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.
1. The provisions of the following clauses of Companies (Auditor''s
Report) Order, 2003 as amended are not applicable to the company for
the year.
a. Clause 4(vi) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
b. Clause 4(x) with regard to accumulated losses since the company''s
net-worth is positive and the company has not incurred cash losses
during the year.
c. Clause 4 (xii) with regard to the loans granted against pledge of
securities since no loans have been granted by the company.
d. Clause 4 (xiii) with regard to the special statutes applicable to
the chit funds and nidhis since the company has not carried on such
business.
e. Clause 4 (xiv) with regard to trading in securities since the
company did not carry on such activities.
f. Clause 4(xv) with regard to guarantee given for loans taken by
others from bank or financial institutions as the company has not given
any guarantees.
g. Clause 4(xvi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
h. Clause 4(xvii) with regard to funds obtained on short term basis
used for long term investment since the company has not raised such
fund during the year.
i. Clause 4(xviii) with regard to the preferential allotment of shares
to specified parties since no allotment of shares was made during the
year.
j. Clause 4(xix) with regard to securities to be created in respect of
debentures since no debentures were issued during the year;
k. Clause 4(xx) with regard to money raised by public issue since no
money was raised by public issue during the year.
2. The company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets. The
company has a regular programme of physical verification of its fixed
assets at reasonable intervals. In accordance with this programme, the
fixed assets were verified during the year and no material
discrepancies were noticed on such verification.
3. The company has not during the year disposed off substantial part
of the fixed assets, which would give rise to the question of
impairment of the status of the company as a going concern.
4. The management has conducted physical verification of inventory at
reasonable intervals.
5. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
6. On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
7. The company has made an unsecured, inter- corporate deposit with a
company in which a director of the company is interested as director.
The amount involved is Rs.3 crores which was the opening balance and
also the maximum amount of deposit during the year. In our opinion the
rate of interest and other terms and conditions are prima facie not
prejudicial to the interest of the company. This deposit has been
returned to the company during the year and interest was paid
regularly.
8. The company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
9. In our opinion and according to the information given to us, there
is adequate internal control procedure commensurate with the size of
the company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls.
10. Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
11. In our opinion and according to the information and explanation
given to us, the transactions made in the pursuance of the contracts or
arrangements entered in the register maintained under section 301 and
exceeding the value of Five lakh rupees in respect of any party during
the year have been made at the prices which are reasonable having
regard to the prevailing market prices at the relevant time.
12. In our opinion, the company has an internal audit system
commensurate with the size and the nature of the business.
13. On the basis of the records, we are of the opinion that prima facie
cost records and accounts prescribed by the Central Government of India
under section 209(1) (d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
14. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investors'' Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty. There were no arrears as on 31st March,
2013.
15. Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of sales Tax / Service Tax / Excise Duty / Cess / Local area
Development Tax, which have not been deposited on account of disputes.
Financial
Sl. Name of the Nature of dues Year to which
No Statute relates
1. Service tax Disallowance of Service Tax
credit 2005-06
availed. and 2006-07
2. Service tax Disallowance of Service Tax
credit 2006-07
availed.
3. Service tax Disallowance of Service Tax
credit 2007-08
availed.
4. Service tax Disallowance of Service Tax
credit 2011-12
availed.
5. Excise Duty Disallowance of CENVAT
credit on 2001-02 to
capital goods and
non-reversal of 2004-05
CENVAT credit.
6. Excise Duty Non-reversal of CENVAT
credit. 2005-06
7. Excise Duty Short reversal of CENVAT
on Capital 2006-07
Goods.
8. Local Area Local Area Development Tax 2003-04
Development Assessment demand and
Tax 2004-05
Name Amount Forum where dispute
due (Rs.) is pending
Service tax 11,49,084 CESTAT
Service tax 27,142 Commissioner of Central
Excise (Appeals).
Service tax 1,49,985 Office of the Superintendent
Central Excise
Service tax 14,41,089 Additional Commissioner Central Excise
Excise Duty 1,26,601 Assistant Commissioner of Central Excise
Excise Duty 2,39,367 Joint Commissioner Central Excise
Excise Duty 1,47,653 Deputy Commissioner Central Excise
Local Area 41,300 Joint Excise Taxation Commissioner.
16. Based on our verification and according to the information and
explanations given by the management, the Company did not have any dues
to financial institutions nor were there any borrowings from banks. The
Company has not issued any debentures during the year.
17. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chartered Accountants,
Registration No.: 000511S
P S KUMAR
Chennai Partner
28th May 2013 Membership No.:15590
Mar 31, 2012
1. We have audited the attached Balance Sheet of India Nippon
Electricals Limited, as at 31st March 2012, and also the Profit and
Loss account and the Cash Flow Statement for the year ended on the
date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended, issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the company so far as it appears from our examination of
those books;
iii. The Balance Sheet Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
v. As Informed to us and based on the verification of records, we
report that none of the directors is disqualified as on 31st March
2012 from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the 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 the Balance Sheet, of the state of affairs of the
company as at 31st March 2012;
b. In the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date; and
c. In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
1. The provisions of the following clauses of Companies (Auditor's
Report) Order, 2003 as amended are not applicable to the company for
the year.
a. Clause 4(vi) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
b. Clause 4(x) with regard to accumulated losses since the company's
net-worth is positive and the company has not incurred cash losses
during the year.
c. Clause 4(xii) with regard to the loans granted against pledge of
securities since no loans have been granted by the company.
d. Clause 4(xiii) with regard to the special statutes applicable to
the chit funds and nidhis since the company has not carried on such
business.
e. Clause 4(xiv) with regard to trading in securities since the
company did not carry on such activities.
f. Clause 4(xv) with regard to guarantee given for loans taken by
others from bank or financial institutions as the company has not given
any guarantees.
g. Clause 4(xvi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
h. Clause 4(xvii) with regard to funds obtained on short term basis
used for long term investment since the company has not raised such
fund during the year.
i. Clause 4(xviii) with regard to the preferential allotment of shares
to specified parties since no allotment of shares was made during the
year.
j. Clause 4(xix) with regard to securities to be created in respect of
debentures since no debentures were issued during the year;
k. Clause 4(xx) with regard to money raised by public issue since no
money was raised by public issue during the year,
2. The company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets. The
company has a regular programme of physical verification of its fixed
assets at reasonable intervals. In accordance with this programme, the
fixed assets were verified during the year and no material
discrepancies were noticed on such verification.
3. The company has not during the year disposed off substantial part
of the fixed assets, which would give rise to the question of
impairment of the status of the company as a going concern.
4. The management has conducted physical verification of inventory at
reasonable intervals.
5. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
6. On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
7. The company has made an unsecured, inter- corporate deposit with a
company in which a director of the company is interested as director.
The amount involved is Rs 3 crores which is also the closing balance
and the maximum amount due during the year, In our opinion the rate of
interest and other terms and conditions are prima facie not prejudicial
to the interest of the company. The principal amount is not due for
repayment and interest is being paid regularly.
8. The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
9. In our opinion and according to the information given to us, there
is adequate internal control procedure commensurate with the size of
the company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls.
10.Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
11.In our opinion and according to the information and explanation
given to us, the transactions made in the pursuance of the contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of Five lakh rupees in respect of any party during
the year have been made at the prices which are reasonable having
regard to the prevailing market prices at the relevant time.
12.In our opinion, the company has an internal audit system
commensurate with the size and the nature of the business.
13.On the basis of the records, we are of the opinion that prima facie
cost records and accounts prescribed by the Central Government of India
under section 209(1) (d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
14.According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investors' Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty . There were no arrears as on 31st March,
2012.
15.Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of Sales Tax / Service Tax / Excise Duty / Cess/Local area
Development Tax, which have not been deposited on account of disputes.
S. Name of the Nature of dues Period of
No. Statute which relates
(financial
year)
1 Service Tax Interest on reversal of Service tax 2004-05
credit availed
2 Service Tax Non-payment of service tax on Royalty 2000-01 to
and technical know-how 2003-04
3 Service Tax Disallowance of Service Tax credit 2007-08 to
availed, 2009-10
4 Service tax Disallowance of Service Tax credit 2005-06
availed, and
2006-07
5 Service tax Disallowance of Service fax credit 2005-06 to
availed. 2008-09
6 Service Tax Disallowance of Service Tax Credit 2007-08
availed.
7 Excise Duty Disallowance of CENVAT credit on 2001-02 to
capital goods and non-reversal of 2004-05
CENVAT credit. and
2009-10
8 Excise Duty Non-reversal of CENVAT credit. 2005-06
9 Excise Duty Short reversal of CENVAT on Capital 2006-07
Goods.
10 Local Area Local Area Development Tax 2003-04
Development Assessment demand and
Tax 2004-05
S. Name of the Amount Forum where dispute
No. Statute is pending
1 Service Tax 7,820 Commissioner of Central Excise
(Appeals)
2 Service Tax 11,16,582 Assistant Commissioner of Central
Excise
3 Service Tax 3,58,962 Assistant Commissioner of Central
Excise
4 Service tax 1,10,208 CESTAT
5 Service tax 10,66,018 Commissioner of Appeals
(Central excise)
S. Name of the Amount Forum where dispute
No. Statute is pending
6 Service Tax 1,49,985 Office of the Superintendent
Central Excise
7 Excise Duty 1,53,861 Assistant Commissioner of
Central Excise
8 Excise Duty 12,39,367 Joint Commissioner Central Excise
9 Excise Duty 1,47,653 Deputy Commissioner Central Excise
10 Local Area 41,300 Joint Excise Taxation Commissioner
Development
Tax
16. Based on our verification and according to the information and
explanations given by the management, the Company did not have any dues
to financial institutions nor were there any borrowings from banks. The
Company has not issued any debentures during the year.
17. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chartered Accountants,
Registration No.: 000511S
P S KUMAR
Chennai, Partner
30th May 2012 Membership No.: 15590
Mar 31, 2011
1. We have audited the attached Balance Sheet of India Nippon
Electricals Limited, as at 31st March 2011, and also the Profit and
Loss account and the Cash Flow Statement for the year ended on the
date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
amended, issued by the central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as reauired by law have
been kept by the company so far as it appears from our examination of
those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
Iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
StanOarOs referred to in sub- section (3C) of section 211 of the
Companies Act, 1956.
v. As Informed to us and based on the verification of records, we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the 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 the Balance Sheet, of the state of affairs of the
company as at 31 st March 2011;
b. In the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date; and
c. In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure referred to in paragraph 3 of our report of even date
1. The provisions of the following clauses of Companies (Auditor's
Report) Order, 2003 as amended are not applicable to the company for
the year.
a. Clause 4(vi) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
b. Clause 4(x) with regard to accumulated losses since the company's
net-worth is positive and the company has not incurred cash losses
during the year.
c. Clause 4(xii) with regard to the loans granted against pledge of
securities since no loans have been granted by the company
d. Clause 4(xiii) with regard to the special statutes applicable to
the chit funds and nidhis since the company has not carried on such
business.
e. Clause 4(xiv) with regard to trading in securities since the
company did not carry on such activities.
f. Clause 4(xv) with regard to guarantee given for loans taken by
others from bank or financial institutions as the company has not given
any guarantees.
g. Clause 4(xvi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
h. Clause 4(xvii) with regard to funds obtained on short term basis
used for long term investment since the company has not raised such
fund during the year,
i. Clause 4(xviii) with regard to the preferential allotment of
shares to specified parties since no allotment of shares was made
during the year.
j. Clause 4(xix) with regard to securities to be created in respect of
debentures since no debentures were issued during the year;
k. Clause 4(xx) with regard to money raised by public issue since no
money was raised by public issue during the year.
2. The company has maintained proper records showing full particulars
including auantitative details and the situation of fixed assets. The
company has a regular programme of physical verification of its fixed
assets at reasonable intervals. In accordance with this programme, the
fixed assets were verified during the year and no material
discrepancies were noticed on such verification,
3. The company has not during the year disposed off substantial part
of the fixed assets, which would give rise to the question of
impairment of the status of the company as a going concern.
4. The management has conducted physical verification of inventory at
reasonable intervals.
5. The procedure of physical verification of inventories followed by
the management is reasonable and adeauate in relation to the size of
the company and the nature of its business.
6. On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
7. The company has made an unsecured, inter- corporate deposit with a
company in which a director of the company is interested as director.
The amount involved is Rs.3 crores which is also the closing balance
and the maximum amount due during the year. In our opinion the rate of
interest and other terms and conditions are prima facie not prejudicial
to the interest of the company. The principal amount is not due for
repayment and interest is being paid regularly.
8. The Company has not taken any loans from companies, firms or other
parties covered in the register maintained under section 301 of The
Companies Act, 1956.
9. In our opinion and according to the information given to us, there
is adequate internal control procedure commensurate with the size of
the company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls,
10. Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
11. In our opinion and according to the information and explanation
given to us,the transactions made in the pursuance of the contracts
or arrangements entered in the registers maintained under section
301 and exceeding the value of Five lakh rupees in respect of any
party during the year have been made at the prices which are
reasonable having regard to the prevailing market prices at the relevant
time.
12. In our opinion, the company has an internal audit system
commensurate with the size and the nature of the business.
13. On the basis of the records, we are of the opinion that prima facie
cost records and accounts prescribed by the Central Government of India
under section 209(1) (d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
14. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investors' Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty and the Cess applicable to it. There were
no arrears as on 31st March, 2011.
15. Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of Sales Tax / Income Tax / Custom Duty / Wealth Tax / Service Tax
/ Excise Duty / Cess which have not been deposited on account of
disputes.
SI. Nature of the Nature of dues which relates
No. Statute (Financial
Year)
1 Service Tax Interest on reversal of 2004-05
Service tax credit
availed
2 Service Tax Non-payment of service tax 2000-01 to
on Royalty and technical 2003-04
know-how
3 Service Tax Disallowance of Service Tax 2007-08 to
credit availed. 2009-10
4 Service tax Disallowance of Service 2005-06
Tax credit availed. and
2006-07
5 Service tax Disallowance of Service 2005-06 to
tax credit availed. 2008-09
6 Service Tax Disallowance of Service 2007-08
Tax Credit availed,
7 Excise Duty Disallowance of CENVAT on 2001-02 to
credit capital goods and 2004-05
non-reversal of and
CENVAT credit. 2009-10
8 Excise Duty Non-reversal of 2005-06
CENVAT credit.
9 Excise Duty Short reversal of CENVAT 2006-07
on Capital Goods,
10 Excise Duty Disallowance of CENVAT 2006-07
Credit. to
2009-10
11 Local Area Local Area Development 2003-04
Development Tax Assessment demand and
Tax 2004-05
Nature of the Amount Forum where dispute
Statute Due (Rs) is pending
Service Tax 7,820 Deputy Commissioner of
Central Excise
Service Tax 11,16,582 Assistant Commissioner
of Central Excise
Service Tax 4,30,384 Assistant Commissioner
of Central Excise
Service Tax 4,27,588 CESTAT
Service Tax 10,78,217 Commissioner of Appeals
(Central excise)
Service Tax 1,49,985 Office of the Superintendent
Central Excise
Excise Duty 1,53,861 Assistant Commissioner of
Central Excise
Excise Duty 12,39,367 Joint Commissioner Central
Excise
Excise Duty 1,47,653 Deputy Commissioner Central
Excise
Excise Duty 85,27,920 Office of the Superintendent
Central Excise
Local Area 41,300 Joint Excise Taxation
Development Commissioner
Tax
16. Based on our verification and according to the information and
explanations given by the management, the Company did not have any dues
to financial institutions nor were there any borrowings from banks. The
Company has not issued any debentures during the year.
17. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chattered Accountants,
Registration No.: 0005US
P S KUMAR
Partner
Membership No.: 15590
Chennai,
27.05.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of India Nippon
Electricals Limited, as at 31st March 2010, and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on the
date, annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended, issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that :
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the company so far as it appears from our examination of
those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub- section (3C) of section 211 of the
Companies Act, 1956.
v. As Informed to us and based on the verification of records, we
report that none of the directors is disqualified as on 31st March 2010
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the 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 the Balance Sheet, of the state of affairs of the
company as at 31st March 2010;
b. In the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date; and
c. In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Annexure referred to in paragraph 3 of our report of even date
1. The provisions of the following clauses of Companies (Auditors
Report) Order, 2003 as amended are not applicable to the company for
the year.
a. Clause 4(iii) with regard to loans granted or taken to/from parties
covered in the register maintained under section 301 of the Companies
Act, 1956 as there were no such transactions.
b. Clause 4(vi) with regard to acceptance of deposits from the public
since the company has not accepted any deposits.
c. Clause 4(x) with regard to accumulated losses since the companys
net-worth is positive and the company has not incurred any cash losses
during the year.
d. Clause 4(xii) with regard to the loans granted against pledge of
securities since no loans have been granted by the company.
e. Clause 4(xiii) with regard to the special statutes applicable to
the chit funds and nidhis since the company has not carried on such
business.
f. Clause 4(xiv) with regard to trading in securities since the
company did not carry on such activities.
g. Clause 4(xv) with regard to guarantee given for loans taken by
others from bank or financial institutions as the company has not given
any guarantees.
h. Clause 4(xvi) with regard to term loans and applications of funds
obtained since the company has not obtained any such loans.
i. Clause 4(xvii) with regard to funds obtained on short term basis
used for long term investment and vice-versa since the company has not
raised such fund during the year.
j. Clause 4(xviii) with regard to the preferential allotment of shares
to specified parties since no allotment of shares was made during the
year.
k. Clause 4(xix) with regard to securities to be created in respect of
debentures since no debentures were issued during the year;
l. Clause 4(xx) with regard to money raised by public issue since no
money was raised by public issue during the year.
2. The company has maintained proper records showing full particulars
including quantitative details and the situation of fixed assets.
3. The company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified during the year. In
accordance with this programme, the fixed assets were verified during
the year and no material discrepancies were noticed on such
verification. In our opinion, this periodicity of physical verification
is reasonable having regard to the size of the company and the nature
of its assets.
4. The company has not during the year disposed off any substantial
part of the fixed assets, which would give rise to the question of
impairment of the status of the company as a going concern.
5. The management has conducted physical verification of inventory at
reasonable intervals.
6. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
7. On the basis of the examination of the records of the inventory, we
are of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stock and the book records were not material and have been
properly dealt with in the books of accounts.
8. In our opinion and according to the information given to us, there
is adequate internal control procedure commensurate with the size of
the company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weakness has been noticed in the
internal controls.
9. Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
10. In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of the contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakh rupees in respect of any party during
the year have been made at the prices which are reasonable having
regard to the prevailing market prices at the relevant time.
11. In our opinion, the company has an internal audit system
commensurate with the size and the nature of the business.
12. On the basis of the records, we are of the opinion that prima facie
cost records and accounts prescribed by the Central Government of India
under section 209 (1) (d) of the Companies Act, 1956 have been
maintained. However, we are not required to and have not carried out
any detailed examination of such accounts and records.
13. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Investors Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty and the Cess applicable to it.
14. Based on the audit procedures and on the information and
explanations given by the management, we furnish below the details of
dues of sales tax / Income Tax / Custom Duty / Wealth Tax / Service Tax
/ Excise Duty / Cess which have not been deposited on account of
disputes.
S. Amount Forum where dispute
Nature of
the Statute Nature of dues
No. Due (Rs) is pending
1 TNGST Act for
1999-2000 Disallowance of Form
XVII issued for Deep 16,575.00 Sales tax Appellate
Tribunal
Freezer - Chennai
2 Central Sales
Tax Act for Disallowance of Credit
Notes and Turn Over 109,795.00 Assistant
Commissioner Of
2003-2004 to
2004-2005 Discounts & Penalty Appellate Tribunal
3 TNGST Act for
2004-2005 Interstate Sale of
Car, Taxable at 12% 12,388.00 Assistant
Commissioner Of
Appellate Tribunal
4 Service Tax for
2004-2005 Interest on reversal
of Service tax credit
availed 7,820.00 Deputy
Commissioner of
on Mobile/Residence
telephones Central Excise
5 Service Tax for
2001-2002 to Service Tax on
royalty and
technical
know-how 1,116,582.00 Asst. Commissioner
-Central
2003-2004 Excise
(Service tax Cell)
6 Service Tax for
2006-2007 Disallowance of
Service Tax credit
availed on 317,380.00 Appellate Tribunal
(Service Freight
Outwards Tax Cell)
7 Service Tax up
to June 2005 Disallowance of
Service Tax credit
availed on 12,179.00 Commissioner of
Appeals Freight
outwards (Central
Excise)
8 Service Tax
for 2006-2007
to Disallowance of
Service Tax credit
availed on Rent- 362,445.00 Assistant
Commissioner-
2007-2008 a-cab, Air Travel,
Vehicle Repair ,
Group Medical Central Excise
(Service Tax
Insurance for
Employees for October
2007 Cell)
9 Service Tax
for 2005-2006
& Disallowance of
Service
Tax credit
availed on 110,208.00 CESTAT
2006-2007 Catering
10 Service Tax
for 2005-2006
to Disallowance of
Service Tax Credit
availed on Rent 1,223,334.00 Commissioner
of Appeals
2007-2008 a Cab/Housekeeping
/Creche/Freight
Outwards (Central Excise)
11 Service Tax
for 2007-2008 Disallowance of
Service Tax Credit
on Freight 149,985.00 Superintendent
Central
Outward/Cab/Catering
( 2007-2008 ) Excise - Rewari
12 Excise Duty
for 2005-2006 Non-reversal of Cenvat
credit on Turnover 126,601.00 Assistant
Commissioner of
Discount Central Excise
13 Excise Duty
for Apr 2001
to Non-reversal of
Cenvat credit on
Turnover 1,239,367.00 Joint
Commissioner
of Central
Sep 2005 Discount
Excise
14 Excise Duty
for 2006-2007 Short reversal of
Cenvat on Capital
Goods 147,653.00 Deputy
Commissioner
of Central
Excise
15 Service Tax
for 2009-2010 Disallowance of
Service tax credit
on Rent a Cab 30,519.00 Assistant
Commissioner
of
and Service bills Central
Excise
15. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the year.
For BRAHMAYYA & CO.,
Chartered Accountants,
Registration No.: 000511S
Chennai, P S KUMAR
26th May 2010. Partner
Membership No.:15590
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