Mar 31, 2018
REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of INDSIL HYDRO POWER AND MANGANESE LIMITED(âthe Companyâ), which comprise the Balance Sheet as at 31st March,2018,the statement of profit and loss (including other comprehensive income), cash flow statement and statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein referred to as âStandalone Ind AS financial statementsâ).
MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (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 and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with 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.
AUDITOR''S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our auditing accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that 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 Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the financial position of the Company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the ''Annexure- A'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement in Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules thereunder.
e) On the basis of the written representations received from the directors as on 31 st March 2018 and 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 ''Annexure - B''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 7 of Annexure to the Independent Auditors Report.
ii) The Company does have long term contracts including derivative contracts for which there are no material foreseeable losses. Refer Note no 2.45 to the Financial Statements
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditor''s report to the members of M/s INDSIL HYDRO POWER AND MANGANESE LIMITED for the year ended 31st March 2018. We report that:
1. a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the Management during the year which, in our opinion, is reasonable having regard to the size of the company and the 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 all the immovable properties of the company shown under the Fixed Assets Schedule are held in the name of the company.
2. The inventories have been physically verified by the management during the year. In our opinion, the frequency of the verification is reasonable and no discrepancies were noticed at the time of verification.
3. The Company has not granted loans, secured or unsecured, to Companies, firms, LLPs, or other partiescovered in the register maintained U/s. 189 of the Act, during the year under consideration. The total amount of the loan granted to Subsidiary company during the previous financial years, which is overdue for a period exceeding 90 days as at 31st March, 2018 is Rs.24,83,11,570/-.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act with respect to the loans and investments made. The Company has not given any loans/investments/guarantees to which the provisions of section 185 and 186 of the Act apply.
5. The Company has not accepted any deposits during the year and does not have any unclaimed deposits as at 31st March, 2018 and therefore, provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. We have broadly reviewed the books of accounts maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 of The Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and 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.
7. a) According to information and explanations given to us and on the basis of our examination of the records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Goods and Service Tax, Service Tax, Customs duty Excise duty, Value added tax, Cess, GST and any other statutory dues with the appropriate authorities. However in case of GST & Employees State Insurance, there have been slight delays in few cases
b) According to the information and explanations given to us, in our opinion, there is no disputed statutory dues inc luding Wealth tax, Excise duty, Sales Tax, Service tax and Cess payable at the last day of the Financial year concerned for a period more than six months from the date they became payable.
Details of dues of Customs duty and Income tax as on 31st March 2018 on account of disputes are given below
Name of the Statute |
Nature of Dues |
Forum Where The Dispute Is Pending |
Period To Which The Amount Relates |
Amount Involved |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax (Appeals), Coimbatore |
2013-14 |
Rs. 49,600/- |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax (Appeals), Coimbatore |
2014-14 |
Rs. 26,97,330/- |
8. Based on our audit procedures, we are of the opinion that the company has not defaulted in repayment of dues to its banks, financial institutions and the company has not issued any debentures.
9. The Company has not raised any moneys by way of Initial Public Offer / Further Public Offer during the Year. In our opinion, the moneys raised by way of Term Loans during the year were applied for the purposes for which those are raised. Accordingly, clause 3 (ix) of the Order is not applicable.
10.Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company and no fraud on the company by its officers or employees has been noticed or reported during the course of our audit.
11 Based on the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The Company is not a Nidhi company and therefore clause 3(xii) of the Order is not applicable to the Company.
13. According to the information and explanations given to us and based on our examination of the records, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details of such transactions have been disclosed in the standalone Ind AS Financial Statements as required by the applicable accounting standards.
14. Based upon the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares during the year and therefore clause 3 (xiv) of the Order are not applicable to the Company.
15.The company has not entered into any non-cash transactions with directors or persons connected with him as stipulated under Section 192 of the Act. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
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 Indsil Hydro Power and Manganese Limited (âthe Companyâ) as of 31 st March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of 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, 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 31st March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For RAJA & RAMAN
Chartered Accountants
(Firm''s Registration No. 003382S)
Sd/-
E.R.RAJARAM, FCA,
Partner
(Membership No: 18755)
Place: Coimbatore
Date: 29th May, 2018
Mar 31, 2016
LIMITED Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of INDSIL HYDRO POWER AND MANGANESE LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March,2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.
(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016;
(b) In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the ''Annexure - A'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the Directors as on 31st March, 2016 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure - B''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements
- Refer Note 7 of Annexure to the Independent Auditors Report.
ii. The Company does have long term contracts including derivative contracts for which there are no material foreseeable losses. Refer Note no 2.45 to the Financial Statements
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditor''s report to the members of M/s INDSIL HYDRO POWER AND MANGANESE LIMITED for the year ended 31stMarch 2016. We report that:
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management during the year which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties of the Company shown under the Fixed Assets Schedule are held in the name of the Company.
2. (a) The Management has carried out physical verification of inventory at reasonable intervals.
(b) No discrepancies were noticed at the time of verification.
3. The Company has granted loans, to its Subsidiary Company covered in the register maintained U/s. 189 of the Act, during the year and the total amount overdue for a period exceeding 90 days as at 31st March, 2016 is Rs,12,14,54,428/-.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records U/s. 148 of the Companies Act 2013, and are of the opinion that prima facie, the prescribed accounts and 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.
7. (a) According to information and explanations given to us and on the basis of our examination of the records, the
Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, in our opinion, there is no disputed statutory dues including Income tax, Wealth tax, Excise duty, Service tax and Cess payable at the last day of the Financial year concerned for a period more than 6 months from the date they became payable.
Details of dues of Customs duty and Income tax as on 31stMarch, 2016 on account of disputes are given below.
Name of the Statute |
Nature of Dues |
Forum where the dispute is pending |
Period to which the amount relates (financial year) |
Amount involved Rs, |
The Customs Act, 1962 |
Customs Duty |
CESTAT |
2012 - 2013 |
28,99,045 |
The Customs Act, 1962 |
Customs Duty |
CESTAT |
2013 - 2014 |
64,54,508 |
Income Tax Act, 1961 |
Income Tax |
Commissioner of Income Tax (Appeals) |
2012 - 2013 |
1,61,25,350 |
8. Based on our audit procedures, we are of the opinion that the Company has not defaulted in repayment of dues to its banks, financial institutions and the Company has not issued any debentures.
9. The Company has not raised any moneys by way of Initial Public Offer / Further Public Offer during the year. In our opinion, the moneys raised by way of Term Loans during the year were applied for the purposes for which those are raised.
10. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11. Based on the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The Company is not a Nidhi Co. and therefore clause 3(xii) of the Order is not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with Section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the information and explanations given by the management, the Company has not made any preferential allotment or private placement of shares during the year and therefore clause 3 (xiv) of the Order are not applicable to the Company.
15. The Company has not entered into any non-cash transactions with Directors or persons connected with him as stipulated under Section 192 of the Act. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16. In our opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
ANNEXURE - B TO THE INDEPENDENT AUDITORS'' REPORT
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Indsil Hydro Power and Manganese Limited ("the Company") as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI'').These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the 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, 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 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M/s. Raja & Raman
Chartered Accountants
Firm Registration No.003382S
Sd/-
E. R. Rajaram, FCA,
Partner
Membership No. 018755
Coimbatore 26th May, 2016
Jun 30, 2015
We have audited the accompanying standalone financial statements of
INDSIL HYDRO POWER AND MANGANESE LIMITED ("the Company"), which
comprise the Balance Sheet as at 30th June,2015, the Statement of
Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control. An
audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made
by the 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 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.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th June, 2015;
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
Directors as on 30th June, 2015 and taken on record by the Board of
Directors, none of the Directors is disqualified as on 30th June, 2015
from being appointed as a Director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 7 of
Annexure to the Independent Auditors Report.
ii. The Company does have long term contracts including derivative
contracts for which there are no material foreseeable losses. Refer
notes no. 2.45 to financial statements.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
The Annexure referred to in our report to the Members of M/s INDSIL
HYDRO POWER AND MANGANESE LIMITED for the year ended 30th June, 2015.
We report that:
1. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the Management at
reasonable intervals and no material discrepancies were noticed on such
verification.
2. In respect of its inventories:
(a) The Management has carried out physical verification of inventory
at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. (a) The Company has granted unsecured loan, to Companies forRs,7.63
crores covered in the register maintained under Section 189 of the
Companies Act, 2013,during the financial year.
(b) There are no overdue amount of more than Rupees one lakh.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business for the
purchase of inventory, fixed assets and also for the sale of goods and
services. We have not observed any major weaknesses in internal control
systems during the course of our audit.
5. The Company has not accepted any deposits from the public.
6. We have broadly reviewed the cost records maintained by the Company
prescribed by the Central Government under sub section (1) of Section
148 of the Companies Act, 2013, as have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
7. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund, employees'
state insurance, income tax, wealth tax, customs duty, excise duty,
service tax, cess and other material statutory dues as applicable with
the appropriate authorities in India.
According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, there is no
disputed statutory dues including sales tax, income tax, wealth tax,
excise duty, service tax and cess payable at the last day of financial
year concerned for a period more than six months from the date they
become payable.
Details of dues of Customs duty, as on 30th June, 2015 on account of
disputes are given below:
Name of
the Statute Nature of Dues Forum where the Period to which
dispute is pending the amount relates
The Customs
Act, 1962 Customs Duty CESTAT 2012-2013
The Customs
Act, 1962 Customs Duty CESTAT 2013-2014
NAME OF THE Amount involved
STATUE Rs,
The Customs
Act,1962 23,99,437
The Customs 53,29,508
Act,1962
8. The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
9. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
Balance Sheet date.
10. As per information and explanations given to us, the Company has
given corporate guarantees for loans taken by its Subsidiary/Joint
Venture/Associates from bank or financial Institutions during the year
amounting to Rs, 33.85 crores.
11. The Company has taken term loan during the current year. As per
information and explanations given to us, the term loans were applied
for the purpose for which the loans were obtained.
12. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no significant fraud on the
Company has been noticed or reported by the Management during the year,
that ultimately causes the financial statements to be materially
misstated.
For M/s. Raja & Raman
Chartered Accountants
Firm Registration No.003382S
Sd/-
K. R. Rangarajan, FCA,
Partner
Membership No. 224928
Coimbatore
17th August, 2015
Jun 30, 2014
We have audited the accompanying financial statements of Indsil Hydro
Power and Manganese Limited ("the Company"), which comprise the Balance
Sheet as at June 30, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. 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 judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at June 30, 2014;
(b) In the case of the Profit and Loss Account, of the profit/ loss 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 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account .
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on June 30, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on June 30, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO AUDITORS'' REPORT
The Annexure referred to in our report to the members of Indsil Hydro
Power and Manganese Limited for the year ended 30 June, 2014.
We report that
1. Fixed Assets:
(a) The Company is in process of updating the Fixed asset register
showing full particulars, including quantitative details and situation
of fixed assets.
(b) The fixed assets of the Company are physically verified by the
management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2. Inventories:
(a) As per information and explanation given to us, inventories have
been physically verified by the management at regular intervals during
the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories and there
were no material discrepancies noticed on physical verification of
inventory as compared to the book records.
3. (a) The Company has granted unsecured loans to Companies listed in
the Register maintained u/s. 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.7.63 Crores and the year - end balance of loans granted to such
parties was Rs.7.63 Crores.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loans are not, prima facie, prejudicial to the interest of the
company.
(c) There are no other stipulations in respect of such loan.
(d) There is no overdue amount of loans granted to companies, firms or
any other parties listed in the register maintained u/s. 301 of the
Companies Act, 1956.
(e) As informed, during the year the Company has not taken any loan
from Companies, firm or other parties covered in the Register
maintained u/s. 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business,
for purchase of inventory, fixed assets and for sale of goods. Further,
on the basis of our examination of the books and records of the Company
and according to the information and explanation given to us, we have
neither come across nor have we been informed of any continuing failure
to correct major weaknesses in the aforesaid internal control system.
5. (a) In our opinion and according to the information and explanations
given to us, the transaction that need to be entered
into the register in pursuance of Section 301 of the Companies Act,
1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us the transactions exceeding the value of Rupees Five Lakhs
have been entered into during the financial year, are at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except in case of some transactions where we are unable
to comment owing to the unique and specialized nature of the items
involved and absence of any comparable prices, whether the transactions
are made at prevailing market prices.
6. The Company has not accepted any deposits from the public within the
meaning of Sec. 58A and Sec. 58AA of the Act and rules framed there
under.
7. In our opinion, the Company''s present internal audit system is
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to rules made by the
Central Government of India, the maintenance of cost records have been
prescribed by the Central Government to this Company under clause (d)
of sub-section (1) of section 209 of the Companies Act, 1956 and we are
of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
9. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident
Fund, Investor Education and protection fund, Employee''s State
Insurance, Income Tax, Wealth tax, Service tax, Sales tax, Customs
duty, Excise duty, Cess and other material statutory dues applicable to
it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and protection fund, Employee''s State Insurance, Income Tax,
Wealth tax, Service tax, Sales tax, Customs duty, Excise duty, Cess and
other undisputed statutory dues where outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Service tax and Customs duty
which have not been deposited with appropriate authorities on account
of any dispute.
10. The Company has no accumulated losses as at 30th June ,2014 and it
has not incurred any cash loss during the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution, bank or debenture
holders as at the Balance sheet date.
12. As per information and explanations given to us, the Company has
not granted any loans or advances on the basis of security by way
pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi / mutual benefit fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has given guarantee for loans taken by its
Subsidiary/Joint venture / Associate companies from banks or financial
institutions during the year amounting to Rs. 33.51 Crores.
16. The Company has taken term loan during the current year. As per
information and explanations given to us, the term loans were applied
for the purpose for which the loans were obtained.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained u/s. 301 of
the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud by the Company and no significant fraud on the
Company has been noticed or reported by the Management during the year,
that ultimately causes the financial statements to be materially
misstated.
For Raja & Raman
Chartered Accountants
Firm Registration No.003382S
E. R. Rajaram, FCA, DISA
Partner
Membership No. 018755
Coimbatore
August 27th, 2014
Jun 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Indsil Hydro
Power and Manganese Limited ("the Company"), which comprise the Balance
Sheet as at June 30th, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at June 30th, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on June 30th, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on June 30th, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO AUDITORS'' REPORT
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' in the Independent Auditors'' Report of even date to the
members of Indsil Hydro Power and Manganese Limited on the financial
statements for the year ended June 30th 2013]
(i) (a) The Company is in the process of updating the fixed asset
register showing full particulars, including quantitative details and
situation of fixed assets.
(b) The fixed assets of the company have been physically verified by
the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii) (a) The Company has granted loan to nine companies covered in the
rgister maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 7.84 Crores and the
year-end balance of loans granted to such party was Rs. 7.84 Crores.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not, prima facie, prejudicial to the interest of the
Company.
(c) There are no other stipulations in respect of such loan.
(d) There is no overdue amount of loans granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(e) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii)(f)and (g) of
the order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there exists an 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 with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct weakness
in internal control system of the company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rs. five lakhs have been entered into
during the financial year at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 58A and 58AA of the Act and the rules
framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause
(d) of sub-section (1) of Section 209 of the Act and we are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanation given to us, there are
no dues of income tax, sales-tax, wealth tax, service tax, customs
duty, excise duty and cess which have not been deposited on account of
any dispute.
(x) The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the company has not
granted loans & advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the Companies (Auditor''s Report) Order, 2003
(as amended) are not applicable to the Company.
(xiv) In respect of dealing/trading in shares, securities, debentures
and other investments, in our opinion and according to the information
and explanations given to us, proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The shares, securities, debentures and other investments have
been held by the Company, in its own name.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) In our opinion, the term loans have been applied for the purpose
for which the loans were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanation given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under Section 301 of
the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised money by way of public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Haribhakti & Co.
Chartered Accountants
Firm Registration No.103523W
C. S. Sathyanarayanan
Partner
Membership No. 028328
Coimbatore August 26th, 2013
Jun 30, 2011
We have audited the attached Balance Sheet of INDSIL HYDRO POWER AND
MANGANESE LIMITED, Coimbatore as at 30th June 2011 and also the Profit
and Loss Account and the cash flow statement for the year ended on that
date together with the schedules 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements'
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors' Report) Order 2003 and
amended by the Companies (Auditors' Report Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act 1956 and on the basis of the information and
explanations given to us and the books and records examined by us in
the normal course of our audit and to the best of our knowledge and
belief, we annex hereto a statement on the matters specified in
paragraph 4 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit.
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet, Profit and Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and cash
flow statement dealt with by this report comply with the mandatory
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956, to the extent applicable.
e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, and the
information and explanations given to us, we report that none of the
Directors is prima facie disqualified as on 30th June, 2011 from being
appointed as a Director in terms of Section 274 (1)(g) of the Companies
Act, 1956
f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this Report read together
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,
in the case of the:
1) Balance sheet, of the state of affairs of the Company as at 30th
June 2011;
2) Profit and Loss account, of the Profit of the Company for the year
ended on that date; and
3) Cash Flow statement, of the cash flows for the year ended on that
date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS' REPORT OF EVEN DATE
(Referred to in paragraph 1 of our report of even date to the members
of Indsil Hydro Power and Manganese Limited)
1) Fixed Assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, most of the fixed assets of the Company have
been physically verified by the management at reasonable intervals
during the year, which, in our opinion, is reasonable having regard to
the size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
(c) No disposal of a substantial part of the fixed assets has taken
place during the year.
2) Inventories:
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventories. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3) (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or from other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, the Company has adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods.
5) Register under Section 301:
(a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the Register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposits from the public.
7) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8) The Company is not required to maintain cost records as per Section
209(1)(d) of the Companies Act, 1956.
9) a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income tax, Sales tax, Wealth Tax, service
tax, Customs Duty, Excise Duty, cess and any other statutory dues with
the appropriate authorities.
b) There are no statutory dues which have not been deposited on account
of any dispute.
10) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
11) The Company has not defaulted in repayment of dues to any financial
institution or bank and the Company has not issued any debentures.
12) The Company has not granted loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or Nidhi/Mutual benefit fund/
Society. Accordingly, the provisions of Clause 4(xiii) of the Order
are not applicable to the Company.
14) The Company has maintained records on all transactions regarding
purchase and redemption of mutual funds. Timely entries have been made
in such records and the investment in mutual funds was made in the
Company's name.
15) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purpose for which the
loans were obtained.
17) Funds raised on short-term basis have not been used for long term
investment.
18) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19) The Company has not issued any debentures during the year.
20) The Company has not made any public issue during the year.
21) Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the Company has been noticed or reported during the year.
For K.S.G.SUBRAMANYAM & CO
Firm No. : 004151S Chartered Accountants,
Sd/-
T.C.KERALA VARMA RAJA
Place : Coimbatore Partner
Date : 28.10.2011 Membership No: 6932
Jun 30, 2010
We have audited the attached Balance Sheet of INDSIL HYDRO POWER AND
MANGANESE LIMITED, Coimbatore as at 30th June 2010 and also the Profit
and Loss Account and the cash flow statement for the year ended on that
date together with the schedules 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.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order 2003 and
amended by the Companies (Auditors Report Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act 1956 and on the basis of the information and
explanations given to us and the books and records examined by us in
the normal course of our audit and to the best of our knowledge and
belief, we annex hereto a statement on the matters specified in
paragraph 4 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph 1
above, we report that
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit.
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from ourexamination of such
books.
c) The Balance Sheet, Profit and Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and cash
flow statement dealt with by this report comply with the mandatory
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956, to the extent applicable.
e) On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, and the
information and explanations given to us, we report that none of the
Directors is prima facie disqualified as on 30th June, 2010 from being
appointed as a Director in terms of Section 274(1)(g) of the Companies
Act, 1956
f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance sheet, Profit and Loss
Account and Cash Flow Statement dealt with by this Report read together
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,
in the case of the:
1) Balance sheet, of the state of affairs of the Company as at 30th
June 2010;
2) Profit and Loss account, of the Profit of the Company forthe year
ended on that date; and
3) Cash Flow statement, of the cash flows for the year ended on that
date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE
(Referred to in paragraph 1 of our Report of even date to the members
of Indsil Hydro Power and Manganese Limited)
1) Fixed Assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, most of the fixed assets of the Company have
been physically verified by the management at reasonable intervals
during the year, which, in our opinion, is reasonable having regard to
the size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
(c) No disposal of a substantial part of the fixed assets has taken
place during the year.
2) Inventories:
(a) Physical verification of inventory has been conducted at reasonable
intervals by the management.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventories. The
discrepancies noticed on physical verification between the physical
stocks and book records were not material.
3) (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or from other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us, the Company has adequate internal control procedures,
commensurate with the size of the Company and the nature of its
business for the purchase of inventories and fixed assets and for the
sale of goods.
5) Register under Section 301:
(a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have
been entered in the Register required to be maintained under that
section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposits from the public.
7) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8) The Company is not required to maintain cost records as per Section
209(1 )(d) of the Companies Act, 1956.
9) a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs duty, Excise duty, cess and any other
statutory dues with the appropriate authorities.
b) There are no statutory dues which have not been deposited on account
of any dispute.
10) The Company does not have any accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
11) The Company has not defaulted in repayment of dues to any financial
institution or bank and the Company has not issued any debentures.
12) The Company has not granted loans / advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or Nidhi/Mutual benefit fund/
Society. Accordingly, the provisions of Clause 4(xiii) of the Order are
not applicable to the Company.
14) The Company has maintained records on all transactions regarding
purchase and redemption of mutual funds. Timely entries have been made
in such records and the investment in mutual funds was made in the
Companys name.
15) The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
16) In our opinion and according to the information and explanations
given to us, term loans have been applied for the purpose for which the
loans were obtained.
17) Funds raised on short-term basis have not been used for long term
investment.
18) During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in
theRegistermaintainedunderSection301 of the Companies Act, 1956.
19) The Company has not issued any debentures during the year.
20) The Company has not made any public issue during the year.
21) Based upon the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by trie Company has been noticed or reported during the year.
for K.S.G.SUBRAMANYAM & CO
Firm No.:004151S
Chartered Accountants,
Place: Coimbatore
Date : 23.08.2010
Sd/-
T.C.KERALAVARMARAJA
Partner
Membership No: 6932
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