Mar 31, 2023
To the Members of Linde India LimitedReport on the Audit of the Standalone Financial StatementsOpinion
1. We have audited the accompanying standalone financial statements of Linde India Limited ("the Company"), which comprise the Standalone Balance Sheet as at March 31, 2023, and the Statement of Standalone Profit and Loss (including Other Comprehensive Income), the Statement of Standalone Changes in Equity and the Statement of Standalone Cash Flow for the 15 months period ended March 31, 2023, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the 15 months period ended March 31, 2023.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the "Auditor''s Responsibilities for the Audit of the Standalone Financial Statements" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
4. We draw attention to Note 51 of the standalone financial statements which explains the management assessment of related party transactions in terms of Listing Regulations, 2015. The Company has received inquiries and information requests from Securities and Exchange Board of India in connection with certain related party transactions and arrangements to which the Company has been responding from time to time. There are significant uncertainties associated with the outcome of the above, being matters of legal and regulatory interpretation, the impact of which, if any is presently not ascertainable.
Our opinion is not modified in respect of this matter.
5. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter |
How our audit addressed the key audit matter |
Revenue Recognition for Project Engineering Division (PED) business - |
Our audit procedures included the following: |
Appropriateness of estimation of contract cost and revenue recognition |
⢠Assessed and tested the design and operating effectiveness of |
Refer Note 2(e)(c) - "Revenue Recognition- Revenue from |
key controls around estimation of contract costs and revenue |
Construction" and 4(ii)- "Critical accounting judgements and key |
recognition. |
sources of estimation uncertainty- Accounting for revenue from |
⢠Tested on a sample basis the actual costs incurred during the 15 |
contracts wherein company satisfies performance obligation and |
months period ended March 31, 2023 with supporting documents. |
recognises revenue over time" and Note 24 - "Revenue from |
⢠Verified on a sample basis the revenue with the underlying |
operations" |
contracts and other relevant terms and conditions as considered |
Revenue from contracts entered into by the PED is recognized over |
appropriate. |
a period of time in accordance with the requirements of Ind AS 115 |
⢠Tested on a sample basis the future cost to complete with order |
''Revenue from Contracts with Customers''. |
placed with vendors, management''s technical estimates, and |
Revenue recognition involves determination of percentage completion of the project and contract margin to be recognised on the project, |
other relevant supporting documents, as appropriate. ⢠We also evaluated reasonableness of management''s judgements |
which are dependent on the actual cost incurred and total budgeted cost, which is cost incurred to date and estimation of future cost to |
and assumptions using past trends and comparing the estimated costs to the actual costs incurred for the similar projects. |
complete the contract. |
⢠Recomputed the percentage of completion based on the budgeted cost and the total actual cost incurred and the revenue recognized. |
This estimation involves exercise of significant judgement by the |
⢠Evaluated the adequacy of the related disclosures in the |
management in making cost forecasts considering future activities to be |
standalone financial statements. |
carried out in the project, and the related assumptions. |
Based on the above procedures, we did not note any significant |
This has been considered as a key audit matter given the significant |
exceptions in the estimates and judgements applied by the |
management judgements involved and complexities in determining |
Management in revenue recognition including those relating to |
future costs to complete and the resulting contract margin. |
presentation and disclosures as required by Ind AS 115. |
6. The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Directors'' Report and Management Discussion and Analysis, Report on Corporate Governance and Business Responsibility and Sustainability Report but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance
for the standalone financial statements
7. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes
in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the standalone financialstatements
9. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
10. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
14. The standalone financial statements of the Company for the year ended December 31, 2021, were audited by another firm of chartered accountants under the Act who, vide their report dated February 24, 2022, expressed an unmodified opinion on those standalone financial statements.
Our opinion is not modified in respect of the above matter.
Report on other legal and regulatory requirements
15. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the Annexure B
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
16. 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, except that the backup of the books of accounts and other books and papers maintained in electronic mode, has not been maintained on a daily basis on servers physically located in India during the period January 1, 2022 to March 31, 2023.
(c) The Standalone Balance Sheet, the Statement of Standalone Profit and Loss (including other comprehensive income), the Statement of Standalone Changes in Equity and the Statement
of Standalone Cash Flow dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2023, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the maintenance of accounts and other matters connected therewith, reference is made to our comment in paragraph 16(b) above.
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 20 and Note 37 to the standalone financial statements.
ii. The Company was not required to recognise a provision as at March 31, 2023 under the applicable law or accounting standards, as it does not have any material foreseeable losses on long-term contract. The Company did not have any derivative contracts as at March 31, 2023.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the period.
iv. (a) The management has represented that, to the btest
of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries and ;
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the 15 months period ended March 31, 2023 by the Company is in compliance with Section 123 of the Act.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 (as amended), which provides for books of account to have the feature of audit trail, edit log and related matters in the accounting software used by the Company, is applicable to the Company only with effect from financial year beginning April 1, 2023, the reporting under clause (g) of Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), is currently not applicable.
17. The Company has paid /provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
Dec 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Linde India Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 December 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 31 December 2018 and its profits, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31 December 2016 and the transition date opening balance sheet as at 1 January 2016 included in these standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 December 2016 and 31 December 2015 dated 11 February 2017 and 16 February 2016 respectively expressed an unmodified opinion on those standalone financial statements, and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
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) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 December 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 December 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 controlsover financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors is in accordance with the provisions of section 197of the Act.
h) 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 has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iii. There has been no delay in transferring amounts, 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 Linde India Limited (âthe Companyâ) as of 31 December 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, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the 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 31 December 2018 based on the internal control over financial reporting criteria established by the respective 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.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets..
(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) 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 / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement..
(ii) As explained to us, 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 185 and 186 of the Companies Act, 2013 in respect of grant of loans, providing guarantees and securities, as applicable. The provisions of section 186 of the Act in respect of Investments have been complied with by the company.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year and had no unclaimed deposits at the beginning of the year as per the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(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 dues, including Provident Fund, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services 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, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services Tax, cess and other material statutory dues in arrears as at 31 December 2018 for a period of more than six months from the date they became payable
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on 31 December 2018 on account of disputes are given below.
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period for which the Amount Relates |
Amount Net of Payment (Rs. In million) |
Amount Paid under protest (Rs. In million) |
Central State Sales Tax Act and VAT Acts |
Sales tax / VAT |
Adjudicating Authority |
2000-2015 |
18.45 |
1.94 |
First Appellate Authority |
1989-2016 |
659.49 |
111.54 |
||
Tribunal |
1995-2015 |
166.61 |
18.62 |
||
Revisional Board |
1998-2014 |
150.05 |
11.45 |
||
High Court |
2005-2010 |
80.69 |
- |
Central Excise Act, 1944 |
Excise Duty |
Adjudicating Authority |
1996-2017 |
133.02 |
1.11 |
First Appellate Authority |
2012-2017 |
2.65 |
0.22 |
||
Tribunal |
1991-2017 |
398.61 |
15.42 |
||
High Court |
1998-2009 |
10.48 |
- |
||
Supreme Court |
1999-2009 |
21.26 |
- |
||
Finance Act, 1944 |
Service Tax |
Adjudicating Authority |
2004-2015 |
37.61 |
2.05 |
First Appellate Authority |
2005-2010 |
1.47 |
- |
||
Tribunal |
2007-2015 |
767.03 |
18.29 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company has not borrowed any money from financial institutions and government. The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanation given to us, the Company did not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. Term loans raised during the year were applied for the purpose for which those were raised.
(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 paid / 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.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 Section 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 standalone 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 directors of its holding, joint venture company or persons connected with them 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 Mumbai
Chartered Accountants 19 february2019
Firm Registration NO.117366W/W-100018
ABHIJIT BANDYOPADHYAY, Partner
Membership No.: 054785
Dec 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Linde India Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 December, 2017, 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 accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that 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.
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 accounting principles generally accepted in India, of the state of affairs of the Company as at 31 December, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31 December , 2016 and the transition date opening balance sheet as at 1 January, 2016 included in these standalone Ind AS financial statements, are based on the statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 December, 2016 and 31 December, 2015 dated 11 February, 2017 and 16 February, 2016 respectively expressed an unmodified opinion on those standalone financial statements, and have been restated to comply with Ind AS. Adjustments made to the previously issued said financial information prepared in accordance with the Companies (Accounting Standards) Rules, 2006 to comply with Ind AS have been audited by us.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 December, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 December, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 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 has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
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.
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 Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) 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 / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, 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 185 and 186 of the Companies Act, 2013 in respect of grant of loans, providing guarantees and securities, as applicable. The provisions of section 186 of the Act in respect of Investments have been complied with by the company.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(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 dues, including Provident Fund, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services 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, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Goods and Services Tax, cess and other material statutory dues in arrears as at December 31, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on December 31, 2017 on account of disputes are given below.
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period for which the Amount Relates |
Amount Net of Payment (Rs. In million) |
Amount Paid under protest (Rs. In million) |
Central State Sales Tax Act and VAT Acts |
Sales tax / VAT |
Adjudicating Authority |
1999-2000 2011-2015 |
91.29 |
7.42 |
First Appellate Authority |
1989-1991 2002-2003 2005-2008 2009-2015 |
645.73 |
91.80 |
||
Tribunal |
1995-1997 1998-1999 2003-2006 2007-2014 |
101.15 |
6.47 |
||
Revisional Board |
1998-2001 2007-2013 |
149.79 |
10.61 |
||
High Court |
2005-2006 |
55.06 |
- |
||
Supreme Court |
1992-1993 |
2.00 |
- |
||
Central Excise Act, 1944 |
Excise Duty |
Adjudicating Authority |
1996-2017 |
110.61 |
1.11 |
First Appellate Authority |
1991-2010 |
3.61 |
0.02 |
||
Tribunal |
1991-2011 2014-2016 |
374.22 |
24.22 |
||
High Court |
1998-2001 2008-2009 |
10.48 |
- |
||
Supreme Court |
1999-2009 |
21.26 |
- |
||
Finance Act, 1944 |
Service Tax |
Adjudicating Authority |
2004-2015 |
49.94 |
- |
First Appellate Authority |
2005-2010 |
5.17 |
0.37 |
||
Tribunal |
2005-2008 2008-2015 |
856.31 |
32.64 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company has not borrowed any money from financial institutions and government. The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanation given to us, the Company did not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. Term loans raised during the year were applied for the purpose for which those were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no 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 paid / 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 Section 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 standalone 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 directors of its holding, joint venture company or persons connected with them 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 Mumbai
Chartered Accountants 12 February 2018
Firm Registration No. 117366W/W-100018
ABHIJIT BANDYOPADHYAY, Partner
Membership No. : 054785
Dec 31, 2016
We have audited the accompanying standalone financial statements of Linde India Limited("the Company"), which comprise the Balance Sheet as at 31 December 2016, 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 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 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 the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 December 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 31 December 2016 taken on record by the Board of Directors, none of the directors is disqualified as on
31 December 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''; 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 and 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 32 to the financial statements;
ii. The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the independent auditor''s report.
(Referred to in our report of even date)
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its fixed 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 their cords of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) The inventory, except goods-in-transit, has been physically verified by the management during the year. In our opinion, the frequency of such physical verification is reasonable. No material discrepancies were noted on such physical verification.
iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, provisions of paragraph 3(iii) of the Order are not applicable to the Company.
iv) According to the information and explanations given to us and based on our examination of the records of the Company, there are no loans, guarantees and security which requires compliance with provisions of section 185 and 186 of the Act. The provisions of section 186 of the Act in respect of investments have been complied with by the Company.
v) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by the Reserve Bank of India under the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, provisions of paragraph 3(v) of the Order are not applicable to the Company.
vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under Section 148(1) of the Act and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of these records.
vii) a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of 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 material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31 December 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and cess which have not been deposited with the appropriate authorities on account of any dispute except the following:
Name of the Statute |
Nature of Dues |
Amount in (Rs. million) # |
Period to which amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise duty |
21.72 |
1999-2009 |
Supreme Court |
10.49 |
1998-2001 2008-2009 |
High court |
||
151.34** |
1991-2011 2014-2015 |
Custom, Excise and Service tax Appelate Tribunal |
||
1.89 |
1991-2010 |
Commissioner (Appeals) |
||
71.95 |
2007-2010 2012-2014 2015-2016 |
Commissioner of Central excise |
||
15.24 |
1996-2000 2007-2012 |
Additional Commissioner |
||
6.76 |
2006-2010 2014-2015 |
Deputy Commissioner |
||
14.92 |
2005-2012 2014-2015 |
Assistant Commissioner |
||
Finance Act, 1994 |
Service tax |
558.50 |
2005-2008 2008-2015 |
Custom, Excise and Service tax Appelate Tribunal |
5.94 |
2005-2010 |
Commissioner (Appeals) |
||
160.00 |
2004-2010 2013-2015 |
Commissioner of Service tax |
||
4.35 |
2004-2007 2009-2010 |
Additional Commissioner |
||
0.13 |
2009-2011 |
Deputy Commissioner |
||
6.49 |
2007-201 1 |
Assistant Commissioner |
||
Central State Sales Tax Act and VAT |
Sales tax / VAT |
55.05* |
2005-2006 |
High court |
Acts |
150.34 |
1998-2001 2007-2012 |
Revisional Board |
|
141.21* |
1995-2004 2005-2010 2011-2015 |
Tribunal |
||
394.09* |
1989-1991 2002-2003 2005-2007 2008-2009 2010-2013 |
Joint Commissioner (Appeals) of Commercial taxes |
||
64.77 |
2004-2006 2009-2011 |
Deputy Commissioner (Appeals) of Commercial taxes |
||
1.70 |
2012-2014 |
Additional Commissioner of Commercial taxes |
''Including amount aggregating to Rs. 237.255 million in respect of sales tax cases, which have been stayed by respective authorities "Including amount aggregating to Rs. 81.76 million in respect of Excise cases, which have been stayed by various authorities
#Excluding the demands the proceeding of which have been set aside or remanded for reassessment by the appropriate authorities. Amounts are net of pre deposits aggregating to Rs. 70.97 million.
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings from a financial institution or banks during the year. The Company did not have any outstanding dues to government or debenture holders during the year.
ix) According to the information and explanations given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Term loans raised during the year were applied for the purposes for which those were raised.
x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and on the basis of our examination of their cords of the Company, remuneration paid to the Managing Director of the Company for the period 30 July 2016 to 31 December 2016 aggregating to Rs 5.93 million, is subject to the approval of the shareholders in the forthcoming annual general meeting.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, provisions of paragraph 3(xii) of the Order are not applicable to the Company.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Section 177 and 188 of the Act, wherever applicable, and details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, provisions of paragraph 3(xiv) of the Order are not applicable to the Company.
xv) According to the information and explanations given to us, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with them. Accordingly, provisions of paragraph 3(xv) of the Order are not applicable to the Company.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the independent auditor''s report.
(Referred to in our report of even date)
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Linde India Limited ("the Company") as of 31 December 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 Act.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls 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 over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 December 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 ICAI.
for B S R & Co. LLP Mumbai
Chartered Accountants 11 February 2017
Firm Registration No. 101248W/W-1 00022
JAYANTA MUKHOPADHYAY,
Partner Membership No. : 055757
Dec 31, 2014
We have audited the accompanying financial statements of Linde India
Limited (formerly known as BOC India Limited) [''the Company''], which
comprise the Balance Sheet as at 31 December 2014, 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/ section 133 of the Companies Act 2013 (as
applicable). 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 misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 31 December 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.
Emphasis of Matter
We draw attention to Note 42 (iii) which explains the impact of early
adoption of Accounting Standard 30 "Financial Instruments: Recognition
and Measurement" issued by the Institute of Chartered Accountants of
India.
As a result of such adoption, the Company during the year ended 31
December 2014 has recognised a net loss of Rs. 426.51 million under
''Translation and hedging reserves'', representing net exchange gain on
borrowings aggregating to Rs. 1,058.69 million and mark to market loss
of Rs. 1,485.20 million arising from changes in fair value of principal
and interest rate swaps, forward contracts against firm commitments,
which qualify for hedge accounting being effective hedges.
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 Companies Act, 1956, 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 Companies Act, 1956/Section
143(3) of Companies Act, 2013 (as applicable), 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/section 133
of the Companies Act, 2013 (as applicable); and
e) on the basis of written representations received from the directors
as on 31 December 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 December 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956/Section 164(2) of Companies
Act, 2013 (as applicable).
Annexure to the auditor''s report.
(Referred to in our report of even date)
i)
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
ii)
a) The inventory, except goods-in-transit has been physically verified
by the management during the year. In our opinion, the frequency of
such verification is reasonable.
b) The procedures for the 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.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
iii)
a) The Company has not given any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956/Section 189 of Companies
Act, 2013 (as applicable). Accordingly, paragraphs 4(iii)(a) to
4(iii)(d) of the Order is not applicable.
b) The Company has taken loans from one party covered in the register
maintained under section 189 of the Companies Act, 2013.
The maximum amount outstanding during the year was Euro 103.40 million
(equivalent to Rs. 8,785.28 million) and Rs. 5,241.57 million and the
year-end balance of such loans were Euro 82.20 million (equivalent to
Rs. 6,268.81 million) and Rs. 5,241.57 million.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from party listed in the register
maintained under Section 189 of the Companies Act, 2013 are not,
prima-facie, prejudicial to the interest of the Company.
d) In the case of loans taken from the above party listed in the
register maintained under Section 189 of the Companies Act, 2013, the
Company has been regular in repaying the principal amounts as
stipulated and in the payment of interest.
iv)
In our opinion and according to the information and explanations given
to us, and having regard to the explanation that purchases of certain
items of inventories and fixed assets are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
audit.
v)
In our opinion, and according to the information and explanations given
to us, there are no contracts and arrangements the particulars of which
need to be entered into the register maintained under section 301 of
the Companies Act, 1956/Section 189 of Companies Act, 2013 (as
applicable).
vi)
The Company has not accepted any deposits from the public during the
year.
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 pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956/Section 128 of Companies Act, 2013 (as applicable) in respect
of the products and are of the opinion that, prima-facie, the
prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the records.
ix) a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of 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 have generally been regularly deposited during
the year by the Company with appropriate authorities.
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,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at 31 December 2014
for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are
no dues of Customs duty and Wealth tax which have not been deposited
with the appropriate authorities on account of any dispute are no dues
of Customs duty and Wealth tax which have not been deposited with the
appropriate authorities on account of any dispute.
According to the information and explanations given to us, dues of
Sales tax, Service tax and Excise duty which have not been deposited by
the Company on account of any dispute are listed below:
Name of the Statute Nature of Dues Amount in Period to
(Rs. which
million) # amount
relates
Central State Sales
Tax Act and VAT Acts Sales Tax/VAT 1982-1992
57.08* 2005-2006
1981-1982
1986-1988
149.74 1992-2009
1995-1999
2004-2010
74.83* 2008-2013
2010-11
12.22 2012-13
2004-2005
64.79 2009-2011
2006-2007
35.70 2007-2008
2009-2010
221.89 2010-2011
0.36 2002-2003
Central Excise Act,
1944 Excise Duty 21.72 1999-2009
1998-2001
10.49 2008-2009
116.04** 1991-2011
789 1991-2010
2007-2010
56.65 2012-2014
1996-2000
15.24 2007-2012
2.89 2006-2010
5.07 2005-2012
Finance Act, 1994 Service tax 2005-2008
32.40 2008-2014
5.94 2005-2010
225.84 2004-2010
2004-2007
4.35 2009-2010
0.13 2009-2011
6.49 2007-2011
Name of the Statute Period to Forum where the dispute is pending
which
amount
relates
Central State Sales
Tax Act and VAT Acts 1982-1992
2005-2006 High Court
1981-1982
1986-1988
1992-2009 Revisional Board
1995-1999
2004-2010
2008-2013 Tribunal
2010-11 Joint Commissioner (Appeals) of
2012-13 Commercial taxes
2004-2005 Deputy Commissioner (Appeals) of
2009-2011 Commercial Taxes
2006-2007 Joint Commissioner of
2007-2008 Commercial taxes
2009-2010 Additional Commissioner of
2010-2011 Commercial taxes
2002-2003 Commissioner of Commercial taxes
Central Excise Act,
1944 1999-2009 Supreme Court
1998-2001
2008-2009 High Court
Customs, Excise and Service
1991-2011 Tax Appellate Tribunal
1991-2010 Commissioner (Appeals)
2007-2010 Commissioner of
2012-2014 Central Excise
1996-2000
2007-2012 Additional Commissioner
2006-2010 Deputy Commissioner
2005-2012 Assistant Commissioner
Finance Act, 1994 2005-2008 Customs, Excise and Service
2008-2014 Tax Appellate Tribunal
2005-2010 Commissioner (Appeals)
2004-2010 Commissioner of Service tax
2004-2007
2009-2010 Additional Commissioner
2009-2011 Deputy Commissioner
2007-2011 Assistant Commissioner
* Including amounts aggregating to Rs. 80.69 million in respect of
sales tax cases, which have been stayed by respective authorities **
Including amounts aggregating to Rs. 81.76 million in respect of Excise
cases, which have been stayed by respective authorities
# Excluding the demands the proceedings of which have been set aside or
remanded for reassessment by the appropriate authorities
x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding debentures during the
year.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund/ society.
xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that funds raised on short term basis have not been used
for long-term investment.
xviii) The Company has not made any preferential allotment of shares to
companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956/Section 189 of Companies Act,
2013 (as applicable).
xix) The Company did not have any outstanding debentures during the
year.
xx) The Company has not raised any money by public issues during the
year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
for B S R & Co. LLP Jaipur
Chartered Accountants 17 February 2015
Firm Registration No. 101248W/W-1 00022
Jayanta Mukhopadhyay, Partner
Membership No.: 055757
Dec 31, 2013
We have audited the accompanying financial statements of Linde India
Limited (formerly known as BOC India Limited) [''the Company''], which
comprise the Balance Sheet as at 31 December 2013, 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") which, as per a clarification
issued by the Ministry of Corporate Affairs, continues to apply under
section 133 of the Companies Act 2013 (which has superseded section
211(3C) of the Companies Act, 1956 w.e.f. 12 September 2013). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
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 polices 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 31 December 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 (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 which as per
a clarification issued by the Ministry of Corporate Affairs continue to
apply under section 133 of the Companies Act 2013 (which has superseded
section 211(3C) of the Companies Act 1956 w.e.f. 12 September 2013);
and
e) on the basis of written representations received from the directors
as on 31 December 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 December 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
i)
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepances were
noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the go,ng concern assumption.
ii)
a) The inventory, except goods-,n-transit has been physically verified
by the management during the year. In our opinion, the frequency of
such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the s,ze
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii)The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
iv)in our opinion and according to the information and explanations given
to us, and having regard to the explanation that purchases of certain
items of inventories and fixed assets are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
audit.
v)a) in our opinion and according to the information and explanations
given to us, the particulars of the contract or arrangement referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) Under the aforesaid contract or arrangement, certain services that
are rendered by the Company as per the specialised requirements of a
buyer and the value of such services exceeds Rs. 0.50 million during the
year, suitable alternative sources are not available to obtain
comparable quotations. However, on the basis of information and
explanations provided, the same appear reasonable.
vi)The Company has not accepted any deposits from the public during the
year.
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
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the products and are of the opinion that prima
face, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records.
ix)a) According to the information and explanations given to us and on the
bas,s of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of 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 have generally been regularly deposited during
the year by the Company with appropriate authorities.
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,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at 31 December 2013
for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are
no dues of Customs duty and Wealth tax which have not been deposited
with the appropriate authorities on account of any dispute.
According to the information and explanations given to us, dues of
Sales tax, Service tax and Excise duty which have not been deposited by
the Company on account of any dispute are listed below:
Name of the Statute Nature of Dues Amount in Period to which
(Rs. million) amount relates
Central State Sales
Tax Act and VAT Acts Sales Tax/VAT 1982-1992
2005-2006
57.58* 2009-2010
1981-1982
1983-1984
1986-1987
154.37 1992-2009
1993-1994
1995-1997
2003-2006
74.45* 2008-2013
18.12 2005-2011
2004-2008
64.79 2009-2011
2006-2007
29.25 2007-2008
59.15 2002-2003
2009-2010
170.60 2010-2011
1998-1999
2001-2003
2.06 2005-2007
Central Excise
Act, 1944 Excise Duty 21.72 1999-2009
1998-2001
10.49 2008-2009
116.04 1991-2011
7.89 1991-2010
24.69 2007-2010
15.24 1996-2000
2007-2012
2.89 2006-2010
5.07 2005-2012
Finance Act, 1994 Service tax 32.40 2005-2008
5.94 2005-2010
121.48 2004-2010
2004-2007
4.35 2009-2010
0.13 2009-2011
6.49 2007-2011
Name of the Status Forum where the dispute is pending
Central State Sales
Tax Act and VAT acts High Court
Revisional Board
Tribunal
joint Commissioner (Appeals) of Commercial taxes
Deputy Commissioner (Appeals) of Commercial Taxes
Assistant Commissioner of Commercial taxes
Additional Commissioner of Commercial taxes
Senior joint Commissioner (Appeals) of Commercial
taxes
Commissioner of Commercial taxes
Central Exice Act
1944 Supreme Court
High Court
Customs, Excise and Service Tax Appellate
Tribunal
Commissioner (Appeals)"
Commissioner of Central Excise
Additional Commissioner
Deputy Commissioner
Assistant Commissioner
Finance Act,1944 Customs, Excise and Service Tax
Appellate Tribunal
Commissioner (Appeals)
Commissioner of Service tax
Additional Commissioner
Deputy Commissioner
Assistant Commissioner
* including amounts aggregating to Rs. 80.69 million in respect of
Sales tax cases, which have been stayed by respective authorities "
including amounts aggregating to Rs. 81.76 million in respect of Excise
cases, which have been stayed by respective authorities *" Excluding
the demands the proceedings of which have been set aside or remanded
for reassessment by the appropriate authorities
x)The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
xi)in our opinion and according to the information and explanations g,ven
to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding debentures during
the year.
xii)The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii)in our opinion and according to the information and explanations given
to us, the Company is not a chit fund or a nidhi/mutual benefit fund/
society.
xiv)According to the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
investments.
xv)in our opinion and according to the information and explanations given
to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
xvi)in our opinion and according to the information and explanations given
to us, the term loans taken by the Company have been applied for the
purpose for which they 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 are of the
opinion that funds raised on short term basis have not been used for
long- term investment.
xviii)The Company has not made any preferential allotment of shares to
companies/firms/parties 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 any money by public issues during the year.
xxi)According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For B S R & Co.LLP Mumbai
Chartered Accountants 7 February 2014
Firm Registration No. 101248W
Vikram Advani, Partner Membership No, 091765
Dec 31, 2012
We have audited the attached Balance Sheet of BOC India Limited (''the
Com- pany'') as at 31 December 2012 and also the related Statement of
Profit and Loss and the Cash Flow Statement of the Company for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance 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 state- ments. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the over- all financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditor''s Report) Order, 2003, as amended
(''Order''), issued by the Central Government of India in terms of sub-
section (4A) of Section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
Further to our comments in the Annexure referred to 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 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 dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) on the basis of written representations received from directors as
on 31 December 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 December
2012 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 said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
- in the case of the Balance Sheet, of the state of the affairs of
the Company as at 31 December 2012;
- in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
- in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
I.
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
II.
a) The inventory, except goods-in-transit has been physically verified
by the management during the year. In our opinion, the frequency of
such verification is reasonable.
b) The procedures for the 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. The
discrepan- cies noticed on verification between the physical stocks and
the book records were not material.
III.
The Company has neither granted nor taken any loans, secured or unse-
cured, to or from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
In our opinion and according to the information and explanations given
to us, and having regard to the explanation that purchases of certain
items of inventories and fixed assets are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quo- tations, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
with regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
audit.
a) In our opinion and according to the information and explanations
given to us, the particulars of the contract or arrangement referred to
in Section 301 of the Companies Act, 1956 have been entered in the reg-
ister required to be maintained under that Section.
b) Under the aforesaid contract or arrangement, certain services that
are rendered by the Company as per the specialised requirements of a
buyer and the value of such services exceeds Rs. 0.50 mil- lion during
the year, suitable alternative sources are not available to obtain
comparable quotations. Flowever, on the basis of infor- mation and
explanations provided, the same appear reasonable.
The Company has not accepted any deposits from the public during the
year.
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
pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of the products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records.
IX.
a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and Protec-
tion Fund, Employees'' State Insurance, Income tax, Sales tax, Wealth
tax, Service tax, Customs duty, Excise duty, Cess and other material
statutory dues have generally been regularly deposited during the year
by the Company with appropriate authorities.
According to the information and explanations given to us, no undis-
puted amounts payable in respect of 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
mate- rial statutory dues were in arrears as at 31 December 2012 for a
period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are
no dues of Income tax, Customs duty, Wealth tax and Cess which have not
been deposited with the appropriate authorities on account of any
dispute.
According to the information and explanations given to us, dues of
Sales tax, Service tax and Excise duty which have not been deposited by
the Company on account of any dispute are listed below:
Amount in Period to
which
Name of the
Statute Nature of dues (Rs.
million)* amount
relates Forum where the
dispute is pending
Central
State Sales
Tax Act and
VAT Acts Sales tax/VAT 2.53 1982-1992 High Court
1981-1982
1983-1984
1986-1987
180.99 1992-2009 Revisional Board
1993-1994
1995-1997
2003-2006
31.12** 2008-2010 Tribunal
1997-1998
2003-2006
46.12 2006-2011 Joint
Commissioner
(Appeals) of
Commercial Taxes
1990-1991
2004-2006
64.80 2009-2011 Deputy
Commissioner
(Appeals) of
Commercial Taxes
7.87 2002-2003 Additional
Commissioner of
Commercial Taxes
2.05 2007-2008 Assistant
Commissioner of
Commercial Taxes
1998-1999
2001-2003
5.03 2005-2007 Commissioner of
Commercial Taxes
Central
Excise
Act, 1994 Excise duty 21.72 1999-2009 Supreme Court
1998-2001
10.49 2008-2009 High Court
118.70*** 1991 -2011 Customs, Excise
and Service Tax
Appellate Tribuna
7.89 1991-2010 Commissioner
(Appeals)
24.69 2007-2010 Commissioner of
Central Excise
1996-2000
15.24 2007-2012 Additional
Commissioner
2.89 2006-2010 Deputy
Commissioner
5.07 2005-2012 Assistant
Commissioner
Finance
Act, 1994 Service tax 32.40 2005-2008 Customs, Excise
and Service Tax
Appellate Tribuna
5.94 2005-2010 Commissioner
(Appeals)
121.48 2004-2010 Commissioner of
Service Tax
2004-2007
4.35 2009-2010 Additional
Commissioner
0.13 2009-2011 Deputy
Commissioner
6.49 2007-2011 Assistant
Commissioner
* Excluding the demands the proceedings of which have been set aside or
remanded for reassessment by the appropriate authorities.
** Including disputed dues aggregating to Rs. 25.64 million in respect
of sales tax dispute, which have been stayed by respective authorities.
*** Including disputed dues aggregating to Rs. 81.76 million in respect
of Excise dispute, which have been stayed by respective authorities.
X.
The Company does not have any accumulated losses at the end of the
finan- cial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
XI.
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding debentures during the
year.
XII.
The Company has not granted any loans and advances on the basis of
secu- rity by way of pledge of shares, debentures and other securities.
XIII.
In our opinion and according to the information and explanations given
to us, the Company is not a chit fund or a nidhi / mutual benefit fund
/ society.
XIV.
According to the information and explanations given to us, the Company
is not dealing or trading in shares, securities, debentures and other
invest- ments.
XV.
In our opinion and according to the information and explanations given
to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not preju- dicial to the interest of the Company.
XVI.
Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
XVII.
According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the Company has used funds raised on short term basis
amounting to Rs. 648.19 million for long term investments.
XVIII.
The Company has not made any preferential allotment of shares to
companies/firms/parties 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 any money by public issues during the year.
XXI.
According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the course of our
audit.
For B S R & Co. Kolkata
Chartered Accountants 4 February 2013
Firm Registration No.: 101248W
Vikram Advani, Partner
Membership No.: 091765
Dec 31, 2010
1. We have audited the attached Balance Sheet of BOC India Limited as
at 31 December 2010 and also the Profit and Loss Account and the Cash
Flow Statement of the Company for the year ended on that 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 auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003
(Order), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(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 it appears from our examination of
those 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 Accounting
Standards referred to in sub-section (3C) of Section 211 of the
CompaniesAct, 1956;
(e) On the basis of written representations received from directors as
on 31 December 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 December
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 said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of the affairs of the
Company as at 31 December 2010;
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date;and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on thatdate.
Annexure to the Auditorsreport
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventory, except goods-in-transit has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures for the 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of the contract or
arrangement referred to in section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section.
(b) Under the aforesaid contract or arrangement, certain services that
are rendered by the Company as per the specialised requirements of a
buyer and the value of such services exceeds Rs. 5 lakhs during the
year, suitable alternative sources are not available to obtain
comparable quotations. However, on the basis of information and
explanations provided, they appear reasonable.
(vi) The Company has not accepted any deposits from the public during
the year.
(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 pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 in respect of the products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of 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 have generally been regularly deposited during
the year by the Company with appropriate authorities.
There were no dues on account of Cess under Section 441A of the Act
since the date from which the aforesaid Section comes into force has
not yet been notified by the Central Government.
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,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at 31 December 2010
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Customs duty, Wealth tax and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
According to the information and explanations given to us, dues of
Income-tax, Sales tax, Service tax and Excise duty which have not been
deposited on account of any dispute are listed below:
Name of the Statute Nature of Amount Period to Forum where
Dues (Rs. 000) which amount the dispute
is pending
relates
Income-Tax Act, 1961 Income-tax 442,195 2006-2007 Commissioner
of
Income-tax
(Appeals)
Central Sales
Tax Act Sales Tax 4,781 1982-1992 High Court
and various
State Sales 1981-1988
Tax Acts 209,112 1992-2005 Revisional
Board
1990-1991
1,152 1995-1997 Tribunal
2001-2004
2005-2006
33,080 2005-2008 Senior Joint
Commissioner
(Appeals)
of
Commercial
Taxes
9,269 2002-2009 Joint
Commissioner
(Appeals) of
Commercial
Taxes
305 2006-2007 Additional
Commissioner
of
Commercial
Taxes
301 1997-1998 Deputy
Commissioner
(Appeals) of
Commercial
Taxes
1991-1992
38,521 1998-1999 Assistant
Commissioner
of
2000-2001 Commercial
Taxes
2005-2008
Central Excise
Act Excise Duty 11,693 1999-2009 Supreme Court
870 1998-2001 High Court
32,308 1991-2009 Customs,
Excise
and
Service
Tax
Appellate
Tribunal
12,515 1991-2009 Commissioner
(Appeals)
90,198 1999-2010 Commissioner
of
Central
Excise
2,814 2005-2009 Additional
Commissioner
2,517 2006-2010 Deputy
Commissioner
10,285 1991-2010 Assistant
Commissioner
Service Tax Act Service Tax 29,236 2005-2007 Customs,
Excise and
Service
Tax
Appellate
Tribunal
1,669 2003-2009 Commissioner
(Appeals)
106,731 2004-2009 Commissioner
of
Service
tax
7,909 2003-2009 Additional
Commissioner
107 2006-2008 Assistant
Commissioner
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or to any financial institution. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. (xv) In our opinion and according to the
information and explanations given to us, the terms and conditions on
which the Company has given guarantees for loans taken by others from
banks or financial institutions are not prejudicial to the interest of
the Company.
(xvi) Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained, though idle/surplus fund which were not required for
immediate utilisation nave been gainfully invested in fixed deposits
with banks. The maximum amount idle/surplus fund in fixed deposits
during the year was Rs. 1,470,000 thousands of which Rs. 300,000
thousand was outstanding at the end of the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties 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 any money by public issues during the
year.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For BSR & Co.
Chartered Accountants
Firm Registration No.: 101248W
Vikram Advani
Partner
Membership No: 091765
Place: Kolkata
Date : 25 February, 2011
Dec 31, 2009
1. We have audited the attached Balance Sheet of BOC India Limited as
at 31 December 2009, the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date, annexed
thereto. These financial statements are the responsibility of the
Companys manasement. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
senerally 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 examinins, on a test basis, evidence supportins the amounts
and disclosures in the financial statements. An audit also includes
assessms the accountins principles used and sisnificant estimates made
by manasement, as well as evaluates 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
(Order), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in parasraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledse 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
the 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 Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
(e) On the basis of written representations received from directors as
on 31 December 2009, and taken on record by the Board of Directors, we
report that, none of the directors is disqualified as on 31 December
2009 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 said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of the affairs of the
Company as at 31 December 2009;
ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors report (Referred to in our report of even
date)
(i) (a) The Company has maintained proper records showins full
particulars, includes quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed of during the year were not substantial, and
therefore, do not affect the going concern assumption.
(ii) (a) The inventory, except goods-in-transit has been physically
verified by the management during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures for the 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. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of the contract or
arrangement referred to in section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained under that
section.
(b) Under the aforesaid contract or arrangement, certain services that
are rendered by the Company as per the specialised requirements of a
buyer and the value of such services exceeds Rs. 5 lakhs during the
year, suitable alternative sources are not available to obtain
comparable quotations. However, on the basis of information and
explanations provided, they appear reasonable.
(vi) The Company has not accepted any deposits from the public during
theyear.
(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 pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 in respect of the products and are of the opinion that prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of 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 have generally been æ regularly deposited
during theyear by the Company with appropriate authorities.
There were no dues on account of Cess under Section 441A of the Act
since the date from which the aforesaid Section comes into force has
notyet been notified by the Central Government.
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,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at 31 December 2009,
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income-tax, Customs duty, Wealth tax and Cess which have
not been deposited with the appropriate authorities on account of any
dispute.
According to the information and explanations given to us, dues of
Sales tax, Service tax and Excise duty which have not been deposited on
account of any dispute are listed below:
Name of the
Statute Nature of Amount Period to Forum where
Dues (Rs. 000) which amount the dispute
is pending
relates
Central Sales
Tax Act Sales Tax 4,935 1982-1992 High Court
and various State
Sales 1981-1987 Revisional
Board
Tax Acts 1994-1996
1997-2000
2001-2005
Name of the
Statute Nature of Amount Period to Forum where
Dues (Rs. 000) which amount the dispute is pending
relates
1990-1991 Tribunal
9,012 1995-1997
1999-2004
1992-1993 Senior Joint Commiss
-ioner (Appeals)
35,567 2005-2006 of Commercial Taxes
11,658 1999-2000 Joint Commissioner
(Appeals) of
2001-2008 Commercial Taxes
67,893 1996-1997 Additional Commis
-sioner of
2000-2001 Commercial Taxes
2004-2006
5,289 1992-2004 Deputy Commissioner
(Appeals) of
Commercial Taxes
38,810 1992-2007 Assistant Commis
-sioner of
Commercial Taxes
Central
Excise Act Excise Duty 28,976 2007-2009 Supreme Court
447 1990-2009 High Court
22,161 1991-2009 Customs, Excise
and Service
Tax Appellate Tribunal
6,110 1991-2009 Commissioner (Appeals)
63.815 1991 -2009 Commissioner of
Central Excise
15.744 1991-2009 Additional Commissioner
99,022 1991-2009 Assistant Commissioner
Service
Tax Service Tax 54 470 2005-2009 Customs, Excise and
Service
Tax Appellate Tribunal
333 2003-2009 Commissioner (Appeals)
Commissioner of
Central Excise (Stay
81,409 2008-2009 Order obtained by
the Company
Rs. 29,236 thousand)
1,822 2003-2009 Additional Commissioner
28,063 2004-2009 Assistant Commissioner
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers or to any financial institution. The Company did not have any
outstanding debentures during the year.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/ mutual benefit
fund/society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) According to the information and explanations given to us, the
terms and conditions on which the Company has given guarantees for
loans taken by others from banks or financial institutions are not
prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied
forthe purpose forwhich they 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 are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to companies/firms/parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during
theyear.
(xx) The Company has not raised any money by public issues during the
year. Ã
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B S R & Company
Chartered Accountants
Vikram Aggarwal
Place: Gurgaon Partner
Date: 22 February, 2010 Membership No: 089826
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article