Mar 31, 2023
PTC India Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of PTC India Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at 31st March 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year ended on that date and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
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, as amended (the âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards 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, of the state of affairs of the Company as at 31st March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditorâs 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 (âICAIâ) 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 ICAIâs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
4. We draw your attention to Note 50(k)(i) to the Standalone Financial Statements which states that, on 19th January 2022, three independent directors of PTC India Financial Services Limited (âPFSâ), a subsidiary of the Company, had resigned, mentioning lapses in corporate governance and compliance. To address the issues raised by independent directors who had resigned, on 4th November 2022, the Forensic auditor appointed by PFS, submitted its forensic audit report (FAR). PFS engaged a reputed professional services firm to independently review its managementâs response submitted in FAR and documents supporting such response and commenting on such observations, including financial implications and any indication towards suspected fraud. PFS managementâs responses and remarks of professional services firm, together with the report of the forensic auditor, had been presented by the PFSâ management to its Board in its meetings held on 7th November 2022 and 13th November 2022 and the PFSâ Board observed that forensic auditor has not identified any event having material impact on the financials of PFS and has not identified any instance of fraud and/ or diversion of funds by PFS. Presently, communications /correspondences are going on with SEBI, Stock exchanges, RBI and ROC on the matters stated in resignation letters referred above and/or the Forensic audit report. Pursuant to the direction of RBI vide its letter dated 6th January 2023, Board of directors of PFS in its meeting held on 3rd February 2023 has revisited the findings of the FAR
and again took on record that the forensic auditor had not identified any event having material impact on the financials of PFS and also have not identified any instances of fraud and diversion of funds by PFS and/or by its employees. Registrar of Companies, Ministry of Corporate Affairs, NCT of Delhi & Haryana (ROC) has issued four show-cause notices (SCNs) dated 14 th February 2023 and 16 th February 2023 to PFS and its KMPs for non-compliances of the provisions of Section 149(8), 177(4)(v) & (vii) and 178 of the Companies Act, 2013 and PFS has submitted its replies on 14th & 17th March 2023 and 24th April 2023 denying the non-compliances mentioned in above SCNs and has prayed to the ROC for withdrawal of these SCNs which is pending. The management of PFS believes that there will be no material financial impact of the same on the state of affairs of
PFS.
5. We draw your attention to Note 50(k)(ii) to the Standalone Financial Statements regarding resignation of two independent directors of PFS w.e.f. 2nd December 2022 mentioning various concerns which includes the matters raised by the earlier independent directors of PFS who have resigned on 19th January 2022, concerns related to conduct and outcome of forensic audit, divergent views of the directors and management on the outcome of forensic audit report, meetings called at short notice/ without adequate notice, violation of SEBI directive regarding change in Board composition, submission of proposal for grant of facilities to the Business Committee/ Board during the period after April 2022 which were not in compliance with the extant policy laid down by the Board and certain other matters as detailed in their resignation letters filed by PFS with the stock exchanges. PFS has rebutted these claims and submitted its reply with the stock exchanges and Reserve Bank of India and in this regard, presently, communications/ correspondences are going on and PFSâ management believes that there will be no material financial impact of the same on the state of affairs of PFS.
6. We draw your attention to Note 50(k)(iii) to the Standalone Financial Statements which states that the certain pending minutes of meetings of Audit Committee and IT Strategy Committee of PFS held since 8th April 2022 till 14th November 2022 have been finalized, basis recordings/ videos of such meeting and in this regard, a certificate from an external legal expert has been taken on record. Further, these minutes have been signed by the current chairman(s) of the respective committees of PFS. The management of PFS believes that the relevant provisions of Companies Act 2013 have been complied with and there will be no material financial impact on the state of affairs of PFS.
7. We draw your attention to Note 50(l)(i) to the Standalone Financial Statements regarding resignation of three independent directors of the Company w.e.f. 5th December 2022 and resignation of one independent director w.e.f. 6th December 2022 wherein they have raised issues related to corporate governance and compliance, divergent views of Board members and non-implementation of recommendations in respect of RMC report of the Company, calling meetings at short notice and certain other matters as detailed in their resignation letters filed by the Company with the stock exchanges.
The Board of the Company has noted these resignation letters and the managementâs replies thereon in its meetings dated 6th December and 7th December 2022. Further, the Company has rebutted these claims and has submitted the clarifications on the issues raised by these independent directors to the stock exchanges on 8th December 2022. The Company has not received any further communication in this regard.
8. We draw your attention to Note 50(l)(ii) to the Standalone Financial Statements which states that due to the resignation of four independent directors of the company, the composition of Board of the Company was not in accordance with the requirements of the Regulations in terms of minimum number of independent directors. The Company has appointed
requisite number of independent directors by 13th April 2023 and hence, its Board composition is now in compliance with the Regulations.
9. We draw your attention to Note 50(k)(iv) to the Standalone financial Statements regarding the Show Cause Notice (SCN) dated 8th May 2023 sent by Securities and Exchange Board of India (SEBI) to the Managing Director and Chief Executive Officer (MD & CEO) and Non-Executive Chairman of PFS, on matters of Corporate Governance issues raised by Independent Directors of PFS, who resigned on 19th January 2022 and 2nd December 2022, as detailed in Note 50(k)(i) and Note 50(k)(ii), under Sections 11(1), 11(4), 11(4A), 11B(l) and 11B(2) read with section 15HB of the SEBI, 1992 read with SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995. In this regard, the Audit Committee and the Board of Directors of PFS have noted and taken on record that the above stated SCN, which have been issued by SEBI to the MD & CEO and the Non-Executive Chairman of PFS, is in their individual name/capacity (addressed to). Presently, as informed, MD & CEO and the Non-Executive Chairman both are in the process of preparing replies (also in process of compiling all required data/ records/information/details). PFS believes that the issues raised in SCN will be resolved on submission of detailed evidence/ information/ replies/details by the MD & CEO and the NonExecutive Chairman and there will be no financial implications/ impact on this account on the state of affairs of PFS and the same has been noted and taken on record by the Audit Committee and Board of Directors of PFS in their respective meetings held on 18th May 2023.
10. Our opinion on standalone financial statements of the company is not modified in respect of matters mentioned in paras 4 to 9 above.
Key Audit Matters
11. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended 31st March 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
How our audit addressed the matter |
Further, the Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions, customer specific contractual arrangements and corresponding amount payable to generator viz a viz amount recoverable from the parties. The Company also considers current and anticipated future economic conditions relating to industry the Company deals with. In calculating expected credit loss, the Company also considers the probability of default in future and estimates of possible effect from the pandemic relating to Covid-19. |
⢠We reviewed the system of reconciliation followed by the management with the State Electricity Utilities. Such reconciliation statements are signed by the company and utilities from time to time during every year. Where there were indicators that trade receivables were unlikely to be collected within contractual payment terms, we assessed the adequacy of the allowance for impairment of trade receivables. To do this: ⢠We assessed the ageing of trade receivables, dispute with customers, the past payment and credit history of the customer. ⢠We evaluated evidence from the legal and external expertsâ reports on contentious matters. ⢠We assessed the profile of trade receivables and the economic environment applicable to these customers. ⢠We considered the historical accuracy of forecasting the allowance for impairment of trade receivables. |
Information other than the Standalone Financial Statements and Auditorâs
Report thereon
12. The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditorâs report thereon. The other information as stated above is expected to be made available to us after the date of this auditorâs report.
13. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
14. In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above 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.
15. When we read the other information as stated above and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the
Standalone Financial Statements
16. The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and
Key Audit Matter |
How our audit addressed the matter |
Reconciliation and Impairment of Trade Receivables and Assessment of reasonable certainty regarding surcharge income/expenses, The reconciliation and recoverability of trade receivables, the level of provisions for doubtful trade receivable and the assessment of reasonable certainty regarding surcharge income/expenses involves significant judgements by the management due to customer specific contractual arrangements. The Company determines the reasonable certainty regarding recoverability of surcharge income and corresponding expenses based on historical experience, reconciliation and confirmation of the surcharge income from the parties. |
Principal Audit Procedures In order to assess the recoverability and impairment of trade receivables and testing of management estimates regarding reasonable certainty for surcharge income/expenses, we performed following procedures: ⢠We evaluated the Companyâs credit control procedures and assessed and validated the ageing profile of trade receivables. ⢠We assessed the pending surcharge income recoverable and corresponding amount payable, ageing and past trend of the recoveries against surcharge by the parties and the status of reconciliation with the parties. ⢠We assessed recoverability on a sample basis by reference to cash received subsequent to year-end, agreement to the terms of the contract in place. |
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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
17. In preparing the standalone financial statements, management is responsible for assessing the Companyâs 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.
18. The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
19. 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 auditorâs 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 Standards on Auditing 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.
20. As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to these 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 managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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;
21. 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.
22. 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.
23. 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 auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
24. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
25. As required by section 143(3) of the Act, based on our audit, we report, 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 purpose of our audit of the accompanying standalone financial statements;
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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows 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 Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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 during the year is in accordance with the provisions of section 197 of 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 as at 31st March 2023 in Note 12 (b) and Note 36 to the standalone financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. (a) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) 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 (which are material
either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The dividend declared or paid by the Company during the year is in accordance with Section 123 of the Companies Act, 2013.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable with effect from 1st April 2023 to the Company and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st March 2023.
Chartered Accountants Firmâs Registration No. 006711N/N500028
Partner
Place: Noida Membership No. 502955
Date: 27th May 2023 UDIN: 23502955BGQPYK2907
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of PTC India Limited (âthe Companyâ), which comprise the Standalone Balance Sheet as at 31st March 2022, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year ended on that date and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe standalone financial statementsâ).
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, as amended (the âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards 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, of the state of affairs of the Company as at 31st March 2022, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditorâs 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 (âICAIâ) 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 ICAIâs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
We draw your attention to Note 50 (k) to the standalone financial statements of the company for the year ended 31st March 2022 regarding resignation of three Independent Directors (ID) of PTC India Financial Services Limited (PFS, Subsidiary of PTC India Limited) on 19th January 2022 mentioning lapses in governance and compliance, SEBIâs direction to the Company to examine the allegations and come-up with its conclusion and review of report of Risk Management Committee (RMC) by the Board of Directors.
We also draw your attention to Note 50 (l) to the standalone financial statements of the company for the year ended 31st March 2022 mentioning that Regulation 33(3) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 requires that if a listed entity has subsidiaries, it shall, while submitting annual audited standalone financial results also submit annual audited consolidated financial results to stock exchanges. PTC India Financial Services Limited (PFS) vide its letter dated May 30, 2022 informed the stock exchanges that it shall publish the financial results for the quarter and financial year ended 31 March, 2022 on completion of the forensic audit at the earliest. Therefore, the Company could not prepare the annual consolidated financial results due to non-availability of annual audited financial results of PFS. As the completion of audit of PFS may take time, the Company is publishing and submitting to stock exchanges its annual standalone financial results and to ensure complete compliance of Regulation 33(3) SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, it would publish and submit to stock exchanges its annual consolidated financial results after the financial results of PFS is received.
Our opinion on standalone financial statements of the company is not modified in respect of abovementioned matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended 31st March 2022. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
How our audit addressed the matter |
Reconciliation and Impairment of Trade Receivables and Assessment of reasonable certainty regarding surcharge income/expenses The reconciliation and recoverability of trade receivables, the level of provisions for doubtful trade receivable and the assessment of reasonable certainty regarding surcharge income/expenses involves significant judgements by the management due to customer specific contractual arrangements. The Company determines the reasonable certainty regarding recoverability of surcharge income and corresponding expenses based on historical experience, reconciliation and confirmation of the surcharge income from the parties. Further, the Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions, customer specific contractual arrangements and corresponding amount payable to generator viz a viz amount recoverable from the parties. The Company also considers current and anticipated future economic conditions relating to industry the Company deals with. In calculating expected credit loss, the Company also considers the probability of default in future and estimates of possible effect from the pandemic relating to Covid-19. |
Principal Audit Procedures In order to assess the recoverability and impairment of trade receivables and testing of management estimates regarding reasonable certainty for surcharge income/expenses, we performed following procedures: ⢠We evaluated the Co mpanyâs credit control procedures and assessed and validated the ageing profile of trade receivables. ⢠We assessed the pending surcharge income recoverable and corresponding amount payable, ageing and past trend of the recoveries against surcharge by the parties and the status of reconciliation with the parties. ⢠We assessed recoverability on a sample basis by reference to cash received subsequent to year-end, agreement to the terms of the contract in place. ⢠We reviewed the system of reconciliation followed by the management with the State Electricity Utilities. Such reconciliation statements are signed by the company and utilities from time to time during every year. Where there were indicators that trade receivables were unlikely to be collected within contractual payment terms, we assessed the adequacy of the allowance for impairment of trade receivables. To do this: ⢠We assessed the ageing of trade receivables, dispute with customers, the past payment and credit history of the customer. ⢠We evaluated evidence from the legal and external expertsâ reports on contentious matters. |
Key Audit Matter |
How our audit addressed the matter |
⢠We assessed the profile of trade receivables and the economic environment applicable to these customers. ⢠We considered the historical accuracy of forecasting the allowance for impairment of trade receivables. |
Information other than the Financial Statements and Auditorâs Report thereon
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditorâs report thereon. The other information as stated above is expected to be made available to us after the date of this auditorâs report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above 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.
When we read the other information as stated above and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards 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 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs 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 Standards on Auditing 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 financial statements.
As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to these 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 managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern;
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs 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.
Other Matter
The standalone financial statements of the Company for the year ended 31st March 2021 were audited by another auditor whose report dated 24th June 2021 expressed an unmodified opinion on those standalone financial statements. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
As required by section 143(3) of the Act, based on our audit, we report, 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 purpose of our audit of the accompanying standalone financial statements;
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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows 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 Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
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 during the year is in accordance with the provisions of section 197 of 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 as at 31st March 2022 in Note 12 (b) and Note 36 to the standalone financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March 2022;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. (a) The Management has represented that, to the best of its knowledge
and belief, no funds (which are material either individually or in the aggregate) 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 or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) 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 (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The dividend declared or paid by the Company during the year is in accordance with Section 123 of the Companies Act, 2013.
For T R Chadha & Co LLP
Chartered Accountants Firmâs Registration No. 006711N/N500028
Hitesh Garg
Place : New Delhi Partner
Date : July 05, 2022 Membership No. 502955
UDIN: 22502955AMHFWR6130
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of PTC INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS financial statementsâ).
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) specified under Section 133 of the Act, read with relevant rules issued thereunder. 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.
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 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 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us,the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2018, and its Profit (financial performance including other comprehensive income), its Cash Flow and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report 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 purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement and the 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 (Ind AS) specified under section 133 of the Act, read with relevant rules issued thereunder.
e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer Note 35 to the standalone Ind AS financial statements;
ii. The company has long term contracts as at 31st March, 2018 for which there were no material foreseeable losses. As informed to us that the company did not have any 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.
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the standalone Ind AS financial statements of the Company for the year ended March 31, 2018:
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) According to the explanations given to us, all the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the Company and the nature of its assets and no material discrepancy was noticed on such verification as compared to book records.
c) In our opinion and according to the information and explanations given to us during the course of audit, the title deeds of immovable properties are held in the name of the company.
(ii) The Company is in the business of power. Accordingly it does not hold any physical inventories. Thus, paragraph 3(ii) of the order is not applicable to the company.
(iii) According to the information and explanations given to us, 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, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us during the course of audit, the Company has complied with the provisions of Section 186 of the Companies Act, 2013 in respect of investment of the company. Further, the company has not granted any loans and has not given any guarantees and security under the provision of section 185 of the companies Act, 2013; thereby the provision of the said section is not applicable to the company.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, the provision of clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the records maintained by the Company for generation of power pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether these are accurate and complete.
(vii) (a) According to information and explanations given to us and on the basis of our examination of the books of account and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise,Value added Tax,Goods & Service Tax, Cess and any other statutory dues with the appropriate authorities and there were no outstanding at March 31, 2018 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, the dues of income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax,Goods & Service Tax and cess which have not been deposited on account of a dispute and the forum where the dispute is pending are as follows:
Statute |
Nature of Dues |
Period to which the Amount Relates |
Amount Involved (Rs. in Crore) |
Forum where Dispute is Pending |
Income Tax Act, 1961 |
Income Tax |
AY 2008-09 |
0.95 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2009-10 |
1.47 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2009-10 |
1.47 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2010-11 |
1.53 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2010-11 |
1.48 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2011-12 |
10.38 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2011-12 |
0.01 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income Tax |
AY 2012-13 |
65.12 |
ITAT Delhi |
Customs Act, 1962 |
Custom Duty |
AY 2012-13 |
17.16 |
CESTAT, Bangalore |
Income Tax Act, 1961 |
Income Tax |
AY 2013-14 |
99.12 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2014-15 |
45.63 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2015-16 |
66.84 |
Commissioner of Income Tax (Appeal) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
(ix) According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
(x) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the company or any fraud on the company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
(xi) In our opinion and according to the information and explanations given to us during the course of audit, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us during the course of audit, the company is not a Nidhi Company. Therefore, the provisions of clause 4(xii) of the Order are not applicable to the Company.
(xiii) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that transactions with the related parties are in compliance with sections 177 & 188 of the Act where 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 by the management and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year.
(xv) In our opinion and according to the information and explanations given to us during the course of audit, we state that the Company has not entered into non-cash transaction with directors or persons connected with him.
Therefore clause 3(xv) of the Companies (Auditorâs Report) Order, 2016 is 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 and accordingly, the provisions of clause 3(xvi) of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PTC INDIA LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on, âthe 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)â. 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.
Auditorsâ 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 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 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting,including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on, âthe 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 Indiaâ.
For K.G. Somani & Co.
Chartered Accountants
Firm Registration No: 06591N
(CA Bhuvnesh Maheshwari)
Place: New Delhi Partner
Date: 16th May 2018 Membership No: 088155
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of PTC INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including other comprehensive income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS financial statementsâ).
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) specified under Section 133 of the Act, read with relevant rules issued thereunder. 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit 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 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at March 31, 2017, and its Profit (financial performance including other comprehensive income), its Cash Flow and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report 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 purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement and the 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 (Ind AS) specified under section 133 of the Act, read with relevant rules issued thereunder.
e) On the basis of written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer Note 11(b) and note no. 36 to the standalone Ind AS financial statements;
ii. The company has long term contracts as at 31st March, 2017 for which there were no material foreseeable losses. As informed to us that the company did not have any derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. We have been informed that the company had not held or dealt in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Refer Note 50 to the standalone Ind AS financial statements.
âANNEXURE Aâ TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the standalone Ind AS financial statements of the Company for the year ended March 31, 2017:
(i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
b) According to the explanations given to us, all the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the Company and the nature of its assets and no material discrepancy was noticed on such verification as compared to book records.
c) In our opinion and according to the information and explanations given to us during the course of audit, the title deeds of immovable properties are held in the name of the company.
(ii) The Company is in the business of power. Accordingly it does not hold any physical inventories. Thus, paragraph 3(ii) of the order is not applicable to the company.
(iii) According to the information and explanations given to us, 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, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us during the course of audit, the Company has complied with the provisions of Section 186 of the Companies Act, 2013 in respect of investment of the company. Further, the company has not granted any loans and has not given any guarantees and security under the provision of section 185 of the companies Act, 2013; thereby the provision of the said section is not applicable to the company.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, the provision of clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the records maintained by the Company for generation of power pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether these are accurate and complete.
(vii) (a) According to information and explanations given to us and on the basis of our examination of the books of account and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities and there were no outstanding at March 31, 2017 for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us, the dues of income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess which have not been deposited on account of a dispute and the forum where the dispute is pending are as follows:
Statute |
Nature of Dues |
Period to which the Amount Relates |
Amount Involved (Rs.in Crore) |
Forum where Dispute is Pending |
Income Tax Act, 1961 |
Income Tax |
AY 2008-09 |
0.95 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2009-10 |
1.47 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2010-11 |
1.53 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2011-12 |
10.38 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2011-12 |
0.01 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income Tax |
AY 2012-13 |
65.12 |
ITAT Delhi |
Customs Act, 1962 |
Custom Duty |
AY 2012-13 |
17.16 |
CESTAT, Bangalore |
Income Tax Act, 1961 |
Income Tax |
AY 2013-14 |
99.12 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2014-15 |
45.63 |
Commissioner of Income Tax (Appeal) |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
(ix) According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
(x) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the company or any fraud on the company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
(xi) In our opinion and according to the information and explanations given to us during the course of audit, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us during the course of audit, the company is not a Nidhi Company. Therefore, the provisions of clause 4(xii) of the Order are not applicable to the Company.
(xiii) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that transactions with the related parties are in compliance with sections 177 & 188 of the Act where 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 by the management and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year
(xv) In our opinion and according to the information and explanations given to us during the course of audit, we state that the Company has not entered into non-cash transaction with directors or persons connected with him. Therefore clause 3(xv) of the Companies (Auditorâs Report) Order, 2016 is 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 and accordingly, the provisions of clause 3(xvi) of the Order are not applicable to the Company.
For K. G. Somani & Co.
Chartered Accountants
Firm Registration No: 06591N
(Bhuvnesh Maheshwari)
Place: New Delhi Partner
Date: 27th May 2017 Membership No: 088155
Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
To The Members of PTC India Limited Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of PTC INDIA LIMITED (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone 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 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 Rule7 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-
Auditorâs 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 auditorâs 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 Companyâs 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 Companyâs 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 March 31, 2016, and its Profit and its Cash Flow for the year ended on that date-
Report on Other Legal and Regulatory Requirements
1- As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable-
2- As required by section 143 (3) of the Act, we report 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 purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014-
(e) On the basis of written representations received from the directors as on March 31,2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act-
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ-
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i- The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 14(c) and note no. 27(c) to the financial statements;
ii- The company has long term contracts as at 31st March, 2016 for which there were no material foreseeable losses. As informed to us that the company did not have any 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.
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) According to the explanations given to us, all the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the Company and the nature of its assets and no material discrepancy was noticed on such verification as compared to book records.
(c) In our opinion and according to the information and explanations given to us during the course of audit, the title deeds of immovable properties are held in the name of the company.
(ii) The Company is in the business of power. Accordingly it does not hold any physical inventories. Thus, paragraph 3(ii) of the order is not applicable.
(iii) According to the information and explanations given to us, 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, the provisions of clause 3 (iii) (a) to (c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us during the course of audit, the Company has complied with the provisions of Section 186 of the Companies Act, 2013 in respect of investment of the company. Further, the company has not granted any loans and has not given any guarantees and security under the provision of section 185 of the companies Act, 2013; thereby the provision of the said section is not applicable to the company.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. Accordingly, the provision of clause 3(v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the records maintained by the Company for generation of power pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether these are accurate and complete.
(vii) a) According to information and explanations given to us and on the basis of
our examination of the books of account and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities and there were no outstanding at March 31, 2016 for a period of more than six months from the date they become payable.
b) According to the information and explanations given to us, the dues of income tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess which have not been deposited on account of a dispute and the forum where the dispute is pending are as follows:
Statute |
Nature of Dues |
Period to which the Amount Relates |
Amount Involved (Rs, In Crores) |
Forum where Dispute is Pending |
Income Tax Act, 1961 |
Income Tax |
AY 2007-08 |
0.01 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2007-08 |
0.01 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income Tax |
AY 2008-09 |
0.95 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2009-10 |
1.47 |
ITAT Delhi |
Income Tax Act, 1961 |
Income Tax |
AY 2010-11 |
1.48 |
ITAT Delhi |
Statute |
Nature of Dues |
Period to which the Amount Relates |
Amount Involved (Rs, In Crores) |
Forum where Dispute is Pending |
Income Tax Act, 1961 |
Penalty |
AY 2010-11 |
1.48 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income Tax |
AY 2011-2012 |
0.05 |
ITAT Delhi |
Income Tax Act, 1961 |
Penalty |
AY 2011-2012 |
0.01 |
Commissioner of Income Tax (Appeal) |
Income Tax Act, 1961 |
Income Tax |
AY 2012-2013 |
0.92 |
ITAT Delhi |
Customs Act, 1962 |
Custom Duty |
AY 2012-2013 |
17.16 |
CESTAT, Bangalore |
Income Tax Act, 1961 |
Income Tax |
AY 2013-2014 |
1.4 |
ITAT Delhi |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
(ix) According to the information and explanations given to us, the company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company
(x) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the company or any fraud on the company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
(xi) In our opinion and according to the information and explanations given to us during the course of audit, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us during the course of audit, the company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
(xiii) In terms of the information and explanations sought by us and given by the company and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that transactions with the related parties are in compliance with sections 177 & 188 of the Act where 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 by the management and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that the company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year
(xv) In our opinion and according to the information and explanations given to us during the course of audit, we state that the Company has not entered into noncash transaction with directors or persons connected with him. Therefore clause 3(xv) of the Companies (Auditorâs Report) Order, 2016 is 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 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PTC INDIA LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on, âthe 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)â. 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.
Auditorsâ 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 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 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the 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 in adequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on, âthe 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 Indiaâ.
For K.G. Somani & Co.
Chartered Accountants
Firm Registration No: 006591N
Sd/-
(Bhuvnesh Maheshwari)
Place: New Delhi (Partner)
Date: 18 th May 2016 Membership No.: 088155
Mar 31, 2014
We have audited the accompanying financial statements of PTC India
Limited ("the Company"), which comprise the Balance Sheet as at 31
March 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 fl ows of the Company in accordance
with the Accounting Standards notifi ed under the Companies Act, 1956
("the Act") read with the General Circular 15/2013 dated 13 September
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
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, 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 suffi cient 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 March 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 fl ows 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 specifi ed in paragraphs 4 and 5 of the Order.
UDITOR''S REPORT
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 notifi ed
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect
of Section 133 of the Companies Act, 2013 to the extent applicable; and
(e) on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in our Report of even date on the Accounts of PTC India
Limited for the year ended on 31st March 2014)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) According to the explanations given to us, all the fi xed assets
have been physically verifi ed by the management at reasonable
intervals having regard to the size of the Company and the nature of
its assets and no material discrepancy was noticed on such verifi
cation as compared to book records.
(c) The Company has not disposed off substantial part of the fi xed
assets during the year.
ii. The Company is in the business of power. Accordingly it does not
hold any physical inventories. Thus, paragraph 4(ii) of the order is
not applicable.
iii. (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
fi rms or other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of
clauses 4(iii) (a), (b), (c) and (d) of the Companies (Auditors''
Report) Order, 2003 (as amended) are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
fi rms or other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of
clauses 4(iii) (e), (f) and (g) of the Companies (Auditors Report),
2003 (as amended) are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fi xed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
v. According to the information and explanations given to us, the
company has not entered into any contract or arrangement with the
Companies or Entities covered u/s 301 of the Companies Act, 1956.
Accordingly, the provisions of clauses 4(v) (a) and (b) of the
Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under. Accordingly, the
provisions of clause 4(vi) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the Company.
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 records maintained by the Company
for generation of power pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1)(d)
of the Companies Act, 1956, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether these are accurate and complete.
ix. (a) The Company has been generally regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income-tax, sales-tax,
wealth-tax,service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the dues
of income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess which have not been deposited on account of a dispute and
the forum where the dispute is pending are as follows:
Statute Nature Period to Amount Forum where the
of Dues which the involved dispute is pending
amount (Rs in
relates Crores)
Income Tax Income AY 2008-09 0.95 ITAT Delhi
Act, 1961 Tax
Income Tax Income AY 2009-10 1.46 ITAT Delhi
Act, 1961 Tax
Income Tax Income AY 2009-10 1.47 Commissioner of
Act, 1961 Tax Income Tax Appeals
Income Tax Income AY 2010-11 1.48 ITAT Delhi
Act, 1961 Tax
Income Tax Income AY 2011-12 14.34 Commissioner of
Act, 1961 Tax Income Tax Appeals
Customs Act Custom FY 2012-13 17.16 Office of the Deputy
1962 Duty Commissioner of Customs
Nellore
x. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank. The Company does not have any loan from any financial
institution and has not issued any debentures.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly,
the provisions of clause 4(xii) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the Company.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi or mutual benefi
t fund or society. Accordingly, the provisions of clause 4(xiii) of the
Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provisions of clause 4(xv)
of the Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
xvi. According to the information and explanations given to us, the
Company did not have any term loans outstanding during 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 report
that no funds raised on short-term basis have been used for long-term
investments.
xviii. According to the information and explanations given to us,
during the year the Company has not made any preferential allotment of
shares to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of
clause 4(xviii) of the Companies (Auditors'' Report) Order, 2003 (as
amended) are not applicable to the Company.
xix. The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditors'' Report) Order, 2003 (as amended) are not applicable to the
Company.
xx. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors'' Report) Order, 2003 (as amended) are not applicable to the
Company.
xxi. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For K.G. Somani & Co.
Chartered Accountants
Firm Registration No: 006591N
(Bhuvnesh Maheshwari)
Place: New Delhi Partner
Date: 24th May 2014 Membership No.- 088155
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of PTC India
Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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 to the extent
applicable;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in our Report of even date)
i. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) According to the explanations given to us, all the fixed assets have
been physically verified by the management at reasonable intervals
having regard to the size of the Company and the nature of its assets
and no material discrepancy was noticed on such verification as
compared to book records.
c) The Company has not disposed off substantial part of the fixed
assets during the year.
ii. a) The management has conducted physical verification of inventory
at the year end.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
iii. a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4 (iii) (a), (b), (c) and (d) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the Company.
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (e), (f) and (g) of the Companies (Auditors Report), 2003 (as
amended) are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
v. According to the information and explanations given to us, the
company has not entered into any contract or arrangement with the
Companies or Entities covered u/s 301 of the Companies Act, 1956.
Accordingly, the provisions of clauses 4 (v) (a) and (b) of the
Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under. Accordingly, the
provisions of clause 4 (vi) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the Company.
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 records maintained by the Company
for generation of power pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1)(d)
of the Companies Act, 1956, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether these are accurate and complete.
ix. a) The Company has been generally regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income-tax, sales-tax,
wealth-tax, service tax, customs duty, excise duty, cess and any other
statutory dues applicable to it with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance,
income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and any other statutory dues were outstanding, at the year
end, for a period of more than six months from the date they became
payable.
c) According to the information and explanations given to us, the dues
of income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess which have not been deposited on account of a dispute and
the forum where the dispute is pending are as follows:
Statute Nature Period to Amount Forum where the
of Dues which the involved dispute is pending
amount (Rs. in
relates Millions)
Income Tax Income AY 2006-07 4.90 Commissioner of
Act, 1961 Tax Income Tax Appeals
Income Tax Income AY 2007-08 10.31 Commissioner of
Act, 1961 Tax Income Tax Appeals
Income Tax Income AY 2008-09 13.98 ITAT Delhi
Act, 1961 Tax
Income Tax Income AY 2009-10 22.02 ITAT Delhi
Act, 1961 Tax
Income Tax Income AY 2010-11 16.70 ITAT Delhi
Act, 1961 Tax
Customs Act, Custom FY 2012-13 106.10 Office of the
Deputy
1962 Duty Commissioner of
Customs, Nellore
x. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank. The Company does not have any loan from any financial institution
and has not issued any debentures.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly,
the provisions of clause 4 (xii) of the Companies (Auditors'' Report)
Order, 2003 (as amended) are not applicable to the Company.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi or mutual
benefit fund or society. Accordingly, the provisions of clause 4(xiii)
of the Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended) are not applicable to the Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provisions of clause 4(xv)
of the Companies (Auditors'' Report) Order, 2003 (as amended) are not
applicable to the Company.
xvi. According to the information and explanations given to us, the
Company did not have any term loans outstanding during 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 report
that no funds raised on short-term basis have been used for long-term
investments.
xviii. According to the information and explanations given to us,
during the year the Company has not made any preferential allotment of
shares to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of
clause 4(xviii) of the Companies (Auditors'' Report) Order, 2003 (as
amended) are not applicable to the Company.
xix. The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditors'' Report) Order, 2003 (as amended) are not applicable to the
Company.
xx. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors'' Report) Order, 2003 (as amended) are not applicable to the
Company.
xxi. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For K.G. Somani & Co.
Chartered Accountants
Firm Registration No: 006591N
(Bhuvnesh Maheshwari)
Place : New Delhi Partner
Date : 23rd May 2013 Membership No.- 088155
Mar 31, 2012
1. We have audited the attached Balance Sheet of PTC INDIA LIMITED as
at March 31, 2012 and also the Statement of Profit and Loss and the
Cash Flow Statement 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.
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 (as
amended), issued by the Central Government of India in terms of sub-
section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks of books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we annex hereto a statement on the matters
specified in paragraph 4 and 5 of the said order to the extent
applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
such books.
(iii) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement referred to in the report are in agreement with the
books of account;
(iv) In our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement, dealt with by this report comply with
the accounting standards referred to in Section 211(3) (c) of the
Companies Act, 1956 to the extent applicable;
(v) On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2012 from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us the Balance Sheet, the Statement of Profit
and Loss and the Cash Flow Statement read together with significant
accounting policies and notes on the 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;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
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.
ANNEXURE TO THE (AUDITOR'S REPORT) Order, 2003 (REFERRED TO IN
PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNT OF PTC INDIA
LIMITED FOR THE YEAR ENDED ON 31ST MARCH 2012
i. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) According to the explanations given to us, all the fixed assets have
been physically verified by the management at reasonable intervals
having regard to the size of the Company and the nature of its assets
and no material discrepancy was noticed on such verification as
compared to book records.
c) The Company has not disposed off substantial part of the fixed
assets during the year.
ii. a) The management has conducted physical verification of inventory
at the year end.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
no material discrepancies were noticed on physical verification.
iii. a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4 (iii) (a), (b), (c) and (d) of the Companies (Auditors' Report)
Order, 2003 (as amended) are not applicable to the Company.
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clauses
4(iii) (e), (f) and (g) of the Companies (as amended) are not
applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
v. According to the information and explanations given to us, the
company has not entered into any contract or arrangement with the
Companies or Entities covered u/s 301 of the Companies Act, 1956.
Accordingly, the provisions of clauses 4 (v) (a) and (b) of the
Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the Company.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under. Accordingly, the
provisions of clause 4 (vi) of the Companies (Auditors' Report) Order,
2003 (as amended) are not applicable to the Company.
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 records maintained by the Company
for generation of power pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1) (d)
of the Companies Act, 1956, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether these are accurate and complete.
ix. a) The Company has been generally regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees' state insurance, income-tax, sales-tax,
wealth-tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it with the appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other material statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us, the dues
of income tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess which have not been deposited on account of a dispute and
the forum where the dispute is pending are as follows:
Statute Nature Period to Amount Forum where
of Dues which the involved the dispute is
amount (Rs. in pending
relates Millions)
Income Tax Income AY 2008-09 13.98 ITAT
Act, 1961 Tax
Income Tax Income AY 2009-10 24.97 Commissioner
Act, 1961 Tax of Income Tax
Appeals
x. The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank. The Company does not have any loan from any financial
institution and has not issued any debentures.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly,
the provisions of clause 4 (xii) of the Companies (Auditors' Report)
Order, 2003 (as amended) are not applicable to the Company.
xiii. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi or mutual
benefit fund or society. Accordingly, the provisions of clause 4(xiii)
of the Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors' Report) Order,
2003 (as amended) are not applicable to the Company.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the provisions of clause 4(xv)
of the Companies (Auditors' Report) Order, 2003 (as amended) are not
applicable to the Company.
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 report
that no funds raised on short-term basis have been used for long-term
investment.
xviii . According to the information and explanations given to us,
during the year the Company has not made any preferential allotment of
shares to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the provisions of
clause 4(xviii) of the Companies (Auditors' Report) Order, 2003 (as
amended) are not applicable to the Company.
xix. The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditors' Report) Order, 2003 (as amended) are not applicable to the
Company.
xx. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditors' Report) Order, 2003 (as amended) are not applicable to the
Company.
xxi. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For K.G. SOMANI & CO.
Chartered Accountants
Firm Registration No.: 006591N
(Bhuvnesh Maheshwari)
Place: New Delhi Partner
Date: 30th May 2012 M. No. 088155
Mar 31, 2011
1. We have audited the attached Balance Sheet of PTC India Limited as
at 31st March, 2011, the Profit and Loss Account and also the Cash Flow
Statement 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 of
our opinion.
3. As required by the Companies (Auditors' Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such checks
of books and records of the Company as we considered appropriate and
according to the information and explanations given to us, we annexe
hereto a statement on the matters specified paragraph 4 and 5 of the
said Order.
4. Further to our comments in the Annexure referred to in para graph 3
above, we report that:- 4.1 We have obtained all the information and
explana tions which to the best of our knowledge and belief were
necessary for the purpose of our audit.
4.2 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
such books.
4.3 The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement referred to in the report are in agreement with the books of
account.
4.4 In our opinion, the Balance sheet, the Profit and Loss account and
the Cash Flow Statement, dealt with by this report comply with Account-
ing Standards as referred to in Section 211(3) (c) of the Companies
Act, 1956.
4.5 On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2011 from
being appointed as a director in terms of clause (g) of subsection (1)
of section 274 of the Companies Act, 1956.
4.6 In our opinion and to the best of our information and according to
explanations given to us the Balance Sheet, the Profit and Loss Account
and the Cash Flow Statement read together with significant accounting
policies and notes on the 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 Balance Sheet of the State of
Affairs of the Company as at 31st March, 2011,
(ii) In the case of Profit and Loss Account of the Profit for the year
ended on that date, and
(iii) In the case of Cash Flow Statement of the Cash Flows for the year
ended on that date.
ANNEXURE Referred to in Paragraph 3 of Our Report of Even Date
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. According to the explanations given to us, all the fixed assets
have been verified by the management at reasonable intervals having
regard to the size of the company and the nature of its assets and no
material discrepancy was noticed on such verification as compared to
book records.
3. The company has not disposed off substantial part of the fixed
assets during the year.
4. The company does not have any inventory hence paragraphs 4 (ii) (a)
to (c) of the Companies (Auditor's Report) Order, 2003 are not
applicable to it.
5. The company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and hence paragraphs 4 (iii) (a) to (d) of the
Companies (Auditor's Report) Order, 2003 are not applicable to it.
6. The company has not taken any loans from companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 hence paragraphs 4 (iii) (e) to (g) of the
Companies (Auditor's Report) Order, 2003 are not applicable to it.
7. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purpose of purchase of fixed assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
8. In our opinion and according to the information and explanations
given to us, during the year under audit there have been no
transactions which need to be entered into the register maintained
under section 301 of the Companies Act , 1956.
9. In view of our comments at para 8 above paragraph 4 (v) (b) of the
Companies (Auditor's Report) Order, 2003 is not applicable to it.
10. According to the information and explanations given to us, the
company has not accepted any deposit from the public within the meaning
of Section 58A and 58AA of the Companies Act, 1956 and the rules framed
thereunder.
11. The company is having an internal audit system commensurate with
the nature and size of its business.
12. We have broadly reviewed the records maintained by the company for
generation of power pursuant to the rules made by the Central
Government for the maintenance of cost records under Section 209(1) (d)
of the Companies Act, 1956, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether these are accurate and complete.
13. The company has been regular in depositing undisputed statutory
dues including provident fund, income-tax, sales tax, wealth tax,
custom duty, excise duty, service tax, cess and any other statutory
dues with the appropriate authorities. There were no undisputed
statutory dues outstanding as on 31.3.11 for a period of more than six
months from the date they became payable except service tax of Rs.10.76
mn (Refer Note No.33 of schedule K).
14. According to the records of the company, the dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty which
have not been deposited on account of a dispute and the forum where the
dispute is pending, is as under:-
S. Name of Nature of Period Amount Forum where Remark
No the Statue dues to which (Rs. in dispute is
amount Millions) pending
relates
1 Income Income Assessment 13.98 Commissioner Not required
to be
Tax Tax year of Income Tax deposited
as the
Act, 2008-09 (Appeals) advance
tax deposited
1961 is in excess
for the
assessment
year.
15. The company has neither accumulated losses as at 31st March 2011,
nor has it incurred any cash loss during the financial year ended on
that date or in the immediately preceding financial year.
16. According to the information and explanation given to us the
company has not defaulted in repayment of dues to a bank. The company
does not have any loan from any financial institution and has not
issued any debentures.
17. According to the information and explanation given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
Accordingly, the provision of paragraph 4 (xii) of the Companies
(Auditor's Report) Order, 2003 is not applicable to it.
18. The company is not a chit fund, or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) (a) to (d) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
19. The company is not dealing or trading in shares, securities and
debentures 4(xiv) of the Companies (Auditor's Report) Order, 2003 are
not applicable to the company
20. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
21. According to information and explanations given to us, the company
has not obtained any term loan from any bank/ financial institution
during the year. Therefore, the provisions of paragraph (xvi) of the
Companies (Auditor's Report) Order, 2003 are not applicable to it.
22. According to the information and explanations given to us and
based on our examination of the books of account of the company we have
not observed any instance of funds raised for short term basis which
were used for long term investment.
23. According to the information and explanations given to us the
company has not made any preferential allotment of shares to the
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly the provisions of paragraph
4(xviii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to it.
24. The Company has not issued any debentures during the year covered
by our audit therefore the provisions of Clause 4(xix) of the Companies
(Auditor's Report) Order, 2003 are not applicable to it.
25. As per the information and explanations given to us, the company
has not raised any money by public issue during the year.
26. As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For T.R.Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
Date: August 8, 2011 (Neena Goel)
Place: New Delhi Partner
M.No. 057986
Mar 31, 2010
1. We have audited the attached Balance Sheet of PTC India Limited as
at 31st March, 2010, the Profit and Loss Account and also the Cash Flow
Statement 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 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 of
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure 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 in paragraph 3
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 purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
such books.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in the 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 as referred to in Section 211(3) (c) of the Companies Act,
1956.
e. On the basis of written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on 31st March, 2010 from
being appointed as a director in terms of clause (g) of subsection (1)
of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
explanations given to us the Balance Sheet, Profit and Loss Account and
Cash Flow Statement read together with significant accounting policies
and notes on the 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 Balance Sheet of the State of Affairs of the Company
as at 31st March, 2010.
ii) In the case of Profit and Loss Account of the Profit for the year
ended on that date, and
iii) In the case of Cash Flow Statement of the Cash Flows for the year
ended on that date.
ANNEXURE Referred to in paragraph 3 of our report of even date
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
2. According to the explanations given to us, all the fixed assets
have been verified by the management during the year, which in our
opinion is considered reasonable having regard to the size of the
company and the nature of its assets and no material discrepancy was
noticed on such verification as compared to book records.
3. The company has not disposed off substantial part of the fixed
assets during the year.
4. The company does not have any inventory hence paragraphs 4 (ii) (a)
to (c) of the Companies (Auditors Report) Order, 2003 are not
applicable to it.
5. The company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and hence paragraphs 4 (iii) (a) to (d) of the
Companies (Auditors Report) Order, 2003 are not applicable to it.
6. The company has not taken any loans from companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 hence paragraphs 4 (iii) (e) to (g) of the
Companies (Auditors Report) Order, 2003 are not applicable to it.
7. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purpose of purchase of fixed assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
8. In our opinion and according to the information and explanations
given to us, during the year under audit there have been no
transactions which need to be entered into the register maintained
under section 301 of the Companies Act , 1956.
9. In view of our comments at para 8 above paragraph 4 (v) (b) of the
Companies (Auditors Report) Order, 2003 is not applicable to it.
10. According to the information and explanations given to us, the
company has not accepted any deposit from the public within the meaning
of Section 58A and 58AA of the Companies Act, 1956 and the rules framed
thereunder.
11. The company is having an internal audit system commensurate with
nature and size of its business.
12. We have broadly reviewed the records maintained by the company for
generation of power pursuant to the rules made by the Central
Government for the maintenance of cost records under Section 209(1)(d)
of the Companies Act, 1956, 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.
13. The company has been regular in depositing undisputed statutory
dues including provident fund, income-tax, service tax, cess and any
other statutory dues with the appropriate authorities.
14. According to the records of the company, the dues of sales tax,
income tax, custom duty, wealth tax, service tax, excise duty and cess
which have not been deposited on account of disputes and the forum
where dispute is pending, is as under:
S. Name of Nature of Period to which
No the Statue dues amount relates
1. Income Tax Income Tax Assessment year
Act,1961 2004-05
2 Income Tax Income Tax Assessment year
Act,1961 2005-06
3 Income Tax Income Tax Assessment year
Act,1961 2006-07
4 Income Tax Income Tax Assessment year
Act,1961 2007-08
Sr. No Name of Amount Forum where dispute
the Statue (Rs. in Millions) is pending
1. Income Tax 0.35 Assessing Officer
Act, 1961
2. Income Tax 0.48 Assessing Officer
Act, 1961
3. Income Tax 6.88 Commissioner of Income
Act, 1961 Tax
4. Income Tax 2.10 Commissioner of Income
Act, 1961 Tax (Appeals)
15. The company has neither accumulated losses as at 31st March 2010,
nor has it incurred any cash loss during the financial year ended on
that date or in the immediately preceding financial year.
16. According to the information and explanation given to us the
company has not defaulted in repayment of dues to a bank. The company
does not have any loan from any financial institution and has not
issued any debentures.
17. According to the information and explanation given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
Accordingly, the provision of paragraph 4 (xii) of the Companies
(Auditors Report) Order, 2003 is not applicable to it.
18. The company is not a chit fund, or a nidhi/ mutual benefit fund/
society. Therefore, the provisions of clause 4(xiii) (a) to (d) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
19. The company is not dealing or trading in shares, securities and
debentures except in respect of investments made under Portfolio
Management Scheme as disclosed in Note 25 in Schedule K of the
accounts. Since investments are made by the Portfolio Managers, the
company is not maintaining separate records of the transactions and
contracts. However, the Portfolio Management Scheme has been
discontinued by the company during the year.
20. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
21. According to information and explanations given to us, the company
has not obtained any term loan from any bank/ financial institution
during the year. Therefore, the provisions of paragraph (xvi) of the
Companies (Auditors Report) Order, 2003 are not applicable to it.
22. According to the information and explanations given to us and
based on our examination of the books of account of the company we have
not observed any instance of funds raised for short term basis which
were used for long term investment.
23. According to the information and explanations given to us the
company has not made any preferential allotment of shares to the
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly the provisions of paragraph
4(xviii) of the Companies (Auditors Report) Order, 2003 are not
applicable to it.
24. The Company has not issued any debentures during the year covered
by our audit therefore the provisions of Clause 4(xix) of the Companies
(Auditors Report) Order, 2003 are not applicable to it.
25. As per the information and explanations given to us, the company
has not raised any money by public issue during the year.
26. As per the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For T.R.Chadha & Co.
(Firm Registration No. 006711N)
Chartered Accountants
(Neena Goel)
Date: August 12, 2010 Partner
Place: New Delhi M.No. 057986
Mar 31, 2003
We have audited the attached Balance Sheet of Power Trading Corporation
of India Limited as at 31st March, 2003 and also the Profit and Loss
Account 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.
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 test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Manufacturing and Other Companies (Auditors Report)
Order, 1988 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 comment in the annexure referred to above, we report
that:
1. 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;
2. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examinations of
those books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
Sub-Section (3C) of section 211 of the Companies Act, 1956;
5. On the basis of written representations received from the
directors, as on 31st Match, 2003, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2003 in term of clause (g) of Sub- Section (1) of Section
274 of the Companies Act, 1956;
6. 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 :
a. in the case of Balance Sheet, of the state affairs of the company
as at 31st March, 2003; and
b. in the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in our report of even date)
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management during the
period and no material discrepancies were noticed on such verification.
2. None of the fixed assets have been revalued during the period.
3. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956 or from companies under
the same management within the meaning of Section 370 (I-B) of the
Companies Act, 1956.
4. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 301 or to companies under the same management as defined
under Section 370 (1-B) of the Companies Act, 1956.
5. The Company has not granted any loans or advances in the nature of
loans except to employees where principal and interest, wherever
applicable, are being recovered as stipulated.
6. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regards to purchase of equipments and other assets.
7. The Company has not made any purchase or sale of goods or services
in pursuance of contracts or arrangements with parties listed in the
register maintained under Section 301 of the Companies Act 1956, and
aggregating during the period to Rs. 50,000 or more in respect of each
party.
8. The Company has not accepted any deposits to which the provisions
of section 58 A of the Act or the Rules framed there under apply.
9. The companys operation did not result in any scrap or by-product.
10. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
11. The company is generally remitting in time provident fund dues to
the parent organisations in respect of employees on deputation with the
company. In respect of others, the provident fund dues are remitted in
time.
12. As explained to us, no undisputed amounts payable in respect of
Income Tax, Wealth Tax, Sales Tax and Custom Duty were outstanding as
at 31st March, 2003, for a period of more than six months from the date
they become payable.
13. According to the information and explanations given to us, no
personal expenses of employees or Directors have been charged to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice.
14. In respect of service rendered:
a) The nature of services rendered, does not involve consumption of
materials.
b) Considering the nature of services rendered, it is not considered
necessary by the management to allocate man-hours consumed to relative
jobs.
15. The nature of goods traded by the company is such that there
cannot be any damaged goods.
16. Clauses (iii), (iv), (v), (vi), (xii), (xvi) and (xx) of paragraph
4 A of the aforesaid Order were not applicable to the Company.
ANNEXURE-A TO THE DIRECTORS REPORT
COMMENTS OF THE COMPTROLLER AND COMPANYS REPLY
AUDITOR GENERAL OF INDIA UNDER SECTION
619(4) OF THE COMPANIES ACT 1956 ON THE
ACCOUNTS OF POWER TRADING CORPORATION
OF INDIA LIMITED FOR THE
YEAR ENDED 31 MARCH 2003.
Balance Sheet
Notes to the Accounts (Schedule J)
Note No. 7
Two state electricity boards while releasing payments have deducted
rebates amounting to Rs. 149 lakh, which were not due to them as the
payments were not made within stipulated period. Above Note stated,
inter alia, that the Company has not considered the deducted amount as
income due to uncertainty in realisation of the same. However, it is
observed that the Company has accounted for the inadmissible rebates as
income under the head electricity sales as well as expenditure under
the head rebates on sale of power.
In fact, the Company should have accounted for the inadmissible rebate
as claims recoverable instead of booking the same under the head
expenditure and made a provision to reflect the uncertainty in
realising the amount in accordance with Accounting Standard 9.
The company, as is evident from its Profit & Loss Account, maintains
separate account for Sales as also Rebate Allowed on Sale of Power.
The rebate is given for timely payment and as such is in the nature of
"Expense" and not "Income".
In the Notes on Accounts, it was mentioned that if the rebate wrongly
claimed was paid by these Electricity Boards, the same would be
accounted for as and when received.
Credit for this amount through Sundry Debtors was not taken following
the conservative approach of not accounting for a receipt which was yet
to come especially in view of the uncertainty of such a receipt. By
accounting for this amount, the profit would go up correspondingly.
The company could not have created the provision in terms of Accounting
Standard 9 as the amounts did not pertain to Sales but to Rebate
where "Rebate claimed and accounted for as expense" have occurred
simultaneously and not subsequent to each other.
For D.C.G. & Co.
Chartered Accountants
Sd/-
D.C. Gupta
Partner
Place: New Delhi
Date : 17.4.2003
Mar 31, 2002
We have audited the attached Balance Sheet of Power Trading Corporation
of India Limited as at 31st March, 2002 and also the Profit and Loss
Account 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.
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
statement are free of material misstatement. An audit includes
examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Manufacturing and Other Companies (Auditors Report)
Order, 1988 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 comment in the annexure referred to above, we report
that:
1. 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;
2. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examinations of
those books.
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
5. On the basis of written representations received from the
directors, as on 31st March, 2002, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2002 in term of clause (g) of sub-section (1) of section
274 of the Companies Act, 1956;
6. 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 :
a. in the case of the Balance Sheet, of the state affairs of the
company as at 31st March, 2002; and
b. in the case of the Profit and Loss Account, of the profit of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
1. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management during the
period and no material discrepancies were noticed on such verification.
2. None of the fixed assets have been revalued during the period.
3. The company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 or from companies under
the same management within the meaning of section 370 (I-B) of the
Companies Act, 1956.
4. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under section 301 or to companies under the same management as defined
under section 370(1-B) of the Companies Act, 1956.
5. The Company has not granted any loans or advances in the nature of
loans except to employees where principal and interest, wherever
applicable, are being recovered as stipulated.
6. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regards to purchase of equipments and other assets.
7. The Company has not made any purchase or sale of goods or services
in pursuance of contracts or arrangements with parties listed in the
register maintained under section 301 of the Companies Act, 1956, and
aggregating during the period to Rs. 50,000/- or more in respect of
each party.
8. The Company has not accepted any deposits to which the provisions
of section 58A of the Act or the Rules framed there under apply.
9. The companys operation did not result in any scrap or by-product.
10. In our opinion the company has an internal audit system
commensurate with the size and nature of its business.
11. The company is generally remitting in time provident fund dues to
the parent organisations in respect of employees on deputation with the
company. In respect of others, the provident fund dues are remitted in
time.
12. As explained to us, no undisputed amounts payable in respect of
Income Tax, Welath Tax, Sales Tax and Custom Duty were outstanding as
at 31st March 2002, for a period of more than six months from the date
they became payable.
13. According to the information and explanations given to us, no
personal expenses of employees or Directors have been charged to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice.
14. In respect of services rendered:
a) The nature of services rendered does not involve consumption of
materials.
b) Considering the nature of services rendered, it is not considered
necessary by the management to allocate man-hours consumed to relative
jobs.
15. The nature of goods traded by the company is such that there can
be no question of any damaged goods.
16. Clauses (iii), (iv), (v), (vi), (xii), (xvi) and (xx) of paragraph
4A of the aforesaid Order were not applicable to the Company.
For D.C.G. & CO.
Chartered Accountants
Sd/-
D.C. Gupta
Partner
Place : New Delhi
Date : 22/4/2002
Mar 31, 2001
We have audited the attached Balance Sheet of POWER TRADING CORPORATION
OF INDIA LIMITED as at 31st March 2001 and the Profit & Loss Account
for the period ended on that date annexed thereto and report as under:
1. As required by the Manufacturing and other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of section
227(4A) 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.
2. Further to the comments in the Annexure referred to in paragraph 1
above:
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books.
iii. The Balance Sheet and Profit & Loss Account referred to in this
report are in agreement with the books of accounts.
iv. In our opinion, the Profit & Loss Account and Balance Sheet comply
with the mandatory accounting standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956.
v. On the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified from being appointed as a Director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956.
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read together with the
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2001; and
b. in the case of the Profit & Loss Account, of the loss of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph (1) of
Report of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the Management during the
period and no material discrepancies were noticed on such verification.
2. None of the fixed assets have been revalued during the period.
3. The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 or from companies under
the same management within the meaning of section 370(1-B) of the
Companies Act, 1956.
4. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under section 301 or to companies under the same management as defined
under section 370(1-B) of the Companies Act, 1956.
5. The Company has not granted any loans or advances in the nature of
loans except to employees where principal and interest, wherever
applicable, are being recovered as stipulated.
6. In our opinion, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of equipments and other assets.
7. The Company has not made any purchase or sale of goods or services
in pursuance of contracts or arrangements with parties listed in the
register maintained under section 301 of the Companies Act, 1956, and
aggregating during the period to Rs. 50,000/- or more in respect of
each party.
8. The Company has not accepted any deposits to which the provisions
of section 58A of the Act or the Rules framed thereunder apply.
9. The Company has constituted an Internal Audit Team during the year,
but no formal report on the audit has been submitted.
10. All the employees working for the Company, except one, are on
deputation with the Company and in respect of these employees,
provident fund dues were generally being remitted in time to the parent
organisation. Provident Fund and Employees State Insurance dues were
not applicable to the Company during the year under report.
11. As explained to us, no undisputed amounts payable in respect of
income tax, wealth tax, sales tax, customs duty or excise duty were
outstanding as at 31st March 2001, for a period of more than six
months.
12. According to the information and explanations given to us, no
personal expenses of employees or Directors have been charged to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice.
13. In respect of services rendered:
a) The nature of services rendered do not involve consumption of
materials.
b) Considering the nature of services rendered, it is not considered
necessary by the management to allocate man-hours consumed to the
relative jobs.
14. The nature of goods traded by the Company is such that there can
be no question of any damaged goods.
15. Clauses (iii), (iv), (v), (vi), (xii), (xiv), (xvi) and (xx) of
paragraph 4A of the aforesaid Order were not applicable to the Company.
Date: 28 May 2001 For K.N.GOYAL & Co.,
Chartered Accountants
Sd/-
(K.N. GOYAL)
Partner