Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS, EMPOWER INDIA LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying (standalone] financial statements of EMPOWER INDIA LIMITED ("the Company"}, which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income], the Statement of changes in equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the (Standalone] Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5] of the Companies Act, 2013 ("the Act"] with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance (including Other Comprehensive Income], changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts] Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these (standalone] financial statements based on our audit.
4. 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.
5. 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. 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
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid (standalone] financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit/loss, total Comprehensive Income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report] Order, 2016 (the Order] issued by the Central Government in terms of Section 143(11] of the Act, we enclose in the "Annexure A" a statement on matters specified in paragraph 3 & 4 of the said order.
10. As required by Section 143(3] of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts] Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2] of the Act.
i) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors] Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
A) The Company has disclosed pending litigations in its Company Auditors Report. However there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure has been made As per AS-29.
B) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
C) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31/03/2018.
For Deepak C Agarwal & Associates |
Chartered Accountants |
(Firm''s Registration No. 140967W) |
sd/- |
Deepak Agarwal |
(Proprietor) |
(Membership No. 165938) |
Place of Signature: Mumbai |
Date: 29/05/2018 |
"Annexure A" to the Independent Auditors'' Report
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: -
1 (a] the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b} As explained to us, all the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
(c}. the company does not have any immoveable property.
2.(i]As explained to us, the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable.
(ii)There is no discrepancy found on verification between the physical stocks and the book records.
3. As explained to us, the company had not granted any loans, secured or unsecured, to any companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act, or
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit] Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. It has been explained to us that the maintenance of cost records has not been prescribed under section 148(1} of the Act.
7 (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. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
b] According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute except as follows:
The status of pending disputes with Income Tax Department is as under:
Sr. No. |
Assessment Year |
Demand/refun d under Section Code |
Date on which demand/ refund is raised |
Amount of outstanding demand/Refund |
Status of Demand |
1 |
2004-05 |
143(1) |
01-Mar-06 |
30,847 |
The Demand is pending |
2 |
2008-09 |
153A |
22-Mar-16 |
43,15,681 |
Demand is outstanding and appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 163879821270416 dated 27/04/2016 which is still pending. |
3 |
2009-10 |
153A |
22-Mar-16 |
55,05,161 |
Demand is outstanding and appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 163907421270416 dated 27/04/2016 which is still pending. |
4 |
2010-11 |
153A |
22-Mar-16 |
81,28,528 |
Demand is outstanding and appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 163942141270416 dated 27/04/2016 which is still pending. |
5 |
2011-12 |
254 |
12-Jul-17 |
89,56,070 |
Demand is outstanding and appeal against the said demand is filed with ITAT, Mumbai vide Appeal No. 163954201270416 dated 27/04/2016 which is still pending. |
6 |
2012-13 |
153A |
22-Mar-16 |
Refund of Rs. 29,14,670 was claimed, whereas the department has raised a demand of Rs. 43,25,543 and the Company has contested and filed appeal against the same . |
An appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 163936191270416 dated 27/04/2016 which is still pending. |
7 |
2013-14 |
153A |
22-Mar-16 |
Refund of Rs. 25,27,880 was claimed whereas the department has raised a demand Rs. 19,39,073 and the Company has contested and filed appeal against the same |
An appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 16398770127042016 dated 27/04/2016 which is still pending. |
8 |
2014-15 |
143(2) |
23-Mar-16 |
Refund of Rs. 12,40,610 was claimed whereas the department raised a demand Rs. 75,38,870 and the Company has contested and filed appeal against the same. |
An appeal against the said demand is filed with CIT(A)-48, Mumbai vide Appeal No. 163995101270416 dated 27/04/2016 which is still pending. |
8. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion, company had not borrowed from financial institution or bank or issued debentures during the year under audit and there were no loan outstanding at the beginning of the year. Therefore, this clause of the CARO is not applicable to company.
9. The company has not raised moneys by way of initial public offer or further public offer (including debt instrument] and term loans
10. Based upon the audit procedures performed and according to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit, that causes the financial statements to be materially misstated.
11. Company has paid Managerial remuneration to its Key Managerial person pursuant of provision of Companies Act 2013.
Sr. No. |
Statute |
Amount of Dispute |
Fin Year |
Forum where Dispute pending |
1 |
Maharashtra Value Added Tax Act, 2002 |
2,50,20,086/- |
2008-09 |
D C Sales Tax (Appeal), Mumbai |
12. The company is not a Nidhi Company hence this clause is not applicable.
13. Based upon the audit procedures performed and according to the information and explanations given to us, All transactions with related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial statements etc. as required by the applicable accounting standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
15. The company has not entered into any non-cash transactions with directors or persons connected with him.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deepak C Agarwal & Associates |
Chartered Accountants |
(Firm''s Registration No. 140967W) |
sd/- |
Deepak Agarwal |
(Proprietor) |
(Membership No. 165938) |
Place of Signature: Mumbai |
Date: 29/05/2018 |
Annexure B to Independent Auditor''s Report
Referred to in paragraph 10 (f) of the Independent''s Auditor''s Report of even date to the members of Empower India Limited on the standalone financial statements for the year ended 31st March, 2018.
Report on the Internal Financial Controls under Clause (i} of sub - section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Empower India Limited ("the Company"} as of 31st March, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI}. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note"} and the standards on auditing deemed to be prescribed under section 143(10} of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those standards and 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 materials respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial controls over financial reporting includes those policies an procedures that,
(1} Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2} Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3} Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. 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 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
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Deepak C Agarwal & Associates |
Chartered Accountants |
(Firm''s Registration No. 140967W) |
sd/- |
Deepak Agarwal |
(Proprietor) |
(Membership No. 165938) |
Place of Signature: Mumbai |
Date: 29/05/2018 |
Mar 31, 2015
We have audited the accompanying standalone financial statement of
Empower India Ltd ("the Company") which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the standalone Financial Statements:
The Company's board of directors is responsible for the matter stated
in section 134(5) of the Companies Act, 2013 ("Act") with respect to
the preparation of these financial statements that give a true and fair
view of financial position, financial performance and cash flows of the
company in accordance with the Accounting Principle generally accepted
in India including Accounting Standards Specified under section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls and ensuring their operating effectiveness
and 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the standalone 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
assessment, the auditor considers internal control relevant to the
Company's preparation and fair presentation of the standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances but, not for the
purpose of expressing an opinion on whether the company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls.An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
gives the information required by the Act in the manner so required and
give a true and fair view in conformity with the according principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2015;
(ii) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) 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, 2015 ("the
Order"), issued by the Central Government of India in terms of Section
143(11) of the Act, we give in the Annexure hereto a statement on the
matters specified in paragraphs 3 and 4 of the said order, to the
extent applicable.
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 specified in
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
of the company, as on 31st March 2015, and taken on record by the Board
of Directors, none of the directors are disqualified as on 31st March
2015, from being appointed as a director in terms of section 164(2) of
the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements.
(ii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Independent Auditors' Report
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Assets have been physically verified by the management during the
year. According to the information and explanation given to us, there
is regular programme of verification which, in our opinion is
reasonable having regards to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
2. (a) Inventories has been physically verified at reasonable intervals
during the year by the management. In our opinion, the frequency of
such verification is adequate.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory in so far as
such records were examined by us and no material discrepancies were
noticed.
3. The Company, during the period covered by our audit, has not
granted secured or Unsecured loans to companies, firms or other parties
covered in the Register maintained Under Sections 189 of the Companies
Act. Therefore, clauses (iii)(a) & (iii)(b) is not Applicable to
company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that certain items of
purchase are of special nature for which suitable alternative sources
do not exist for obtaining competitive quotations, there are adequate
internal control procedures commensurate with the size & nature of
business of Company for the purchase of inventory, fixed assets and
sales of goods and services. Further on the basis of our examinations
and information and according to the explanations given to us, we have
neither come across nor have we been informed of any instance of
measure weaknesses in the aforesaid internal control procedures.
5. The Company has not accepted any deposits from the public during
the year under audit. Therefore, clause 4(v) of the companies
(Auditor's Report) Order is not applicable to company.
6. According to the information and explanation given to us, the
requirements of Maintenance of cost records as prescribed by the
central government under section (1) of the section 148 of the
companies act. Therefore, clause 4(vi) of order is not applicable to he
company.
7. In respect of statutory dues :
(a)According to the records of the company, undisputed statutory dues,
including provident fund, employee's state insurance, income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, value added
tax, cess and other statutory dues, as applicable, have generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as on 31/03/15 for a
period more than six months from the date they became payable.
(b) According to information and explanations given, there were no
disputed amounts payable in respect of Income Tax, Wealth Tax, Custom
duty, Excise duty, cess, except Sales Tax for which the Company is in
appeal, details is as follows :
Sr. Statute Amount Year
No.
1 Maharashtra Value Added Tax Act, 2,50,20,086/- 2008-
2002 09
2 Income Tax Act, 1961 173,17,49,020/- 2010-11
Sr. Statute Forum where
No. Dispute
pending
1 Maharashtra Value Added Tax Act, D C Sales Tax
2002 (Appeal)
2 Income Tax Act, 1961 CIT(Appeal)
(c) There is no amount required to be transferred to investor education
and protection Fund in accordance with the relevant provision of the
companies act,1956 (1 of 1956) And rules made there under.
8. The accumulated losses of the company at the end of the financial
year are less than fifty Percent of its net worth. The company has not
incurred cash loss during the year. In Immediately preceding financial
year the company had incurred cash loss.
9. Based on our audit procedures and according to the information and
explanations given to us, company had not borrowed from financial
institution or bank or issued debentures during the year under audit
and there were no loan outstanding at the beginning of the year.
Therefore, clause 3(ix) of the caro is not applicable to the company.
10. The Company has not given any guarantees for loans taken by others
from banks or financial institutions. Therefore, clause 3(x) of the
caro is not applicable to the company.
11. Based on our audit procedures and according to the information and
explanations given to us, the Company had not taken any Term loan from
Bank and Financial institute during the year under audit. Therefore,
clause 3(xi) of the caro is not applicable to the company.
12. Based upon our audit procedures performed and on the information
and explanations given by the management we are of the opinion that no
fraud on or by the company has been noticed or reported during the
course of our audit .
For VERMA MEHTA AND ASSOCIATES
Firm Reg. No: 112118
Chartered Accountants
Sd/-
CA Mrugen H Shah
Partner
Membership No: 114770
Place: Mumbai,
Date: 27th May 2015
Mar 31, 2014
We have audited the accompanying financial statement of Empower India
Ltd ("the Company") which comprise the Balance Sheet as at 31st
March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements:
The Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flows of the company in according with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Company Act, 1956 ("the Act") read with 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 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
Accounts 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 assessment, 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 the Management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements gives the
information required by the Act in the manner so required and give a
true and fair view in conformity with the according principles
generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(ii) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) 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"), as amended, 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 said order.
2. As required by Section 227 (3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement Comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the directors
as on 31st March 2014, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st 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 Independent Auditors'' Report Referred to in paragraph 1 of
our report of even date on the accounts for the year ended 31st March
2014 of Empower India Limited.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Assets have been physically verified by the management during the
year. According to the information and explanation given to us, there
is regular programme of verification which, in our opinion is
reasonable having regards to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
2. (a) Inventories has been physically verified at reasonable intervals
during the year by the management. In our opinion, the frequency of
such verification is adequate.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory in so far as
such records were examined by us and no material discrepancies were
noticed.
3. (a) The Company, during the period covered by our audit, has not
granted secured or unsecured loans to companies covered in the Register maintained under Sections 301 of the Companies Act, 1956. Hence provisi
-ons of clauses (iii) (b),(c),(d) of paragraph 4 are not applicable to
the Company.
(b) The Company, during the period covered by our audit, has not taken
secured or unsecured loans from companies covered in the register
maintained under section 301 of the Act. Hence provisions of clauses
(iii) (f),(g) of paragraph 4 are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that certain items of
purchase are of special nature for which suitable alternative sources
do not exist for obtaining competitive quotations, there are adequate
internal control procedures commensurate with the size & nature of
business of Company for the purchase of inventory, fixed assets and
sales of goods and services. Further on the basis of our examinations
and information and according to the explanations given to us, we have
neither come across nor have we been informed of any instance of
measure weaknesses in the aforesaid internal control procedures.
5. According to the information and explanation given to us the company
has not entered into transaction which requires to be recorded in a
register in pursuance of section 301 of the Companies Act 1956.
6. The Company has not accepted any deposits from the public. The
provision of Sections 58A & 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 are not applicable to
the Company.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have been informed by management, no cost records have been
prescribed under Section 209 (1)(d) of the Companies Act, 1956.
9. (a) According to the records of the company, there are delays in
depositing the provident fund, professional tax, service tax and
ESIC. Undisputed service tax are in arrears of outstanding as at the
last date of balance sheet, for a period of six months from the date
they became payable.
(b) According to information and explanations given, there were no
disputed amounts payable in respect of Income Tax, Wealth Tax, Custom
duty, Excise duty, cess , except Sales Tax for which the Company is in
appeal, details is as follows :
Sr. Statute Amount Year Forum where
No. Dispute pending
1 Maharashtra Value 2,50,20,086/- 2008-09 DC Sales Tax
Added Tax Act,2002 (Appeal)
2 Income Tax 173,17,49,020/- 2010-11 CIT (Appeal)
Act,1961
10. The Company has accumulated losses, which is less than fifty
percent of its networth as at March 31, 2014. The company has incurred
cash losses during the year. In immediately preceding financial year
also the company had incurred cash loss.
11. According to the records of the company, company has not borrowed
from financial institution or bank or issued debentures till 31st
March, 2014. Hence, in our opinion, the question of reporting defaults
in repayment of dues to financial institution or bank or debentures
does not arise.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion and according to the explanations given to us, the
Company is not a chit fund/ nidhi/mutual benefit funds / society.
14. The Company has maintained proper records of transactions and
contracts in respect of investment in shares debenture and other
securities and those timely entries have been made therein. The shares,
debentures and other securities have been held by the company in its
own name.
15 The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. The Company has not taken any Term loan from Bank and Financial
institute.
17. Based on 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 a short-term basis have been used for long-term
investment by the company.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. Based upon our audit procedures performed and on the information
and explanations given by the management we are of the opinion that no
fraud on or by the company has been noticed or reported during the
course of our audit.
M/s Verma Mehta & Associates
Chartered Accountants
sd/-
Mrugen Shah Partner
Place: Mumbai. Firm Reg. No: 112118W
Date: 27th May, 2014. Mem. No: 114770
Mar 31, 2012
1. We have audited the attached Balance Sheet of EMPOWER INDIA LIMITED
as at 31st March 2012 and also the statement of Profit and Loss for the
year ended on that date annexed thereto and the cash flow statement for
the year ended on that date. These financial statement 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 (Auditor''s Report) Order, 2003
(hereinafter referred to as the ''Order'') issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in the paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in paragraph 3
above and subject to the Notes to Accounts, We report that;
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper Books of account as required by law have been
kept by the Company so far as appears from our examination of such
books;
c) The Balance Sheet and statement of Profit and Loss dealt with this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred in section 211(3C) 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, none of the Directors is
disqualified as on March 31, 2012 from being appointed as director in
terms of clause (g) of sub section (1) of section 274 of the Companies
Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956: in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
I. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012.
II. In the case of the statement of Profit and Loss , of the Profit of
the Company for the year ended on that date; and,
III. In the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
Annexure to the Auditors'' Report
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st March 2012 of Empower India Limited.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) Assets have been physically verified by the management during the
year. According to the information and explanation given to us, there
is regular programme of verification which, in our opinion is
reasonable having regards to the size of the Company and the nature of
its assets. No material discrepancies were noticed on such
verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
2. (a) Inventories have been physically verified during the year by
the management at intervals.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of inventories and no
material discrepancy noticed on physical verification.
3. (a) The Company, during the period covered by our audit, has not
granted secured or unsecured loans to Companies covered in the Register
maintained under Sections 301 of the Companies Act, 1956. Hence
provisions of clauses (iii) (b),(c),(d) of paragraph 4 are not
applicable to the Company.
(b) The Company, during the period covered by our audit, has not taken
secured or unsecured loans from Companies covered in the register
maintained under section 301 of the Act. Hence provisions of clauses
(iii) (f),(g) of paragraph 4 are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that certain items of
purchase are of special nature for which suitable alternative sources
do not exist for obtaining competitive quotations, there are adequate
internal control procedures commensurate with the size & nature of
business of Company for the purchase of inventory, fixed assets and
sales of goods. Further on the basis of our examinations and
information and according to the explanations given to us, we have
neither come across nor have we been informed of any instance of
measure weaknesses in the aforesaid internal control procedures.
5. Based on the audit procedure applied by us and the information and
explanation provided by management, we are of the opinion that there
were no transaction during the year that, need to be entered in the
Register maintained under section 301 of the Companies Act 1956.
6. The Company has not accepted any deposits from the public. The
provision of Sections 58A & 58AA of the Companies Act,1956 and the
Companies (Acceptance of Deposits) Rules,1975 are not applicable to the
Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have been informed by management, no cost records have been
prescribed under Section 209 (1)(d) of the Companies Act, 1956.
9. (a) According to the records of the Company is generally regular in
depositing undisputed statutory dues including Provident Fund,
Investors'' Education and Protection Fund, Employees'' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, excise duty,
cess and other material statutory dues as applicable have been
regularly deposited by the Company during the year with the appropriate
authorities. There was no undisputed amount outstanding at the year
ended for a period more than six month except Professional Tax as at
31st March 2012.
(b) According to information and explanations given, there were no
disputed amounts payable in respect of Income Tax, Wealth Tax, Custom
duty, Excise duty, cess, except Sales Tax for which the Company is in
appeal.
10. The Company has neither accumulated losses as at March 31, 2012
nor has it incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the Company, Company has not borrowed
from financial institution or bank or issued debentures till 31st
March, 2012. Hence, in our opinion, the question of reporting defaults
in repayment of dues to financial institution or bank or debentures
does not arise.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion considering the nature of activities carried on by
the Company during the year, the provisions of any special statute
applicable to chit fund/ nidhi / mutual benefit funds / societies are
not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of investment in shares debenture and other
securities and those timely entries have been made therein. The shares,
debentures and other securities have been held by the Company in its
own name.
15. The Company has not given any guarantees for loans taken by other
from banks or financial institutions. There is no guarantee given by
the Company to third party.
16. The Company has not given any guarantees for loans taken by other
from banks or financial institutions. There is no guarantee given by
the Company to third party.
17. Based on 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 a short-term basis have been used for long-term
investment by the Company.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. Based upon our audit procedures performed and on the information
and explanations given by the management we are of the opinion that no
fraud on or by the Company has been noticed or reported during the
course of our audit .
For AGARWAL DESAI & SHAH
Firm Reg. No:124850W
Chartered Accountants
sd/-
C.A. Mrugen H Shah
Partner
Membership Number: 114770
Place: Mumbai
Date : 30 th August, 2012
Mar 31, 2009
1. We have audited the attached Balance Sheet of EMPOWER INDUSTRIES
INDIA LIMITED as at 31st March 2009 and also the annexed Profit and
Loss Account and cash flow statement of the Company for the year ended
on that date which we have signed under reference to this report. These
Financial Statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003
(hereinafter referred to as the Order) issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, we enclose in the Annexure, a statement on the
matters specified in the paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in paragraph 3
above and subject to the Notes to Accounts,
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper Books of account as required by law have been
kept by the company so far as appears from our examination of such
books;
c) The Balance Sheet and Profit and Loss Account dealt with this report
are in agreement with the books of account.
d) In our opinion, the Balance Sheet and Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred in section 211 (3C) 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, none of the Directors is
disqualified as on March 31. 2009 from being appointed as director in
terms of clause (g) of sub section (1) of section 274 of the Companies
Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said account read with the
significant accounting policies and notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India
I. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2009.
II. In the case of the Profit and Loss Account, of the Profit of the
Company for the period ended on that date.
III. In the case of the cash flow statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the report of the Auditors to
the members of EMPOWER INDUSTRIES INDIA LIMITED on the account for the
year ended 31st March 2009.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) The fixed assets of the Company are physically verified by the
management at regular intervals which in our opinion is reasonable
having regard to the size of the Company and the nature of Fixed
Assets. We are informed that there is no discrepancy noticed on such
physical verification.
(c) In our opinion, and according to the information and explanations
given to us, substantial part of the fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory of the Company has been physically verified
during the period by the management. In our opinion frequency of
verification is reasonable.
(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 Company during the year and the nature of its business.
(c) On the basis of our examination of records of inventory, in our
opinion, the Company has maintained proper records of inventory. We are
informed that there are no discrepancies noticed on such physical
verification.
3. (a) The Company, during the period covered by our audit, has not
granted secured or unsecured loans to companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(b) The Company, during the period covered by our audit , has not taken
secured or unsecured loans from companies covered in the register
maintained under section 301 of the said Act.
(c) The Company has not taken any loan hence question of repayment of
loan or payment of interest does not arise.
(d) The Company has not given any loan hence question of overdue of
such loan does not arise.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that certain items of
purchase are of special nature for which suitable alternative sources
do not exist for obtaining competitive quotations, there are adequate
internal control procedures commensurate with the size & nature of
business of Company for the purchase of inventory, fixed assets and
sales of goods. Further on the basis of our examinations and
information and according to the explanations given to us, we have
neither come across nor have we been informed of any instance of
measure weaknesses in the aforesaid internal control procedures.
5. Based on audit procedure applied by us and the information and
explanation provided by management, we are of the opinion that there
were no transactions during the year that need to be entered in the
Register maintained under section 301 of the Companies Act 1956.
6. Based on our scrutiny of the Companys records and according to the
information and explanations provided by management, in our opinion,
the Company has not accepted any deposits under section 58A and 58AA of
the Act and Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have been informed by management, no cost records have been
prescribed under Section 209 (l)(d) of the Companies Act, 1956.
9. (a) According to the records of the company the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investors Education and Protection Fund. Employees
State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom duty, excise
duty, cess and other material statutory dues as applicable have been
regularly deposited by the company during the year with the appropriate
authorities except Service Tax Rs.2307585, Provident fund Rs.4,73,489/-
Employees State Insurance Rs.213811/- TDS Rsl04823/-, FBT Rs.31931/-
Income Tax Rs.603361/- and Professional Tax Rs363736/-.
According to information and explanations given to us, no undisputed
amounts payable were outstanding at the year end for a period of more
than 6 months from the date they become payable except Fringe Benefit
Tax & Income Tax payable of Rs.31931/- and Rs. 603361 /- respectively.
(b) According to information and explanations given, there were no
disputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Custom duty, Excise duty, cess, which have been outstanding as at
31st March 2009.
10. The Company has neither accumulated losses as at March 31, 2009
nor has it incurred any cash losses during the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the company, company has not borrowed
from financial institution or bank or issued debentures till 31st
March, 2009. Hence, in our opinion, the question of reporting defaults
in repayment of dues to financial institution or bank or debentures
does not arise.
12. According to the records of the company, the company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to chit fund/ nidhi / mutual benefit funds / societies are
not applicable to the company.
14. As per records of the Company and the information and explanation
given to us by the management, Company is not dealing or trading in
shares, securities, debentures and other investments.
15. As per records of the company and the information and explanation
given to us by the management, the company has not given any guarantees
for loans taken by others from banks or financial institutions.
16. According to the records of the company, the company has not
obtained any term loans. Hence, comments under the clause are not
called for.
17. Based on 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 a short-term basis have been used for long-term
investment by the company.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. According to the records of the Company, the Company has not
issued any debentures.
20. The company has not raised any money by public issue during the
year. During the year, the company raised USD $2002160.58 by issue of
Global Depository Receipts and allotted equity shares of 4931430 of
Re.l each at a premium of Rs. 16.50 Each consequent to conversion of
one GDRs in the ratio of Ten Equity Shares . A sum of USD$2002160.58
is lying with, Euram Bank Vienna Austria.
21. 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 nor
by the Company, noticed or reported during the year nor have we been
informed such case by the management.
For MRM & Associates.
Chartered Accountants
Sd/-
Mradula R Maheshwari
Proprietor
Mumbai, 31st August, 2009 Membership Number: 119412
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