Mar 31, 2019
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the standalone financial statements of GE Power India Limited (âthe Companyâ), which comprise the standalone balance sheet as at 31 March 2019, the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
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 (âActâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2019, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs 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 together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Description of Key Audit Matter
The key audit matter |
How the matter was addressed in our audit |
Revenue and margin recognition The Company conducts a significant portion of its business under long-term projects, including construction-type, fixed price projects. Revenue from long-term construction contracts is recognized in accordance with Ind AS 115, Revenue from Contracts with Customers, based on the extent of progress towards completion. The revenue on contracts may also include variations and claims. Variations and claims are recognised on a contract-by-contract basis when the Companyâs negotiations have reached a stage such that it is probable that the customer will accept the claim and the amount can be measured reliably. |
Our procedures included the following: A. We obtained an understanding of the Companyâs internally established methods, processes and control mechanisms for project management in the bid and execution phase of construction contracts. We also assessed the design and operating effectiveness of the accounting related internal controls by obtaining an understanding of business transactions specific to construction contracts, from the initiation of the transaction through presentation in the standalone financial statements, and testing controls over these processes. B. We evaluated managementâs estimates and assumptions based on a risk-based selection of a sample of contracts. Our sample particularly included projects that are subject to significant future uncertainties and risks, such as projects with a large portion of materials and services to be provided by suppliers, subcontractors or consortium partners, cross-border projects, and projects with changes in cost estimates, delays and / or low or negative margins. For the selected contract samples, we performed the following: |
We consider the accounting for construction contracts |
i. |
Review of the contracts and their terms and conditions including |
to be an area posing a significant risk of material |
contractually agreed deliveries and services, termination rights, penalties |
|
misstatement (including the potential risk of management |
for delay and breach of contract as well as liquidated damages. In order to |
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override of internal controls) and accordingly a key audit |
evaluate whether revenues were recognized on an accrual basis for the |
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matter, because managementâs assessments significantly |
selected projects, we analyzed revenues and corresponding cost of sales |
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impact the determination of the extent of progress |
to be recognized in the statement of profit and loss in the reporting period |
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towards completion. These assessments include, in |
considering the extent of progress towards completion, and examined the |
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particular, the scope of deliveries and services required |
accounting for the associated items in the balance sheet. |
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to fulfill contractually defined obligations, total estimated contract costs, remaining costs to completion and total estimated contract revenues, as well as contract risks including technical, political, regulatory and legal risks. |
ii. |
Discussion with the management including challenging the key estimates and assumptions adopted in the forecast of contract revenue and contract |
costs, including estimated costs to completion, the recognition of variation orders, the adequacy of contingency provisions and the assessment of |
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Revenues, total estimated contract costs and contract |
potential liquidated and ascertained damages for contracts which were |
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margins may deviate significantly from original estimates |
behind schedule, by obtaining and assessing information in connection |
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based on new knowledge about cost overruns and |
with the assumptions adopted, including contract agreements and sub-. |
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changes in project scope over the term of a construction |
contracts, correspondence with customers regarding contract variations |
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contract. Furthermore, the first time application of Ind AS |
and claims and by considering historical outcomes for similar contracts. |
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115 in the year ended 31 March 2019 was of relevance for our audit as it required the Company-wide assessment of contracts in relation to the new accounting criteria. |
iii. |
Obtained detailed breakdown of the total estimated costs to completion and compared to actual costs incurred at the reporting date and cost |
estimates with agreements with subcontractors and suppliers and other documentation referred to by management in its assessment of the estimated costs to completion; |
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iv. |
We further performed inquiries of project management (both commercial and technical project managers) with respect to the development of the projects, the reasons for deviations between planned and actual costs, the current estimated costs to complete the projects, and managementâs assessments on probabilities that contract risks will materialize. We also obtained an understanding of the stage of completion of the project through inquiries with project managers and by participating in project review meetings. In designing our audit procedures, we also considered results from project audits conducted by the internal audit function. |
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v. |
Challenged the assumptions and critical judgements made by management which impacted their estimations of the liquidated and ascertained damages assessments by comparing the key terms and conditions in the assessments with customers and by comparing the estimated contract completion time with the Companyâs updated progress report or correspondence from customers; |
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vi. |
Inquired into the reasons for significant variation in current cost and revenue estimates when compared with prior estimates to assess the reliability of the managementâs process of preparing such estimates. |
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vii. As a response to the risk of fraud in revenue recognition on long-term |
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projects, we tested on a sample basis the accuracy of the revenue |
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recorded, based on inspection of externally available evidence, such as |
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project acceptance documentation, contractual terms and conditions and |
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customer correspondence. We assessed the consistency of the accounting |
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information with the project information obtained. |
C. Considering the requirements of Ind AS 115, we also assessed the accounting for contract amendments. With respect to the first-time application of Ind AS 115, we obtained an understanding of the processes implemented in response to the new standard. We also appraised the disclosures on the effects of the first-time application of Ind AS 115 in the notes to the standalone financial statements. |
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Uncertain tax provisions and deferred taxes The Company has material uncertain tax positions including matters under dispute which involve significant judgment to determine the possible outcome of these disputes. This also affects the measurement and completeness of uncertain tax positions, the recoverability of deferred tax assets as well as the measurement and completeness of deferred tax liabilities. Accruals for tax contingencies require the management to make judgements and estimates in relation to tax issues and exposures. This is a key audit risk due to the time taken for tax matters to be agreed with the tax authorities and complexity of tax legislation. |
Our procedures included the following: - We used our tax specialists to assist us in assessing the Companyâs open tax positions. Our specialists also considered legal precedence and other rulings in evaluating managementâs position on these uncertain tax positions. Additionally, we considered the effect of new information in respect of uncertain tax positions to evaluate whether any change was required to managementâs position on these uncertainties. - We analysed and challenged the assumptions used to determine tax accruals (including allowances/ disallowances and their consequential impact on deferred taxes) based on our knowledge and experiences of the application of local legislation by the relevant authorities and courts. - We assessed the adequacy of the Companyâs disclosures in respect of tax and uncertain tax positions by reference to the relevant accounting standards and statute. |
Assets held for sale The Company announced its intention to dispose off its assets held at Shahabad and Vadodara location. The Company does not yet have an active buyer for its assets located at Vadodara. The management is actively looking for buyer and remains committed to the plan to dispose off the assets and thereby, continues to classify the same as Assets held for sale. Managementâs assessment of the basis for classification of the assets as non-current assets held for sale is judgemental, as the sale has to be considered highly probable and is expected to be completed within one year in accordance with Ind AS 105 âNon-current Assets Held For Sale and Discontinued Operationsâ. At the same time, management is required to measure the assets at the lower of carrying amount and fair value less costs to sell. Inaccurate managementâs estimates made in the fair value less costs to sell could result in a significant impact on the value of the assets recorded at the end of the reporting period and the impairment loss in the statement of profit and loss and other comprehensive income for the year ended 31 March 2019. |
Our procedures included the following: - We challenged managementâs basis for the continued classification of the assets as held for sale through understanding of the status of the sale process and obtained necessary documentary support, including the correspondences with prospective buyers; - Involved our valuation specialists in assessing the appropriateness and reasonableness of the value assessed. - We reviewed managementâs assessment of the valuation of the non-current assets held for sale and assessed the reasonableness of the carrying value of the underlying assets. - We also assessed and validated the adequacy of the Companyâs disclosures by reference to the relevant accounting standards and statute. |
Other information
The Companyâs management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companyâs management and Board of Directors are 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 state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows 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. 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 and Board of Directors are 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.
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 SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, 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 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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) 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 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 Ind AS specified under section 133 of the Act.
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 2019 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 financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) 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 as at 31 March 2019 on its financial position in its standalone financial statements - Refer Note 40 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts- Refer Note 46 to the standalone financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2019.
(C) With respect to the matter to be included in the Auditorâs Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
ANNEXUREA REFERRED IN THE INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF GE POWER INDIA LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019.
We report that:
i. (A) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets (property, plant and equipment and intangible assets).
(B) According to the information and explanations given to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, a portion of fixed assets has been physically verified by the management during the year. As informed to us, no material discrepancies were observed on such verification.
(C) According the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company, except the following land (and buildings appurtenant thereto), held in erstwhile name of the Company for which name change is in process:
(Rs. in million)
Name of the property |
Gross Block as at 31 March 2019 |
Accumulated Depreciation as at 31 March 2019 |
Net Block as at 31 March 2019 |
Freehold Land# |
3.2 |
- |
3.2 |
Factory Building# |
90.9 |
71.7 |
19.2 |
Office Building# |
14.6 |
11.8 |
2.8 |
Total |
108.7 |
83.5 |
25.2 |
#included under Assets held for sale as at 31 March 2019.
ii. According to the information and explanations given to us, the inventories, except for goods in transit and inventories lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For inventories lying with third parties, written confirmation have been obtained. Further, as informed, the discrepancies noticed on verification between the physical inventory and the book records were not material.
iii. According to the information and explanations given to us, the Company, has not granted any loans, secured or unsecured, to companies or other parties covered in the register maintained under Section 189 of the Act. Further, there are no firms and limited liability partnerships covered in the register required under Section 189 of the Act. Accordingly, para 3 (iii) of the Order is not applicable.
iv. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made.
v. According to the information and explanations given to us, the Company has not accepted any deposits covered under Section 73 to 76 of the Act.
vi. We have broadly reviewed the books of account maintained by the Company in respect of products and services where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under sub section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.
vii. (A) According to the information and explanations given to us and on the basis of our examination ''of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income tax, Duty of Customs, Goods and Service tax, Cess and any other material statutory dues, to the extent applicable, have been regularly deposited with the appropriate authorities during the year.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income tax, Goods and Service tax, Duty of Customs, Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
(B) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income-tax, Sales-tax, Service tax, Goods and Service Tax, Duty of Customs, Value Added Tax and Duty of Excise which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:
Name of the |
Nature of Statutory dues |
Amount |
Amount |
Period to which it |
Forum where dispute is |
Statute |
of dispute |
paid |
relates |
pending |
|
(Rs. in |
(Rs. in |
||||
million) * |
million) |
||||
Central Sales Tax |
Works Contract Tax on Inter |
115.2 |
- |
1984-89 and 1992-97 |
High Court |
and Local Sales |
State Sales |
||||
Tax Acts (including |
Sales Tax |
4.0 |
- |
2006-07, 2008-09 and |
Appellate Authority, Dhanbad |
works contract tax) |
2009-10 |
||||
Works Contract Tax on Inter |
23.9 |
18.6 |
1993-94 to 96-97 |
First/ Second appellate |
|
State Sales |
authority |
||||
Non-submission of C-forms |
168.7 |
13.1 |
2012-16 |
Tax Officer |
|
Sales tax |
11.7 |
11.7 |
2016-17 |
Assistant Commissioner Sales Tax, Noida |
|
28.9 |
- |
2011-12 to 2013-14 |
Commissioner Appeal |
||
50.5 |
- |
2014-15 |
Dy.Comm. Pithoragarh |
||
2.4 |
- |
2013 -2014 and 2014-15 |
CTO-Circle-Jammu |
||
319.9 |
- |
2011-13 |
First appellate authority-Audit |
||
34.1 |
10.6 |
2011-13 2004-05 |
Tribunal |
||
2.6 |
- |
2014-15 |
Dy.Comm. Ahemdabad |
||
Disallowance of ITC and |
30.4 |
6.1 |
2015-16 |
First appellate authority |
|
deemed sale |
|||||
Non submission of form E1 |
37.1 |
2.9 |
2010-16 |
Revision Board |
|
and C |
|||||
Non-submission of C-forms |
0.2 |
2.3 |
2012-13 |
Astt. Commissioner, Appeals |
|
Liability for Statutory Forms |
0.5 |
9.6 |
2013-14 |
Second Appellate Authority |
|
& Export Proofs, |
|||||
Ex-parte assessment |
36.0 |
4.5 |
2013-14 |
Tribunal |
|
Vehicle Detention and |
0.5 |
0.3 |
2013-14 |
AC Appeals |
|
Reversal of ITC |
|||||
Entry Tax |
85.4 |
48.2 |
2013-16 |
Deputy. Commissioner |
|
Central Excise Act, |
Excise duty |
8.1 |
0.8 |
2010-11 |
Additional commissioner, |
1944 |
Bolpur |
||||
69.1 |
8.1 |
1994-1997 |
CESTAT, Kolkata |
||
1,616.6 |
- |
2011-2015 |
Commissioner Bolpur |
||
4.9 |
- |
2013-14 |
Revision Board |
||
49.0 |
3.7 |
2001-04 |
Tribunal |
||
685.0 |
- |
2014-2015, 2016-17 |
Commissioner Durgapur |
||
0.9 |
- |
2006-07 |
Commissinor Appeals |
||
71.3 |
3.0 |
1979-2008 |
CESTAT |
||
0.2 |
- |
2002-03 and 2003-04 |
Adjudicating Authority |
Service Tax |
37.3 |
- |
2016-2017 |
Commissioner Appeal |
|
Excise Duty refund for supply made without Mega Power Project certification |
6.8 |
2014-15 |
Tribunal, CESTAT |
||
Service Tax Input Reversal from April 11 to May 15 |
280.6 |
- |
2011-15 |
Tribunal, CESTAT |
|
Service Tax wrongly deposited at the time of Audit |
3.0 |
2011-15 |
Commissioner, Appeal |
||
Service Provided at J&K Nov-2014 to March-2016 |
7.5 |
- |
Nov-2014 to March-2016 |
Commissioner, Appeal |
|
Construction Worker Welfare Cess Act, 1996 |
Labour cess on cost construction |
18.5 |
2010-11 |
Assistant Labour Commissioner |
|
GST Act |
Credit of cess from Pre-GST regime |
23.7 |
- |
2017 |
First appellate authority |
Finance Act, 1994 |
Service tax |
1.0 33.3 55.0 4.2 |
3.2 27.2 |
2016-17 2005-07 and 2006-08 2009-13 2017 |
Assistant Comm. CGST & Central Excise , Vadodara Tribunal Delhi Tribunal - Allahabad Commissioner Appeal |
Services tax paid after due date |
65.5 |
- |
2010-11 |
CESTAT |
|
Service tax input reversal |
31.0 |
- |
2015-16 |
Commissioner, Appeal |
|
Service Tax |
19.1 |
- |
2010-2015 |
Tribunal |
|
Service tax on catering services |
2.7 |
0.3 |
2006- 07 to 2011-12 |
CESTAT |
|
DGFT |
Duty Draw Back |
18.4 |
- |
2009-10 |
Supreme Court |
Income Tax Act, 1961 |
Income Tax |
754.0 240.7 179.3 |
100.0 |
FY 2001-03, 2007-08, 2009-14 FY 2006-07 and 2008-09 FY 2014-15 |
ITAT, Mumbai High Court Dispute resolution panel |
*amount as per demand orders including interest and penalty, wherever indicated in the order.
viii. According to the information and explanations given to us, the Company does not have any loans or borrowings from any financial institutions, banks, government or debenture holders during the year. Accordingly, paragrapRs. 3 (viii) of the order is not applicable.
ix. According to the information and explanations given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instrument) and any term loans during the year. Accordingly, paragrapRs. 3 (ix) of the Order is not applicable.
x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the provisions of Section 197 read with Schedule V to the Act.
xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragrapRs. 3(xii) of the Order is not applicable.
xiii. According to information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with Section 177 and 188 of the Act where applicable and the details have been disclosed in the standalone financial statements, as required by the applicable accounting standards.
xiv. According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragrapRs. 3(xiv) of the Order is not applicable.
xv. According to information and explanations given to us, the Company has not entered into any noncash transactions with directors or persons connected with him. Accordingly, paragrapRs. 3(xv) of the Order is not applicable.
xvi. According to information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXUREB TO THE INDEPENDENT AUDITORâS REPORT
ON THE STANDALONE FINANCIAL STATEMENTS OF GE POWER INDIA LIMITED FOR THE YEAR ENDED 31 MARCH 2019.
Report on the Internal Financial controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph (2A(f)) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date) OPINION
We have audited the internal financial controls with reference to financial statements of GE Power India Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2019, based on the internal financial controls with reference to financial statements 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 (the âGuidance Noteâ).
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 (hereinafter referred to as âthe Actâ).
AUDITORSâ RESPONSIBILITY
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 with reference to financial statements were established and maintained and whether 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone 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 with reference to financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS
A company''s internal financial controls with reference to financial statements 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 with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
For B S R & Co LLP
Chartered Accountants
Firmâs Registration No.101248W/ W100022
Rajesh Arora
Place: Noida Partner
Date: 27 May 2019 Membership No.076124
Mar 31, 2017
1. REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS
We have audited the accompanying standalone Ind AS financial statements of GE Power India Limited (formerly known as âAlstom India Limitedâ) (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss (including âother comprehensive incomeâ), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. 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 state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4. 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 31 March 2017, its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
5. OTHER MATTERS
The comparative financial information of the Company for the year ended 31 March 2016 and the transition date opening balance sheet as at 1 April 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31 March 2016 and 31 March 2015 dated 9 May 2016 and 29 April 2015 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of this matter.
6. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Iâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account
d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 IIâ.
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 41 to the standalone Ind AS financial statements
ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - refer Note 22 and Note 45 to the standalone Ind AS financial statements
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 and these are in accordance with the books of accounts maintained by the Company. (refer to Note 14 to the Standalone Ind AS financial statements).
ANNEXURE I INDEPENDENT AUDITORSâ REPORT
Referred to in paragrapRs.6 (1) of the Independent Auditorâs Report to the Members of GE Power India Limited (formerly known as âAlstom India Limitedâ) on the standalone Ind AS financial statements for the year ended 31 March 2017
We report that:
(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three year, which, in our opinion, is reasonable having regard to the size of the Company and nature of its assets. In accordance with this programme, a portion of fixed assets has been physically verified by the management during the year. As informed to us, no material discrepancies were observed on such verification.
(c) According the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.
(ii) According to the information and explanations given to us, the inventories (excluding stocks with third parties) has been physically verified during the year by the management. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. Further, as informed, the discrepancies noticed on verification between the physical inventory and the book records were not material.
(iii) According to the information and explanations given to us, the Company, has not granted any loans, secured or unsecured, to companies or other parties covered in the register maintained under Section 189 of the Act. Further, there are no firms and limited liability partnerships covered in the register required under Section 189 of the Act. Accordingly, para 3 (iii) of the Order is not applicable.
(iv) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to loans and investments made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits covered under section 73 to 76 of the Act.
(vi) We have broadly reviewed the books of account maintained by the Company, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities during the year.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income-tax, Sales-tax, Service tax, Duty of Customs, Value Added Tax and Duty of Excise which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned Next page:
Name of the Statute |
Nature of Statutory dues |
Amount of dispute (Rs. in million) * |
Amount paid (Rs. in million) |
Period to which it relates |
Forum where dispute is pending |
Central sales tax and local sales tax acts (including works contract tax) |
Works Contract Tax on Inter State Sales |
90.1 |
4.4 |
2005-08 |
High Court |
Sales Tax |
4.0 |
- |
2006-07, 200809 and 2009-10 |
Appellate Authority, Dhanbad |
|
Works Contract Tax on Inter State Sales |
10.0 |
- |
1984-1992 |
First/ Second appellate authority |
|
Central Sales tax |
11.6 |
11.6 |
2016-17 |
Asstt. Commissioner Sales Tax, Noida |
|
Central Sales tax |
2.0 |
- |
2012-13 |
Commissioner Vadodara |
|
Central Sales tax |
26.0 |
11.5 |
1993-99, 201011 and 2013-14 |
First Appellate Authority/ Second Appellate authority |
|
Non submission of form E1 and C |
13.0 |
0.6 |
2010-14 |
Revision Board |
|
Central sales tax and local sales tax acts (including works contract tax) |
Statutory Forms Liability on Interstate Sales |
4.4 |
2.1 |
2007-08 |
Second Appellate Authority & Assessing Authority |
Works contract tax on Inter state sales |
8.0 |
- |
1984-1988 and 1992-1997 |
High Court |
|
Sales tax |
13.9 |
2.5 |
2012-13 |
Tribunal |
|
Sales in transit disallowed |
58.2 |
- |
2007-08 and 2008-09 |
Tax Tribunal, Chamba |
|
Sales tax |
20.4 |
2.4 |
2012-13 |
Revision Board |
|
Central Excise Act, 1944 |
Excise duty |
8.1 |
2010-11 |
Additional commissioner Bolpur |
|
137.1 |
11.6 |
1979-2008 |
CESTAT, Durgapur |
||
88.0 |
- |
1994-2000 |
CESTAT, Kolkata |
||
1.0 |
- |
2006-07 |
Commissioner Appeals |
||
1,616.6 |
- |
2011-2015 |
Commissioner Bolpur |
||
435.5 |
- |
2014-2015 |
Commissioner Durgapur |
||
0.2 |
- |
2002 & 03 and 2003-04 |
Adjudicating Authority |
||
Service tax input reversal |
305.3 |
3.6 |
2011-15 |
Commissioner, Vadodra |
|
Terminal Excise Duty |
53.7 |
- |
2010-11 |
Supreme Court |
|
Excise Duty refund for supply made without Mega Power Project certification |
6.8 |
2014-15 |
First Appellate Authority |
||
Rejection of duty drawback claims |
460.0 |
- |
2009-10 |
Supreme Court |
|
Construction Worker Welfare Cess Act, 1996 |
Labour cess on cost construction |
19.0 |
- |
2010-11 |
Assistant Labour Commissioner |
Finance Act, 1994 |
Services tax |
64.0 |
- |
2010-11 |
CESTAT |
38.29 |
- |
2008 to 2015 |
CESTAT |
||
1.0 |
- |
2005-06 and 2008-09 |
Commissioner |
||
1.0 |
2007-08 and 2008-09 |
Commissioner, Central Excise (Appeal-I), Kolkata |
|||
2.6 |
- |
2011-12 |
Tribunal |
Finance Act, 1994 |
Services tax |
75.0 |
3.2 |
2005-07 and 2006-08 |
Tribunal Delhi |
2.7 |
- |
2005- 06 to 2011-12 |
CESTAT |
||
Income Tax Act, 1961 |
Income Tax |
1,150.4 |
- |
FY 2001-02 to 2011-12 |
ITAT, Mumbai |
712.7 |
- |
FY 2006-07 and 2008-09 |
High Court |
||
566.0 |
- |
FY 2012-13 |
Dispute resolution panel |
* amount as per demand orders including interest and penalty, wherever indicated in the order
(viii) According to the information and explanations given to us, the Company does not have any loans or borrowings from any financial institutions, banks, government or debenture holders during the year. Accordingly, paragraph 3 (viii) of the order is not applicable.
(ix) According to the information and explanations given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instrument) and any term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv) According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
(xv) According to information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) According to information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For B S R & Co. LLP
Chartered Accountants
ICAI Firm registration number: 101248W/W-100022
Pravin Tulsyan
Place: New Delhi Partner
Date: 29 May 2017 Membership No.: 108044
Mar 31, 2016
To the Members of ALSTOM India Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone Financial Statements of ALstom India Limited (the "Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the 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 Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
AUDITORS âRESPONSIBILITY
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 of material misstatement.
6. 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 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 31 March, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
9. Without qualifying our opinion we draw attention to note 48 to the financial statements. As mentioned thereto, the Company has realigned the remaining milestones relating to project revenue recognition for ongoing contracts.
Accordingly, the company now recognizes revenue on the basis of the revised milestones only if the same has been achieved. As a result, revenue from operations has been postponed and for the year is lower by Rs,1,471.0 million and loss before tax is higher by Rs,226.4 million. Our opinion is not modified in respect of this matter.
report on Other Legal and regulatory requirements
10. As required by the Companies (Auditors, Report) Order, 2016 ("the orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure "Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. 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 written representations received from the directors as at March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as at 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 "Annexure Bâ
(g) With respect to the other matters to be included in the Auditors âReport 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 35 and 36 to the financial statements.
(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 7, 39 and 46 to the financial statements.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company referred to in paragraph 10 of the Independent Auditors âreport of even date to the members of ALSTOM India Limited on the standalone financial statements as of and 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) The fixed assets are physically verified by the management according to a phased programme designed to cover all items over a period of three years, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification.
(c) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties included in fixed assets as disclosed in Note 11 to the financial statements are held in the name of the company.
(ii) The inventory (excluding stocks with third parties) has been physically verified during the year by the management. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. Further the discrepancies noticed on physical verification of inventory as compared to books of account were not material.
(iii) As per the information and records made available 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) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans and investments made.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 and we are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us,
the Company is generally regular in depositing undisputed statutory dues including provident fund, employees âstate insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues were in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, and the records of the Company examined by us, there are no dues of duty of customs which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, service tax, value added tax and duty of excise as at March 31, 2016 which have not been deposited on account of a dispute, are as follows:
Name of Statute |
nature of Dues |
Amount (Rs,in Millions) |
period to which the amount relates |
Forum where dispute is pending |
Andhra Pradesh General Sales Tax (GST), 1957; Andhra Pradesh Value Added Tax (VAT), 2005 and Central Sales Tax (CST) Act, 1956 |
Works Contract Tax on Inter State Sales |
90.1 |
2005-2008 |
High Court |
Bombay Sales Tax Act, 1957 and Central Sales Tax Act, 1956 |
Works Contract Tax on Inter State Sales |
10.2 |
1984-1992 |
First/ Second appellate authority |
Name of statute |
nature of Dues |
Amount (Rs, in Millions) |
period to which the amount relates |
Forum where dispute is pending |
Orissa General Sales Tax Act, 1947 Works Contract Tax on |
3.6(1) |
1984-1997 |
High Court |
|
and Central Sales Tax Act, 1956 |
Inter State Sales |
|||
Central Excise Act, 1944 |
Excise Duty and Penalty |
159.7(2) |
1979-2014 |
CESTAT/ Comm. Appeal |
Central Sales Tax Act, 1956 |
Central Sales Tax Penalty |
129.1(3) |
1993-2014 |
First/ Second appellate authority |
Construction Worker Welfare |
Labour CASs on Cost of |
18.6 |
2010-2011 |
Assistant Labour |
Cess Act, 1996 |
Construction |
Commissioner |
||
Finance Act, 1994 (Service Tax) |
Service Tax and Penalty |
127.2(4) |
2005-2012 |
CESTAT / Tribunal/Comm. Appeal |
Jharkhand Value Added Tax |
Interstate Sales |
4.0 |
2006-2010 |
Dy. Commissioner, Appeal |
West Bengal VAT Act |
Sales Tax |
11.4(5) |
2012-2013 |
Taxation Tribunal |
Himachal Pradesh VAT Act, 2005 |
Sale In Transit disallowed |
58.2 |
2007-2009 |
Dy. Excise & Taxation Commissioner, Chamba, H.P |
Karnataka VAT Act 2003 |
Statutory Forms Liability |
4.5(6) |
2007-2008 |
Second Appellate Authority & Assessing Authority |
J&K GST Act, 1962 |
Sales Tax |
3.3 |
2010-2011 |
Appellate Authority, Sales Tax |
Excludes amount deposited against demand (1)Rs,4.47 million. (2Rs,8.75 million. (3)Rs,33.86 million (4)Rs,0.75 million. (5Rs,2.50 million. (6)Rs,4.48 million
(viii) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments] and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in note 32 to the financial statements as required by the applicable accounting standard.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ALSTOM India Limited ("the 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.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors âResponsibility
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 Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S. N. Dhawan & Co.
Chartered Accountants
Firm Registration No.:000050N
Vijay Dhawan
Place: Noida Partner
Date: May 9, 2016 Membership No.: 12565
Mar 31, 2014
1. We have audited the accompanying Financial Statements of ALSTOM
India Limited (Formerly ALSTOM Projects India Limited) (the "Company"),
which comprise the Balance Sheet as at 31 March 2014, and the Statement
of profit and Loss and Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory
information.
BOARD OF DIRECTORS'' RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. Board of Directors are 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")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.
The responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
3. 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 of
material misstatement.
4. 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 Company''s internal control. 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.
5. We believe that the audit evidence we have obtained is suffcient
and appropriate to provide a basis for our audit opinion.
OPINION
6. In our opinion and to the best of our information and according to
the explanations given to us, the accompanying 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 Cash Flow Statement, of the cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
8. 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 purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the 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;
(e) On the basis of written representations received from the
directors, as at March 31, 2014 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as at
March 31, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
Annexure to the Independent Auditor''s Report
Referred to in paragraph 7 of the Independent Auditor''s Report of even
date to the members of ALSTOM India Limited (Formerly ALSTOM Projects
India Limited) on the financial statements as of and for the year ended
March 31, 2014
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verifed by the management according
to a phased programme designed to cover all items over a period of
three years, which in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verifed by
the management during the year and no material discrepancies have been
noticed on such verifcation.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) (a) The inventory (excluding stocks with third parties) has been
physically verifed during the year by the management. In respect of
inventory lying with third parties, these have substantially been
confrmed by them. In our opinion, the frequency of verifcation is
reasonable.
(b) In our opinion, the procedures of physical verifcation 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verifcation between the physical stocks and
the book records were not material.
(iii) The Company has not granted/taken any loans, secured or
unsecured, to/ from companies, frms or other parties covered in
register maintained under Section 301 of the Act. Therefore, the
provisions of clause 4 (iii) [(b), (c) and (d) / (f) and (g)] of the
said Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and rendering of services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system of the company.
(v) According to the information and explanations given to us, there
have been no contracts or arrangements that need to be entered in the
register maintained under Section 301 of the Act.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
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 we 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 they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues in respect of provident fund, employees'' state insurance, income
tax, sales tax, service tax, though there has been a slight delay in a
few cases, and is regular in depositing undisputed statutory dues
including investor education and protection fund, wealth tax, custom
duty, excise duty and other material statutory dues as applicable, with
appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, no undisputed amounts payable in
respect of income tax, sales tax, wealth tax and excise duty were in
arrears, as at March 31, 2014, for a period of more than six months
from the date they became payable. The particulars of dues of service
tax, custom duty and research and development cess as at March 31, 2014
which were outstanding more than six month as at March 31, 2014 are as
follows:
Nature of Statute Nature of dues Amount Period to which
(Rupees in million) amount relates
Central Excise
Act,1944 Custom duty and 39.4 2012-13
interest thereon
Finance Act, 1994 Service tax on 8.1 2011-12 to
Import of
Services 2013-14
Research and
Development Research and
development 5.6 2011-12 to
Cess Act, 1986 Cess on Import
of Services 2013-14
Nature of Statute Due date Date of payment
Central Excise Act,1944 November 30, 2012 Not yet paid
Finance Act, 1994 Various dates April 16, 2014
Research and Development Various dates April 24, 2014
Cess Act, 1986
(c) According to the information and explanation given to us, and the
records of the Company examined by us, there are no dues of wealth tax,
and customs duty which have not been deposited on account of any
dispute. The particulars of dues of income tax, sales tax, service tax
and excise duty as at March 31, 2014 which have not been deposited on
account of a dispute, are as follows:
Nature of Statute Nature of dues Amount
(Rupees in million)
Andhra Pradesh General Sales
Tax (GST), Works Contract Tax on 520.2
1957; Andhra Pradesh Value
Added Tax Inter State Sales
(VAT), 2005 and Central
Sales Tax (CST) Act, 1956
Andhra Pradesh Value
Added Tax (VAT), Works Contract Tax on 1.2
2005 and Central Sales
Tax (CST) Act, 1956 Inter State Sales
Bombay Sales Tax Act, 1957
and Central Works Contract Tax on 10.2
Sales Tax Act, 1956 Inter State Sales
Central Excise Act, 1944 Duty Draw Back 22.3
Central Excise Act, 1944 Excise Duty and
Penalty 226.2
Central Sales Tax Act, 1956 Central Sales Tax 14.2
Penalty
Construction Worker Welfare Labour Cess on
Cost of 18.6
Cess Act, 1996 Construction
Finance Act, 1994
(Service Tax) Service Tax and
Penalty 89.1
Finance Act, 1994
(Service Tax) Service Tax on 1.9
Catering Service
Jharkhand Value Added Tax Interstate Sales 4.0
Orissa General Sales
Tax Act, 1947 and Works Contract Tax on 3.6
Central Sales Tax Act, 1956 Inter State Sales
West Bengal VAT Act. Sale Tax 11.4
Income Tax Act, 1961 Income Tax and
Interest 66.0
Himachal Pradesh
VAT Act, 2005 Sale In Transit 58.2
disallowed
Nature of statues Period to which Forum where
the amount relates dispute is pending
Andhra Pradesh General
Sales Tax (GST), 2004-2008 High Court
1957; Andhra Pradesh Value
Added Tax (VAT), 2005 and
Central Sales Tax (CST)
Act, 1956
Andhra Pradesh Value
Added Tax (VAT), 2008-2010 Dy. Commissioner
2005 and Central Sales Tax
(CST) Act, 1956
Bombay Sales Tax Act,
1957 and Central Sales
Tax Act, 1956 1984-1992 First/ Second
appellate
authority
Central Excise Act, 1944 2009-2010 High Court
Central Excise Act, 1944 1979-2008 CESTAT/ Comm.Appeal
Central Sales Tax Act, 1956 1993-1999 First/ Second
appellate
authority
Construction Worker Welfare
Cess Act, 1996 2010-2011 Assistant Labour
Commissioner
Finance Act, 1994 (Service Tax) 2005-2009 CESTAT / Tribunal
Finance Act, 1994 (Service Tax) 2007-2011 Comm. Appeal
Jharkhand Value Added Tax 2006-2010 DC, Appeal
Orissa General Sales Tax Act,
1947 and Central Sales
Tax Act, 1956 1984-1997 High Court
West Bengal VAT Act. 2012-2013 Taxation Tribunal
Income Tax Act, 1961 Assessment Years CIT (Appeals)ITAT
2007-2010
Himachal Pradesh VAT
Act, 2005 2007-2009 Dy. Excise &
Taxation
Commissioner,
Chamba, H.P.
(x) The Company has no accumulated losses as at the end of the financial
year and it has not incurred any cash losses in the financial year ended
on that date or in the immediately preceding financial year.
(xi) As the Company does not have any borrowings from any financial
institution or bank nor has it issued any debentures as at the balance
sheet date, the provisions of Clause 4(xi) of the Order are not
applicable to the Company.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities. Therefore, the provisions of Clause 4(xii) of the Order are
not applicable to the Company.
(xiii) As the provisions of any special statute applicable to chit
fund/ nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4 (xiii) of the Order are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
company.
(xv) In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
Accordingly, the provisions of Clause 4(xv) of the Order is not
applicable to the Company.
(xvi) The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order is not applicable to the
Company.
(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 there are no funds raised on short-term basis have been used for
long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Act. Accordingly, the provisions of Clause 4(xviii)
of the Order are not applicable to the Company.
(xix) The Company has not issued any debentures during the year and
does not have any debentures outstanding as at the beginning of the
year and at the year end. Accordingly, the provisions of Clause 4(xix)
of the Order are not applicable to the Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For S. N. DHAWAN & CO.
Chartered Accountants
Firm Reg. No.: 000050N
Vijay Dhawan
Place : Noida Partner
Date: April 25, 2014 M. No.: 12565
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of ALSTOM
India Limited(Formerly ALSTOM Projects 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, which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view ofthe
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'' of India (the "Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation ofthe 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 ofthe accounting
estimates made by Management, as well as evaluating the overall
presentation ofthe financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying 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 ofthe Balance Sheet, ofthe state of affairs ofthe
Company as at March 31, 2013;
(b) in the case ofthe Statement of Profit and Loss, ofthe profit for
the year ended on that date; and
(c) in the case ofthe Cash Flow Statement, ofthe cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs A and 5 of the Order.
8. 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 ofthose
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
ofaccount;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) ofsection 211
ofthe Act;
(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 ofthe 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 Act.
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies have been noticed on such verification.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part offixed assets has not been disposed
off by the Company during the year.
ii. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year.
In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency
ofverification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted/taken any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 ofthe Act. Therefore, the provisions of Clause A(iii)
[(b), (c) and (d) / (f) and (g)] of the said Order are not applicable
to the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size ofthe Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. According to the information and explanations given to us, there
have been no contracts or arrangements that need to be entered in the
register maintained under Section 301 of the Act.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub- section (1) of Section 209 of the
Act, and 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
they are accurate or complete.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues in respect
of provident fund, employees'' state insurance, income tax, sales tax,
service tax, though there has been a slight delay in a few cases, and
is regular in depositing undisputed statutory dues, including investor
education and protection fund, wealth tax, customs duty, excise duty
and other material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of wealth-tax
and customs duty which have not been deposited on account of any
dispute. The particulars of dues of income tax, sales tax, service tax
and excise duty as at March 31, 2013 which have not been deposited on
account of a dispute, are as follows :
x. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
xi. As the Company does not have any borrowings from any financial
institution or bank nor has it issued any debentures as at the balance
sheet date, the provisions of Clause 4(xi) of the Order are not
applicable to the Company.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company
xiii. As the provisions of any special statute applicable to chit
fund/ nidhi/ mutual benefit fund/ societies are not applicable to the
Company, the provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
xiv. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4(xiv) of the Order are not applicable to the
Company.
xv. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
Accordingly, the provisions of Clause 4(xv) of the Order are not
applicable to the Company.
xvi. The Company has not raised any term loans. Accordingly, the
provisions of Clause 4(xvi) of the Order are not applicable to the
Company.
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 there are no funds raised on short-term basis have been used for
long-term investment.
xviii.The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year. Accordingly, the provisions of Clause
4(xviii) of the Order are not applicable to the Company.
xix. The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
xx. The Company has not raised any money by public issues during the
year. Accordingly, the provisions of Clause 4(xx) of the Order are not
applicable to the Company.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For Price Waterhouse
Firm Registration Number: 012754N
Chartered Accountants
Harinderjit Singh
Place: Noida Partner
Date : May 02, 2013 Membership Number - 86994
Mar 31, 2012
1. We have audited the attached Balance Sheet of ALSTOM Projects India
Limited (the "Company") as at March 31, 2012, and the related Statement
of Profit and Loss and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. 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 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, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of 'The Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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 purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, 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 Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, 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 March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit
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.
Annexure to Auditors' Report
Refferred to in paragraph 3 of the Auditors' Report of even date to the
members of ALSTOM Projects India Limited on the financial statements
as of and for the year ended March 31, 2012
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) In our opinion, and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year.
In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as
compared to book records were not material.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly clauses (iii) (b), (c) and
(d) of paragraph 4 of the order are not applicable in the case of the
company in the current year.
(b) 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 Act. Accordingly clauses (iii) (f) and (g) of
paragraph 4 of the order are not applicable in the case of the Company
in the current year.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year to be entered in the register required to be
maintained under that Section. Accordingly, the question of commenting
on transactions made in pursuance of such contracts or arrangements
does not arise.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. According to the information and explanations given to us, the
company is in process of preparing the cost records prescribed by the
Central Government under clause (d) of subsection (1) of Section 209 of
the Act in respect of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues in respect
of provident fund, employees' state insurance, income tax, sales tax
and service tax, though there has been a delay in a few cases, and is
regular in depositing undisputed statutory dues, including investor
education and protection fund, wealth tax, customs duty, excise duty,
cess and other material statutory dues, as applicable, with the
appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income tax, sales tax, wealth tax, service tax, customs duty and excise
duty as at March 31, 2012 which have not been deposited on account of a
dispute, are as follows:
Annexure to Auditors' Report
Refferred to in paragraph 3 of the Auditors' Report of even date to the
members of ALSTOM Projects India Limited on the financial statements
as of and for the year ended March 31, 2012
Name of the statute Nature of dues
Andhra Pradesh General Sales
Tax (GST), 1957; Works Contract Tax on Inter State Sales
Andhra Pradesh Value Added Tax
(VAT), 2005 and Central Sales
Tax (CST) Act, 1956
Central Excise Act, 1944 Excise duty and penalty
Central Sales Tax Act, 1956 Central Sales Tax Penalty
Bombay Sales Tax Act, 1957
and Central Sales Works Contract Tax on Inter State Sales
Tax Act, 1956
Orissa General Sales Tax Act,
1947 and Central Works Contract Tax on Inter State Sales
Sales Tax Act, 1956
Tamil Nadu General Sales Tax
Act,1959 Sales Tax and Penalty
Income Tax Act, 1961 Income Tax and Interest
Labour Cess Act, 1966 Labour Cess on Cost of Construction
Finance Act, 1994 (Service
Tax) Service Tax and Penalty
Name of the statute Amount Period to which Forum where
(Rs. the amount dispute is
Million) relates pending
Andhra Pradesh General Sales
Tax (GST), 1957; 520.2 2004 - 2008 High Court
Andhra Pradesh Value Added Tax
(VAT), 2005 and Central Sales
Tax (CST) Act, 1956
Central Excise Act, 1944 251.5 1979 - 2008 CESTAT
Central Sales Tax Act, 1956 14.2 1993 - 1999 Appellate
Tribunal
Bombay Sales Tax Act, 1957
and Central Sales 10.2 1984 - 1992 Appellate
Tax Act 1956 Tribunal
Orissa General Sales Tax Act,
1947 and Central 3.6 1992 - 1997 High Court
Sales Tax Act,1961
Tamil Nadu General Sales Tax
Act,1959 1.8 2004 - 2005 High Court
Income Tax Act, 1961 82.4 Assessment
Years CIT (Appeals)
2007-2009
Labour Cess Act, 1966 18.6 2010-2011 Assistant
Labour
Comissioner
Finance Act, 1994 (Service
Tax) 86.1 2005-2009 CESTAT
10. The Company has no accumulated losses as at 31 March 2012 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. The Company neither has any borrowings from any financial
institution or bank nor has it issued any debentures as at the balance
sheet date.
12. 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. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. The Company has not obtained any term loans.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion, and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year; and
does not have any debentures outstanding as at the year end.
20. The Company has not raised any money by public issues during the
year
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the Management.
For Price Waterhouse
Firm Registration Number: 012754N
Chartered Accountants
Joy Kumar Jain
Place: Noida Partner
Date : April 23, 2012 Membership Number: 087659
Mar 31, 2010
1. We have audited the attached Balance Sheet of ALSTOM Projects India
Limited (the ÃCompanyÃ) as at March 31, 2010, and the related profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. These fnancial statements are the responsibility of the
CompanyÃs Management. Our responsibility is to express an opinion on
these fnancial 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
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by Management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the ÃOrderÃ), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of ÃThe Companies Act, 1956Ã
of India (the ÃActÃ) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the 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 purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(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
disqualifed as on March 31, 2010 from being appointed as a director in
terms of clause (g) of sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said fnancial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, 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 March 31, 2010;
(ii) in the case of the profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Annexure to Auditorsà Report Referred to in paragraph 3 of the
Auditorsà report of even date to the members of ALSTOM Projects India
Limited on the fnancial statements for the year ended March 31, 2010
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fxed
assets.
(b) The fxed assets are physically verifed by the Management according
to a phased programme designed to cover all the items over a period of
three years which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Pursuant to the
programme, a portion of the fxed assets has been physically verifed by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fxed assets has not been disposed of
by the Company during the year.
(ii) (a) The inventory has been physically verifed by the Management
during the year. In our opinion, the frequency of verifcation is
reasonable.
(b) In our opinion, the procedures of physical verifcation 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verifcation of inventory as compared
to book records were not material.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, frms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly clauses (iii) (b), (c) & (d)
of paragraph 4 of the Order are not applicable in the case of the
company in the current year.
(b) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly clauses (iii) (f) & (g) of
paragraph 4 of the Order are not applicable in the case of the company
in the current year.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fxed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
(v) According to the information and explanations given to us, there
have been no contracts or arrangements referred to
in Section 301 of the Act during the year to be entered in the register
required to be maintained under that Section. Accordingly, the
question of commenting on transactions made in pursuance of such
contracts or arrangements does not arise.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) The Central Government of India has not prescribed the
maintenance of cost records under clause (d) of sub-section (1) of
Section 209 of the Act for any of the products of the Company.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employeesà state insurance, income-tax, sales-tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues
as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty and cess as at March 31, 2010 which have not been deposited on
account of a dispute, are as follows:
Name of the Statute Nature of dues Amount in
(Rs.Ã000)
Andhra Pradesh General
Sales Tax (GST), Works Contract Tax on 520,219
1957; Andhra Pradesh
Value Added Tax Inter State Sales
(VAT), 2005 and Central
Sales Tax (CST)
Act, 1956
Central Excise
Act, 1944 Excise duty and penalty 216,962
Central Sales Tax
Act, 1956 Central Sales Tax Penalty 14,185
Bombay Sales Tax
Act, 1957 and Central Works Contract Tax on 10,391
Sales Tax Act, 1956 Inter State Sales
Central Excise Act,
1944 Excise duty and penalty 4,711
Orissa General Sales
Tax Act,1947 and Works Contract Tax on 3,603
Central Sales Tax
Act, 1956 Inter State Sales
Tamil Nadu General
Sales Tax Act,1959 Sales Tax and Penalty 1,752
Name of the Statue Period to which the Forum where the
amount relates dispute is pending
Andhra Pradesh General Sales Ta x (GST),
1957; Andhra Pradesh Value Added Tax
(VAT), 2005 and Central Sales Tax (CST)
Act, 1956 2004 - 2008 High Court
Central Excise Act, 1944 1985 - 2007 CESTAT
Central Sales Tax
Act, 1956 1993 - 1999 First/ Second
appellate authority
Bombay Sales Tax Act,
1957 and Central
Sales Tax Act, 1956 1984 - 1992 First/ Second
appellate authority
Central Excise Act, 1944 2007 - 2008 CESTAT
Orissa General Sales
Tax Act,1947 and
Central Sales Tax
Act, 1956 1992 - 1997 High Court
Tamil Nadu General
Sales Tax Act,1959 2004 - 2005 High Court
(x) The Company has no accumulated losses as at March 31, 2010 and it
has not incurred any cash losses in the fi nancial year ended on that
date or in the immediately preceding fi nancial year.
(xi) According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any fi nancial institution or bank or debenture
holders as at the balance sheet date.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute applicable to chit fund /
nidhi / mutual benefi t fund/ societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or fi nancial institutions during the year.
(xvi) The Company has not obtained any term loans.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Act during the year.
(xix) The Company has not issued any debentures during the year and
there are no debentures outstanding at the year-end.
(xx) The Company has not raised any money by public issues during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For Price Waterhouse
Firm Registration Number: 012754N
Chartered Accountants
V. Nijhawan
Place: Noida Partner
Date: April 28, 2010 Membership Number: F-87228