Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF HIND RECTIFIERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Hind Rectifiers Limited ("the Company"), which comprise the Balance Sheet as at March 31,2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of significant accounting policies and other explanatory information, in which are incorporated the returns for the year ended on that date audited by the auditors of the Company''s branches at Nashik and Dehradun Unit-I & Unit-II.
Management''s responsibility for the Financial statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with the Companies (Accounting Standard) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of theaccounting records, relevantto the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under Section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of state of affairs of the Company as at March 31, 2018 and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Other Matter
We did not audit the financial statements of Nashik and Dehradun Unit-I & Unit-II (the branches) included in the financial statements of the company. The financial statements of the said branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of the branch, is based solely on the report of such branch auditors.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Government of India in terms of sub-section (11) of section 143 of 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 annexure 1 a statement on the matters specified in the paragraphs 3 and 4 of the said 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 purpose of our audit;
b In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us;
c The reports on the accounts of the branch offices of the company audited under section 143(8) of the Act by branch auditors have been sent to us and been have been properly dealt with by us in preparing this report.
d The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
e In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 Companies (Indian Accounting Standards) Rules, 2015, as amended;
f On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164(2) of the Act.
g With respect to the adequacy to the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure 2" to this report. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting;
h With respect to the other matters included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to our 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;
ii. The Company has made provision as at March 31, 2018, as required under the applicable law or accounting standards for material foreseeable losses, if any, on long term contracts. The company has not entered into any derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
3. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order
For RAVI A. SHAH & ASSOCIATES |
|
Chartered Accountants, |
|
Firm Reg. N0.125079W |
|
Place : Mumbai |
Ravi A. Shah, Proprietor |
Date : 30th May, 2018 |
Membership No.116667 |
Annexure 1 referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements'' of the Our Report of even date to the members of Hind Rectifiers Limited on the accounts of the company for the year ended 31st March, 2018.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
i) a. The Company has maintained proper records showing full particulars including quantitative details and location of its fixed assets;
b. There is a regular program of physical verification, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies have been noticed in respect of the assets physically verified during the year;
c. According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the company.
ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them as at March 31, 2018 and no material discrepancies were noticed in respect of such confirmations.
iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Accordingly, Paragraph 3 (iii) of the Order, 2016 is not applicable.
iv) In our opinion and according to the information and explanations given to us, in respect of loans, investments, guarantees and security provisions of section 185 and 186 of the Companies Act 2013 are complied with as applicable.
v) In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public in accordance with the provision of Section 73 and 76 of the Act and the rules framed there under.
vi) We have broadly reviewed the cost records maintained by the company in accordance with section 148(1) of the Act and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii) (a) According to the information and explanations given to us in respect of statutory and other dues the Company has been regular in depositing undisputed statutory dues with the appropriate authorities during the year
(b) The disputed statutory dues aggregating to ? 231.81 lacs, that have not been deposited on account of disputed matters pending before Appropriate Authorities are as under:
Name of the Statute |
Nature of Dues |
Amount (in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act |
Excise Duty |
118.74 (net of advance of ? 9. 17 lacs) |
2005-2017 |
Central Excise and Service Tax Appellate Tribunal |
Central Excise Act |
Excise Duty |
26.80 (net of advance of ?Nil) |
2016-2017 |
Departmental Authorities |
Central Sales Tax and Local Sales Tax Act |
Central Sales Tax and Local Sales Tax |
86.27 (net advance of ? 39.97 lacs) |
2006-2013 |
Departmental Authorities |
viii) On the basis of verification of records and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not taken any loans from any financial institutions or Government or by way of issue of debentures.
ix) According to the information and explanations given to us and based on the documents and records produced to us for verification, during the year the company has raised money by way of Right Issue and the proceeds of the same have been applied for the purpose for which same was obtained.
In our opinion, and according to the information and explanations given to us, the term loan has been applied for the purpose for which the same was obtained.
x) Based upon the audit procedures performed for the purpose of reporting true and fair view of the financial statements and according to information and explanations given by the management, we report that no fraud on the company or by the officers or employees of the Company has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on verification of records, the Managerial remuneration has been paid in accordance with requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
xii) The company is not a Nidhi company and hence reporting under clause (xii) of the order does not arise.
xiii) Based upon the audit procedures performed for the purpose of reporting true and fair view of the financial statements and according to information and explanations given by the management, transactions with related parties are in compliance with section 177 and section 188 of Companies Act 2013 where applicable and details have been disclosed in the notes to the financial statements, as required by the applicable accounting standard.
xiv) According to the information and explanations given to us and on overall examination of balance sheet, the company has not made preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review, accordingly, paragraph 3 (xiv) of the Order, 2016 is not applicable and hence not commented upon.
xv) Based upon the audit procedures performed for the purpose of reporting true and fair view of the financial statements and according to the information and explanations given to us by the management, the company has not entered into any non-cash transactions with directors or persons connected with them.
xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For RAVI A. SHAH & ASSOCIATES Chartered Accountants, |
|
Firm Reg. N0.125079W |
|
Place : Mumbai |
Ravi A. Shah, Proprietor |
Date : 30th May, 2018 |
Membership No.116667 |
Annexure 2 referred to in paragraph 2(f) under the under the heading "Report on Other Legal and Regulatory Requirements'' of the Our Report of even date
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
To the Members of HIND RECTIFIERS LIMITED
We have audited the internal financial controls over financial reporting of HIND RECTIFIERS LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the 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'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, 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 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 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, 2018, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
Explanatory paragraph
We also have audited, in accordance with the Standard on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act, the financial statements of HIND RECTIFIERS LIMITED ("the company"), which comprise the Balance Sheet as at March 31 2018, and the related 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, and our report dated May 30, 2018 expressed an unqualified opinion thereon.
For RAVI A. SHAH & ASSOCIATES |
|
Chartered Accountants, |
|
Firm Reg. N0.125079W |
|
Place : Mumbai |
Ravi A. Shah, Proprietor |
Date : 30th May, 2018 |
Membership No.116667 |
Mar 31, 2016
TO THE MEMBERS OF HIND RECTIFIERS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of HIND RECTIFIERS LIMITED, ("the Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information, in which are incorporated the returns for the year ended on that date audited by the auditors of the Company''s branches at Nasik and Dehradun Unit-I & Unit-II.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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 mis-statement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material mis-statement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Other Matter
We did not audit the financial statements of Nasik and Dehradun Unit-I & Unit-II (the branches) included in the financial statements of the Company. The financial statements of the said branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of the branches, is based solely on the report of such branch auditors.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Government of India in terms of sub-section (11) of section 143 of 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 I a statement on the matters specified in the paragraphs 3 and 4 of the said 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c. The reports on the accounts of the branch offices of the Company audited under section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
d. 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 and with the returns received from the branches not visited by us.
e. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
f. On the basis of the written representations received from the Directors as on 31st March, 2016 taken on record by the Board of Directors, none of the Director is disqualified as on 31st March, 2016 from being appointed as a Director in terms of section 164 (2) of the Act.
g. 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 II".
h. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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;
ii. The Company has made provision as at 31st March, 2016, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure referred to in our report of even date to the members of HIND RECTIFIERS LIMITED on the accounts for the year ended 31st March, 2016 :
i) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management during the year at reasonable intervals having regard to the size of the Company and the nature of its assets. The discrepancies noticed on such verification were, in our opinion, not material and have been properly dealt with in the books of account.
c. According to the information and explanations given to us and based on verification of records, the title deeds of immovable properties are held in the name of the Company.
ii) Physical verification of inventory has been conducted by the management at reasonable intervals during the year except in case of inventory lying with third parties where confirmations have been obtained. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.
iii) According to the information and explanations given to us, the Company has not granted any loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
iv) According to the information and explanations given to us, the Company has not granted any loans, investments, guarantees and security to which provisions of section 185 and 186 of the Act apply.
v) According to the information and explanations given to us, the Company has not accepted any deposits from the public, within the meaning of section 73 to 76 or any other relevant provisions of the Act and rules framed there under. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.
vi) We have broadly reviewed the cost records maintained by the Company in accordance with section 148(1) of the Act and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii) (a) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund (PF), Investor Education & Protection Fund, Employees'' State Insurance (ESI), Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess and other statutory dues with the Appropriate Authorities. According to the information and explanation given to us, there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2016 for a period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs. 214.39 lacs, that have not been deposited on account of disputed matters pending before Appropriate Authorities are as under:
Name of the Statute |
Nature of Dues |
Amount (Rs. in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act |
Excise Duty |
111.70 (net of advance of Rs. 8.98 lacs) |
2005-2011 |
Central Excise & Service Tax Appellate Tribunal |
Central Excise Act |
Excise Duty |
1.30 (net of advance of Rs. 0.08 lacs) |
2010-2014 |
Departmental Authorities |
Central Sales Tax and Local Sales Tax Act |
Central Sales Tax and Local Sales Tax |
101.39 (net advance of Rs. 39.97 lacs) |
2006-2012 |
Departmental Authorities |
viii) On the basis of verification of records and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not taken any loan from any financial institution or government or by way of issue of debentures.
ix) In our opinion, and according to the information and explanations given to us, the term loan has been applied for the purpose for which the same was obtained.
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 fraud by the Company or on the Company by its officers or employees having a material misstatement on the financial statements has been noticed or reported during the year.
xi) According the information and explanations given to us and based on verification of records, the Managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii) The Company is not a Nidhi company and hence reporting under clause 3 (xii) of the order does not arise.
xiii) According to the information and explanations given to us and based on verification of records and approvals of the Board of Directors, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
xvi) According to the information and explanations given to us, the Company is not a Non Banking Finance Company and therefore is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE II TO THE INDEPENDENT AUDITORS'' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF HIND RECTIFIERS LIMITED
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 Hind Rectifiers Limited ("the Company") as of March 31st, 2016 in conjunction with our audit of the 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'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls system over financial reporting and their operating effectiveness. Our audit of Internal Financial Controls over financial reporting included obtaining an understanding of Internal Financial Controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s Internal Financial Controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s Internal Financial Control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s Internal Financial Control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of Internal Financial Controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the Internal Financial Controls over financial reporting to future periods are subject to the risk that the Internal Financial Control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls system over financial reporting and such Internal Financial Controls over financial reporting were operating effectively as at 31st March, 2016 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For and on behalf of
KHANDWALA & SHAH
Chartered Accountants
Firm Reg. No.105069W
Premal Gandhi
Place : Mumbai Proprietor
Date : 27th May, 2016 Membership No. 045462
Mar 31, 2014
We have audited the accompanying financial statements of Hind
Rectifiers Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (''the
Act'') read with General Circular 15/2013 dated 13th September, 2013,
issued by the Ministry of Corporate Affairs, in respect of section 133
of the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing and other applicable authoritative
pronouncements issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, 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 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.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
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 and with the returns received from branches not visited by us;
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 notified under the Act read with the General
Circular number 15/2013 dated September 13,2013 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 on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 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 AUDITORS'' REPORT
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirement" section of our report of even date.)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
(b) As informed the fixed assets have been physically verified by the
management at reasonable intervals; and discrepancies noticed on such
verification were not material and the same have been properly dealt
with in the books of account;
(c) The disposal of fixed assets during the year cannot be regarded as
substantial and do not affect the going concern assumption;
2. (a) As explained to us, Inventories (except stock lying with third
parties, for which confirmations obtained in respect of such inventory)
have been physically verified during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory. Discrepancies noticed on physical verification were not
material, and the same have been properly dealt with in the books of
account;
3. According to information and explanations given to us, the Company
has neither granted nor taken loans, secured or unsecured, from parties
covered in the register maintained under section 301 of the Act.
Therefore, the provisions of clause 4(iii) of the Order, are not
applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods & services. We have not come across any major
weakness in internal control;
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956 have been so entered;
(b) According to the information and explanations given to us, there
are no transactions of purchase of goods and materials and sale of
goods, materials and services exceeding Rs.5,00,000/- during the year
in respect of each party made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956;
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA of the Companies Act, 1956, and the rules made thereunder
.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business;
8. We have broadly reviewed the cost records 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, however, not made detailed examination of
records with a view to determine whether they are accurate;
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund (PF),
Investor Education & Protection Fund, Employees'' State Insurance (ESI),
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess and other statutory dues with the Appropriate
Authorities. According to the information and explanation given to us,
there are no undisputed amounts payable in respect of such statutory
dues which have remained outstanding as at 31st March, 2014 for a
period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs. 119.24 lacs, that have
not been deposited on account of disputed matters pending before
Appropriate Authorities are as under:
Name of the Nature of Dues Amount Period to
Statute (in lacs) which the
amount
relates
Central Excise Excise Duty 79.83 2005-2011
Act (net of advance
Appellate
Tribunal
of Rs.5.44 lacs)
Central Excise Excise Duty 5.02 2010-2013
Act
Central Sales Central Sales Tax 28.90 2006-2007
Tax and and Local Sales (Net advance of and
Local Sales Tax Tax Rs. 6.77 lacs) 2008-2009
Act
Cental Sales Tax Cental Sales Tax 5.49 2011-2012
and Local and (Net advance of
Sales Tax Act Local Sales Tax Rs. 2.74 lacs)
Name of the Forum where dispute is pending
Statute
Central Excise Central Excise and Service Tax
Act
Central Excise Departmental Authorities
Act
Central Sales
Tax and Departmental Authorities
Local Sales Tax
Act
Cental Sales Tax Sales Tax Appellate Tribunal
and Local
Sales Tax Act
10. The Company does not have accumulated losses. The Company has
incurred cash losses during the financial year covered by our audit but
not incurred cash losses in the immediately preceding financial year;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks;
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.
Therefore the provision of clause 4(xii) of the order are not
applicable to the Company;
13. The provisions of any special statute applicable to Chit Funds,
Nidhis or Mutual Benefit Funds / Societies are not applicable to the
Company;
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provisions of Clause 4(xiv) of
the Companies (Auditor''s Report) Order, 2003 is not applicable to the
Company;
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions;
16. The Company has not taken any term loans during the year;
17. According to the Cash Flow Statement and other records examined by
us and on the basis of information and explanations given to us, on and
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for Long Term Investment;
18. The Company has not made any preferential allotment of shares
during the year;
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issue during
the year;
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year.
For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No.105069W)
(UDAY J. SHAH)
Place: Mumbai Partner
Dated: 28th May, 2014 Membership No.033038
Mar 31, 2013
1. We have audited the attached Balance Sheet of HIND RECTIFIERS
LIMITED as at 31st March, 2013, the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. The financial statements of the branches audited by
other Auditors are incorporated in the annexed Balance Sheet and the
Statement of Profit and Loss. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 and on the basis of such checks
of 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 said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books and proper financial statements adequate for the purposes
of our audit have been received from the branches not visited by us.
The Branch Auditor''s Reports have been forwarded to us and have been
appropriately dealt with;
(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 and with the audited financial statements from the Branches;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors of the company as on March 31, 2013 and taken on record by
the Board of Directors, we report that none of the Directors is
disqualified as on March 31, 2013 from being appointed as a Director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read with
the Significant Accounting Policies and Notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS'' REPORT
(Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of Hind Rectifiers Limited on the financial statements for the
year ended March 31, 2013)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
(b) As informed the fixed assets have been physically verified by the
management at reasonable intervals; and discrepancies noticed on such
verification were not material and the same have been properly dealt
with in the books of account;
(c) The disposal of fixed assets during the year cannot be regarded as
substantial and do not affect the going concern assumption;
2. (a) As explained to us, Inventories (except stock lying with third
parties, for which confirmations obtained in respect of such inventory)
have been physically verified during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory. Discrepancies noticed on physical verification were not
material, and the same have been properly dealt with in the books of
account;
3. According to information and explanations given to us, the Company
has neither granted nor taken loans, secured or unsecured, from parties
covered in the register maintained under section 301 of the Act.
Therefore, the provisions of clause 4(iii) of the Order, are not
applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods & services. We have not come across any major
weakness in internal control;
5. (a) In our opinion, and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956 have been so entered;
(b) According to the information and explanations given to us, there
are no transactions of purchase of goods and materials and sale of
goods, materials and services exceeding Rs. 5,00,000/- during the year in
respect of each party made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956;
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business;
8. According to the information and explanations given to us, the
Company is in the process of preparing the Cost Records pursuant to the
Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under section 209(1) (d) of the Companies Act, 1956.
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund (PF),
Investor Education & Protection Fund, Employees'' State Insurance (ESI),
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess and other statutory dues with the Appropriate
Authorities. According to the information and explanation given to us,
there are no undisputed amounts payable in respect of such statutory
dues which have remained outstanding as at 31st March, 2013 for a
period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs. 113.87 lacs, that have
not been deposited on account of disputed matters pending before
Appropriate Authorities are as under:
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year;
11. In our opinion, and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks;
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities;
13. The provisions of any special statute applicable to Chit Funds,
Nidhis or Mutual Benefit Funds / Societies are not applicable to the
Company;
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provisions of Clause 4(xiv) of
the Companies (Auditor''s Report) Order, 2003 is not applicable to the
Company;
15. In our opinion, and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions;
16. The Company has not taken any term loans during the year;
17. According to the Cash Flow Statement and other records examined by
us and on the basis of information and explanations given to us, on and
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for Long Term Investment;
18. The Company has not made any preferential allotment of shares
during the year;
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issue during
the year;
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year.
For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No.105069W)
(UDAY J. SHAH)
Place : Mumbai Partner
Date : 31st May, 2013 Membership No. 033038
Mar 31, 2012
1. We have audited the attached Balance Sheet of HIND RECTIFIERS
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. The financial statements of the branches audited by
other Auditors are incorporated in the annexed Balance Sheet and the
Statement of Profit and Loss. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956 and on the basis of such checks
of 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 said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books and proper financial statements adequate for the purposes
of our audit have been received from the branches not visited by us.
The Branch Auditor's Reports have been forwarded to us and have been
appropriately dealt with;
(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 and with the audited financial statements from the Branches;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors of the Company as on March 31, 2012 and taken on record by
the Board of Directors, we report that none of the Directors is
disqualified as on March 31, 2012 from being appointed as a Director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read with
the Significant Accounting Policies and Notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date;
and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Hind Rectifiers Limited on the financial statements for the
year ended March 31, 2012)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
(b) As informed the fixed assets have been physically verified by the
management at reasonable intervals; and discrepancies noticed on such
verification were not material and the same have been properly dealt
with in the books of account;
(c) The disposal of fixed assets during the year cannot be regarded as
substantial and do not affect the going concern assumption;
2. (a) As explained to us, Inventories (except stock lying with third
parties, for which confirmations obtained in respect of such inventory)
have been physically verified during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory. Discrepancies noticed on physical verification were not
material, and the same have been properly dealt with in the books of
account;
3. According to information and explanations given to us, the Company
has neither granted nor taken loans, secured or unsecured, from parties
covered in the register maintained under section 301 of the Act.
Therefore, the provisions of clause 4(iii) of the Order, are not
applicable to the Company.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods & services. We have not come across any major
weakness in internal control;
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956 have been so entered;
(b) According to the information and explanations given to us, there
are no transactions of purchase of goods and materials and sale of
goods, materials and services exceeding Rs 5,00,000/- during the year in
respect of each party made in pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956;
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from
public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business;
8. According to the information and explanations given to us, the
Company is in the process of preparing the Cost Records pursuant to the
Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under section 209(1) (d) of the Companies Act, 1956.
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund (PF),
Investor Education & Protection Fund, Employees' State Insurance (ESI),
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess and other statutory dues with the Appropriate
Authorities. According to the information and explanation given to us,
there are no undisputed amounts payable in respect of such statutory
dues which have remained outstanding as at 31st March, 2012 for a
period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs 64.90 lacs, that have not
been deposited on account of disputed matters pending before
Appropriate Authorities are as under:
Forum where dispute is pending Amount
(Rs. in lacs)
CEGAT - Central Excise & Gold (Control) 44.45
Appellate Tribunal (Net of Deposit of
Rs. 1.00 lac)
Income Tax before the C.I.T. (Appeals) -
22, Mumbai 16.74
Income Tax before the Appellate Tribunal,
Mumbai 3.71
(Net of payments and
refunds of Rs.
7.15 lacs)
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks;
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities;
13. The provisions of any special statute applicable to Chit Funds,
Nidhis or Mutual Benefit Funds / Societies are not applicable to the
Company;
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provisions of Clause 4(xiv) of
the Companies (Auditor's Report) Order, 2003 is not applicable to the
Company;
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions;
16. The Company has not taken any term loans during the year;
17. According to the Cash Flow Statement and other records examined by
us and on the basis of information and explanations given to us, on and
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for Long Term Investment;
18. The Company has not made any preferential allotment of shares
during the year;
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issue during
the year;
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year except
fraud referred to in Note no. (xiv) of other notes on financial
statements.
For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No. 105069W)
(UDAY J. SHAH)
Place : Mumbai Partner
Date : 31st May, 2012 Membership No. 033038
Mar 31, 2011
We have audited the attached Balance Sheet of HIND RECTIFIERS LIMITED
as at 31 st March, 2011, the related Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. The returns from the branch audited by other Auditor
are incorporated in the annexed Balance Sheet and the Profit and Loss
Account. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on 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.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, 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 said Order. Further to our aforesaid
comments and our comments in the Annexure referred to above, we report
that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branch not visited by us. The Branch
Auditors Reports have been forwarded to us and have been appropriately
dealt with;
(c) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the audited returns from the Branch;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors of the Company as on March 31, 2011 and taken on record by
the Board of Directors, we report that none of the Directors are
disqualified as on March 31, 2011 from being appointed as a Director in
terms of clause (g) of sub-section (1) of Section 274 of the Companies
Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and Notes to Accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date;
and (iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph 3 of the Auditors Report of even date to the
members of Hind Rectifiers Limited on the financial statements for the
year ended March 31, 2011)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
(b) As informed the fixed assets have been physically verified by the
management at reasonable intervals; and discrepancies noticed on such
verification were not material and the same have been properly dealt
with in the books of account;
(c) The disposal of fixed assets during the year cannot be regarded as
substantial and do not affect the going concern assumption;
2. (a) As explained to us, Inventories (except stock lying with third
parties, for which confirmations obtained in respect of such inventory)
have been physically verified during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory. Discrepancies noticed on physical verification were not
material, and the same have been properly dealt with in the books of
account;
3. According to the information and explanation given to us, the
Company has neither granted nor taken loans, secured or unsecured from
parties covered in the register maintained under section 301 of the
Act. Therefore the provisions of clause 4(iii) of the Order are not
applicable to the Company;
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods & services. We have not come across any major
weakness in internal control;
5. (a) To the best of our knowledge and belief, and according to the
information and explanation given to us, the particulars of contracts
or arrangements refer to in Section 301 of the Act have been entered in
the register maintained under that section;
(b) In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at reasonable prices;
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from
public;
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business;
8. As explained to us maintenance of cost records has not been
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Act;
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund (PF),
Investor Education & Protection Fund, Employees State Insurance (ESI),
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess and other statutory dues with the Appropriate
Authorities. According to the information and explanation given to us,
there are no undisputed amounts payable in respect of such statutory
dues which have remained outstanding as at 31st March, 2011 for a
period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs.32.22 lacs, that have
not been deposited on account of disputed matters pending before
Appropriate Authorities are as under:
Forum where dispute is pending Amount
Rs. in lacs
CEGAT - Central Excise & Gold (Control) 13.78
Appellate Tribunal (Net of Deposit of Rs.1.00 lac)
Joint Regional Director, E.S.I. Corporation 14.73
Income Tax before the Appellate Tribunal, Mumbai 3.71
(Net of payments and refunds of
Rs.7.15lacs)
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceeding financial year;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks;
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities;
13. The provisions of any special statute applicable to Chit Funds,
Nidhis or Mutual Benefit Funds / Societies are not applicable to the
Company;
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provisions of Clause 4(xiv) of
the Companies (Auditors Report) Order, 2003 is not applicable to the
Company;
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions;
16. The Company has not taken any term loans during the year;
17. According to the Cash Flow Statement and other records examined by
us and on the basis of information and explanations given to us, on and
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for Long Term Investment;
18. The Company has not made any preferential allotment of shares
during the year;
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issue during
the year;
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year.
For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No.105069W)
(UDAY J. SHAH)
Place : Mumbai Partner
Dated : 30th May, 2011 Membership No.033038
Mar 31, 2010
We have audited the attached Balance Sheet of HIND RECTIFIERS LIMITED
as at 31 st March, 2010, the related Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. The returns from the branch audited by other Auditor
are incorporated in the annexed Balance Sheet and the Profit and Loss
Account. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in India.
Those Standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on 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.
As required by the Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) (Amendment) Order, 2004, 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 said Order. Further to our aforesaid
comments and our comments in the Annexure referred to above, we report
that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branch not visited by us. The Branch
Auditors Reports have been forwarded to us and have been appropriately
dealt with;
(c) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the audited returns from the Branch;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of the written representations received from the
directors of the Company as on March 31, 2010 and taken on record by
the Board of Directors, we report that none of the directors are
disqualified 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 Companies
Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
Significant Accounting Policies and Notes to Accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of
Company as at 31 st March, 2010;
(ii) in the case of the Profit and Loss Account, of the Prpfit of the
Company for the year ended on that date and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT OF EVEN
DATE TO THE MEMBERS OF HIND RECTIFIERS LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
(b) As informed the fixed assets have been physically verified by the
management at reasonable intervals; and discrepancies noticed on such
verification were not material and the same have been properly dealt
with in the books of account;
(c) The disposal of fixed assets during the year cannot be regarded as
substantial and do not affect the going concern assumption;
2. (a) Physical verification of inventory has been conducted at
reasonable intervals during the year by the management;
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) In our opinion, the Company is maintaining proper records of
inventory. Discrepancies noticed on physical verification were not
material, and the same have been properly dealt with in the books of
account;
3. (a) According to information and explanations given to us, the
Company has, during the year, not granted any loan secured or unsecured
to the companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
paragraphs 4(iii)(a), (b), (c) and (d) of the Order, are not
applicable.
(b) During the year, the Company has not taken any unsecured loans from
the parties covered in the register maintained under section 301 of the
Companies Act, 1956 and the balance outstanding at the year end is
Rs.27.39 lacs.
(c) The rate of interest and other terms and conditions of loans taken
by the Company are prima facie, not prejudicial to the interest of the
Company.
(d) There are no loans repayable during the year and therefore question
of overdue amounts does not arise. In respect of interest, there are no
overdue amounts.
4.. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for sale of goods & services. We have not come across any major
weakness in internal control;
5. (a) To the best of our knowledge and belief, and according to the
information and explanation given to us, the particulars of contracts
or arrangements refer to in Section 301 of the Act have been entered in
the register maintained under that section;
(b) In our opinion and having regard to our comments in paragraph (iv)
above, and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at reasonable prices;
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section
58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from
public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business;
8. As explained to us maintenance of cost records has not been
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Act.
9. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including Provident Fund (PF),
Investor Education & Protection Fund, Employees State Insurance (ESI),
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess and other statutory dues with the Appropriate
Authorities. According to the information and explanation given to us,
there are no undisputed amounts payable in respect of such statutory
dues which have remained outstanding as at 31st March, 2010 for a
period of more than six months from the day they become payable;
(b) The disputed statutory dues aggregating Rs. 28.51 lacs, that have
not been deposited on account of disputed matters pending before
appropriate authorities are as under:
Forum where dispute is pending Amount Rs. in lacs
CEGAT - Central Excise & Gold
(Control) Appellate Tribunal 13.78
(Net of Deposit of Rs.1.00 lac)
Joint Regional Director, E.S.I.
Corporation 14.73
10. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceeding financial year;
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks;
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities;
13. The provisions of any special statute applicable to Chit Funds,
Nidhis or Mutual Benefit Funds/ Societies are not applicable to the
Company;
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provisions of Clause 4(xiv) of
the Companies (Auditors Report) Order, 2003 is not applicable to the
Company;
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions;
16. The Company has not taken any term loans during the year;
17. According to the Cash Flow Statement and other records examined by
us and on the basis of information and explanations given to us, on and
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for Long Term Investment;
18. The Company has not made any preferential allotment of shares
during the year;
19. The Company has not issued any debentures during the year;
20. The Company has not raised any money by way of public issue during
the year;
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year.
For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
Registration No. 105069W
(UDAY J. SHAH)
Partner
Membership No.033038
Place: Mumbai.
Date: 28th May, 2010