Dec 31, 2022
Report on the audit of the Standalone Financial
Statements
Opinion
1. We have audited the accompanying standalone financial statements of KSB Limited (âthe Companyâ), which comprise the Balance Sheet as at December 31, 2022, and 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 notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe 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 December 31, 2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Financial Statementsâ 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
4. 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 financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
Appropriateness of Revenue Recognition (Refer to Note 1(d), 2(ii) and 20 to the standalone financial statements) The Company recognises revenue in accordance with Ind AS 115 âRevenue from Contracts with Customersâ. This involves application of significant judgement by Management with respect to: ⢠Combining multiple contracts as a single contract. ⢠Identification of distinct performance obligations; ⢠Allocation of consideration to identified performance obligations; ⢠Determination of timing of recognition of revenue either over a period of time or at a point in time on transfer of control to customers. This includes assessment of alternative use of the products to the Company based on technical analysis as well as legal assessment of right to payment. |
Our audit procedures included the following: ⢠Understanding and evaluation of the design and testing the operating effectiveness of controls surrounding the recording of revenue in accordance with the principles of Ind AS 115. ⢠Testing of customer contracts on a sample basis to assess the terms for identification of performance obligations in accordance with Ind AS 115 and comparing those to the management assessment; ⢠Assessing appropriateness of managementâs judgements and estimates involved in accounting for a sample of customer contracts including inquiry and discussion with appropriate client personnel especially regarding the nature of products and alternative use of the products to the Company. ⢠Evaluation of the Companyâs in-house legal counselâs views regarding the Companyâs right to payment for performance to date; |
Considering the above-mentioned appropriateness of revenue recognition considered as a Key Audit Matter. |
factors, has been |
⢠Testing the appropriateness of timing of recognition of revenue (including procedures related to cut off testing) in line with the terms of the customer |
contracts; |
||
⢠Testing the key assumptions used by the management to estimate contract risks, claims, liquidated damages etc.; |
||
⢠Verifying the reports used by management for monitoring contracts and their progress; |
||
⢠Evaluating appropriateness of the disclosures made in the standalone financial statements. |
||
Based on above procedures, we did not identify any significant exceptions in the judgement applied by the management in recognition of revenue. |
5. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of management and those charged with
governance for the standalone financial statements
6. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
7. In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs responsibilities for the audit of the financialstatements
8. Our objectives are to obtain reasonable assurance about whether the 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.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of 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.
10. 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.
11. 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.
12. 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
13. As required by the Companies (Auditorâs Report)
Order, 2020 (âthe 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 B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. 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 Statement of Changes in Equity and the 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 Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on December 31, 2022, taken on record by the Board of Directors, none of the directors is disqualified as on December 31, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as
amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 18 (b) and 30 (a) to the standalone financial statements.
ii. The Company has made provision as at December 31, 2022, as required under the applicable law or accounting standards, for material foreseeable losses, 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 during the year.
iv. (a) The management has represented
that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 37 (h) to the standalone financial statements);
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been received by the Company from any
person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 37 (h) to the standalone financial statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
15. 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.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016
Amit Borkar Partner
Membership Number: 109846 UDIN: 23109846BGYFKK9885
Place: Mumbai Date: February 23, 2023
Dec 31, 2018
Report on the Standalone Indian Accounting Standards
(Ind AS) Financial Statements
1. We have audited the accompanying standalone financial statements of KSB Limited (formerly known as KSB Pumps Limi ted) (â the Companyâ), which comprise the Balance Sheet as at December 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS
Financial Statements
2. 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 to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including 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.
5. 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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 misstatements.
6. 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 auditorsâ 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.
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 Ind AS 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 Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at December 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), 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 B a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on
December 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on December 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
(i) The Company has disclosed the impact, if any, of pending litigations as at December 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 29a;
(ii) The Company has made provision as at December 31, 2018, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 34c and Note 6;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended December 31, 2018.
ANNEXURE A TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 10 (f) of the Independent Auditorsâ Report of even date to the members of KSB Limited (formerly known as KSB Pumps Limited) on the standalone financial statements for the year ended December 31, 2018.
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financial statements of KSB Limited(formerly known as KSB Pumps Limited) (âthe Companyâ) as of December 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and 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 was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system 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 internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A companyâs 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 companyâs internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
7. 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.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at December 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE B TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 9 of the Independent Auditorsâ Report of even date to the members of KSB Limited (formerly known as KSB Pumps Limited) on the standalone financial statements as of and for the year ended December 31, 2018.
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 3 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) The title deeds of immovable properties, as disclosed in Note 3 on fixed assets to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory excluding stocks with third parties managed warehouse have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, 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.
vii. (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 employeesâ state insurance, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including provident fund, sales tax, income tax, service tax, duty of customs, duty of excise, value added tax, goods and service tax with effect from July 1, 2017and 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 duty of customs, value added tax, sales tax, Goods and Service Tax which have not been deposited on account of any dispute. The particulars of dues of service tax, duty of excise, Income tax as at December 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (INR in million) |
Amount paid under protest (INR in million) |
Period to which the amount relates |
Forum where the dispute is pending |
Central Excise Act, 1944 |
Excise Duty (including interest and penalty if applicable) |
24.33 |
0.01 |
December 1998 to December 2004 |
Customs, Excise and Service Tax Appellate |
27.70 |
1.6 |
March 2002 to March 2007 |
Tribunal (CESTAT) |
||
Finance Act, 1994 |
Service Tax (including interest and penalty if |
428.97 |
9.49 |
September 2004 to March 2009 |
|
applicable) |
1.74 |
1.04 |
April 2008 to March 2013 |
||
10.15 |
- |
January 2005 to December 2009 |
|||
Income Tax |
Income Tax (including |
3.60 |
- |
AY 1989-90 |
High Court / |
Act,1961 |
interest and penalty if applicable) |
5.61 |
- |
AY 1995-96 |
Commissioner of Income-tax (Appeals) CIT(A) |
2.88 |
- |
AY 1996-97 |
|||
2.28 |
- |
AY 2004-05 |
/ Income Tax Tribunal (ITAT) |
||
3.67 |
- |
AY 2006-07 |
|||
3.95 |
- |
AY 2007-08 |
|||
3.56 |
- |
AY 2008-09 |
|||
10.59 |
- |
AY 2009-10 |
|||
5.24 |
- |
AY 2010-11 |
|||
3.21 |
- |
AY 2005-06 |
|||
17.82 |
- |
AY 2011-12 |
|||
26.69 |
5 |
AY 2012-13 |
|||
33.37 |
- |
AY 2013-14 |
|||
34.16 |
- |
AY 2014-15 |
viii. 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 loans or borrowings to any financial institution or bank or Government as at the balance sheet date. The Company had not issued any debentures as at balance sheet date.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books 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 by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. 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. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
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. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Neeraj Sharma
Partner
Membership Number 108391
Mumbai, February 27, 2019
Dec 31, 2016
To The Members Of KSB PUMPS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of KSB PUMPS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st December, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st December, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by 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 prescribed under section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on 31st December, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st December, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 26 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of the Company as of 31st December, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the 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 âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st December, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect to fixed assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c. With respect to immovable properties of land and buildings that are freehold, according to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the balance sheet date. In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the
Management at reasonable intervals and no material discrepancies were noticed on physical verification. In respect of inventories lying with third parties confirmation have been obtained for a major portion of inventories.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
(iv) The Company has not granted any loans, made investments or provided guarantees and hence reporting under clause (iv) of the CARO 2016 is not applicable.
( v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
b. There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31st December, 2016 for a period of more than six months from the date they became payable.
c. Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on 31st December, 2016 on account of disputes are given below:
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount involved (?) |
Excise Duty |
Customs Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai. |
2002-2007 |
23,885,1171 |
Excise Duty |
CESTAT, Delhi. |
2004 |
563,000* |
Excise Duty |
CESTAT, Delhi. |
2004 |
863,000* |
Excise Duty |
CESTAT, Mumbai. |
1999 |
710,000* |
Excise Duty |
CESTAT, Chennai. |
2003 |
2,840,000* |
Service Tax |
CESTAT, Mumbai. |
2005-2007 |
9,354,504* |
Service Tax |
CESTAT, Mumbai. |
2008-2009 |
45,930,191* |
Service Tax |
Commissioner Appeals LTU, Mumbai |
2008-2009 |
3,890,000* |
Service Tax |
Commissioner Appeals LTU, Mumbai |
2008-2009 |
1,380,000* |
Service Tax |
CESTAT, Mumbai. |
2004-2009 |
375,795,902* |
Income Tax |
ITAT |
2004-05 |
3,210,000 |
Income Tax |
ITAT |
2010-11 |
17,815,986 |
Income Tax |
ITAT |
2011-12 |
26,685,008 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause (ix) of the CARO 2016 Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013, are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firmâs Registration No.:117366W/W-100018)
Nilesh H Lahoti
Partner
Membership No. 130054
Mumbai, 20th February, 2017
Dec 31, 2015
To The Members Of KSB PUMPS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of KSB PUMPS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st December 2015, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st December, 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in Annexure 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st December 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st December 2015 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 26 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(ii) In respect of its inventories:
a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals. In respect of inventories lying with third parties confirmation have been obtained for a major portion of inventories.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended, prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at 31st December, 2015 for a period of more than six months from the date they became payable.
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved (Rs,) |
Excise Duty |
Customs Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai |
2002-2007 |
22,818,600* |
Excise Duty |
CESTAT, Delhi |
2004 |
538,670* |
Excise Duty |
CESTAT, Delhi |
2004 |
823,440* |
Excise Duty |
CESTAT, Mumbai |
1999 |
610,000* |
Excise Duty |
CESTAT, Chennai |
2003 |
2,699,150* |
Service Tax |
CESTAT, Mumbai |
2005-2007 |
8,863,000* |
Service Tax |
CESTAT, Mumbai |
2008-2009 |
43,793,750* |
Service Tax |
Commissioner Appeals LTU, Mumbai |
2008-2009 |
3,890,000* |
Service Tax |
Commissioner Appeals LTU, Mumbai |
2008-2009 |
1,380,000* |
Service Tax |
CESTAT, Mumbai |
2004-2009 |
350,638,018* |
Income Tax |
CIT (Appeals) |
2010-11 |
20,284,500 |
* stay granted for recovery.
c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited as on 31st December, 2015 on account of disputes are given below:
d) The Company has been regular in transferring amounts to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and Rules made there under within time.
(viii)The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions and banks. The Company has not issued any debentures.
(x) According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks and financial institutions.
(xi) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, the Company has not availed any term loans during the year.
(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firmâs Registration No.:117366W/W-100018)
Hemant M. Joshi
Partner
Membership No. 038019
Pune, 18th February, 2016
Dec 31, 2014
We have audited the accompanying financial statements of KSB PUMPS
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
December, 2014, the Statement of Proft and Loss and the Cash Flow
Statement for the year then ended, and a summary of the signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the financial
position, financial performance and cash fows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which are deemed to be applicable as per Section
133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014) and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fnancial
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 fnancial 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 the 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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2014;
(b) in the case of the Statement of Proft and Loss, of the proft of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the Order for the year ended 31st December 2014,
to the extent the same are applicable to the Company.
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 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 Proft 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 Balance Sheet, the Statement of Proft and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notifed under the Act (which are deemed to be applicable as per Section
133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014).
(e) Since the provisions of Section 274(1)(g) of the Act are not in
effect from April 1, 2014, the reporting requirement under Section
227(3) (f) of the Act is not applicable as of the Balance sheet date.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date) Having regard to the
nature of the Company''s business/activities/results during the year,
clauses (vi), (xii), (xiii), (xiv), (xviii), (xix) and (xx) of
paragraph 4 of the Order are not applicable to the Company.
i) In respect of its fxed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of 3 years which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. Pursuant to the program, certain fixed assets were
physically verified by the Management during the year. According to the
information and explanations given to us no material discrepancies were
noticed on such verification.
(c) The fxed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii) In respect of its inventories
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals. In respect of
inventories lying with third parties confirmation have been obtained for
a major portion of inventories.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii) The Company has neither granted nor taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956,
during the period the said Section was applicable.
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased/sold are of a special nature and comparable alternative
quotations/prices are not available, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, with regard to purchases of inventory and fxed assets
and the sale of goods and services. During the course of our audit, we
have not observed any major weakness in such internal control system.
v) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered for the period the said Section was
applicable.
b) Where each of such transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956, for the period the said section was
applicable, is in excess of ` 5 lakhs during such period in respect of
a party, the transactions have been made at prices which are, prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and the nature of its
business.
vii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained, for the period
the said Section was applicable. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
viii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income tax, Sales tax,
Wealth tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it with the appropriate
authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory dues in arrears as
at 31st December, 2014 for a period of more than six months from the
date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess which have not been deposited as on
31st December, 2014 on account of disputes are given below:
Nature of Amount Period to which the
Dues Involved (Rs. amount relates
Excise Duty 955,100* 1994-1998
Excise Duty 21,900,000* 2002-2007
Excise Duty 498,120* 2004
Nature of Dues Forum where dispute is pending
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Mumbai.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Mumbai.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Delhi.
Nature of Amount Period to which the
Dues Involved (Rs.) amount relates
Excise Duty 780,900* 2004
Excise Duty 975,585* 2004
Excise Duty 1,580,000* 1999
Excise Duty 2,536,000* 2003
Excise Duty 50,000 2002-2003
Service Tax 8,200,000* 2005-2007
Service Tax 40,970,000* 2008-2009
Service Tax 3,890,000* 2008-2009
Service Tax 1,380,000* 2008-2009
Nature of Dues Forum where dispute is pending
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Delhi.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Chennai.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Mumbai.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Chennai.
Excise Duty Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Chennai.
Service Tax Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Mumbai.
Service Tax Customs Excise and Service Tax Appellate
Tribunal (CESTAT), Mumbai.
Service Tax Commissioner Appeals LTU, Mumbai
Service Tax Commissioner Appeals LTU, Mumbai
* stay granted for recovery.
ix) The Company does not have accumulated losses at the end of the
fnancial year and the Company has not incurred cash losses during the
fnancial year covered by our audit and in the immediately preceding
fnancial year.
x) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
fnancial institutions and banks. The Company has not issued any
debentures.
xi) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
and fnancial institutions.
xii) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the Company
has not availed any term loans during the year.
xiii) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Registration No.: 117366W/W-100018)
Hemant M. Joshi
Partner
Membership No.: 038019
Pune, 20th February, 2015
Dec 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of KSB PUMPS
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
December, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. 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
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal 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 the 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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
(e) On the basis of the written representations received from the
directors as on 31st December, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st December,
2013, from being appointed as a director in terms of Section 274(l)(g)
of the Act.
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has physically verified most of
the fixed assets during the year, other than patterns lying with third
parties for which confirmations have been obtained from parties in most
of the cases, and no material discrepancies were noticed on such
verification. In our opinion, the frequency of physical verification
of fixed assets is reasonable having regard to the size of the Company
and the nature of the assets.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
ii) (a) Inventories have been physically verified during the period by
the management. In respect of inventories lying with third parties
confirmation have been obtained for a major portion of inventories. 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between physical
stocks and book stocks were not material having regard to the size of
operations of the Company and have been properly dealt with in the
books of accounts.
iii) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clauses (iii)(a) to (iii)(g) of paragraph 4 of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that some of the items
purchased/ sold are of a special nature and comparable alternative
quotations/ prices are not available, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, with regard to purchase of inventory and fixed assets
and for the sale of goods and services. There is no continuing failure
to correct major weaknesses, if any, in internal controls system.
v) (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, contracts or arrangements
that need to be entered into the register maintained in pursuance of
Section 301 of the Companies Act, 1956 have been so entered. (b) The
transactions made in pursuance of such contracts or arrangements have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) The Company has not accepted any deposits from the public to which
the provisions of Sections 58A, 58AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the notification of the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 and, on the basis of the information received, are of the
opinion that prima facie the prescribed accounts and records have been
maintained/ are being made up. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
ix) (a) According to the records of the Company, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Investor Education and Protection
Fund, Income Tax, Sales Tax, Service Tax, Wealth Tax, Custom Duty,
Excise Duty, cess and other statutory dues with the appropriate
authorities. Based on our audit procedures and according to the
information and explanations given to us, there are no arrears of
statutory dues which has remained outstanding as at 31st December, 2013
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and
records of the company the dues of sales tax/ income tax/ customs duty/
wealth tax/ service tax/ excise duty/ cess, which have not been
deposited on account of any dispute are as follows:
Nature of Amount (Rs.) Period to which the
Dues amount relates
Excise Duty 850,000* 1994-1998
Excise Duty 20,710,000* 2002-2007
Excise Duty 443,000* 2004
Excise Duty 691,000* 2004
Excise Duty 975,585* 2004
Service Tax 600,000* 2004-2005
Service Tax 7,710,000* 2005-2007
Service Tax 10,730,000* 2008-2009
Service Tax 1,390,000 2008-2011
Nature of Dues Forum where dispute is pending
Excise Duty Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Mumbai.
Excise Duty Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Mumbai.
Excise Duty Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Delhi.
Excise Duty Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Delhi.
Excise Duty Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Chennai.
Service Tax Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Mumbai.
Service Tax Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Mumbai.
Service Tax Customs Excise and Service Tax
Appellate Tribunal (CESTAT), Mumbai.
Service Tax Commissioner Appeals LTU, Mumbai
* stay granted for recovery.
x) The Company does not have any accumulated losses as at 31st
December, 2013. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institution/ bank/ debenture holders.
xii) 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.
xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore the requirements pertaining to such class of companies is not
applicable.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the Company
has not availed any term loans during the year.
xvii) According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have not been used during the year for long
term investments.
xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
xix) The Company has not issued any debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
xx) The Company has not made any public issue during the year and
therefore the question of disclosing the end use of money does not
arise.
xxi) Based upon the audit procedures performed and according to the
information and explanations given and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Registration No. 117366W/ W-100018)
Hemant M. Joshi
Partner
Membership No. 038019
Pune, 11th February, 2014
Dec 31, 2012
(1) We have audited the attached Balance Sheet of KSB Pumps Limited as
at 31st December, 2012, the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
(2) We conducted our audit in accordance with 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
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
(4) Further to our comments in the annexure referred to above, we
report that:
i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
iii) the balance sheet, the statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
iv) in our opinion, the balance sheet, the 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;
v) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2012;
b) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
(5) On the basis of written representations received from the
directors, as on 31st December, 2012 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st December, 2012, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,1956.
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF KSB PUMPS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st
DECEMBER, 2012.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has physically verified most of
the fixed assets during the year, other than patterns lying with third
parties for which confirmations have been obtained from parties in most
of the cases, and no material discrepancies were noticed on such
verification.
In our opinion, the frequency of physical verification of fixed assets
is reasonable having regard to the size of the Company and the nature
of the assets.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) Inventories have been physically verified during the period by
the management. In respect of inventories lying with third parties
confirmation have been obtained for a major portion of inventories. 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between physical
stocks and book stocks were not material having regard to the size of
operations of the Company and have been properly dealt with in the
books of accounts.
(iii) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (iii)(a) to (iii)(g) of paragraph 4 of the Companies
(Auditor''s Report) Order, 2003 are not applicable.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that some of the items
purchased/ sold are of a special nature and comparable alternative
quotations/ prices are not available, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, with regard to purchase of inventory and fixed assets
and for the sale of goods and services. There is no continuing failure
to correct major weaknesses, if any, in internal controls system.
(v) (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, contracts or arrangements
that need to be entered into the register maintained in pursuance of
section 301 of the Companies Act, 1956 have been so entered.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public to which
the provisions of sections 58A, 58AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii)We have broadly reviewed the books of account maintained by the
Company pursuant to the notification of the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 and, on the basis of the information received, are of the
opinion that prima facie the prescribed accounts and records have been
maintained / are being made up. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
(ix) (a) According to the records of the Company, apart from the
certain instances of delays in depositing undisputed income tax
deducted at source, Provident Fund, Employees'' State Insurance and
Sales tax, the Company has been regular in depositing undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Investor Education and Protection Fund, Income tax, Sales tax. Service
Tax, Wealth tax, Customs Duty, Excise Duty, cess and other statutory
dues with the appropriate authorities. Based on our audit procedures
and according to the information and explanations given to us, there
are no arrears of statutory dues which has remained outstanding as at
31st December, 2012 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us and
records of the company the dues of sales tax/ income tax/ customs duty/
wealth tax/ service tax/ excise duty/ cess, which have not been
deposited on account of any dispute are as follows:
Nature of Amount (Rs.) Period to
which the Forum where
dispute is
Dues amount
relates pending
Excise Duty 772,000* 1994-1998 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Mumbai.
Excise Duty 19,510,000* 2002-2007 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Mumbai.
Excise Duty 411,000* 2004 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Delhi.
Excise Duty 635,000* 2004 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Delhi.
Excise Duty 975,585* 2004 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Chennai.
Service Tax 600,000 2004-2005 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Mumbai.
Service Tax 7,270,000 2005-2007 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Mumbai.
Service Tax 10,730,000* 2008-2009 Customs Excise and Service
Tax Appellate Tribunal
(CESTAT), Mumbai.
* stay granted for recovery.
(x) The Company does not have any accumulated losses as at 31st
December, 2012. The Company has not incurred any cash losses during
the financial year covered by our audit and the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institution/ bank/ debenture holders.
(xii) 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.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore the requirements pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the Company
has not availed any term loans during the year.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis have not been used during the year for long
term investments.
(xviii)The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
(xx) The Company has not made any public issue during the year and
therefore the question of disclosing the end use of money does not
arise.
(xxi) Based upon the audit procedures performed and according to the
information and explanations given and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No.: 117366W
Flemant M. Joshi
Partner
Membership No.: 038019
Pune, 22nd February, 2013
Dec 31, 2010
(1) We have audited the attached Balance Sheet of KSB Pumps Limited as
at 31st December, 2010 and also the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
(2) We conducted our audit in accordance with 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
(4) Further to our comments in the annexure referred to above, we
report that:
i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
iii) the balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) 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 (30 of section 211 of the
Companies Act, 1956;
v) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2010;
b) in the case of the Profit and Loss Account, 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.
(5) On the basis of written representations received from the
directors, as on 31st December, 2010 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st December, 2010, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,1956.
ANNEXURE TO THE AUDITORS REPORT
STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF KSB PUMPS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st
DECEMBER, 2010.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has physically verified most of
the fixed assets during the year, other than patterns lying with third
parties for which confirmations have been obtained from parties in most
of the cases, and no material discrepancies were noticed on such
verification. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
the nature of the assets.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) Inventories have been physically verified during the period by
the management. In respect of inventories lying with third parties
confirmation have been obtained for a major portion of inventories. 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between physical
stocks and book stocks were not material having regard to the size of
operations of the Company and have been properly dealt with in the
books of accounts.
(iii) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (iii)(a) to (iii)(g) of paragraph 4 of the Companies (Auditors
Report) Order, 2003 are not applicable.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that some of the items
purchased/ sold are of a special nature and comparable alternative
quotations/ prices are not available, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, with regard to purchase of inventory and fixed assets
and for the sale of goods and services. There is no continuing failure
to correct major weaknesses, if any, in internal controls system.
(v) (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, contracts or arrangements
that need to be entered into the register maintained in pursuance of
section 301 of the Companies Act, 1956 have been so entered.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed there under, with regard to the deposits accepted
from the public. No order has been passed by the Company Law Board.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of Power Driven Pumps pursuant to
the notification of the Central Government for the maintenance of cost
records under Section 209(l)(d) of the Companies Act, 1956 and, on the
basis of the information received, are of the opinion that prima facie
the prescribed accounts and records have been maintained/ are being
made up. We have not, however, made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the information
given to us, the Central Government has not prescribed the maintenance
of cost records under Section 209(l)(d) of the Companies Act, 1956 for
any other products of the Company.
(ix) (a) According to the records of the Company, apart from the
certain instances of delays in depositing undisputed income tax
deducted at source, Employees State Insurance and Sales tax, the
Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Investor
Education and Protection Fund, Income tax, Sales tax, Service Tax,
Wealth tax, Custom Duty, Excise Duty, cess and other statutory dues
with the appropriate authorities. Based on our audit procedures and
according to the information and explanations given to us, there are no
arrears of statutory dues which has remained outstanding as at 31st
December, 2010 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and
records of the company the dues of sales tax/ income tax/ customs duty/
wealth tax/ service tax/ excise duty/ cess, which have not been
deposited on account of any dispute are as follows:
Nature of Amount Forum where
Dues (Rs.) dispute is
pending
Excise Duty 310,000 Customs Excise
and Service Tax
Appellate Tribunal
(CESTAT), Mumbai.
Excise Duty 975,585* Customs Excise
and Service Tax
Appellate Tribunal
(CESTAT), Chennai.
Excise Duty 18,750,512* Customs Excise
and Service Tax
Appellate Tribunal
(CESTAT), Mumbai.
Service Tax 6,418,950 Commissioner
(Appeals), Central
Excise, Pune.
* stay granted for recovery.
(x) The Company does not have any accumulated losses as at 31st
December, 2010. The Company has not incurred any cash losses during the
financial year covered by our audit and the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institution/ bank/ debenture holders.
(xii) 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.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore the requirements pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the Company
has not availed any term loans during the year.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have not been used during the year for long
term investments.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
(xx) The Company has not made any public issue during the year and
therefore the question of disclosing the end use of money does not
arise.
(xxi) Based upon the audit procedures performed and according to the
information and explanations given and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No.: 117366W
Hemant Joshi
Partner
Membership No.: 038019
Pune, 24th February, 2011
Dec 31, 2009
(1) We have audited the attached Balance Sheet of KSB Pumps Limited as
at 31st December, 2009 and also the Profit and Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
(2) We conducted our audit in accordance with 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 (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
(4) Further to our comments in the annexure referred to above, we
report that:
i) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) in our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books;
iii) the balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv) 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 (30 of section 211 of the
Companies Act, 1956;
v) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st December, 2009;
b) in the case of the Profit and Loss Account, 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.
(5) On the basis of written representations received from the
directors, as on 31st December, 2009 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st December, 2009, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act,1956.
ANNEXURE TO THE AUDITORS REPORT STATEMENT REFERRED TO IN PARAGRAPH 3
OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF KSB PUMPS LIMITED ON THE
ACCOUNTS FOR THE YEAR ENDED 31st DECEMBER, 2009.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the management has physically verified most of
the fixed assets during the year, other than patterns lying with third
parties for which confirmations have been obtained from parties in most
of the cases, and no material discrepancies were noticed on such
verification. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the Company and
the nature of the assets.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) (a) Inventories have been physically verified during the period by
the management. In respect of inventories lying with third parties
confirmations have been obtained for a major portion of inventories. 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between physical
stocks and book stocks were not material having regard to the size of
operations of the Company and have been properly dealt with in the
books of accounts.
(iii) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (iii)(a) to (iii)(g) of paragraph 4 of the Companies (Auditors
Report) Order, 2003 are not applicable.
(iv) In our opinion and according to the information and explanations
given to us and having regard to the explanation that some of the items
purchased/ sold are of a special nature and comparable alternative
quotations/ prices are not available, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, with regard to purchase of inventory and fixed assets
and for the sale of goods and services. There is no continuing failure
to correct major weaknesses, if any, in internal controls system.
(v) (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, contracts or arrangements
that need to be entered into the register maintained in pursuance of
section 301 of the Companies Act, 1956 have been so entered.
(b) The transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
58A, 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed thereunder, with regard to the deposits accepted
from the public. No order has been passed by the Company Law Board.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company relating to the manufacture of Power Driven Pumps pursuant to
the notification of the Central Government for the maintenance of cost
records under Section 209(l)(d) of the Companies Act, 1956 and, on the
basis of the information received, are of the opinion that prima facie
the prescribed accounts and records have been maintained/ are being
made up. We have not, however, made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the information
given to us, the Central Government has not prescribed the maintenance
of cost records under. Section 209(l)(d) of the Companies Act, 1956
for any other products of the Company.
(ix) (a) According to the records of the Company, apart from the
certain instances of delays in depositing undisputed income tax
deducted at source, income tax collected at source and Service tax, the
Company has been regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Investor
Education and Protection Fund, Income tax, Sales tax, Service Tax,
Wealth tax, Custom Duty, Excise Duty, cess and other statutory dues
with the appropriate authorities. Based on our audit procedures and
according to the information and explanations given to us, there are no
arrears of statutory dues which has remained outstanding as at 31st
December, 2009 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us and
records of the company the dues of Sales Tax/ Income Tax/ Customs Duty/
Wealth Tax/ Service Tax/ Excise Duty/ cess, which have not been
deposited on account of any dispute are as follows:
Nature of Amount Forum where
Dues (Rs.) dispute is
pending
Excise Duty 694,583* Customs Excise
and Service Tax
Appellate
Tribunal
(CESTAT), Mumbai.
Excise Duty 310,000 Customs Excise
and Service Tax
Appellate
Tribunal
(CESTAT), Mumbai.
Excise Duty 975,585* Customs Excise
and Service Tax
Appellate
Tribunal
(CESTAT), Chennai.
Excise Duty 15,958,050* Customs Excise
and Service Tax
Appellate
Tribunal
(CESTAT), Mumbai.
Service Tax 6,098,950 Commissioner
(Appeals),
Central Excise,
Pune.
Income Tax 8,876,548 Commissioner of
(A.Y. Income Tax
2004-05) (Appeals).
* stay granted for recovery.
(x) The Company does not have any
accumulated losses as at 31st December, 2009. The Company has not
incurred any cash losses during the financial year covered by our audit
and the immediately preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institution/ bank/ debenture holders.
(xii) 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.
(xiii) The Company is not a chit fund, nidhi/ mutual benefit fund and
therefore the requirements pertaining to such class of companies is not
applicable.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the Company
has not availed any term loans during the year.
(xvii) According to the information and explanations given to us, and
on an overall examination of the Balance Sheet of the Company, funds
raised on short term basis have not been used during the year for long
term investments.
(xviii) The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year and
therefore the question of creating security or charge in respect
thereof does not arise.
(xx) The Company has not made any public issue during the year and
therefore the question of disclosing the end use of money does not
arise.
(xxi) Based upon the audit procedures performed and according to the
information and explanations given and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No.: 117366W
Hemant Joshi
Partner
Membership No.: 038019
Pune, 12th March, 2010