Mar 31, 2023
Schneider Electric Infrastructure Limited
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the Ind AS financial statements of Schneider Electric Infrastructure Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2023, 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 Ind AS Financial Statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and net profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âthe ICAIâ) together with the ethical requirements that are relevant to our audit of the Ind AS 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 ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
|
1 |
Revenue Recognition Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has concluded that as principal, it typically controls the goods or services before transferring them to the customers. There is an inherent risk and presumed fraud risk around the accuracy and existence of revenues recognised. Further, revenue is an important element of how the Company measures its performance. The Company focuses on revenue as a key performance measure, which could create an incentive for revenue to be recognized before the controls have been transferred. |
In view of the significance of the matter, following audit procedures were applied in this area, amongst others to obtain sufficient and appropriate audit evidence: ⢠We assessed the appropriateness of the revenue recognition accounting policies and its compliance in terms of Ind AS 115 âRevenue from contracts with customers''. ⢠We obtained an understanding of management''s internal controls over the revenue recognition process and evaluated the design and tested the operating effectiveness of key controls. ⢠We carried out analytical procedures on revenue recognised during the year to identify unusual variances and discussed with designated management personnel. |
|
Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 âRevenue from contracts with customers'', it has been determined a key audit matter in our audit of the Ind AS financial statements. |
We performed substantive procedures by testing the underlying documents on samples selected based on a representative sampling of revenue transactions recorded during the year. |
||
In view of the above and given the Company and its stakeholders focus on revenue as a key performance indicator, we determined this to be a key audit matter. |
We performed cut-off testing on sales transactions made near the year-end on sample basis by obtaining supporting documentation including customer confirmation of receipt of goods to establish that sales and corresponding trade receivables are properly recorded in the correct period. |
||
We tested the relevant disclosures made in the Ind AS financial statements. |
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
|
2 |
Trade Receivables |
In |
view of the significance of the matter, following audit |
procedures were applied in this area, amongst others to |
|||
Trade receivables, including retention money with customers, |
obtain sufficient and appropriate audit evidence: |
||
amounted to '' 5,459.27 million at year-end, which is significant part of the total assets of the Company. Impairment loss on |
⢠|
Obtained an understanding of the processes |
|
trade receivables is recognized in accordance with accounting |
implemented to estimate impairment provision against |
||
policies as detailed in âsignificant accounting policiesâ in the |
trade receivables. |
||
financial statements. |
⢠|
Tested key controls (both design and operating |
|
The Company is required to assess the recoverability of its |
effectiveness) over estimation of impairment loss. |
||
trade receivables on a regular basis. It makes an impairment |
⢠|
In respect of significant provisions made for specific |
|
allowance for specific customers on case-to-case analysis. It |
trade receivables, we obtained and evaluated specific |
||
further makes an estimate of impairment allowance for balance |
assessment from the Company and examined related |
||
receivables on the basis of lifetime expected credit loss method |
available information such as correspondences with |
||
based on provision matrix in accordance with Ind AS 109, |
customers and publicly available information. |
||
Financial Instruments. The Company further considers impact of |
⢠|
Evaluated the âexpected credit lossâ model adopted |
|
external environment, such as possible effect from the COVID-19 |
to estimate the impairment allowance and tested the |
||
pandemic. |
related assumptions and computations. |
||
In assessing the recoverability of trade receivables, |
⢠|
Obtained and tested the base data used in the above- |
|
management also exercised significant judgements to evaluate |
mentioned model such as trade receivables ageing, |
||
the collectability from individual customers after considering their creditworthiness, whether they have financial difficulties, |
historical billing and collection data. |
||
experience of default or delinquency in payments and ageing |
⢠|
Evaluated the various assumptions and judgements |
|
analysis. The judgements applied by management have a |
applied such as discount rate, period of delays of |
||
significant impact on the level of provision required for trade |
receipts from customers, etc. |
||
receivables. |
⢠|
Circulated the balance confirmation letter to the customers and analysed the responses in balance |
|
In view of above, we determined this area to an area of audit |
confirmation letter obtained from the customers. |
||
focus, and accordingly, a key audit matter. |
We |
tested the relevant disclosures made in the Ind AS |
|
financial statements. |
|||
3 |
Tax Litigations |
In |
view of the significance of the matter, following audit |
The Company''s operations are subject to complexities arising |
procedures were applied in this area, amongst others to obtain sufficient and appropriate audit evidence: |
||
from applicability of various laws and regulations with respect to positions on matters relating to income tax, sales tax, goods |
⢠|
We obtained an understanding of the process of |
|
and services tax, service tax, excise, customs etc. (either past or |
identification of tax litigations, related contingent |
||
present). Provision for taxes is recognized or contingent liabilities |
liabilities and the key uncertain tax positions. |
||
are disclosed in accordance with accounting policies as detailed |
⢠|
Obtained the list of ongoing litigations of the Company |
|
in âsignificant accounting policiesâ in the financial statements. |
and discussed the same with the management to |
||
Due to complexity of cases, significant amount involved and |
understand the details of the underlying matters. |
||
timescales for resolution, significant judgment and estimations |
⢠|
Tested key controls (both design and operating |
|
are required in assessing the range of possible outcomes for |
effectiveness) over the estimate of provisions for various |
||
some of these matters. These judgments could change over time |
taxes. |
||
as each of the matter progresses depending on experience on |
⢠|
We analysed the Company''s judgment regarding the |
|
actual assessment proceedings by tax and other authorities and |
eventual resolution of matters with various tax authorities. |
||
other judicial precedents. |
In this regard, we understood how the Company has |
||
The Company makes an assessment to determine the outcome |
considered past experience, where available, with the |
||
of these tax positions and decides to make an accrual or |
authorities in the respective jurisdictions. |
||
consider it to be a possible contingent liability. This affects the |
⢠|
We obtained representations from relevant consultants |
|
measurement and accuracy of provision for taxes. |
and legal counsels. We also evaluated the objectivity, |
||
In view of the above-mentioned factors, we have determined this |
competence, and relevant experience of those |
||
to be a key audit matter. |
consultants / legal counsels. |
||
Involved specialists to evaluate estimates on the basis of the facts of each case, internal evaluations, legal precedence, assumptions made and external legal opinions. |
|||
We |
tested the relevant disclosures made in the Ind AS |
||
financial statements. |
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
|
4 |
Impairment assessment of property plant and equipment, |
In view of the significance of the matter, following audit |
|
capital work in progress, right-of-use assets and intangible |
procedures were applied in this area, amongst others to |
||
assets |
obtain sufficient and appropriate audit evidence: |
||
The carrying amount of property, plant and equipment, capital |
⢠|
We evaluated the method and models used to determine |
|
work in progress, right of use assets and intangible assets, |
whether the recoverable amounts were appropriate by |
||
amounted to '' 3,339.00 million at year-end, which is significant |
comparing them with the requirements of Ind AS 36 - |
||
part of the total assets of the Company. The Company has |
âImpairment of Assets''. |
||
accumulated losses aggregating to '' 2,090.36 million including the net loss in recent most previous years. As a result, there is risk that carrying value of property, plant and equipment may be higher than their recoverable amount. |
We assessed the valuation methodology and assumptions developed and applied by the valuation expert appointed by the management by assessing: |
||
- Key judgements and assumptions applied against |
|||
Management carried out an impairment assessment to determine |
industry norms and the asset type. |
||
whether the recoverable amounts of these assets are less than |
- The evaluation of the expectation of future cash |
||
the respective carrying amounts using a discounted cash flow method. |
flow projections |
||
- Agreed the base data of the valuation to underlying |
|||
The evaluation of the recoverable amount of these assets requires the significant estimates in determining the key assumptions |
support. |
||
supporting the expected future cash flows of the business, the |
- Compared the discount rate and WACC used by |
||
utilisation of the relevant assets, the forecast revenue, profit, |
the management to independent external sources, |
||
Weighted Average Cost of Capital (WACC) and discount rates. |
where possible. |
||
⢠|
We considered the revenue and margin growth rate |
||
Considering the above factors, we considered this area to be a |
used by the management by comparing the rate with |
||
key audit matter. |
the historical trend in revenue and margin within the Company and considering our own understanding about developments in the industry |
||
We compared the Company''s margin percentage to similar sized companies in the region and to historical trend in the industry |
|||
We performed a sensitivity analysis to understand the effect of changes in key variables on the outcome of the model. |
|||
We |
considered the adequacy of the disclosures of the |
||
assumptions and judgements applied to determine whether |
|||
they |
were in accordance with Ind AS 36 âImpairment of |
||
Assets''. |
Information Other than the Ind AS Financial Statements and Auditorâs Report Thereon
The Company''s 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 Ind AS financial statements and our auditor''s report thereon. The annual report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the Ind AS financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the Ind AS financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether such other information is materially inconsistent with the Ind AS financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Managementâs Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, the Management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 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 Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Ind AS 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 system with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
⢠Conclude on the appropriateness of the Management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Ind AS 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 auditor''s 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 Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s 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 âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report 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, except that the back-up of the books of account and other records and papers maintained in electronic mode has not been maintained on servers physically located in India, on a daily basis.
(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 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 March 31,2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to
the explanations given to us, the remuneration paid/ provided by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(h) With respect to the other matters to be included in the Auditor''s 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 Ind AS financial statements - refer note 33 to the Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts - refer note 16(ii)(d) to the Ind AS financial statements. The Company did not have any material foreseeable losses on derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company
iv. (a). The Management has represented that, to the
best of it''s knowledge and belief, as disclosed in the note 45(ii) to the Ind AS financial statements, 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, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) . The Management has represented, that, to the
best of it''s knowledge and belief, as disclosed in the note 45(ii) to the Ind AS financial statements, 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, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) of Rule 11(e) contain any material misstatement.
v. The Company has not declared or paid any dividend during the year.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended is applicable for the Company only w.e.f. 1 April 2023, therefore, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended, is not applicable.
For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590
UDIN No.: 23509590BGWRYR8246
Place: Gurugram
Date: May 23, 2023
Mar 31, 2022
To the Members of Schneider Electric Infrastructure Limited Basis for Opinion
Report on the Audit of the Ind ASFinancial Statements
Opinion
We have audited the Ind AS financial statements of Schneider Electric Infrastructure Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31,2022, and the Statement of Profit and Loss (including other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended, and notes to the Ind AS Financial Statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us,the aforesaid Ind AS financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2022, and net profit and total comprehensive income, changes in equityand its cash flows for the year ended on that date.
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 Auditor''s Responsibilities for the Audit of theInd AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âthe ICAIâ) together with the ethical requirements that are relevant to our audit of the Ind AS 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 ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theInd AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
1 |
Revenue Recognition |
In view of the significance of the matter, following audit procedures |
Revenue from contracts with customers is recognized |
were applied in this area, amongst others to obtain sufficient and |
|
when control of the goods or services are transferred to |
appropriate audit evidence: |
|
the customer at an amount that reflects the consideration |
⢠We assessed the appropriateness of the revenue recognition |
|
to which the Company expects to be entitled in exchange |
accounting policies and its compliance in terms of Ind AS 115 |
|
for those goods or services. |
âRevenue from contracts with customers''. |
|
The Company has concluded that as principal, it typically |
⢠We obtained an understanding of management''s internal |
|
controls the goods or services before transferring |
controls over the revenue recognition process and evaluated |
|
them to the customers. There is an inherent risk and |
the design and tested the operating effectiveness of key |
|
presumed fraud risk around the accuracy and existence |
controls. |
|
of revenues recognised. Further, revenue is an important |
⢠We carried out analytical procedures on revenue recognised |
|
element of how the Company measures its performance. |
during the year to identify unusual variances and discussed |
|
The Company focuses on revenue as a key performance measure, which could create an incentive for revenue to |
with designated management personnel. |
|
be recognized before the controls have been transferred. |
⢠We performed substantive procedures by testing the underlying documents on samples selected based on a representative |
|
Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind |
sampling of revenue transactions recorded during the year. |
|
AS 115 âRevenue from contracts with customers'', it has |
⢠We performed cut-off testing on sales transactions made |
|
been determined a key audit matter in our audit of the |
near the year-end on sample basis by obtaining supporting |
|
Ind AS financial statements. |
documentation including customer confirmation of receipt of goods to establish that sales and corresponding trade |
|
In view of the above and given the Company and its stakeholders focus on revenue as a key performance |
receivables are properly recorded in the correct period. |
|
indicator, we determined this to be a key audit matter. |
We tested the relevant disclosures made in the Ind AS financial statements. |
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
2 |
Trade Receivables |
In view of the significance of the matter, following audit procedures |
Trade receivables, including retention money with |
were applied in this area, amongst others to obtain sufficient and |
|
customers, amounted to '' 4,435.47 million at year- |
appropriate audit evidence: |
|
end, which is significant part of the total assets of the |
⢠Obtained an understanding of the processes implemented to |
|
Company. Impairment loss on trade receivables is |
estimate impairment provision against trade receivables. |
|
recognized in accordance with accounting policies |
⢠Tested key controls (both design and operating effectiveness) |
|
as detailed in âsignificant accounting policiesâ in the financial statements. |
over estimation of impairment loss. ⢠In respect of significant provisions made for specific trade |
|
The Company is required to assess the recoverability |
receivables, we obtained and evaluated specific assessment |
|
of its trade receivables on a regular basis. It makes an |
from the Company and examined related available information |
|
impairment allowance for specific customers on case-to- |
such as correspondences with customers and publicly |
|
case analysis. It further makes an estimate of impairment allowance for balance receivables on the basis of lifetime |
available information. |
|
expected credit loss method based on provision matrix |
⢠Evaluated the âexpected credit lossâ model adopted to estimate |
|
in accordance with Ind AS 109, Financial Instruments. |
the impairment allowance and tested the related assumptions |
|
The Company further considers impact of external |
and computations. |
|
environment, such as possible effect from the COVID-19 |
⢠Obtained and tested the base data used in the above- |
|
pandemic. |
mentioned model such as trade receivables ageing, historical |
|
In assessing the recoverability of trade receivables, |
billing and collection data. |
|
management also exercised significant judgements to |
⢠Evaluated the various assumptions and judgements applied |
|
evaluate the collectability from individual customers after |
such as discount rate, period of delays of receipts from |
|
considering their creditworthiness, whether they have financial difficulties, experience of default or delinquency in payments and ageing analysis. The judgements |
customers, etc. ⢠Circulated the balance confirmation letter to the customers and analysed the responses in balance confirmation letter obtained |
|
applied by management have a significant impact on the |
from the customers. |
|
level of provision required for trade receivables. In view of above, we determined this area to an area of |
We tested the relevant disclosures made in the Ind AS financial statements. |
|
audit focus, and accordingly, a key audit matter. |
||
3 |
Tax Litigations |
In view of the significance of the matter, following audit procedures |
The Company''s operations are subject to complexities |
were applied in this area, amongst others to obtain sufficient and |
|
arising from applicability of various laws and regulations |
appropriate audit evidence: |
|
with respect to positions on matters relating to income |
⢠We obtained an understanding of the process of identification |
|
tax, sales tax, goods and services tax, service tax, |
of tax litigations, related contingent liabilities and the key |
|
excise, customs etc. (either past or present). Provision |
uncertain tax positions. |
|
for taxes is recognized or contingent liabilities are |
⢠Obtained the list of ongoing litigations of the Company and |
|
disclosed in accordance with accounting policies |
discussed the same with the management to understand the |
|
as detailed in âsignificant accounting policiesâ in the financial statements. |
details of the underlying matters. ⢠Tested key controls (both design and operating effectiveness) |
|
Due to complexity of cases, significant amount involved and timescales for resolution, significant judgment |
over the estimate of provisions for various taxes. |
|
and estimations are required in assessing the range |
⢠We analysed the Company''s judgment regarding the eventual |
|
of possible outcomes for some of these matters. These |
resolution of matters with various tax authorities. In this |
|
judgments could change over time as each of the |
regard, we understood how the Company has considered |
|
matter progresses depending on experience on actual |
past experience, where available, with the authorities in the |
|
assessment proceedings by tax and other authorities |
respective jurisdictions. |
|
and other judicial precedents. |
⢠We obtained representations from relevant consultants and |
|
The Company makes an assessment to determine the |
legal counsels. We also evaluated the objectivity, competence, |
|
outcome of these tax positions and decides to make |
and relevant experience of those consultants / legal counsels. |
|
an accrual or consider it to be a possible contingent |
⢠Involved specialists to evaluate estimates on the basis of the |
|
liability. This affects the measurement and accuracy of |
facts of each case, internal evaluations, legal precedence, |
|
provision for taxes. |
assumptions made and external legal opinions. |
|
In view of the above-mentioned factors, we have |
We tested the relevant disclosures made in the Ind AS financial |
|
determined this to be a key audit matter. |
statements. |
Sl. No. |
The key audit matter |
How the matter was addressed in our audit |
4 |
Impairment assessment of property plant and |
In view of the significance of the matter, following audit procedures |
equipment, capital work in progress, right-of-use assets |
were applied in this area, amongst others to obtain sufficient and |
|
and intangible assets |
appropriate audit evidence: |
|
The carrying amount of property, plant and equipment, |
⢠We evaluated the method and models used to determine whether |
|
capital work in progress, right of use assets and |
the recoverable amounts were appropriate by comparing them |
|
intangible assets, amounted to '' 3,132.75 million at |
with the requirements of Ind AS 36 - âImpairment of Assets''. |
|
year-end, which is significant part of the total assets of |
⢠We assessed the valuation methodology and assumptions |
|
the Company. The Company has accumulated losses |
developed and applied by the management by involving our |
|
aggregating to '' 3,239.93 million including the net loss in recent most previous years. As a result, there is risk |
internal valuation expert in our assessment of: |
|
that carrying value of property, plant and equipment |
- Key judgements and assumptions applied against |
|
may be higher than their recoverable amount. |
industry norms and the asset type. |
|
Management carried out an impairment assessment to |
- The evaluation of the expectation of future cash flow |
|
determine whether the recoverable amounts of these |
projections |
|
assets are less than the respective carrying amounts |
- Agreed the base data of the valuation to underlying |
|
using a discounted cash flow method. |
support. |
|
The evaluation of the recoverable amount of these assets |
- Compared the discount rate and WACC used by the |
|
requires the significant estimates in determining the key |
management to independent external sources, where |
|
assumptions supporting the expected future cash flows of the business, the utilisation of the relevant assets, the forecast revenue, profit, Weighted Average Cost of |
possible. ⢠We considered the revenue and margin growth rate used by |
|
Capital (WACC) and discount rates. |
the management by comparing the rate with the historical trend |
|
in revenue and margin within the Company and considering our |
||
Considering the above factors, we considered this area to be a key audit matter. |
own understanding about developments in the industry. ⢠We compared the Company''s margin percentage to similar sized companies in the region and to historical trend in the industry. ⢠We performed a sensitivity analysis to understand the effect of changes in key variables on the outcome of the model. We considered the adequacy of the disclosures of the assumptions and judgements applied to determine whether they were in accordance with Ind AS 36 âImpairment of Assets''. |
Information Other than theInd AS Financial Statements and Auditorâs Report Thereon
Managementâs Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equityand cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian 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 theInd AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing theInd AS financial statements, the Management is responsible for assessing the Company''s ability to continue as a
The Company''s 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 Ind AS financial statements and our auditor''s report thereon, which we obtained prior to the date of this auditor''s report.
Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the Ind AS financial statements, or our knowledge obtained during the course of our 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.
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.
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 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 Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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 theseInd AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the I nd AS 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 system with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
⢠Conclude on the appropriateness of the Management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Ind AS 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 auditor''s 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 Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s 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 âAnnexureAâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report 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 Flowsdealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).
(e) On the basis of the written representations received from the directors as on March 31,2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 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 financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/ provided by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.
(b) . The Management has represented, that,
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (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 Ind AS financial statements - refer note 33 to the Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts- refer note 16(ii)(d) to the Ind AS financial statements.The Company did not have any material foreseeable losses on derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a). The Management has represented that, to the
best of it''s knowledge and belief, as disclosed in the note 45(ii) to the Ind AS financial statements, 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, 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.
to the best of it''s knowledge and belief, as disclosed in the note 45(ii) to the Ind AS financial statements, 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, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under subclause (a) and (b) of Rule 11(e) contain any material misstatement.
v. The Company has not declared or paid anydividend
during the year.
For S.N. Dhawan & Co LLP
Chartered Accountants
Firm Registration No.: 000050N/N500045
Pankaj Walia
Partner
Membership No.: 509590
UDIN No.: 22509590AJJYHX3641
Place: Gurugram
Date: May 21, 2022
Mar 31, 2018
Independent Auditor''s Report
To the Members of Schneider Electric Infrastructure Limited Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Schneider Electric Infrastructure Limited ("the Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ)with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act., read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the 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 accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the 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 March 31, 2018, its loss including 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
1. As required by the Companies (Auditor''s report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure 1 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 purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements -Refer Note 33 to the Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 15 to the Ind AS financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company
Annexure 1 referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Re: Schneider Electric Infrastructure Limited (âthe Companyâ)
(I) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification. Inventories lying with third parties have been confirmed by them and no material discrepancies were noticed in respect of such confirmations.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of power transformers, switchgears and other related products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, goods and service tax ,cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of sales-tax, service tax, duty of custom, duty of excise, value added tax, income tax and cess on account of any dispute, are as follows:
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
|
1 |
Central Excise Act, |
1944 |
Demand of duty for Exemption under notification 108/95 |
10.29 |
- |
2001-02 |
Tribunal Delhi |
2 |
Central Excise Act, |
1944 |
Under valuation of VIT tubes |
5.21 |
2.00 |
1994-95 |
CESTAT -Chennai |
3 |
Central Excise Act, |
1944 |
Non-inclusion of 15% Profit Margin in Transfer Pricing |
5.13 |
- |
1993-94 and 1994-95 |
Kolkata High Court |
4 |
Central Excise Act, |
1944 |
Rejection of refund claim towards CENVAT reversals as insisted during Excise audit |
4.44* |
- |
2012-13 |
CESTAT -Chennai |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
5 |
Central Excise Act, 1944 |
Wrongly a ailment and distribution of ISD Credit |
15.07 |
- |
2011-13 |
CESTAT -Ahmedabad |
6 |
Central Excise Act, 1944 |
Refund of excise duty denied for |
||||
cases where proof of Export |
3.07 |
- |
2012-13 |
Tribunal Gujarat |
||
submitted after payment of Excise |
||||||
Duty after 180 days of export |
||||||
7 |
Central Excise Act, 1944 |
Actively consumed goods cleared by availing exemption under notification 6/2006 |
0.11* |
- |
2008-09 & 2010-11 |
CESTAT -Chennai |
8 |
Central Excise Act, 1944 |
Disallowance of CENVAT Credit, duty on captive consumption and clearance of goods under Notification 6 of 2006. |
0.60* |
2009-10 |
CESTAT -Chennai |
|
9 |
Central Excise Act, 1944 |
Short payment of Duty |
1.35 |
- |
2007-08 |
Commissioner (Appeals) LTU |
10 |
Central Excise Act, 1944 |
Demand of duty for Exemption u/n 108/95 |
0.47* |
- |
2003-04 |
Commissioner (Adj.) New Delhi |
11 |
Central Excise Act, 1944 |
CENVAT Credit availed on SAP maintenance charges |
0.21* |
- |
2008-09 |
High Court -Chennai |
12 |
Central Excise Act, 1944 |
Levy of penalty |
0.02 |
- |
2011-12 |
CESTAT - Chennai |
13 |
Central Excise Act, 1944 |
Seizure of spares while being transported to Railway Station alleging transportation without Invoice. |
0.01 |
1996-97 |
Commissioner (Appeals) Allahabad |
|
14 |
Finance Act, 1994 |
Service Tax on testing and technical Analysis Service |
0.45 |
- |
Dec-11 to Sep-12 |
Commissioner Appeals |
15 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
139.84* |
26.28 |
2010-11 & 2011-12 |
Joint Commissioner (Corporate Circle) |
16 |
Central Sales Tax Act, 1956 |
Non submission of declaration Forms , Input tax claim disallowed |
168.38 |
- |
2007-08 |
Revision Board at Beliaghata |
17 |
Central Sales Tax Act, 1956 |
Non submission of Form C/I/E-1 and export documents |
56.64* |
44.30 |
2009-10 |
Joint Commissioner (Allahabad) |
18 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
22.52* |
37.97 |
2007-08 |
Joint Commissioner, Allahabad |
19 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms & CST treated as local VAT Sale |
27.99* |
14.59 |
2010-11 |
Additional Commissioner Appeals |
20 |
Central Sales Tax Act, 1956 |
Non submission of form C/I/E-1 and export documents |
50.28* |
48.56 |
2008-09 |
Joint Commissioner (Allahabad) |
21 |
Central Sales Tax Act, 1956 |
Non Submission of C Forms |
44.87* |
9.47 |
2009-10 |
Tribunal Ahemdabad |
22 |
Central Sales Tax Act, 1956 |
Non submission of declaration forms |
14.96* |
20.65 |
2010-11 & 2011-12 |
Tribunal |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
23 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
28.05* |
21.19 |
2006-07 |
Deputy Commissioner, Allahabad |
24 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.57* |
0.76 |
1993-94, 1997-1998, 2003-04, 2004-05 & 2005-06 |
Assessing Officer, Charge Office, West Bengal |
25 |
Central Sales Tax Act, 1956 |
Non submission of declaration forms |
11.9* |
14.87 |
2008-09 & 2009-10 |
Deputy Commissioner, Allahabad |
26 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.21* |
- |
2005-06, 2006-07 & 2007-08 |
Deputy Commissioner, U.P Sales Tax |
27 |
Central Sales Tax Act, 1956 |
Input tax claim disallowed, non-submission of declaration forms |
9.30* |
2009-10 |
West Bengal Commercial Taxes Appellate & Revisional Board |
|
28 |
Gujarat Value Added Tax, 2003 |
Non collection of declaration form |
16.56* |
3.35 |
2007-08 & 2008-09 |
Joint Commissioner (Corporate) |
29 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.36* |
- |
2002-03 |
Calcutta High Court |
30 |
Uttar Pradesh Trade Tax Act, 1948 |
Ex Parte Assessment Order Passed. Records not submitted at the Time of Assessment. |
5.50* |
4.61 |
2005-06 |
Deputy Commissioner, U.P Sales Tax |
31 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
3.91* |
- |
2001-02, 2002-03 & 2011-12 |
Deputy Commissioner |
32 |
Central Sales Tax Act, 1956 |
Disallowance of stock transfers made within the state, Denial of input tax credit, Difference in interpretation of rates and Non submission of documents to substantiate the purchases |
3.58* |
3.58 |
2008-09 |
Joint Commissioner (Allahabad) |
33 |
West Bengal Sales Tax Act, 1994 |
Non collection of declaration forms |
3.20 |
- |
1997-98 |
West Bengal Tribunal |
34 |
Delhi Value Added Tax Act, 2004 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
1.83 |
- |
2007-08 |
Commercial Tax Officer |
35 |
Central Sales Tax Act, 1956 |
Non submission of declaration forms, Input tax claim disallowed |
1* |
0.40 |
2006-07 |
Assessing Officer, Charge Office, West Bengal |
36 |
Central Sales Tax Act, 1956 |
Non collection of declaration form CST ,Documents like PO, Endorsed ARE 1,E1 Forms |
0.54* |
- |
2009-10 |
Deputy Commissioner, Comm Tax |
37 |
Uttar Pradesh Trade Tax Act, 1948 |
Levy of purchase Tax due to Unregistered purchases made |
0.33* |
- |
2006-07 |
Deputy Commissioner Sales Tax Noida |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
38 |
Tamil Nadu General Sales Tax Act, 1959 |
Levy of penalty for wrong disclosure of turnover and Non furnishing of required documents for export & other claims |
0.29* |
- |
1991-92 |
Sales Tax Appellate Tribunal, Chennai |
39 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.26* |
- |
2008-09 |
Deputy Commissioner, Jaipur |
40 |
Madhya Pradesh Value Added Tax Act, 2002 |
Non collection of declaration form CST treated as local VAT Sale |
0.18* |
0.06 |
2010-11 |
Deputy Commissioner Appeal |
41 |
Rajasthan Value Added Tax Act, 2003 |
Input tax claim disallowed |
0.08* |
- |
2008-09 |
Deputy Commissioner, Jaipur |
42 |
Madhya Pradesh Value Added Tax Act, 2002 |
Entry Tax On High Sea Sales Imported Material |
0.07* |
0.02 |
2010-11 |
Deputy Commissioner Appeals |
43 |
Central Sales Tax Act, 1956 |
Provisional Assessment |
4.54 |
0.91 |
2014-15 |
Additional Commissioner Appeals |
44 |
Gujarat Value Added Tax, 2003 |
Input tax claim disallowed, non-submission of declaration forms |
146.50* |
28.27 |
2011-12 |
Joint Commissioner Appeals |
45 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.35 |
8.41 |
2011-12, 2013-14 |
Deputy/Additional Commissioner Appeal |
46 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.94 |
8.79 |
2013-14 |
Deputy Commissioner |
47 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
16.87 |
2.53 |
2012-13 |
Joint Commissioner Appeals |
48 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
7.67* |
3.56 |
2008-09, 2011-12 |
Deputy Commissioner Appeals |
49 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
11.09* |
- |
2009-10 |
Deputy Commissioner Appeal |
50 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
12.10* |
2.42 |
2011-12 |
Joint Commissioner Appeals |
51 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.77* |
- |
2009-10 |
Deputy Commissioner Appeals |
52 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.42* |
0.14 |
2010-11 |
Deputy Commissioner Appeals |
53 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.82* |
1.82 |
2010-11 |
Deputy Commissioner Appeals |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
|
54 |
Central Sales Tax Act, |
1956 |
Non collection of declaration forms |
2.80 |
- |
1997-98 |
Tribunal |
55 |
Central Sales Tax Act, |
1956 |
Non collection of declaration forms |
16.79 |
- |
1993-94 |
Revision Board at Beliaghata |
56 |
Finance Act, 1994 |
Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services. |
10.12* |
2010-11 |
CESTAT -Chennai |
||
57 |
Finance Act, 1994 |
Irregular a ailment of CENVAT Credit of Service Tax |
4.98* |
- |
2012-13 |
CESTAT -Chennai |
|
58 |
Finance Act, 1994 |
Disallowance of CENVAT credit availed on certain input services |
0.79* |
- |
2012-13 |
CESTAT -Chennai |
|
59 |
Finance Act, 1994 |
Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services |
0.65* |
2011-12 |
CESTAT -Chennai |
||
60 |
Finance Act, 1994 |
Non-payment of Service Tax on Manpower supply services |
0.62* |
- |
2012-13 |
CESTAT -Chennai |
|
61 |
Finance Act, 1994 |
Rejection of refund claim of interest paid for CENVAT credit wrongly availed but not utilised |
0.13* |
- |
2012-13 |
CESTAT -Chennai |
|
62 |
Finance Act, 1994 |
Short payment of service tax on GTA |
0.08* |
- |
2009-10 |
High Court-Chennai |
|
63 |
The Custom Act, 1962 |
Refund of drawback for non-realisation of export proceeds |
5.59 |
- |
2012-13 |
Commissioner of Customs (Appeals) |
|
64 |
Central Sales Tax Act, |
1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
4.40 |
2012-13 |
Deputy Commissioner, Noida-I, Uttar Pradesh |
|
65 |
Central Sales Tax Act, |
1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
47.36 |
5.72 |
2012-2013 |
Joint commissioner of Commercial Tax (Appeals), Vadodara |
66 |
Central Sales Tax Act, |
1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
28.57 |
5.71 |
2011-12 |
Deputy Commissioner, Vadodara |
67 |
Central Sales Tax Act, |
1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
20.52 |
2.07 |
2013-14 |
Deputy Commissioner Appeal |
68 |
Central Sales Tax Act, |
1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
3.70 |
9.75 |
2014-15 |
Appellate Deputy Commissioner Of Commercial Taxes, Chennai (South) |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
69 |
Central Sales Tax Act, 1956 |
Non-submission of waybill Form 402 |
6.41 |
2.10 |
2016-2017 |
Deputy Commissioner, Commercial Taxes, Gujarat |
70 |
Central Sales Tax Act, 1956 |
ITC disallowance |
4.72 |
2012-2013 |
Joint commissioner of Commercial Tax (Appeals), Vadodara |
|
71 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
3.77 |
2013-14 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
72 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
0.75 |
1.81 |
2012-13 |
Appellate Deputy Commissioner Of Commercial Taxes, Chennai (South] |
73 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C |
0.36 |
2014-15 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
74 |
Central Sales Tax Act, 1956 |
Regular VAT assessment |
0.24 |
2013-14 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
75 |
Central Excise Act, 1944 |
Irregular a ailment of Cenvat Credit on certain Ineligible service alleged |
0.46* |
- |
2010-2011 |
CESTAT -CHENNAI |
76 |
Central Excise Act, 1944 |
Excise duty on Exports |
2.51 |
0.19 |
2012-2013 |
Commissioner Appeal |
77 |
Central Excise Act, 1944 |
Duty on removal of Inputs ''''as such" |
2.37 |
2011-2016 |
Additional Commissioner, Sec-62, Noida |
|
78 |
Central Excise Act, 1944 |
Excise duty on Freight charges recovered from customer to be included in Assessable value |
11.65 |
0.87 |
2011-2016 |
Additional Commissioner, Vadodara-II |
79 |
Income Tax Act,1961 |
Disallowance on account of bad debts written off and various other disallowances |
90.00 |
27.20 |
AY 2012-13 |
Commissioner of Income Tax (Appeals) |
80 |
Income Tax Act,1961 |
Disallowance on account of bad debts written off and various other disallowances |
104.31 |
33.75 |
AY 2013-14 |
Commissioner of Income Tax (Appeals) |
81 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
32.89 |
3.29 |
2013-2014 |
Additional Commissioner (Appeals), Noida |
82 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
200.86 |
7.65 |
2014-2015 |
Joint Commissioner, Sales Tax, West Bengal |
83 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
65.23 |
7.29 |
2013-2014 |
Deputy Commissioner, Commercial Taxes, Gujarat |
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
84 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
20.90 |
- |
2014-2015 |
Joint Commissioner, Sales Tax, Noida |
85 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
8.50 |
- |
2014-2015 |
Joint Commissioner, Sales Tax, Delhi |
86 |
Central Excise Act, 1944 |
Denial of excise exemption on account of mismatch of signature on exemption certificate |
0.90 |
0.07 |
2013-2014 |
CGST & CEAC, WB |
87 |
Finance Act, 1994 |
Non-Payment of Service Tax on Research & Development and Rule 2(I) Of CCR 2004 |
3.86 |
0.29 |
2012-2013 |
Commissioner (Appeals) Lucknow |
88 |
Central Excise Act, 1944 |
Service tax on royalty made at the time of 0.31 payment and not at the time of provisioning |
- |
2011-2012 |
Joint Commissioner, West Bengal |
* Represents Company''s share of Rs.673.83 Million of dues pending in forums Jointly with ALSTOM T&D India Limited
(Refer Note 33 of the accompanying Ind AS financial statements)
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to any bank. Further, the company did not have any outstanding debentures and did not have any outstanding loans or borrowings dues in respect of a financial institution or to Government.
(ix) According to the information and explanations given by the management, the Company has not raised any money way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Schneider Electric Infrastructure Limited ("the Companyâ) as of March 31, 2018, in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting with reference to these Ind AS 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 "Guidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these Ind AS financial statements 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 with reference to these Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these Ind AS 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 auditor''s judgement, 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 qualified audit opinion on the internal financial controls over financial reporting with reference to these Ind AS financial statements.
Meaning of Internal Financial Controls Over Financial Reporting with reference to these Ind AS Financial Statements
A company''s internal financial control over financial reporting with reference to these Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting with reference to these Ind AS 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 company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting with reference to these Ind AS Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting with reference to these Ind AS 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 over financial reporting with reference to these Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the Company''s internal financial controls over financial reporting with reference to these Ind AS financial statements as at March 31, 2018:
The Company''s internal control system for procurement to payment function was not operating effectively, since there were material weaknesses in approval of purchase orders. This could potentially result in material misstatement in Trade Payables.
A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company''s annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, the Company has, in all material respects, maintained adequate internal financial controls over financial reporting with reference to these Ind AS financial statements as of March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, and except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria, the Company''s internal financial controls over financial reporting with reference to these Ind AS financial statements were operating effectively as of March 31, 2018.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the Ind AS financial statements of Schneider Electric Infrastructure Limited, which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. This material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2018 Ind AS financial statements of Schneider Electric Infrastructure Limited and this report does not affect our report dated May 19, 2018, which expressed an unqualified opinion on those Ind AS financial statements.
For S.R. Batliboi & CO. LLP
Chartered Accountants ICA
Firm Registration Number: 301003E/E300005
Per Vishal Sharma
Place: Gurugram Partner
Date: May 19, 2018 Membership Number: 096766
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying financial statements of SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED(âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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, 2014and the Companies (Accounting Standards) Amendment Rules, 2016. 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 the design, implementation and maintenance of adequate internal financial control 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 financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2017, its loss, 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 2016(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 1 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 purpose of our audit;
(b) In our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014and the Companies (Accounting Standards) Amendment Rules, 2016;
(e) On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure 2 to this report;
(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 31 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any on long-term contracts including derivative contracts - Refer Note 6 to the financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;
iv. As per books of accounts of the Company and as represented by the management of the Company the Company did not have cash balance as on November 8, 2016 and December 30, 2016 and has no cash dealings during this period.
Annexure 1 referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Re: SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED (âthe Companyâ)
(I) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in fixed assets are held in the name of the Company
(ii) The inventory has been physically verified by the management during the year In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of power transformers, switchgears and other related products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of sales-tax, service tax, duty of custom, duty of excise, value added tax, income tax and cess on account of any dispute, are as follows:
S. No. |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
1 |
Central Excise Act, 1944 |
Wrong availment of CENVAT on Inter Unit transfer |
361.59 |
- |
2007-08 |
CESTAT -Chennai |
2 |
Central Excise Act, 1944 |
Demand of duty for Exemption under notification 108/95 |
10.29 |
- |
2001-02 |
Tribunal Delhi |
3 |
Central Excise Act, 1944 |
Under valuation of VIT tubes CAS 4 not considered by department for earlier period |
5.21 |
2.00 |
1994-95 |
CESTAT - Chennai |
4 |
Central Excise Act, 1944 |
Non-inclusion of 15% Profit Margin in Transfer Pricing |
5.13 |
- |
1993-94 and 1994-95 |
Kolkata High Court |
5 |
Central Excise Act, 1944 |
Rejection of refund claim towards CENVAT reversals as insisted during Excise audit |
4.44* |
2012-13 |
CESTAT - Chennai |
|
6 |
Central Excise Act, 1944 |
Wrongly availment and distribution of ISD Credit |
15.07 |
- |
2011-13 |
CESTAT -Ahmedabad |
7 |
Central Excise Act, 1944 |
Refund of excise duty denied for cases where proof of Export submitted after payment of Excise Duty after 180 days of export |
3.07 |
- |
2012-13 |
Tribunal Gujarat |
8 |
Central Excise Act, 1944 |
Captively consumed goods cleared by availing exemption under notification 6/2006 |
2.26* |
- |
2008-09 & 2010-11 |
CESTAT -Chennai |
9 |
Central Excise Act, 1944 |
Disallowance of CENVAT Credit, duty on captive consumption and clearance of goods under Notification 6 of 2006. |
1.11* |
2009-10 |
CESTAT -Chennai |
|
10 |
Central Excise Act, 1944 |
Short payment of Duty |
1.35 |
- |
2007-08 |
Commissioner (Appeals) LTU |
11 |
Central Excise Act, 1944 |
Demand of duty for Exemption u/n 108/95 |
0.47* |
- |
2003-04 |
Commissioner (Adj.) New Delhi |
12 |
Central Excise Act, 1944 |
CENVAT Credit availed on SAP maintenance charges |
0.21* |
- |
2008-09 |
High Court -Chennai |
13 |
Central Excise Act, 1944 |
Levy of penalty |
0.02 |
- |
2011-12 |
CESTAT - Chennai |
14 |
Central Excise Act, 1944 |
Seizure of spares while being transported to Railway Station alleging transportation without Invoice. |
0.01 |
1996-97 |
Commissioner (Appeals) Allahabad |
|
15 |
Finance Act, 1994 |
Service Tax on testing and technical Analysis Service |
0.45 |
- |
Dec-11 to Sep-12 |
Commissioner Appeals |
16 |
Finance Act, 1994 |
Wrongly availment and utilized Cenvat Credit. Address on Invoices |
0.54 |
0.08 |
2013-14 |
Commissioner Appeals |
17 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
151.40* |
26.28 |
2010-11 & 2011-12 |
Joint Commissioner (Corporate Circle) |
18 |
Central Sales Tax Act, 1956 |
Non submission of declaration Forms , Input tax claim disallowed |
168.38 |
- |
2007-08 |
Revision Board at Beliaghata |
19 |
Central Sales Tax Act, 1956 |
Non submission of Form C/I/E-1 and export documents |
59.26* |
44.30 |
2009-10 |
Joint Commissioner (Allahabad) |
20 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
22.52* |
37.97 |
2007-08 |
Joint Commissioner Allahabad |
21 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms & CST treated as local VAT Sale |
72.96* |
14.59 |
2010-11 |
Additional Commissioner Appeals |
22 |
Central Sales Tax Act, 1956 |
Non submission of form C/I/E-1 and export documents |
56.23* |
48.56 |
2008-09 |
Joint Commissioner (Allahabad) |
23 |
Central Sales Tax Act, 1956 |
Non Submission of C Forms |
44.87* |
9.47 |
2009-10 |
Tribunal Ahemdabad |
24 |
Central Sales Tax Act, 1956 |
Non submission of Declaration forms |
20.65* |
20.65 |
2010-11 & 2011-12 |
Tribunal |
25 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
28.05* |
21.19 |
2006-07 |
Deputy Commissioner Allahabad |
26 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.57* |
0.76 |
1993-94, 1997-1998, 2003-04, 2004-05 & 2005-06 |
Assessing Officer Charge Office, West Bengal |
27 |
Central Sales Tax Act, 1956 |
Non submission of Declaration forms |
14.87* |
14.87 |
2008-09 & 2009-10 |
Revision Board |
28 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.21* |
- |
2005-06, 2006-07 & 2007-08 |
Deputy Commissioner U.P Sales Tax |
29 |
Central Sales Tax Act, 1956 |
Input tax claim disallowed, non-submission of declaration forms |
9.30* |
2009-10 |
West Bengal Commercial Taxes Appellate & Revisional Board |
|
30 |
Gujarat Value Added Tax, 2003 |
Non collection of declaration form |
16.56* |
3.35 |
2007-08 & 2008-09 |
Deputy Commissioner Appeal |
31 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.36* |
- |
2002-03 |
Calcutta High Court |
32 |
Uttar Pradesh Trade Tax Act, 1948 |
Ex Parte Assessment Order Passed. Records not submitted at the Time of Assessment. |
5.50* |
4.61 |
2005-06 |
Deputy Commissioner U.P Sales Tax |
33 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
3.91* |
2001-02, 2002-03 & 2011-12 |
Deputy Commissioner |
|
34 |
Central Sales Tax Act, 1956 |
Disallowance of stock transfers made within the state, Denial of input tax credit, Difference in interpretation of rates and Non submission of documents to substantiate the purchases |
3.58* |
3.58 |
2008-09 |
Joint Commissioner (Allahabad) |
35 |
West Bengal Sales Tax Act, 1994 |
Non collection of declaration forms |
3.20 |
- |
1997-98 |
West Bengal Tribunal |
36 |
Delhi Value Added Tax Act, 2004 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
1.83 |
- |
2007-08 |
Commercial Tax Officer |
37 |
Central Sales Tax Act, 1956 |
Non submission of declaration forms, Input tax claim disallowed |
1* |
0.40 |
2006-07 |
Assessing Officer Charge Office, West Bengal |
38 |
Central Sales Tax Act, 1956 |
Non collection of declaration form CST ,Documents like PO, Endorsed ARE 1,E1 Forms |
0.54* |
- |
2009-10 |
Deputy Commissioner Comm Tax |
39 |
Uttar Pradesh Trade Tax Act, 1948 |
Levy of purchase Tax due to Unregistered purchases made |
0.33* |
- |
2006-07 |
Deputy Commissioner Sales Tax Noida |
40 |
Tamil Nadu General Sales Tax Act, 1959 |
Levy of penalty for wrong disclosure of turnover and Non furnishing of required documents for export & other claims |
0.29* |
1991-92 |
Sales Tax Appellate Tribunal, Chennai |
|
41 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.26* |
2008-09 |
Deputy Commissioner, Jaipur |
|
42 |
Madhya Pradesh Value Added Tax Act, 2002 |
Non collection of declaration form CST treated as local VAT Sale |
0.18* |
0.06 |
2010-11 |
Deputy Commissioner Appeal |
43 |
Rajasthan Value Added Tax Act, 2003 |
Input tax claim disallowed |
0.08* |
- |
2008-09 |
Deputy Commissioner Jaipur |
44 |
Madhya Pradesh Value Added Tax Act, 2002 |
Entry Tax On High Sea Sales Imported Material |
0.07* |
0.02 |
2010-11 |
Deputy Commissioner Appeals |
45 |
Central Sales Tax Act, 1956 |
Provisional Assessment |
4.54 |
0.91 |
2014-15 |
Additional Commissioner Appeals |
46 |
Gujarat Value Added Tax, 2003 |
Input tax claim disallowed, non-submission of declaration forms |
146.50* |
28.27 |
2011-12 |
Joint Commissioner Appeals |
47 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
39.39 |
8.41 |
2011-12, 2013-14 |
Additional Commissioner Appeal |
48 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.04 |
8.79 |
2013-14 |
Deputy Commissioner |
49 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
16.87 |
2.53 |
2012-13 |
Joint Commissioner Appeals |
50 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
7.67* |
3.56 |
2008-09, 2011-12 |
Deputy Commissioner Appeals |
51 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
11.09* |
- |
2009-10 |
Deputy Commissioner Appeal |
52 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
12.10* |
2.42 |
2011-12 |
Joint Commissioner Appeals |
53 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.77* |
- |
2009-10 |
Deputy Commissioner Appeals |
54 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.42* |
0.14 |
2010-11 |
Deputy Commissioner Appeals |
55 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.82* |
1.82 |
2010-11 |
Deputy Commissioner Appeals |
|
56 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
2.80 |
- |
1997-98 |
Tribunal |
|
57 |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
16.79 |
- |
1993-94 |
Revision Board at Beliaghata |
|
58 |
Finance Act, 1994 |
Non-payment of Service Tax on amount paid for the use of Trade Mark |
35.84* |
35.84 |
2010-11 & 2011-12 |
CESTAT -Chennai |
|
59 |
Finance Act, 1994 |
Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services. |
10.12* |
2010-11 |
CESTAT -Chennai |
||
60 |
Finance Act, 1994 |
Irregular availment of CENVAT Credit of Service Tax |
4.98* |
- |
2012-13 |
CESTAT -Chennai |
|
61 |
Finance Act, 1994 |
Disallowance of CENVAT credit availed on certain input services |
0.79* |
- |
2012-13 |
CESTAT -Chennai |
|
62 |
Finance Act, 1994 |
Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services |
0.65* |
2011-12 |
CESTAT -Chennai |
||
63 |
Finance Act, 1994 |
Non-payment of Service Tax on Manpower supply services |
0.62* |
- |
2012-13 |
CESTAT -Chennai |
|
64 |
Finance Act, 1994 |
Rejection of refund claim of interest paid for CENVAT credit wrongly availed but not utilised |
0.13* |
- |
2012-13 |
CESTAT - Chennai |
|
65 |
Finance Act, 1994 |
Short payment of service tax on GTA |
0.08* |
- |
2009-10 |
High Court-Chennai |
|
66 |
The Custom Act, 1962 |
Refund of drawback for non-realisation of export proceeds |
5.59 |
- |
2012-13 |
Commissioner of Customs (Appeals) |
|
67 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
63.72 |
2012-13 |
Deputy Commissioner Noida-I, Uttar Pradesh |
||
68 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
47.36 |
2012-2013 |
Joint commissioner of Commercial Tax (Appeals), Vadodara |
||
69 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
28.57 |
5.71 |
2011-12 |
Deputy Commissioner Vadodara |
|
70 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
20.75 |
2.07 |
2013-14 |
Deputy Commissioner Appeal |
|
71 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
19.37 |
9.75 |
2014-15 |
Appellate Deputy Commissioner Of Commercial Taxes, Chennai (South] |
72 |
Central Sales Tax Act, 1956 |
Non-submission of waybill Form 402 |
6.41 |
2.10 |
2016-2017 |
Deputy Commissioner Commercial Taxes, Gujarat |
73 |
Central Sales Tax Act, 1956 |
ITC disallowance |
4.72 |
2012-2013 |
Joint commissioner of Commercial Tax (Appeals), Vadodara |
|
74 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
3.77 |
2013-14 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
75 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
3.62 |
1.81 |
2012-13 |
Appellate Deputy Commissioner Of Commercial Taxes, Chennai (South] |
76 |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C |
0.36 |
2014-15 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
77 |
Central Sales Tax Act, 1956 |
Regular VAT assessment |
0.24 |
2013-14 |
Assistant Commissioner of Commercial Tax, Rajasthan |
|
78 |
Central Excise Act, 1944 |
Irregular availment of Cenvat Credit on certain Ineligible service alleged |
0.46* |
- |
2010-2011 |
CESTAT -CHENNAI |
79 |
Central Excise Act, 1944 |
Excise duty on Exports |
2.51 |
- |
2012-2013 |
Commissioner Appeal |
80 |
Central Excise Act, 1944 |
Duty on removal of Inputs ''''as such" |
2.37 |
2011-2016 |
Additional Commissioner Sec-62, Noida |
|
81 |
Central Excise Act, 1944 |
Excise duty on Freight charges recovered from customer to be included in Assessable value |
11.65 |
0.19 |
2011-2016 |
Additional Commissioner Vadodara-II |
82 |
Income Tax Act,1961 |
Disallowance on account of bad debts written off and various other disallowances |
90.00 |
- |
AY 2012-13 |
Commissioner of Income Tax (Appeals) |
83 |
Income Tax Act,1961 |
Disallowance on account of bad debts written off and various other disallowances |
104.31 |
- |
AY 2013-14 |
Commissioner of Income Tax (Appeals) |
Total |
1,874.97 |
367.06 |
* Represents Companyâs share of Rs.786.08 Million of dues pending in forums Jointly with ALSTOM T&D India Limited (Refer Note 31 of the accompanying financial statements)
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to any bank. Further the company did not have any outstanding debentures and did not have any outstanding loans or borrowings dues in respect of a financial institution or to Government.
(ix) According to the information and explanations given by the management, the Company has not raised any money way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company
For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Manoj Kumar Gupta
Place: Amsterdam Partner
Date: May 30, 2017 Membership Number: 83906
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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 the design, implementation and maintenance of adequate internal financial control 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 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, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2016, its loss, 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, 2016 (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 1 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 purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(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 31 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 6 to the financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company
Annexure referred to in paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Re: Schneider Electric Infrastructure Limited (âthe Companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in fixed assets are held in the name of the Company
(ii) The inventory has been physically verified by the management during the year In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of power transformers, switchgears and other related products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii)(a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax , service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of sales-tax, service tax, duty of custom, duty of excise , value added tax and cess on account of any dispute, are as follows:
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Wrong a ailment of CENVAT on Inter Unit transfer |
361.59 |
- |
2007-08 |
CESTAT - CHENNAI |
Central Excise Act, 1944 |
Demand of duty for Exemption under notification 108/95 |
10.29 |
- |
2001-02 |
Tribunal Delhi |
Central Excise Act, 1944 |
Under valuation of VIT tubes CAS 4 not considered by department for earlier period |
5.21 |
2.00 |
1994-95 |
CESTAT - CHENNAI |
Central Excise Act, 1944 |
Non inclusion of 15% Profit Margin in Transfer Pricing |
5.13 |
- |
1993-94 & 1994-95 |
Kolkata High Court |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Rejection of refund claim towards CENVAT reversals as insisted during Excise audit |
4.44* |
- |
2012-13 |
CESTAT - CHENNAI |
Central Excise Act, 1944 |
Wrongly a ailment and distribution of ISD Credit |
15.07 |
- |
2011-13 |
CESTAT -AHMEDABAD |
Central Excise Act, 1944 |
Refund of excise duty denied for cases where proof of Export submitted after payment of Excise Duty after 180 days of export |
3.07 |
2012-13 |
Tribunal Gujarat |
|
Central Excise Act, 1944 |
Captivity consumed goods cleared by availing exemption under notification 6/2006 |
2.26* |
2008-09 & 2010-11 |
CESTAT - CHENNAI |
|
Central Excise Act, 1944 |
Disallowance of CENVAT Credit, duty on captive consumption and clearance of goods under Notification 6 of 2006 |
1.11* |
2009-10 |
CESTAT - CHENNAI |
|
Central Excise Act, 1944 |
Short payment of Duty |
1.35 |
- |
2007-08 |
Commissioner (Appeals) LTU |
Central Excise Act, 1944 |
Demand of duty for Exemption u/n 108/95 |
0.47* |
- |
2003-04 |
Commissioner (Adj.) New Delhi |
Central Excise Act, 1944 |
CENVAT Credit availed on SAP maintenance charges |
0.21* |
- |
2008-09 |
HIGH COURT -CHENNAI |
Central Excise Act, 1944 |
Levy of penalty |
0.02 |
- |
2011-12 |
CESTAT - CHENNAI |
Central Excise Act, 1944 |
Seizure of spares while being transported to Railway Station alleging transportation without Invoice. |
0.01 |
1996-97 |
Commissioner (Appeals) Allahabad |
|
Central Excise Act, 1944 |
Service Tax on testing and technical Analysis Service |
0.45 |
- |
- |
Commissioner Appeal |
Central Excise Act, 1944 |
Wrongly a ailment and utilized Convert Credit. Address on Invoices |
0.54 |
0.08 |
2013-14 |
Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non submission of Statutory Form such as C/H/F/E-1 and export documents |
151.40* |
24.93 |
2010-11 & 2011-12 |
Deputy Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non submission of declaration forms, Input tax claim disallowed |
168.38 |
2007-08 |
Senior Joint Commissioner (Appeals) |
|
Central Sales Tax Act, 1956 |
Non submission of Form C/I/E-1 and export documents |
59.26* |
44.30 |
2009-10 |
Joint Commissioner - Corporate Circle |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
22.52* |
37.97 |
2007-08 |
Joint Commissioner, Allahabad |
Central Sales Tax Act, 1956 |
Non collection of declaration forms & CST treated as local VAT Sale |
72.96* |
14.59 |
2010-11 |
Joint Commissioner (Corporate Circle) |
Central Sales Tax Act, 1956 |
Non submission of form C/I/E-1 and export documents |
56.23* |
48.56 |
2008-09 |
Joint commissioner (Allahabad) |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Central Sales Tax Act, 1956 |
Non Submission of C Forms |
44.87* |
9.47 |
2009-10 |
Deputy Commissioner of Commercial Tax, Vadodara |
Central Sales Tax Act, 1956 |
Non submission of Declaration forms |
20.65* |
20.65 |
2010-11 & 2011-12 |
High Court (Madras) |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
28.05* |
21.19 |
2006-07 |
Deputy Commissioner, Allahabad |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.57* |
0.76 |
1993-94, 1997-1998, 2003-04, 2004-05 & 2005-06 |
West Bengal Sales Tax Revision Board |
Central Sales Tax Act, 1956 |
Non submission of Declaration forms |
14.87* |
14.87 |
2008-09 & 2009-10 |
Joint Commissioner (Appeals) |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.21* |
2005-06, 2006-07 & 2007-08 |
Deputy Commissioner, U.P Sales Tax |
|
Central Sales Tax Act, 1956 |
Input tax claim disallowed, non-submission of declaration forms |
9.30* |
2009-10 |
Joint Commissioner (Appeals) |
|
Gujarat Value Added Tax, 2003 |
Non collection of declaration form |
16.56* |
3.35 |
2007-08 & 2008-09 |
Deputy Commissioner |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.36* |
- |
2002-03 |
High Court of Kolkata |
Uttar Pradesh Trade Tax Act, 1948 |
Project sales tax assessment |
5.50* |
4.61 |
2005-06 |
Deputy Commissioner U.P Sales Tax |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
3.91* |
2001-02, 2002-03 & 2011-12 |
Deputy Commissioner |
|
Central Sales Tax Act, 1956 |
Disallowance of stock transfers made within the state, Denial of input tax credit, Difference in interpretation of rates and Non submission of documents to substantiate the purchases |
3.58* |
3.58 |
2008-09 |
Joint commissioner (Allahabad) |
West Bengal Sales Tax Act, 1994 |
Non collection of declaration forms |
3.20 |
- |
1997-98 |
West Bengal Tribunal |
Delhi Value Added Tax Act, 2004 |
VAT Audit objections and exporter assessment done |
1.83 |
- |
2007-08 |
VAT Audit Officer Delhi |
Central Sales Tax Act, 1956 |
Non submission of declaration forms, Input tax claim disallowed |
1* |
0.40 |
2006-07 |
West Bengal Sales Tax Revision Board |
Central Sales Tax Act, 1956 |
Non collection of declaration form CST, Documents like PO, Endorsed ARE 1 (Vanijy Bhavan), E1 Forms |
0.54* |
2009-10 |
Deputy Commissioner Comm Tax |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Uttar Pradesh Trade Tax Act, 1948 |
Levy of purchase Tax due to Unregistered purchases made |
0.33* |
- |
2006-07 |
Deputy Commissioner, U.P Sales Tax |
Tamil Nadu General Sales Tax Act, 1959 |
Levy of penalty for wrong disclosure of turnover and Non furnishing of required documents for export & other claims |
0.29* |
1991-92 |
Sales Tax Appellate Tribunal, Chennai |
|
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.26* |
1.24 |
2008-09 |
Deputy Commissioner Jaipur |
Madhya Pradesh Value Added Tax Act, 2002 |
Non collection of declaration form CST treated as local VAT Sale |
0.18* |
0.06 |
2010-11 |
Deputy Commissioner Appeal |
Rajasthan Value Added Tax Act, 2003 |
Input tax claim disallowed |
0.08* |
2008-09 |
Deputy Commissioner Jaipur |
|
Madhya Pradesh Value Added Tax Act, 2002 |
Entry Tax On High Sea Sales Imported Material |
0.07* |
0.02 |
2010-11 |
Deputy Commissioner Appeal |
Central Sales Tax Act, 1956 |
Provisional Assessment |
4.54 |
0.91 |
2014-15 |
Additional Commissioner Appeal |
Gujarat Value Added Tax, 2003 |
Input tax claim disallowed, non-submission of declaration forms |
146.50* |
28.27 |
2011-12 |
Joint Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
39.39 |
5.11 |
2011-12, 2013-14 |
Additional Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
17.04 |
- |
2013-14 |
Deputy Commissioner |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
16.87 |
2.53 |
2012-13 |
Joint Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
7.25 |
- |
2012-13 |
High Court |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
7.67* |
3.56 |
2008-09, 2011-12 |
Deputy Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
11.09* |
2009-10 |
Joint Commissioner (Allahabad) |
|
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
12.10* |
2.42 |
2011-12 |
Joint Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
1.77* |
2009-10 |
Deputy Commissioner Appeal |
Name of Statute |
Nature of Dues |
Amount (Rupees Millions) |
Amount Deposited (Rupees Millions) |
Period to which the amount relates |
Forum where dispute is pending |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
0.421 |
0.14 |
2010-11 |
Deputy Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
6.82* |
1.43 |
2010-11 |
Deputy Commissioner Appeal |
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
2.80 |
1997-98 |
Deputy Commissioner Comm Tax-Jharkhand |
|
Central Sales Tax Act, 1956 |
Non collection of declaration forms |
16.79 |
1993-94 |
Deputy Commissioner Comm Tax-Gujarat |
|
Finance Act, 1994 |
Non-payment of Service Tax on amount paid for the use of Trade Mark |
35.84* |
17.92 |
2010-11 & CESTAT - CHENNAI 2011-12 |
|
Finance Act, 1994 |
Non-payment of service tax on provision created in books/ short payment of service tax on royalty and technical knowhow payments made under intellectual property right services. |
10.12* |
2010-11 |
CESTAT - CHENNAI |
|
Finance Act, 1994 |
Irregular a ailment of CENVAT Credit of Service Tax |
4.98* |
- |
2012-13 |
CESTAT - CHENNAI |
Finance Act, 1994 |
Disallowance of CENVAT credit availed on certain input services |
0.79* |
2012-13 |
CESTAT - CHENNAI |
|
Finance Act, 1994 |
Non-payment of service tax on provision created in books /short payment of service tax on royalty and technical knowhow payments made under intellectual property right services. |
0.65* |
2011-12 |
CESTAT - CHENNAI |
|
Finance Act, 1994 |
Non-payment of Service Tax on Manpower supply services |
0.62* |
- |
2012-13 |
CESTAT - CHENNAI |
Finance Act, 1994 |
Rejection of refund claim of interest paid for CENVAT credit wrongly availed but not utilized |
0.13* |
2012-13 |
CESTAT - CHENNAI |
|
Finance Act, 1994 |
Short payment of service tax on GTA |
0.08* |
- |
2009-10 |
HIGH COURT-CHENNAI |
The Custom Act, 1962 |
Refund of drawback for non-realization of export proceeds |
5.59 |
2012-13 |
Commissioner of Customs (Appeals) |
According to the information and explanations given to us, there are no dues of income tax, and cess which have not been deposited on account of dispute.
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders or government.
(ix) According to the information and explanations given by the management, the Company has not raised any money way of initial public offer / further public offer / debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no fraud on the Company by the officers and employees of the Company has been noticed or reported during the year
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act , 2013.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on 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 the 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) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S.R. Batliboi & CO. LLP
Chartered Accountants ICAI
Firm Registration Number: 301003E/E300005
per Manoj Kumar Gupta
Place: Noida Partner
Date: 25th May, 2016 Membership Number: 83906
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Schneider
Electric Infrastructure Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2013, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting principles generally accepted in India, including the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Attention is invited to note 40 of the accompanying financial
statements regarding the sale and purchase of goods and services from a
Company covered under section 297 of the Companies Act, 1956, which
require prior approval of Central Government, more fully described in
the note. The Company is in process of obtaining Central Government
approval. Pending final outcome, no adjustments are made in financial
statements. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
Re: Schneider Electric Infrastructure Limited (''the Company'')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable. Inventories lying with outside parties have been confirmed
by them as at year end.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
Discrepancies noted on physical verification of inventories were not
material, and have been properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4(iii) (a) to (d) of the Order are not applicable
to the Company and hence not commented upon.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
4(iii) (e) to (g) of the Order are not applicable to the Company and
hence not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees five lakhs have been
entered into during the financial year 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.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, related to the manufacture of power transformers,
switchgears and other related products, 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
same.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund. employees'' state insurance, income-tax,
wealth-tax, customs duty, cess and other material statutory dues have
generally been regularly deposited with the appropriate authorities
though there has been a slight delay in a tew cases.
Undisputed statutory dues including sales-tax, excise duty and related
cess thereto have not generally been regularly deposited with the
appropriate authorities though the delays in deposit have not been
serious.
Undisputed statutory dues of service tax and related cess thereto have
not been regularly deposited with the appropriate authorities and there
have been serious delays. [Refer Ox) (b) below]
(x) The Company has been registered for a period of less than five
years and hence we are not required to comment on whether or not the
accumulated losses at the end of the financial year is fifty per cent
or more of its net worth and whether it has incurred cash losses in the
current financial year and in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a banks. The Company
did not have any outstanding dues in respect of a financial institution
or debenture holders during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended) are
not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xvi) The Company did not have any term loans outstanding during the
year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii)The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) During the period covered by our audit report, the Company has not
raised any money by way of public issue.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E
per Manoj Gupta
Place: Partner
Date: May 22, 2013 Membership No.: 83906
Mar 31, 2012
- We have audited the attached Balance Sheet of Schneider Electric
Infrastructure Limited (formerly Smartgrid Automation Distribution and
Switchgear Limited) ('the Company') as at March 31, 2012 and also the
Statement of Profit and Loss and the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
- We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
- As required by the Companies (Auditor's Report) Order, 2003 (as
amended) (the order) issued by the Central Government of India in terms
of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
- Further to our comments in the Annexure referred to above, we report
that:
- 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
- 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
- The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
accounts
- In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956
- On the basis of the written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
- 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 March 31, 2012
b. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date Re:
Schneider Electric Infrastructure Limited ('the Company')
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification, which in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during
the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to books of account were not material and have been properly dealt with
in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, the
provisions of clause 4 (iii) (a) to (d) of the Order are not applicable
to the Company and hence not commented upon. (e) According to
information and explanations given to us, the Company has not taken any
loans, secured or unsecured, from companies, firms or other parties
covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly, the provisions of clause 4 (iii) (e) to (g) of
the Order are not applicable to the Company and hence not commented
upon.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the company in respect of these areas.
(v) (a) In our opinion, there are no contracts or arrangements that
need to be entered in the register maintained under Section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4 (v) (b) of
the Order is not applicable to the Company and hence not commented
upon.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956, related to the manufacture of power transformers,
switchgears and other related products, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and
other material statutory dues have generally been regularly deposited
with the appropriate authorities though there has been a slight delay
in some cases.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty and cess on account of any dispute, are as follows:
Name of statue Nature of dues Amount
(Rs. million.)
Central Sales Tax Act, Non collection of 7.60
1956 declaration forms
Uttar Pradesh Trade Tax Levy of purchase Tax 0.33
Act, 1948 due to Unregistered
purchases made
Central Sales Tax Act, Non collection of 19.59
1956 declaration forms
West Bengal Sales Tax Non collection of 3.2
Act, 1994 declaration forms
Central Sales Tax Act, Non collection of 10.86
1956 declaration forms
Central Sales Tax Act, Non collection of 65.58
1956 declaration forms, input
tax claim disallowed
Central Sales Tax Act, Non collection of 168.38
1956 declaration forms, input
tax claim disallowed
Uttar Pradesh Trade Tax Interest demand on Non 1.94
Act, 1948 collection of declaration
forms
Central Sales Tax Act, Interest demand on Non 1.34
1956 collection of declaration
forms
Central Sales Tax Act, Non collection of 110.15
1956 declaration forms
Central Sales Tax Act, Non collection of 83.11
1956 declaration forms, Entry
tax, stock transfer &
purchase tax issue.
Uttar Pradesh Trade Tax Seizure of transformer 8.70
Act, 1948 on charges
of incomplete
documentation.
Tamil Nadu General Stock transfer alleged 1.58
Sales Tax Act, 1959 to be pre-determined
interstate sales.
Tamil Nadu General Stock transfer dispute 4.44
Sales Tax Act, 1959 & declaration forms
pending.
Tamil Nadu General Levy of penalty for 0.29
Sales Tax Act, 1959 wrong disclosure of
turnover. Non furnishing
of required documents
for Export & other
claims.
Punjab Value Added Tax Material held for non 0.09
Act, 2005 endorsement of LR
Uttar Pradesh Trade Tax Demand for Sales Tax 1.61
Act, 1948 due to Non Collection of
Forms
Name of the Statue Period to which the Forum where dispute
amount relates is pending
Central Sales Tax Act,
1956 2005-06 & 2006-07 Deputy Commissioner,
UP. Sales Tax, Noida
Uttar Pradesh Trade Tax
Act, 1948 2006-07 Deputy Commissioner,
U.P. Sales Tax, Noida
Central Sales Tax Act,
1956 1993-94, 1997-98 West Bengal Sales Tax
Revision Board
West Bengal Sales Tax
Act, 1994 1997-98 West Bengal Sales Tax
Revision Board
Central Sales Tax Act,
1956 2002-03 High Court of Kolkata
Central Sales Tax Act,
1956 2003-04 to 2006-07 West Bengal Sales Tax
Revision Board
Central Sales Tax Act,
1956 2007-08 Sr. Joint Commissioner
(Appeals)
Uttar Pradesh Trade Tax
Act, 1948 2001-02 Tribunal, Uttar Pradesh
Central Sales Tax Act,
1956 2002-03 Deputy Commissioner
Central Sales Tax Act,
1956 2006-07 & 2007-08 Joint Commissioner,
Allahabad
Central Sales Tax Act,
1956 2008-09 Additional
Commissioner
(Appeals) UP
Uttar Pradesh Trade Tax
Act, 1948 2010-11 Joint Commissioner
(Corporate)
Tamil Nadu General
Sales Tax Act, 1959 1983-84 & 1986-87 Sales Tax Appellate
Tribunal, Chennai
Tamil Nadu General
Sales Tax Act, 1959 1988-89 Sales Tax Appellate
Tribunal, Chennai
Tamil Nadu General
Sales Tax Act, 1959 1991-92 Sales Tax Appellate
Tribunal, Chennai
Punjab Value Added Tax
Act, 2005 2009-10 Jt. Director
(Invest) cum
Depty Commissioner
Uttar Pradesh Trade Tax
Act, 1948 2007-08 Deputy Commissioner,
U.P. Sales Tax
Name of statue Nature of dues Amount
(Rs. million.)
Delhi Value Added Tax VAT Audit objections 1.83
Act, 2004 & exparte assessment
done
Rajasthan Value Added Difference in 0.08
Tax Act, 2003 interpretation
Central Sales Tax Act, Non collection of 0.26
1956 declaration forms
Assam Value Added Tax Benefit of admitted 18.34
Act, 2003 tax, input tax & TDS
certificates not given.
Central Excise Act, 1944 Seizure of spares while 0.01
being transported to
Railway Station alleging
transportation without
Invoice.
Central Excise Act, 1944 Demand of duty for 7,59
Exemption u/n 108/95
Central Excise Act, 1944 Demand of duty for 0.47
Exemption u/n 108/95
Finance Act, 1994 Payment of Service Tax 0.51
on GTA through CENVAT
Central Excise Act, 1944 Non payment of 1.57
Interest on duty paid for
supplementary invoices
belatedly
Finance Act, 1994 Short payment of 0.08
service tax on GTA
Central Excise Act, 1944 Non inclusion of 15% 5.13
Profit Margin in Transfer
Pricing
Central Excise Act, 1944 Wrong availment of 361.59
Cenvat on inter unit
transfer
Central Excise Act, 1944 Short payment of duty 1.35
Central Excise Act, 1944 Captively consumed 2.15
goods for manufacture
of control panels without
payment of duty under
notification 67/95
subsequently cleared
by availing exemption
under notification
6/2006
Central Excise Act, 1944 Demand of amount 0.4
equal to credit availed
on mandatory spares
cleared as such under
notification 6 of 2006
Central Excise Act, 1944 Ineligible Cenvat 0.68
credit availed on repair
services
Central Excise Act, 1944 Disallowance of Cenvat 1.76
Credit, duty on captive
consumption and
clearance of goods
under Notification 6 of
2006
Central Excise Act, 1944 Disallowance of Cenvat 0.18
Credit and non-payment
of amount equal to
Cenvat availed on
inputs cleared as such
for exports
Name of the Statue Period to which the Forum where dispute
amount relates is pending
Delhi Value Added Tax
Act, 2004 2007-08 Vat Audit Officer, Delhi
Rajasthan Value Added
Tax Act, 2003 Deputy Commissioner,
Jaipur
Central Sales Tax Act,
1956 2008-09 Deputy Commissioner,
Jaipur
Assam Value Added Tax
Act, 2003 2005-06 Deputy Commissioner,
Appeal
Central Excise Act,
1944 1996-97 Commissioner (Appeals)
Allahabad
Central Excise Act,
1944 2001-02 Tribunal Delhi
Central Excise Act,
1944 2003-04 Commissioner (Adj.)
New Delhi
Finance Act, 1994 2005-06 Tribunal Delhi
Central Excise Act,
1944 2009-10 Madras High Court
Finance Act, 1994 2009-10 Madras High Court
Central Excise Act,
1944 1993-94 & 1994-95 Kolkata High Court
Central Excise Act,
1944 2007-08 CESTAT, Chennai
Central Excise Act,
1944 2007-08 Commissioner (Appeals)
LTU
Central Excise Act,
1944 2008-09 CESTAT, Chennai
Central Excise Act,
1944 2008-09 CESTAT, Chennai
Central Excise Act,
1944 2008-09 CESTAT, Chennai
Central Excise Act,
1944 2009-10 CESTAT, Chennai
Central Excise Act,
1944 2010-11 Commissioner (Appeals)
LTU
Name of statue Nature of dues Amount
(Rs. million.)
Central Excise Act, 1944 Under valuation of 5.21
VIT tubes CAS 4
not considered by
department for earlier
period
Central Excise Act, 1944 Non payment of 0.39
Interest on duty paid
for supplementary
invoices belatedly and
Demand of amount
equal to credit availed
on mandatory spares
cleared as such under
notification 6 of 2006
Central Excise Act, 1944 Demand of amount 0.25
equal to credit availed
on mandatory spares
cleared as such
under notification 6 of
2006 and 108/95 and
Captively consumed
goods for manufacture
of control panels without
payment of duty under
notification 67/95
subsequently cleared
by availing exemption
under notification
6/2006 and Service Tax
credit availed on Invalid
documents
Finance Act, 1994 Nonpayment of service 10.12
tax on Provision created
in Books /short payment
of service tax on royalty
and technical knowhow
payments made under
intellectual property
right services.
Central Excise Act, 1944 Availment of credit 0.02
in respect of inputs
exported as such
Central Excise Act, 1944 Non-payment of 0.93
Interest on duty paid for
supplementary invoices
belatedly
Central Excise Act, 1944 Levy of penalty 0.02
Central Excise Act, 1944 Rejection of refund 0.43
claim made towards
Cenvat reversal done
under protest in respect
of service tax credit
availed on Marine
Insurance policies
Finance Act, 1994 Non-payment of service 0.65
tax on provision created
in books /short payment
of service tax on royalty
and technical knowhow
payments made under
intellectual property
right services.
Name of the Statue Period to which the Forum where dispute
amount relates is pending
Central Excise Act, 1944 1994-95 CESTAT, Chennai
Central Excise Act, 1944 2010-11 CESTAT, Chennai
Central Excise Act, 1944 2010-11 Commissioner (Appeals)
LTU
Finance Act, 1994 2010-11 CESTAT, Chennai
Central Excise Act, 1944 2011-12 Commissioner (Appeals)
LTU
Central Excise Act, 1944 2011-12 CESTAT, Chennai
Central Excise Act, 1944 2011-12 CESTAT, Chennai
Central Excise Act, 1944 2011-12 Commissioner (Appeals)
LTU
Finance Act, 1994 2011-12 CESTAT, Chennai
(x) The Company has been registered for a period of less than five
years and hence we are not required to comment on whether or not the
accumulated losses at the end of the financial year is fifty per cent
or more of its net worth and whether it has incurred cash losses in the
current financial year and in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks. The Company
did not have any outstanding dues in respect of a financial institution
or debenture holders during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced before us, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause 4
(xiii) of the Order are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Order are not applicable to the
Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. (xvi) The Company did not have any term
loans outstanding during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) During the period covered by our audit report, the Company has not
raised any money by way of public issue.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For S.R. Batliboi & Co.
Firm Registration No.: 301003E
Chartered Accountants
Manoj Gupta
Place: Gurgaon Partner
Date: May 29, 2012 Membership No.: 83906