Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying Standalone Financial Statements of Subros 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 Flows for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âthe Actâ) 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, 2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs responsibilities for the audit of the Standalone Financial Statementsâ section
of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw your attention to Note 38 to the Standalone Financial Statements, which describes the managementâs assessment of the impact of outbreak of Coronavirus (Covid-19) on the business operations of the Company. The management believes that no adjustments, other than those already considered, are required in the Standalone Financial Statements, however, in view of the highly uncertain economic environment, a definitive assessment of the impact on subsequent periods is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the key audit matter |
Appropriateness of capitalisation of internal development costs in relation to intangible assets under development [Refer note 2(c) (significant accounting policies) and note 4 (intangible assets under development) to the Standalone Financial Statements] During the year ended March 31, 2022, the Company has capitalized significant costs incurred on internal development of Intangible Assets amounting to Rs. 3,664.48 lakhs under the head ''Intangible assets under developmentâ. These intangible assets are predominantly in relation to the projects awarded by original equipment manufacturers. The costs mainly comprise technical knowhow, employeesâ payroll and other costs. The capitalization of internal development costs was a key audit matter due to the amount of the internal development costs capitalized and judgement involved in assessing whether the criteria for capitalisation set out in the Indian Accounting Standard (Ind AS) 38 âIntangible Assetsâ had been met. Significant judgement was made by the management in the determination of - i) whether the costs incurred is towards development of product or in the nature of research, ii) the costs, including payroll costs, were directly attributable to relevant projects, and iii) key assumptions such as future revenue, margins and the discount rate used to assess the future cash flows from the expected use of such assets once developed and capitalised. |
Our audit procedures included the following: - Understood and evaluated the design and tested the operating effectiveness of the Companyâs internal financial controls relating to the capitalisation of internal development costs in relation to intangible assets under development. - Assessed the appropriateness of capitalization of product development costs with the criteria to capitalize product development costs and held inquiries with the management to understand their assessment to support the productâs commercial viability. - Tested the accuracy and allocation of capitalized payroll and other costs and assessed whether these are directly attributable to the development as against research. - Assessed appropriateness of the assumptions underlying cash flow forecasts including the future revenue, expected margins to be achieved with reference to historical data and management approved margins in the AOP (Annual Operating Plan), inputs used by the Management to calculate the discount rate applied by comparing this to the cost of capital for the Company. We also involved specialists to evaluate the reasonability of cost of capital of the Company used to discount the future cash flows expected from the asset once developed and capitalised. - Performed a sensitivity analysis over the key assumptions which included assessing the impact of change in those assumptions that would be required for future economic benefits falling short of the carrying value of capitalized internal development costs. As a result of the above procedures, the capitalisation of internal development costs by the Company was considered to be appropriate. |
Other Information
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
11. 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.
6. The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Standalone Financial Statements and our auditorâs report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged With
Governance for the Standalone Financial Statements
7. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the Standalone Financial Statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone
Financial Statements
9. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes
law or accounting standards, as it does not have any material foreseeable losses on long-term contracts. The Company did not have any long-term derivative contracts as at March 31, 2022.
12 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.
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
14. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
15. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 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 Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ.
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 26 to the Standalone Financial Statements;
ii. The Company was not required to recognise a provision as at March 31,2022 under the applicable
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.
iv. (a) The management has represented that, to the best
of its knowledge and belief, as disclosed in the notes to the Standalone 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, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 32 to the Standalone Financial Statements);
(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the Standalone 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, whether, directly or indirectly, lend or invest in other person(s) or entity(ies) identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 32 to the Standalone Financial Statements); and
(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.
16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Rajib Chatterjee
Partner
Membership Number 057134
UDIN: 22057134AJMAOH4099
Place of the Signature: Gurugram
Date: May 24, 2022
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Subros Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
5. We conducted our audit of thestandalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of thestandalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
9. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2017andMarch31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditorwho expressed an unmodified opinion vide reports dated May 23, 2017 and May 26, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditorâs Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (âthe Orderâ), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018 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 with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.
(g) With respect to the other matters to be included in the Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and accordingto the information and explanations given to us:
i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements Refer Note 26;
ii. The Company has long-term contracts including derivative contracts as at March 31, 2018 for which there were no material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls with reference to financial statements of Subros Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required underthe Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
6. A companyâs internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 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.
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 3 on Property, plant and equipment to the financial statements, are held in the name of the Company.
ii. The physical verification of inventory excluding stocks with third parties have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186. Therefore, the provisions of Clause 3(iv)of the said Order are not applicable to the Company.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, except for dues in respect of works contract tax, the Company is regular in depositing undisputed statutory dues, including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs , duty of excise, value added tax, cess, goods and service tax with effect from July 1, 2017 and other material statutory dues, as applicable, with the appropriate authorities. The extent of the arrears of statutory dues outstanding as at March 31, 2018, for a period of more than six months from the date they became payable are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Due date |
Date of Payment |
Haryana Value Added Tax Act, 2003 |
Works Contract Tax |
70.70 |
June 2017 |
July 15, 2017 |
Rs 34.15 Lakhs paid on April 05, 2018 and Rs 36.55 Lakhs paid on May 03, 2018 |
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of duty of excise, goods and service tax which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, service tax, duty of customs, value added tax as at March 31, 2018 which have not been deposited on account of a dispute, are as follows:
Name of the statute |
Nature of dues |
Amount (Rs. In Lakhs) |
Amount paid under protest (Rs. In Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
135.23 |
- |
Assessment year 2003-04 |
Honâble High Court of Delhi |
Income Tax Act, 1961 |
Income Tax |
80.90 |
70.99 |
Assessment year 2014-15 |
Commissioner of Income Tax (Appeals) |
Income Tax Act, 1961 |
Income Tax |
19.41 |
- |
Assessment year 2015-16 |
Commissioner of Income Tax (Appeals) |
The Customs Act, 1962 |
Custom Duty |
566.91 |
- |
June 2012 to July 2017 |
Commissioner of Customs, Noida |
Andhra Pradesh General Sales Tax Act, 1957 |
Sales Tax |
79.74 |
59.80 |
2002-03 to 2004-05 |
Honâble High Court of Andhra Pradesh |
Central Sales Tax Act, 1956 |
Sales Tax |
1.33 |
- |
1995-96 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
4.50 |
- |
1997-98 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
8.51 |
- |
1998-99 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
12.30 |
- |
1999-00 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
19.73 |
- |
2000-01 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
26.50 |
- |
2001-02 |
Honâble High Court of Mumbai |
Bombay Sales Tax Act, 1959 |
Sales Tax |
6.90 |
- |
2002-03 |
Honâble High Court of Mumbai |
Finance Act, 1994 |
Service Tax |
31.71 |
- |
July 2009 to March 2014 |
Customs, Excise & Service Tax Appellate Tribunal |
Finance Act, 1994 |
Service Tax |
70.40 |
- |
2006-07 |
Commissioner, Customs & Excise, Noida |
Finance Act, 1994 |
Service Tax |
3.39 |
- |
April 2010 to December 2010 |
Assistant Commissioner, Customs & Excise, Noida |
Finance Act, 1994 |
Service Tax |
2.33 |
- |
September 2009 to March 2010 |
Assistant Commissioner, Customs & Excise, Noida |
Finance Act, 1994 |
Service Tax |
15.67 |
- |
2016-17 |
Deputy Commissioner, Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.23 |
- |
January 2014 to September 2014 |
Deputy Commissioner, Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.29 |
- |
October 2012 to April 2013 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.32 |
- |
May 2013 to December 2013 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.75 |
- |
2007-08 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.97 |
- |
January 2010 to August 2010 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.97 |
- |
October 2015 to March 2016 |
Deputy Commissioner, Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
1.11 |
- |
April 2015 to September 2015 |
Deputy Commissioner, Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
1.26 |
- |
January 2011 to June 2011 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
2.72 |
- |
April 2012 to September 2012 |
Assistant Commissioner, Customs & Central Excise, Noida |
Finance Act, 1994 |
Service Tax |
0.67 |
- |
October 2014 to March 2015 |
Assistant Commissioner, Customs & Central Excise, Noida |
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or dues to debenture holders as at the balance sheet date. The Company has not taken any loans or borrowings from Government.
ix. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion, and according to the information and explanations given to us, the moneys raised by way of term loans have been applied for the purposes for which they were obtained. However, there is an unutilized balance of a term loan raised during the year as at Balance Sheet date as follows:
Nature of the fund raised |
Purpose for which funds raised |
Total amount raised (Rs. In Lakhs) |
Amount utilized for the other purpose |
Unutilized balance as at Balance Sheet date |
Term Loan |
Capital expenditure for new set-up in Gujarat |
1,500 |
Nil |
105* |
* An amount of Rs 1,264 lakhs have been spent by the Company for capital expenditure relating to purchase of land for their project in Gujarat out of existing funds available with the Company. The term loan which has been disbursed subsequently is for the same purpose.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv)of the Order are not applicable to the Company.
xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Rajib Chatterjee
Place: New Delhi Partner
Date: May 28, 2018 Membership Number 057134
Mar 31, 2017
Independent Auditors'' Report
TO THE MEMBERS OF
SUBROS LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone financial statements of SUBROS LIMITED, (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.
4. We have taken into account the provisions of the Act, the Accounting and Auditing Standards and matters which are required to be included in the audit report under the provision of the Act and rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2017 and its profit and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act (hereinafter referred to as âorderâ) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
10. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors as on 31st March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have pending litigations which would impact its financial position. Refer Note 51 (i) to the standalone financial statements
ii. The Company is not required to make any provision, under any law or accounting standards as the company does not have long-term contracts including derivative contracts Refer Note 51 (ii) to the standalone financial statements
iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017. Refer Note 51 (iii) to the standalone financial statements.
iv. The Company has provided requisite disclosures in its standalone financial statements as to holding as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedure and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the management. Refer Note 43 to the standalone financial statements.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As explained to us, physical verification of the major portion of fixed assets was conducted by the management during the year. In our opinion, the frequency of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on aforesaid verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title-deeds of immovable properties, as disclosed in ''Note-11'' on Fixed Assets to the financial statement, are held in the name of the company.
2. In our opinion and according to the information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management. No material discrepancies were noticed on physical verification of inventory as compared to book records.
3. The Company has not granted any secured or unsecured loans to companies, firms, limited liability partnership or other parties covered in the register maintained under section 189 of the Companies Act 2013. Therefore, clause 3(iii), (iii)a, (iii)b, and (iii)c of the said Order are not applicable to the company.
4. The Company has not granted any loans or made any investment, or provided any guarantees or security to the parties covered under section 185 and 186 of the Act. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.
5. The Company has not accepted any deposit from the public within the meaning of Sections 73 to 76 or any other relevant provisions of the Companies Act and rules framed there under.
6. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view of determine whether they are accurate or complete.
7. (a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, value added tax, cess and any other material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employee''s state insurance, income tax, wealth tax, sales tax, custom duty, excise duty, service tax, value added tax, cess and any other material statutory dues were in arrears, as at March 31, 2017 for a period of more than six months from the date they become payable.
(c) According to the information and explanations given to us, details of dues of income tax, wealth tax, sales tax, service tax, customs duty, excise duty, value added tax and cess which have not been deposited on account of any dispute are given below:
Name of Statute |
Nature of Dues |
Financial year to which the matter pertains |
Amount (Rs. in Lacs) |
Forum where dispute is pending |
Sales Tax Acts |
Sales Tax |
1996-97 |
0.84 |
Dy. Commissioner (Appeal) |
1997-98 |
2.70 |
Dy. Commissioner (Appeal) |
||
1998-99 |
6.51 |
Dy. Commissioner (Appeal) |
||
1999-00 |
9.80 |
Maharashtra Sales Tax Tribunal Mumbai |
||
2000-01 |
17.23 |
Dy. Commissioner (Appeal) |
||
2001-02 |
26.50 |
Dy. Commissioner (Appeal) |
||
2002-03 |
5.61 |
Jt. Commissioner (Appeal) |
||
2002-03 |
7.40 |
Sales Tax Appellate Tribunal (Hyderabad) |
||
2003-04 |
9.99 |
Sales Tax Appellate Tribunal (Hyderabad) |
||
2004-05 |
2.54 |
Sales Tax Appellate Tribunal (Hyderabad) |
||
2008-09 |
0.73 |
Dy. Commissioner (Appeal) |
||
U.P. Tax on Entry of Goods into Local Area Act, 2007 |
Entry Tax |
2011-12 |
13.41 |
Supreme Court |
Income Tax Act, 1961 |
Income Tax |
2013-14 |
9.91 |
Commissioner of Income Tax(Appeal) |
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has neither taken any loan from financial institution nor has issued debentures.
9. The Company has not raised any moneys by way of initial public offeror further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, moneys raised during the year by way of term loan were applied for the purpose for which the same were raised.
10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material frauds by the Company or on the Company by its officers or employees, noticed or reported during the year, nor we have been
informed of any such case by the Management.
11. The Company has paid / provided managerial remuneration in excess of the limits mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013, aggregating to Rs. 78.70 lacs to the executive directors of the Company. As informed, the Company has already sought / is in the process of seeking requisite approvals from the Central Government. We have been explained that the Company will take appropriate steps to recover the said excess amount from the concerned directors in case the requisite approvals are not granted by the Central Government.
12. As the Company is not Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) are not applicable to the Company.
13. The Company has entered into transactions with related parties in compliance with the provisions of section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the Internal Financial Controls Over Financial Reporting of Subros Limited (''the Company'') as of March 31, 2017 in conjunction with our audit of the standalone financial statement of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externals 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
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial 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 polices or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017 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 issue by the Institute of Chartered Accountants of India.
For V.K. DHINGRA& CO.,
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V. K. DHINGRA)
DATED: 23rdMay, 2017 PARTNER
M. No. 014467
Mar 31, 2016
1. We have audited the accompanying Standalone financial statements of
SUBROS LIMITED, ("the Company"), which comprise the Balance Sheet as at
31st March, 2016, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The company''s Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets
of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
4. We have taken into account the provisions of the Act, the Accounting
and auditing standard and matters which are required to be included in
the audit report under the provision of theca and rules made there
under.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of
affairs of the Company as at 31st March, 2016 and its profit and cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act (hereinafter referred to as
"order") and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure A, a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
10. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March, 2016 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2016 from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate Report in Annexure B.
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have pending litigations which would impact its
financial position. Refer Note 49 (i) to the financial statements
ii. The Company is not required to make any provision, under any law or
accounting standards as the company does not have long- term contracts
including derivative contracts Refer Note 49 (ii) to the financial
statements
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2016. Refer Note 49(iii) to the
financial statements.
REFERRED TO IN PARAGRAPH 9 OF THE INDEPENDENT AUDITOR''S REPORT OF EVEN
DATE ON THE STANDALONE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR
ENDED 31ST MARCH, 2016 TO THE MEMBERS OF SUBROS LIMITED
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the
title-deeds of immovable properties, as disclosed in ''Note-11'' on Fixed
Assets to the financial statement, are held in the name of the company.
2. In our opinion and according to the information and explanations
given to us, physical verification of inventory has been conducted at
reasonable intervals by the management. No material discrepancies were
noticed on physical verification of inventory as compared to book
records.
3. The Company has not granted any secured or unsecured loans to
companies, firms, limited liability partnership or other parties
covered in the register maintained under section 189 of the Companies
Act 2013. Therefore, clause 3(iii), (iii)a, (iii)b, and (iii)c of the
said Order are not applicable to the company.
4. The Company has not granted any loans or made any investment, or
provided any guarantees or security to the parties covered under
section 185 and 186 of the Act. Therefore, the provisions of Clause
3(iv) of the said Order are not applicable to the Company.
5. The Company has not accepted any deposit from the public within the
meaning of Sections 73 to 76 or any other relevant provisions of the
Companies Act and rules framed there under.
6. Pursuant to the rules made by the Central Government of India, the
Company is required to maintain cost records as specified under section
148(1) of the Act in respect of its products. We have broadly reviewed
the same, and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view of
determine whether they are accurate or complete.
7. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employee''s state
insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, value added tax, cess and any other material
statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employee''s
state insurance, income tax, wealth tax, sales tax, custom duty, excise
duty, service tax, value added tax, cess and any other material
statutory dues were in arrears, as at March 31, 2016 for a period of
more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of income tax, wealth tax, sales tax, service tax, customs
duty, excise duty, value added tax and cess which have not been
deposited on account of any dispute are given below:
Name of statute Nature of Financial Amount Forum where dispute
Due year to Rs, In is pending
the matter lacs)
pertains
Sales Tax Acts Sales Tax 1996-97 0.84 Dy. Commissioner
(Appeal)
1997-98 2.70 Dy. Commissioner
(Appeal)
1998-99 6.51 Dy. Commissioner
(Appeal)
1999-00 9.80 Maharashtra Sales
Tax Tribunal Mumbai
2000-01 17.23 Dy. Commissioner
(Appeal)
2001-02 26.50 Dy. Commissioner
(Appeal)
2002-03 5.61 Jt. Commissioner
(Appeal)
2002-03 7.40 Sales Tax Appellate
Tribunal (Hydrabad)
2003-04 9.99 Sales Tax Appellate
Tribunal (Hyderabad)
2004-05 2.54 Sales Tax Appellate
Tribunal (Hyderabad)
2008-09 0.73 Dy. Commissioner
(Appeal)
U.P. Tax on
Entry of
Goods into
Local Area Entry Tax 2011-12 13.41 Supreme Court
Act, 2007
Income Tax
Act, 1961 Income Tax 2011-12 24.40 Commissioner of Income
Tax(Appeal)
8. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
9. The Company has not raised any moneys by way of initial public
offer or further public offer (including debt instruments) during the
year. In our opinion and according to the information and explanations
given to us, moneys raised during the year by way of term loan were
applied for the purpose for which the same were raised.
10. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material frauds by the Company or on the Company by its officers or
employees, noticed or reported during the year, nor we have been
informed of any such case by the Management.
11. The Company has paid / provided managerial remuneration in excess
of the limits mandated by the provisions of Section 197 read with
Schedule V to the Companies Act, 2013, aggregating to Rs. 157.10 lacs
to the executive directors of the Company. As informed, the Company has
already sought / is in the process of seeking requisite approvals from
the central Government. We have been explained that the Company will
take appropriate steps to recover the said excess amount from the
concerned directors in case the requisite approvals are not
granted by the Central Government.
12. As the Company is not Nidhi Company and the Nidhi Rules, 2014 are
not applicable to it, the provisions of Clause 3(xii) are not
applicable to the Company.
13. The Company has entered into transactions with related parties in
compliance with the provisions of section 177 and 188 of the Act. The
details of such related party transactions have been disclosed in the
financial statements as required under Accounting Standard (AS) 18,
Related Party Disclosures specified under section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014.
14. The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year under review. Accordingly, the provisions of Clause 3(xiv) of
the Order are not applicable to the Company.
15. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not entered into any non cash transactions with its directors or
persons connected with him. Accordingly, the provisions of Clause 3(xv)
of the Order are not applicable Company.
16. The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934. Accordingly, the provisions of
Clause 3(xvi) of the Order are not applicable to the Company.
For V.K. DHINGRA&CO.,
CHARTEREDACCOUNTANTS
Firm Registration No.
000250N
PLACE: NEW DELHI (SANJAYJINDAL)
DATED:26th MAY,2016 PARTNER
M. No. 087085
Mar 31, 2015
We have audited the accompanying Standalone financial statements of
SUBROS LIMITED, ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The company's Board of Directors is responsible for the matters stated
in section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has an adequate internal financial
controls system over financial reporting in place and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March, 2015 and its profit and cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act we give in the Annexure 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
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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015 from
being appointed as a director in terms of Section 164(2) of the
Act. 165(1)
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have pending litigations which would impact its
financial position. Refer Note 49 (i) to the financial statements.
ii. The Company is not required to make any provision, under any law or
accounting standards as the company does not have long-term contracts
including derivative contracts. Refer Note 49 (ii) to the financial
statements
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
Company. Refer Note 49(iii) to the financial statements.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
2. (a) In our opinion and according to the information and explanations
given to us, physical verification of inventory has been conducted at reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. No material discrepancies have been noticed on verification
between the physical stocks and the book records.
3. The Company has not granted any secured or unsecured loans to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act 2013. Therefore, clause (iii)
of paragraph 3 of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. The Company has not accepted any deposit from the public within the
meaning of Sections 73 to 76 or any other relevant provisions of the
Companies Act 2013 and rules framed there under.
6. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Air-conditioning
Systems and parts thereof pursuant to the Order made by the Central
Government, for maintenance of cost records prescribed under Sub
section (1) Section 148 of the Companies Act 2013, and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained.
7. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employee's state
insurance, income tax, sales tax, wealth tax, service tax, customs duty,
excise duty, value added tax, cess and any other material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employee's
state insurance, income tax, wealth tax, sales tax, custom duty, excise
duty, service tax, value added tax, cess and any other material
statutory dues were in arrears, as at March 31,2015 for a period of
more than six months from the date they become payable.
(c) According to the information and explanations given to us, details
of dues of income tax, wealth tax, sales tax, service tax, customs
duty, excise duty, value added tax and cess which have not been
deposited on account of any dispute are given below:
Name of Statute Nature of Financial year Amount
Dues to which the (Rs. in Lacs)
Matter pertains
Sales Tax Acts Sales Tax 1996 -97 0.84
1997- 98 2.70
1998- 99 6.51
1999- 00 9.80
2000- 01 17.23
2001- 02 26.50
2002- 03 5.61
2002- 03 7.40
2003- 04 9.99
2004- 05 2.54
2008- 09 0.73
U.P. Tax on Entry of
Goods into Local Area Entry Tax 2011- 12 13.41
Act, 2007
Income Tax Act, 1961 Income Tax 2011- 12 24.40
Name of Statute Forum where dispute is pending
Sales Tax Acts Dy. Commissioner (Appeal)
Dy. Commissioner (Appeal)
Dy. Commissioner (Appeal)
Maharashtra Sales Tax Tribunal Mumbai
Dy. Commissioner (Appeal)
Dy. Commissioner (Appeal)
Jt. Commissioner (Appeal)
Sales Tax Appellate Tribunal (Hydrabad)
Sales Tax Appellate Tribunal (Hyderabad)
Sales Tax Appellate Tribunal (Hyderabad)
Dy. Commissioner (Appeal)
U.P Tax on Entry of Goods Supreme Court
into Local Area Act 2007
Income Tax Act Commissioner of Income Tax (Appeal)
d) In our opinion and according to the information and explanations
given to us, the amount required to be transferred to the Investor
Education and Protection Fund has been transferred to such fund by the
Company with in time.
8. The Company does not have accumulated losses as at 31st March, 2015.
The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
10. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
11. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
12. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2015.
For V.K. DHINGRA& CO.,
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: MAY 14, 2015 PARTNER
M. No. 14467
Mar 31, 2014
We have audited the accompanying financial statements of SUBROS
LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st
March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control . An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of 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 Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of Order.
2. As required by section 227 (3) of the Companies Act, 1956, 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 the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
(e) On the basis of written representations received from the directors
of the Company as on 31st March, 2014 and taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March,
2014 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
Annexure to Independent Auditors'' Report
REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF SUBROS LIMITED FORTHE YEAR ENDED 31STMARCH, 2014
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) There was no substantial disposal of fixed assets during the year
which may affect the going concern.
2. (a) In our opinion and according to the information and
explanations given to us, physical verification of inventory has been
conducted at reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. No material discrepancies have been noticed on verification
between the physical stocks and the book records.
3. The Company has neither taken any loan from nor granted any loan to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, clause (iii)
of paragraph 4 of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party during the year have been made at prices which are prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from the public within the
meaning of Sections 58A, 58AAor any other relevant provisions of the
Companies Act, 1956 and rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Airconditioning Systems
and parts thereof pursuant to the Order made by the Central Government,
for maintenance of cost records prescribed under Section 209(1 )(d)of
the Companies Act, 1956, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Investor Education & Protection
Fund, provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty, cess and other material
statutory dues were in arrears, as at March 31, 2014 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us, details
of dues of income tax, sales tax, service tax, wealth tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute are given below:
Name of Statute Nature of Dues Financial year
to which the
matter Dertains
Sales Tax Acts Sales Tax 1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2002-03
2003-04
2004-05
2008-09
U.P. Tax on
Entry of
Goods into
Local Area Entry Tax 2011-12
Act, 2007
Income Tax
Act, 1961 Income Tax 2009-10
Name of Statue Amount Forum where dispute
Rs. in Lacs is pending
Sales Tax Acts 0.84 Dy. Commissioner
(Appeal)
Dy. Commissioner
2.70 (Appeal)
6.51 Dy. Commissioner
(Appeal)
9.80 Maharashtra Sales Tax
Tribunal Mumbai
17.23 Dy. Commissioner
(Appeal)
26.50 Dy. Commissioner
(Appeal)
5.61 Jt. Commissioner
(Appeal)
Sales Tax Appellate
7.40 Tribunal (Hydrabad)
9.99 Sales Tax Appellate
Tribunal (Hydrabad)
2.54 Sales Tax Appellate
Tribunal (Hydrabad)
0.73 Dy. Commissioner
(Appeal)
U.P. Tax on Entry of
Goods into Local Area
Act, 2007 13.41 Supreme Court
Income Tax Act, 1961 11.67 Commissioner of
Income Tax (Appeal)
10. The Company does not have accumulated losses as at 31st March,
2014. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
12. According to the information and explanations given to us and
based on the records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31 st March, 2014.
For V.K. DHINGRAS& CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: MAY 26, 2014 PARTNER
M. No.14467
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SUBROS
LIMITED, ("the Company), which comprise the Balance Sheet as at 31st
March, 2013 and the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 appropriateness of accounting policies used and the
reasonableness of 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 Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of Order.
2. As required by section 227 (3) of the Companies Act, 1956, 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 the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
of the Company as on 31st March, 2013 and taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March,
2013 from being appointed as a director in terms of clause (g) of
sub-section (1)of Section 274 of the Companies Act, 1956;
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to Independent Auditors" Report
REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE ON THE
ACCOUNTS OF SUBROS LIMITED FOR THE YEAR ENDED 31 ST MARCH, 2013
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) There was no substantial disposal of fixed assets during the year
which may affect the going concern.
2. (a) In our opinion and according to the information and
explanations given to us, physical verification of inventory has been
conducted at reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. No material discrepancies have been noticed on verification
between the physical stocks and the book records.
3. The Company has neither taken any loan from nor granted any loan to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, clause (iii)
of paragraph 4 of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of
any party during the year have been made at prices which are prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from the public within the
meaning of Sections 58A, 58AAor any other relevant provisions of the
Companies Act, 1956 and rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Airconditioning Systems
and parts thereof pursuant to the Order made by the Central Government,
for maintenance of cost records prescribed under Section 209(1 )(d)of
the Companies Act, 1956, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Investor Education & Protection
Fund, provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty, cess and other material
statutory dues were in arrears, as at March 31, 2013 for a period of
more than six months from the date they became payable.
10. The Company does not have accumulated losses as at 31st March,
2013. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
12. According to the information and explanations given to us and
based on the records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31 st March, 2013.
For V.K. DHINGRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: AAAY 22, 2013 PARTNER
M. No. 14467
Mar 31, 2012
1. We have audited the attached Balance Sheet of SUBROS LIMITED, as at
31st March, 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by Companies (Auditors' Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of the books and
records of the Company as we considered appropriate and the information
and explanations given to us during the course of audit, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above; we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956, to the extent applicable;
e) on the basis of written representations received from the directors
of the Company as on 31st March, 2012 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March, 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report
REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS
OF SUBROS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2012:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) There was no substantial disposal of fixed assets during the year
which may affect the going concern.
2 (a) In our opinion and according to the information and explanations
given to us, physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. No material discrepancies have been noticed on verification
between the physical stocks and the book records.
i. T he Company has neither taken any loan from nor granted any loan
to companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, clause (iii)
of paragraph 4 of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lacs in respect of
any party during the year have been made at prices which are prima
facie reasonable having regard to prevailing market prices at the
relevant time.
6. The Company has not accepted any deposit from the public within the
meaning of Sections 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Airconditioning Systems
and parts thereof pursuant to the Order made by the Central Government,
for maintenance of cost records prescribed under Section 209(1 )(d)of
the Companies Act, 1956, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Investor Education fit Protection
Fund, provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty, cess and other material
statutory dues were in arrears, as at March 31, 2012 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us, details
of dues of income tax, sales tax, service tax, wealth tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute are given below:
Financial year
Nature of to which the Amount Forum where
Name of
statute Dues Matter (Rs. in dispute is
pending
pertains
Sales Tax
Acts Sales Tax Dy. Commissioner
1996-97 0.84 (Appeal)
1997-98 2.70 Dy Commissioner
(Appeal)
1998-99 6.51 Dy Commissioner
(Appeal)
Maharashtra Sales
1999-00 9.80 Tax Tribunal
Mumbai
2000-01 17.23 Dy Commissioner
(Appeal)
2001-02 26.50 Dy Commissioner
(Appeal)
Jt. Commissioner
2002-03 5.61 (Appeal)
Sales Tax
Appellate
2002-03 14.80 Tribunal
(Hydrabad)
2003-04 19.98 Sales Tax
Appellate
Tribunal
(Hydrabad)
Sales Tax
Appellate
2004-05 5.09 Tribunal
(Hydrabad)
U.P. Tax
on Entry
of Goods
into Local Entry Tax 2011-12 13.41 Supreme Court
Area Act,
2007
10. The Company does not have accumulated losses as at 31st March,
2012. The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
12. According to the information and explanations given to us and
based on the records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2012.
For V.K. DHINGRA Et CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: May 28, 2012 PARTNER
Membership No. 14467
Mar 31, 2011
1. We have audited the attached Balance Sheet of SUBROS LIMITED, as at
31st March, 2011 and also the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by Companies (Auditors' Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of the books and
records of the Company as we considered appropriate and the information
and explanations given to us during the course of audit, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
4. Further to our comments in theAnnexure referred to in paragraph 3
above; we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far asappears from our examination of those
books;
c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211(3C) of the CompaniesAct, 1956, to
the extent applicable;
e) on the basis of written representations received from the directors
of the Company as on 31st March, 2011 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March, 2011 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the CompaniesAct, 1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011.
ii) in the case ofthe Profit and LossAccount, of the Profit for the
year ended onthat date; and
iii) in the case ofthe Cash Flow Statement, ofthe Cash Flows for the
year ended on that date.
Annexure to the Auditors' Report
REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS
OF SUBROS LIMITEDFORTHEYEARENDED31STMARCH,2011:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) There was no substantial disposal of fixed assets during the year
which may affect the going concern.
2 (a) In our opinion and according to the information and explanations
given to us, physical verification of inventory has been conducted at
reasonable intervals by the management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. No material discrepancies have been noticed on verification
between the physical stocks and the book records.
3. The Company has neither taken any loan from nor granted any loan to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.Accordingly, clause (iii)
of paragraph 4 of the Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered in the register required to be
maintained under that section.
In our opinion and according to the information and explanations given
to us, transactions made in pursuance of such contracts or arrangements
and exceeding the value of rupees five lakhs in respect of any party
during the year have been made at prices which are prima facie
reasonable having regard to prevailing market prices at the relevant
time.
6. The Company has not accepted any deposit from the public within the
meaning of Sections 58A, 58AAor any other relevant provisions of the
CompaniesAct, 1956 and rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Airconditioning Systems
and parts thereof pursuant to the Order made by the Central Government,
for maintenance of cost records prescribed under Section 209(1)(d) of
the Companies Act, 1956, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurateor complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Investor Education & Protection
Fund, provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty, cess and other material
statutory dues were in arrears, as at March 31, 2011 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us, details
of dues of income tax, sales tax, service tax, wealth tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute are given below :
Financial
year to Amount Forum where dispute
Name of statute Nature of
Dues which the (Rs.inLacs) is pending
matter
pertains
Sales Tax Acts Sales Tax Dy. Commissioner
1996-97 0.84
(Appeal)
Dy. Commissioner
1997-98 2.70 (Appeal)
Dy. Commissioner
1998-99 6.51 (Appeal)
Dy. Commissioner
1999-00 10.30 (Appeal)
Dy. Commissioner
2000-01 17.23 (Appeal)
Dy. Commissioner
2001-02 26.50 (Appeal)
Jt. Commissioner
2002-03 5.61
(Appeal)
Sales Tax Appellate
2002-03 22.21
Tribunal (Hydrabad)
2003-04 29.96 Sales Tax Appellate
Tribunal (Hydrabad)
Sales Tax Appellate
2004-05 7.63 Tribunal (Hydrabad)
U.P. Tax on
entry of Entry Tax 2008-09 33.74 Allahabad High Court
Goods into
Local
Area Act 2007 2009-10 27.01 Allahabad High Court
2010-11 32.85 Allahabad High Court
10. The Company does not have accumulated losses as at 31st March,
2011. The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
12. According to the information and explanations given to us and
based on the records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the CompaniesAct, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31st March, 2011.
For V.K. DHINGRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No.000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: 3rd August, 2011 PARTNER
Membership No. 14467
Mar 31, 2010
1. We have audited the attached Balance Sheet of SUBROS LIMITED, as at
31 st March, 2010 and also the Profit & Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks of the books and
records of the Company as we considered appropriate and the information
and explanations given to us during the course of audit, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above; we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956,
to the extent applicable;
e) on the basis of written representations received from the directors
of the Company as on 31 st March, 2010 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March, 2010 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to the Auditors Report
REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS
OF SUBROS LIMITED FORTHE YEAR ENDED 31STMARCH, 2010:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of the major portion of
fixed assets was conducted by the management during the year. In our
opinion, the frequency of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on aforesaid verification.
(c) There was no substantial disposal of fixed assets during the year
which may affect the going concern.
2. (a) Inventory lying in Companys custody and in few cases where
inventory was lying with third parties, have been physically verified
by the Management during the year at reasonable intervals with the help
of independent firms of Chartered Accountants and Cost Accountants. In
other cases of inventory lying with third parties, certificates
confirming stocks have been received in respect of substantial portion
of the inventory held by them.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records, though insignificant, have been
properly dealt with in the books of account.
3. The Company has neither taken any loan from nor granted any loan to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, sub-clause
(b),(c),(d),(f) and (g) of clause (ifi> of paragraph 4 of the Order are
not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered in the register required to be
maintained under that section.
In our opinion and according to the information and explanations given
to us, transactions made in pursuance of such contracts or arrangements
and exceeding the value of rupees five lacs in respect of any party
during the year have been made at prices which are prima facie
reasonable having regard to prevailing market prices at the relevant
time.
6. The Company has not accepted any deposit from the public within the
meaning of Sections 58A,58AAor any other relevant provisions of the
Companies Act, 1956and rules framed thereunder.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Automotive Airconditioning Systems
and parts thereof pursuant to the Order made by the Central Government,
for maintenance of cost records prescribed under Section 209(1 )(d) of
the Companies Act, 1956, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Investor Education & Protection
Fund, provident fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues applicable to it during the year.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, service tax, customs duty, excise duty, cess and other material
statutory dues were in arrears, as at March 31, 2010 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us, details
of dues of income tax, sales tax, service tax, wealth tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute are given below:
Name of
statute Nature of Dues Financial year Amount Forum where dispute
to which the (Rs. in
Lacs) is pending
matter pertains
Sales
Tax Acts Sales Tax 1996-97 0.84 Dy. Commissioner
(Appeal)
1997-98 2.70 Dy. Commissioner
(Appeal)
1998-99 6.51 Dy. Commissioner
(Appeal)
1999-00 10.80 Dy. Commissioner
Appeal)
2000-01 17.23 Dy. Commissioner
(Appeal)
2001-02 26.50 Dy. Commissioner
(Appeal)
2002-03 5.61 Jt- Commissioner
(Appeal)
2002-03 22.21 Asstt" Commissioner
(Legal)
2003 04 29.96 Asstt. Commissioner
(Legal)
Asstt. Commissioner
2004-05 7-63 (Legal)
UP Tax
on entry
Entry Tax 2008-09 33.74 Allahabad High Court
of Goods
into
Local
Area Act
2007 2009-10 27.01 Allahabad High Court
10. The Company does not have accumulated losses as at 31 st March,
2010. The Company has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The Company has neither taken any loan from financial
institution nor has issued debentures.
12. According to the information and explanations given to us and
based on the records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not guaranteed any loan taken by others
from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which they
were obtained.
17. In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been
used for long term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money through a public issue during
the year.
21. Based on the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31 st March, 2010.
ForV.K. DHINGRA&CO.,
CHARTERED ACCOUNTANTS
Firm Registration No.000250N
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: 2nd August, 2010 PARTNER
Membership No. 14467
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