Mar 31, 2018
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Websol Energy System Limited (''the Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Actâ) with respect to the preparation of these 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, as applicable. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of these 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 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 and the Order under Section 143(11) of the Act.
We conducted our audit in accordance with the Standards on auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
EMPHASIS OF MATTERS
We draw attention to the matter that the confirmations in respect of balances of Sundry Debtors, Sundry Creditors and Advances from and to various parties have not been received in all cases. However, we do not modify our opinion on this matter.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit and its cash flow for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law relating to the preparation of the financial statements have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of these financial statements.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable.
(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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Independent Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements. (Refer Note 37)
ii) The Company has made provision in its financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii) The Company has transferred to the Investor Education and Protection Fund (IEPF), the following amounts, which was required to be transferred :
Description |
Rs. In Lakhs |
Transferred on |
Unclaimed Dividend |
2.67 |
22 - 05 - 2017 |
Unclaimed Dividend |
2.93 |
22 - 05 - 2017 |
2. As required by the Companies (Auditorâs Report) Order, 2016 (''the Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in ''Annexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure ''A'' to the Independent Auditors'' Report
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act'')
We have audited the internal financial controls over financial reporting of Websol Energy System Limited (''the Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended and as on that date.
MANAGEMENT''S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (the ''Guidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing prescribed under Section 143(10) of the Act and the Guidance Note, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that may cause material weakness and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs 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 Companyâs assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 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.
Annexure ''B'' to the Independent Auditors'' Report
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on Companies (Auditor''s Report) Order, 2016 (âthe Order'') issued by the Central Government in terms of Section 143(11) of the Companies Act, 2013 (âthe Act'') of Websol Energy System Limited (âthe Company'')
1. In respect of the Companyâs fixed assets:
(a) The records maintained by the Company are incomplete and currently being updated to show full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, the discrepancies, if any, between the book records and physical verification can be determined on updation of the book records.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the relevant records provided to us, we report that, the Land as mentioned in the Financial Statements is leasehold Land and the Lease agreement is in the name of the Company.
2. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and discrepancies noticed on such physical verification were not material and those immaterial discrepancies have been properly dealt with in the books of account.
3. 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.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted deposits during the year under report and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. Reporting under clause 3(vi) of the Order is not applicable as the Companyâs business activities are not covered by the Companies (Cost Records and Audit) Rules, 2014 as amended by the Companies (Cost Records and Audit) Amendment Rules, 2014 dated December 31, 2014.
7. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has made delayed deposits with appropriate authorities, the amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and other statutory dues as applicable to it.
(b) As per the information and explanations given to us the following undisputed amounts in respect of the above mentioned statutory dues were outstanding as at March 31, 2018 for a period of more than six months from the date they became payable:
Name of Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Delhi Value Added |
Delhi Value Added |
51.76 |
Tax Act, 2004 |
Tax |
|
Finance Act, 1994 |
Service Tax and Works Contract Service Tax at Delhi |
00.18 |
(c) Details of statutory dues which have not been deposited as at March 31, 2018 on account of dispute are given below:
Nature of dues |
Forum where dispute is pending |
Amount (Rs. In Lakhs) |
Remarks |
Excise Duty and Penalty |
Settlement Commission |
216.55 |
The Company had paid H100.00 Lakhs against this demand in the year 2004-05. |
Excise Duty and Penalty |
High Court at Kolkata |
57.12 |
|
Excise Duty and Penalty |
High Court at Kolkata |
13.87 |
|
Income Tax Act Penalty |
Commissioner of Income Tax (Appeals) |
628.05 |
The Company has paid H55.00 Lakhs against this demand and has submitted a petition for stay of this demand. |
8. The Company had Foreign Currency Convertible Bonds ("FCCBs") amounting to US$ 12.00 million, out of which FCCBs of the value US$ 6.43 million has been converted into 47,02,667 Equity Shares of the Company during the year under report as per the rates approved by regulators and shareholders.
The Company did not have any borrowing from financial institutions or Government.
9. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, wherever applicable, for all transactions with the related parties and the details of related party transactions, if any, have been disclosed in the financial statements as required by the applicable accounting standards.
14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For T. MORE & CO.
Chartered Accountants
Firm Regn. No.327844E
TANISHA MORE
Proprietor C.A.
Membership No. 301569
Place : Kolkata
Date : the 11th June, 2018
Mar 31, 2016
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of WEBSOL ENERGY SYSTEM LIMITED (''the Company^, which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, as applicable. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of these 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 have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under Section 143(11) of the Act.
We conducted our audit 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 auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
EMPHASIS OF MATTERS
We draw attention to the matter that the confirmations in respect of balances of Sundry Debtors, Sundry Creditors and Advances from respective parties have not been received in all cases. However, we do not modify our opinion on this matter.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its loss and its cash flow for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law relating to preparation of the financial statements have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of these financial statements.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the Directors as on March 31, 2016, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act. However, the Company had in an earlier year issued Foreign Currency Convertible Bonds (âFCCBS") which were to be redeemed or converted into Equity Shares in the Company by November, 2012, but, due to fall in market price of Company''s shares, the same were neither converted nor were redeemed and are still outstanding. Among the then Directors, only Managing Director is still on the Board. After the date of the Balance Sheet under report, the Company, in an Extra Ordinary General Meeting of its members held on May 26, 2016, has obtained the sanction of its members to re-structure the FCCBs on revised terms and conditions including reducing the value of FCCBs to US$ 12,000,000 and complete waiver of accrued interest. The re-structured FCCBs are proposed to be redeemed latest by May 1, 2021 if not redeemed or converted earlier than that date.
(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 A''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Independent Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements. (Refer No. 40)
ii) The Company has made provision in its financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii) The Company has not transferred a sum of Rs.2.67 Lakhs to the Investor Education and Protection Fund (IEPF) which was required to be transferred by September 27, 2015.
2. As required by the Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government in terms of Section 143(11) of the Act, we give in ''Annexure B'' a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date) Report on Companies (Auditor''s Report) Order, 2016 (''the Order'') issued by the Central Government in terms of Section 143(11) of the Companies Act, 2013 (''the Act'') of Websol Energy System Limited (''the Company'')
1. In respect of the Company''s fixed assets:
(a) The records maintained by the Company are incomplete and currently being updated to show full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, the discrepancies, if any, between the book records and physical verification can be determined on updation of the book records.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the relevant records provided to us, we report that, the Land as mentioned in the Financial Statements is Leasehold Land and the Lease agreement is in the name of the Company.
2. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and discrepancies noticed on such physical verification were not material and those immaterial discrepancies have been properly dealt with in the books of account.
3. 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.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted deposits during the year under report and does not have any unclaimed deposits as at March 31, 2016 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. Reporting under clause 3(vi) of the Order is not applicable as the Company''s business activities are not covered by the Companies (Cost Records and Audit) Rules, 2014 as amended by the Companies (Cost Records and Audit) Amendment Rules, 2014 dated December 31, 2014.
7. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has made delayed deposits with appropriate authorities, the amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and other statutory dues as applicable to it.
(b) As per the information and explanations given to us the following undisputed amounts in respect of the abovementioned statutory dues were outstanding as at March 31, 2016 for a period of more than six months from the date they became payable:
Name of Statute |
Nature of Dues |
Amount (Rs. In Lacs) |
Delhi Value Added Tax Act, 2004 |
Delhi Value Added Tax |
52.20 |
W. B. VAT Act, 2003 |
Works Contract Tax / VAT |
00.65 |
Finance Act, 1994 |
Service Tax and Works Contract Service Tax at Delhi |
25.24 |
(c) Details of statutory dues which have not been deposited as at March 31, 2016 on account of dispute are given below
Nature of dues |
Forum where dispute is pending |
Amount (Rs. In Lacs) |
Remarks |
Excise Duty and Penalty |
High Court at Kolkata |
366.55 |
The Company had paid Rs.100.00 Lakhs against this demand in the year 2004-05. |
Excise Duty and Penalty |
Custom, Excise and Service Tax Appellate Tribunal |
497.10 |
|
Income Tax Act Penalty |
Commissioner of Income Tax (Appeals) |
628.05 |
The Company has paid Rs.15.00 Lakhs against this demand and has submitted a petition for stay of this demand. |
8. In our opinion and according to the information and explanations given to us, and on basis of our examination of the books of account and related records, we observed delays in the repayment of the principal sums and interest thereon to banks / financial institutions. However as explained in Note 24 and 25 annexed to the financial statements, out of the total borrowings, accounts of the Company, as on the date of the Balance Sheet under review, the accounts of working capital bankers continues to be classified as a Non Performing Asset.
Further, the Company had Foreign Currency Convertible Bonds (âFCCBs") amounting to US$ 16,800,000 and interest accrued thereon is US$ 11,680.000 which matured on November, 2012. The same were neither converted into Equity Shares nor was any payment made for their redemption. However, after the date of the Balance Sheet under report, the Company, in Extra-Ordinary General Meeting of its members held on May 26, 2016, has obtained the sanction of its members to re-structure the FCCBs on revised terms and conditions including reducing the value of FCCBs to US$ 12,000,000 and complete waiver of accrued interest. The re-structured FCCBs are proposed to be redeemed latest by May 1, 2021 if not redeemed or converted earlier than that date. The Company is in process of obtaining applicable regulatory permissions therefore.
The amounts repayable to Banks on various due dates and period of delay is mentioned below :
It may be noted that the period of delay mentioned against each repayable amount was calculated up to March 31, 2015. Thereafter the Company has not paid any amount individually against any loan installment, but has paid lump sum to various banks and the same are pending allocation against individual loan installments.
Name of Bank |
Facality |
Amount |
Period of Delay |
Axis Bank |
Term Loan |
US$0.44 Lacs |
424 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
396 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
365 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
335 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
304 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
274 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
243 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
212 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
182 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
151 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
121 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
90 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
59 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
31 days |
Axis Bank |
Term Loan |
US$0.44 Lacs |
0 days |
ICICI Bank |
Working Capital Term Loan |
Rs.5.01 Lacs |
365 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
335 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
304 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
274 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
243 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
212 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
182 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
151 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
121 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
90 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
59 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
31 days |
ICICI Bank |
Working Capital Term Loan |
Rs.16.67 Lacs |
0 days |
Axis Bank |
Term Loan |
Rs.202.33 Lacs |
455 days |
Axis Bank |
Term Loan |
Rs.250.62 Lacs |
365 days |
Axis Bank |
Term Loan |
Rs.250.62 Lacs |
274 days |
Axis Bank |
Term Loan |
Rs.250.62 Lacs |
182 days |
Axis Bank |
Term Loan |
Rs.250.62 Lacs |
90 days |
Axis Bank |
Term Loan |
Rs.250.62 Lacs |
0 days |
Axis Bank |
Overdraft |
Rs.23.21 Lacs |
454 days |
Axis Bank |
Overdraft |
Rs.23.21 Lacs |
364 days |
Axis Bank |
Overdraft |
Rs.23.21 Lacs |
273 days |
Axis Bank |
Overdraft |
Rs.23.21 Lacs |
181 days |
Axis Bank |
Overdraft |
Rs.23.21 Lacs |
89 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
454 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
423 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
395 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
364 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
334 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
303 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
273 days |
|
|
|
|
Name of Bank |
Facality |
Amount |
Period of Delay |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
242 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
211 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
181 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
150 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
120 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
89 days |
Axis Bank |
Funded Interest Term Loan |
Rs.13.61 Lacs |
58 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
30 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
454 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
423 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
395 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
364 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
334 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
303 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
273 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
242 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
211 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
181 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
150 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
120 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
89 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
58 days |
Axis Bank |
Funded Interest Term Loan |
Rs.5.06 Lacs |
30 days |
|
Exim Bank |
Term Loan |
US$ 2.32Lacs |
350 days |
|
Exim Bank |
Term Loan |
US$ 2.32Lacs |
259 days |
|
Exim Bank |
Term Loan |
US$ 2.32Lacs |
167 days |
|
Exim Bank |
Term Loan |
US$ 2.32Lacs |
75 days |
|
Exim Bank |
Term Loan |
US$3.93 Lacs |
441 days |
|
Exim Bank |
Term Loan |
US$3.93 Lacs |
351 days |
|
Exim Bank |
Term Loan |
US$3.93 Lacs |
260 days |
|
Exim Bank |
Term Loan |
US$3.93 Lacs |
168 days |
|
Exim Bank |
Term Loan |
US$3.93 Lacs |
76 days |
|
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
350 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
320 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
289 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
259 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
228 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
197 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
167 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
136 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
106 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
75 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
44 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.06 Lacs |
16 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.034 Lacs |
441 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
410 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
382 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
351 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
321 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
290 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
260 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
229 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
198 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
168 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
137 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
107 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
76 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
45 days |
Exim Bank |
Funded |
Interest Term Loan |
US$ 0.136 Lacs |
17 days |
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, wherever applicable, for all transactions with the related parties and the details of related party transactions, if any, have been disclosed in the financial statements as required by the applicable accounting standards.
14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.
16. The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
AGARWAL SANGANERIA & Co.
Chartered Accountants
Firm Registration No.317224E
P. K. AGARWAL
Place : Kolkata Partner
Dated, the 30th May, 2016 C.A. Membership No.53496
Mar 31, 2015
REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of WEBSOL
ENERGY SYSTEM LIMITED (The Company) which comprise the Balance Sheet as
at March 31, 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
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 financial statements to give a true
and fair view of the financial position, financial performance and cash
flow 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. The 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 judgements
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 on opinion on these 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.
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. Tose 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 statement. Te
procedures selected depend on the auditor's judgement including the
assessment of the risks of material misstatement of the financial
statement, 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 in place on adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the 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
financial statements.
OPINION
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, its loss and its cash flows for the year ended on
that date.
EMPHASIS OF MATTERS
9. We draw attention to the matter that the confirmations in respect
of balances of Sundry Debtors, Sundry Creditors and Advances from the
respective parties have not been received in all cases. However, we do
not modify our opinion on this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
10. As required by the Company (Auditor's Report) Order, 2015, issued
by the Central Government of India in terms of sub-section(11) of
section 143 of the Act (hereinafter referred to as the "Order") and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
11. As required by Section 143(3) of the Act, we report that
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015; taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164(2) of the
Act. However, the Company had in an earlier year issued Foreign
Currency Convertible Bonds which were to be converted into Equity
Shares in the Company by November, 2012, but, due to fall in market
price of Company's shares the same were not converted and are still
outstanding. Among the then Directors, only Managing Director is still
on the Board.
(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 knowledge and belief
and according to the information and explanations given to us :
i. The Company has disclosed the impact of pending litigations as at
March 31, 2015 on its financial position in its financial statements.
(Refer Note 40)
ii. The Company has made provision as at March 31, 2015 as required
under the applicable law or accounting standards for material
foreseeable losses, if any, on long term contracts including derivative
contracts.
iii. Tere has been a delay of one month in transferring amounts,
required to be transferred, to the investor Education and Protection
Fund by the Company during the year ended March 31, 2015.
(Referred to in paragraph 10 of the Independent Auditors' Report of
even date to the members of WEBSOL ENERGY SYSTEM LIMITED on the
standalone financial statements as at and for the year ended March 31,
2015.)
(i) The Fixed Assets records of the Company are being maintained to show
full particulars including quantitative details and situation thereof.
Majority of Fixed Assets of the Company have been physically verified
during the year by the management and discrepancy, which were not
material have been properly dealt with in the books of account.
(ii) The Inventory of the Company consisting of stocks of raw materials,
finished goods, work-progress and stores and spare parts have been
physically verified by the management at regular intervals during the
year. In our opinion the frequency of verification is reasonable. Te
discrepancies between the physical stocks and book records, which were
not material, have been properly dealt with in the books of account. Te
Company is maintaining proper records of the inventories. In our
opinion, the procedures of physical verification of inventory followed
by the Management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(iv) 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 the purchase of inventory and fixed assets and for the sale of
goods. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) The Company has not accepted any deposit from the public within the
meaning of Sections 73 and 74 of the Act and the rules framed there
under to the extent notified.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of products where pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub-section (1) of Section 148 of the Act and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not however made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(vii) The Company has made delayed deposits with appropriate
authorities, the amount deducted/accrued in the books of accounts in
respect of undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and other
statutory dues as applicable to it. As per the information and
explanations given to us the following undisputed amounts in respect of
the abovementioned statutory dues were outstanding as at 31st March,
2015 for a period of more than six months from the date they became
payable:
Name of Statute Nature of Dues Amount (Rs.
In Lacs)
Delhi Value Added
Tax 2004 Delhi Value Added Tax 51.21
WB VAT Act, 2003 Works Contract Tax & VAT 0.65
Income Tax Act, 1961 Tax Collected at Source 0.10
Finance Act, 1994 Delhi Service Tax & Delhi Service
Tax on Works Contract 23.92
Further the following statutory dues have not been deposited on account
of dispute:
Nature of dues Forum where dispute
is pending Amount
(Rs. In
Lacs) Remarks
Excise Duty &
Penalty High Court at Kolkata 366.55 The Company has
paid Rs. 100.00
Lacs against this
demand in the
year 2004-05.
Excise Duty &
Penalty Custom, Excise and
Service Tax 497.10 -
Appellate Tribunal
Income Tax Commissioner of
Income Tax -Appeal 101.04 -
The amount required to be transferred to investor Education and
Protection Fund has been transferred by a delay of one month from the
dare the same was required to be transferred in accordance with the
provisions of the Companies Act, 1956 and the rules made thereunder.
(viii) The accumulated losses of the Company as at the date of the
balance sheet continues to be more than its net worth. The Company has
not incurred cash losses during the current financial year but had
incurred cash losses in the immediately preceding financial year. A
reference was filed and registered with the Board of Industrial and
Financial Reconstruction (BIFR) during one of the previous financial
years.
(ix) In our opinion and according to the information and explanations
given to us, and basis of our examination of the books of accounts and
related records, we observed delays in the repayment of the principal
sums and interest thereon to banks / financial institutions. However as
explained in Note 25 and 26 annexed to the financial statements, out of
the total borrowings, accounts of the Company , as on the date of the
Balance Sheet under review, the accounts of working capital bankers
continues to be classified as a Non Performing Asset. Further the
Company does not have any Debentures. The amounts repayable to Banks on
various due dates and period of delay is mentioned below,
Name of
Bank Facality Amount Period of
Delay
Axis Bank Term Loan US$0.44 Lacs 424 days
Axis Bank Term Loan US$0.44 Lacs 396 days
Axis Bank Term Loan US$0.44 Lacs 365 days
Axis Bank Term Loan US$0.44 Lacs 335 days
Axis Bank Term Loan US$0.44 Lacs 304 days
Axis Bank Term Loan US$0.44 Lacs 274 days
Axis Bank Term Loan US$0.44 Lacs 243 days
Axis Bank Term Loan US$0.44 Lacs 212 days
Axis Bank Term Loan US$0.44 Lacs 182 days
Axis Bank Term Loan US$0.44 Lacs 151 days
Axis Bank Term Loan US$0.44 Lacs 121 days
Axis Bank Term Loan US$0.44 Lacs 90 days
Axis Bank Term Loan US$0.44 Lacs 59 days
Axis Bank Term Loan US$0.44 Lacs 31 days
Axis Bank Term Loan US$0.44 Lacs 0 days
ICICI Bank Working Capital Term Loan Rs. 5.01 Lacs 365 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 335 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 304 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 274 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 243 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 212 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 182 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 151 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 121 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 90 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 59 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 31 days
ICICI Bank Working Capital Term Loan Rs. 16.67 Lacs 0 days
Axis Bank Term Loan Rs. 202.33 Lacs 455 days
Axis Bank Term Loan Rs. 250.62 Lacs 365 days
Axis Bank Term Loan Rs. 250.62 Lacs 274 days
Axis Bank Term Loan Rs. 250.62 Lacs 182 days
Axis Bank Term Loan Rs. 250.62 Lacs 90 days
Axis Bank Term Loan Rs. 250.62 Lacs 0 days
Axis Bank Overdraft Rs. 23.21 Lacs 454 days
Axis Bank Overdraft Rs. 23.21 Lacs 364 days
Axis Bank Overdraft Rs. 23.21 Lacs 273 days
Axis Bank Overdraft Rs. 23.21 Lacs 181 days
Axis Bank Overdraft Rs. 23.21 Lacs 89 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 454 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 423 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 395 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 364 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 334 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 303 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 273 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 242 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 211 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 181 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 150 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 120 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 89 days
Axis Bank Funded Interest Term Loan Rs. 13.61 Lacs 58 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 30 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 454 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 423 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 395 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 364 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 334 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 303 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 273 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 242 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 211 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 181 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 150 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 120 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 89 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 58 days
Axis Bank Funded Interest Term Loan Rs. 5.06 Lacs 30 days
Exim Bank Term Loan US$ 2.32Lacs 350 days
Exim Bank Term Loan US$ 2.32Lacs 259 days
Exim Bank Term Loan US$ 2.32Lacs 167 days
Exim Bank Term Loan US$ 2.32Lacs 75 days
Exim Bank Term Loan US$3.93 Lacs 441 days
Exim Bank Term Loan US$3.93 Lacs 351 days
Exim Bank Term Loan US$3.93 Lacs 260 days
Exim Bank Term Loan US$3.93 Lacs 168 days
Exim Bank Term Loan US$3.93 Lacs 76 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 350 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 320 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 289 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 259 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 228 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 197 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 167 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 136 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 106 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 75 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 44 days
Exim Bank Funded Interest Term Loan US$ 0.06 Lacs 16 days
Exim Bank Funded Interest Term Loan US$ 0.034 Lacs 441 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 410 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 382 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 351 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 321 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 290 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 260 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 229 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 198 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 168 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 137 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 107 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 76 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 45 days
Exim Bank Funded Interest Term Loan US$ 0.136 Lacs 17 days
(x) The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence, the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
(xi) During the year under audit, as verified from the relevant books
and records of the Company, it was ascertained that no fresh term loan
has been obtained by the Company.
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practice in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year nor have we been informed of any such case by the Management.
AGARWAL SANGANERIA & Co.
Chartered Accountants
Firm Registration No.317224E
P. K. AGARWAL
Place : Kolkata Partner
Dated, the 29th May, 2015 C.A. Membership No.53496
Mar 31, 2014
We have audited the accompanying financial statements of Websol Energy
System Limited ("the Company"), which comprises the Balance Sheet as at
31st March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date, 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") 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. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that :
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 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
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 Auditors'' Report
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF WEBSOL ENERGY SYSTEM
LIMITED FOR THE YEAR ENDED 31st March, 2014
(i) The Fixed Assets records of the Company are incomplete and are
being currently updated to show full particulars, including
quantitative details and situation thereof. The majority of Fixed
Assets of the Company have been physically verified during the year by
the management and any discrepancies between the book records and the
physical records can be determined on updating of the book records.
During the year under report, the Company has not disposed off any
substantial part of its Fixed Assets except the write-off of Fixed
Assets on account of discard of assets of erstwhile manufacturing unit
located at Salt Lake, becoming obsolete and unusable.
(ii) The Inventories of the Company consisting of stocks of raw
materials, finished goods, work-in-progress and stores and spares parts
have been physically verified by the management at regular intervals
during the year. The discrepancies between the physical stocks and book
records which were not material have been properly dealt with in the
books of account. The Company is maintaining proper records of the
Inventories. In our opinion, the frequency of physical verification is
reasonable. The procedure of physical verification followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(iii) The Company has, during the year under report not granted
unsecured loan to any party covered under section 301 of the Companies
Act, 1956. The Company has taken unsecured loans from companies as
covered in the register maintained under section 301 of the Companies
Act, 1956. The balance outstanding at the beginning of the year was Rs.
512.42 Lacs in respect of the parties covered under the said section.
During the year one more company has come into the fold of Parties
stated in Register maintained under Section 301 of the Companies Act,
1956 and hence after considering the amount taken Rs.205.00 Lacs and
amount repaid Rs.141.53 Lacs, the balance outstanding as at the date of
the Balance Sheet was Rs. 695.89 Lacs in respect of the party covered
under section 301 of the Companies Act, 1956. The terms and conditions
of the Loans taken by the Company are not prima facie prejudicial to
the interest of the Company. As explained to us the interest on loans
taken were not charged by the respective parties due to the financial
condition of the company.
(iv) In our opinion, and according to the informati on and explanati
ons given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, fixed assets and
sale of goods amongst others. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal controls.
(v) According to the information and explanations given to us there are
no contracts or arrangements, as referred to in Section 301 of the
Companies Act, 1956, entered into by the Company, during the year under
report.
(vi) As far as we have been able to ascertain, the Company has not
accepted any deposits from the public, hence the question of complying
with the provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 does not arise.
(vii) The Internal Audit of the company is being carried out by an
external entity, commensurate with the size and nature of its business,
and the internal audit reports are submitted to the management on a
quarterly basis.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records 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. However we have not
made detailed examinations of the records.
(ix) The Company has made delayed deposits with appropriate authorities
the amount deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-tax, Sales- tax, Service Tax Custom Duty, Exicse Duty
and any other statutory dues as applicable to it. As per the
information and explanations given to us the following undisputed
amounts in respect of the abovementi''oned statutory dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable :
Name of Statute Nature of Dues Amount ('' in Lacs)
Delhi Value Added Tax 2004 Delhi Value Added Tax 50.41
Income Tax Act, 1961 Income Tax 39.46
Central Sales Tax Act, 1956 Central Sales Tax 60.99
WB VAT Act, 2003 Works Contract Tax & VAT 0.65
Finance Act, 1994 Delhi Service Tax 22.75
Further the following statutory dues have not been deposited on account
of dispute :
Nature of dues Forum where Amount Remarks
dispute is pending (in Lacs)
Excise Duty & Penalty High Court at Kolkata 373.09 The Company
has paid
100.00 Lacs
against this
demand in the
year 2004-05.
Excise Duty & Penalty Custom, Excise and 452.40 -
Service Tax
Appellate Tribunal
Excise Duty & Penalty Commissioner-Appeals 13.08 -
Income Tax Commissioner of 101.04 -
Income
Tax - Appeal
(x) The accumulated losses of the Company as at the date of the balance
sheet continues to be more than its net worth. The company has
incurred cash losses during the current financial year as well as in
the immediately preceding financial period. A reference was filed and
registered with the Board of Industrial and Financial Reconstruction
(BIFR) during the preceding financial period due to erosion of net
worth of the company.
(xi) In our opinion and according to the information and explanations
given to us, and on the basis of our examination of the books of
accounts and related records, we observed delays in the repayment of
the principal sums and interest thereon to banks / financial
institutions. However as explained in Note 24 annexed to the financial
statements, out of the total borrowings, accounts of the Company, as on
the date of the Balance Sheet under review, the accounts of working
capital bankers continues to be classified as a Non Performing Asset.
Further the Company does not have any Debentures.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, hence the question of maintenance of records thereof does
not arise.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to it.
(xiv) The Company is not dealing in Shares and Securities in the normal
course of its business and has not made any investment during the year
under report.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
(xvi) During the year under audit as verified from the relevant books
and records of the Company, it was ascertained that no fresh term loan
has been obtained by the Company except the conversion of part of
working capital to Working Capital Term Loan (WCTL) and interest on
such Working Capital Term Loans (WCTL) to Funded Interest Term Loans
(FITL) as per the bilateral restructuring scheme approved by the
majority of the lenders and conversion of External Commercial
Borrowings of Axis Bank into Rupee Term Loan.
(xvii) According to the informati on and explanati ons given to us and
on overall examinati on of the balance sheet of the Company, we are of
the opinion that no funds raised for short term basis have been used
for long term investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures hence the question of
creating securities there against does not arise.
(xx) The Company has not raised any money by way of fresh issues from
the public during the year under review and hence, any disclosure
regarding its end use is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
financial year covered by our audit.
For AGARWAL SANGANERIA & CO.
Chartered Accountants
Firm Registration No. 317224E
P. K. Agarwal
Place : Kolkata Partner
Dated, the 30th day of May, 2014 C. A. Membership No.53496
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Websol Energy
Systems Limited ("the Company"), which comprises the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for nine months ended on that date, 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
nine months ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for nine
months 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 Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that: a. we
have obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books ;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the Directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
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 ThE AUDITORS'' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF WEBSOL ENERGY SYSTEM LIMITED FOR NINE MONTHS ENDED 31st
MARCH, 2013
(i) The Fixed Assets records of the Company are incomplete and are
being currently updated to show full particulars, including
quantitative details and situation thereof. The majority of Fixed
Assets of the Company have been physically verified during the period
by the management and any discrepancies between the book records and
the physical records can be determined on updating of the book records.
During the period under report, the Company has not disposed off any
substantial part of its Fixed Assets and therefore, it does not affect
the going concern assumption.
(ii) The Inventories of the Company consisting of stocks of raw
materials, finished goods, work-in-progress and stores and spare parts
have been physically verified by the management at regular intervals
during the period. The discrepancies between the physical stocks and
book records which were not material have been properly dealt with in
the books of account. The Company is maintaining proper records of the
Inventories. In our opinion, the frequency of physical verification is
reasonable. The procedure of physical verification followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(iii) The Company has, during the period under report not granted
unsecured loan to any party covered under section 301 of the Companies
Act, 1956. The principal balance outstanding at the beginning of the
period, in respect of erstwhile joint venture, was Rs.18.45 Lacs and as
the joint venture was called off during the previous period under
report, the said loan does not come under the purview of section 301 of
the Companies Act, 1956 as on the date of the balance sheet. The
Company has also taken unsecured loans from a company as covered in the
register maintained under section 301 of the Companies Act, 1956. The
balance outstanding at the beginning of the period was Rs. 1,487.73 Lacs
including Rs. 870.23 Lacs in respect of a party which is not covered
under the purview of section 301 of the Companies Act, 1956 during the
period under report and Rs. 617.50 Lacs in respect of the party covered
under the said section. Hence after considering the amount taken of Rs.
164.58 Lacs and amount repaid of Rs. 269.66 Lacs, the balance outstanding
as at the date of the balance sheet was Rs. 512.42 Lacs in respect of the
party covered under section 301 of the Companies Act, 1956. The terms
and conditions of the Loans given and taken by the Company are not
prima facie prejudicial to the interest of the Company. As explained to
us the interest on loans taken and given were not charged due to the
financial condition of the company as well as the party to whom the
loan was given.
(iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, fixed assets and
with regards to sale of goods. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal controls.
(v) According to the information and explanations given to us there are
no contracts or arrangements, as referred to in Section 301 of the
Companies Act, 1956, entered into by the Company, during the period
under report.
(vi) As far as we have been able to ascertain, the Company has not
accepted any deposits from the public, hence the question of complying
with the provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 does not arise.
(vii)The Internal Audit of the company is being carried out by an
external entity, commensurate with the size and nature of its business,
and the internal audit reports are submitted to the management on a
quarterly basis.
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records 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. However we have not
made a detailed examinations of the records
(ix) The Company has made delayed deposits with appropriate authorities
the amount deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues as applicable to it.
(x) The accumulated losses of the Company as at the date of the balance
sheet are more than its net worth and it has incurred losses during the
nine months period covered by audit. The company has also incurred cash
losses in the immediately preceding financial period. As a result of
the erosion of net worth of the company, a reference has been filed
with the Board of Industrial and Financial Reconstruction (BIFR) and
the same has been registered with the said Board during the period
under audit.
(xi) In our opinion and according to the information and explanations
given to us, and on the basis of our examination of the books of
accounts and related records, we observed delays in the repayment of
the principal sums and interest thereon to banks / financial
institutions. However as explained in Note 26 annexed to the financial
statements, three working capital banks viz. Standard Chartered Bank,
Dena Bank and HDFC Bank did not restructure the credit facilities of
the company as approved by the lead bank of the company i.e., Allahabad
Bank under bilateral scheme of restructuring and these banks have
classified the account as a Non Performing Asset. As on the date of the
balance sheet the remaining two working capital banks viz., Allahabad
Bank and Federal Bank have also classified the accounts as a
non-performing asset. Further the Company does not have any Debentures.
(xii)The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
hence the question of maintenance of records thereof does not arise.
(xiii)The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to it.
(xiv) The Company is not dealing in Shares and Securities in the normal
course of its business and has not made any investment during the
period under report. The company has initiated legal steps to recover
the investment in erstwhile Joint Venture situated in Germany for which
proper records have been maintained by the company.
(xv)The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
(xvi During the period under audit as verified from the relevant books
and records of the Company, it was ascertained that no fresh term loan
has been obtained by the Company except the conversion of part of
working capital to Working Capital Term Loan (WCTL) and interest on
such Working Capital Term Loans (WCTL) to Funded Interest Term Loans
(FITL) as per the bilateral restructuring scheme approved by the
majority of the lenders.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised for short term basis have been used for
long term investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures hence the question of
creating securities there against does not arise.
(xx)The Company has not raised any money by way of fresh issues from
the public during the period under review and hence, any disclosure
regarding its end use is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period covered by our audit.
For AGARWAL SANGANERIA & CO.
Chartered Accountants
Firm Registration No. 317224E
Sd/-
(P. K. AGARWAL)
Place: Kolkata Partner
Dated, the 29th day of May, 2013 C. A. MEMBERSHIP NO.53496
Jun 30, 2012
1. We have audited the attached Balance Sheet of WEBSOL ENERGY SYSTEM
LIMITED ("the Company") as at 30th June , 2012, and the Statement of
Profit and Loss and Cash Flow Statement for the period ended on that
date together with the Notes thereon 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 auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
financial statements are free of material mis- statements. An audit
includes examining, on a test basis, evidences 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 (Auditor's Report) Order, 2003 ("the Order")
issued by the Central Government under section 227(4A) of the Companies
Act, 1956 and on the basis of such checks of the books and the records
of the Company as we considered appropriate and as per the information
and explanations given to us during the course of our Audit, we set out
in the Annexure a statement on the matters specified in Paragraphs 4
and 5 of the said Order.
4.Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for our audit;
ii.In our opinion, proper books of account have been kept by the
Company as required by law, so far as appears from our examination of
those books;
iii.The Balance Sheet of the said Company as at 30th June 2012 signed
by us under reference to this report, the annexed Statement of Profit
and Loss and the Cash Flow Statement are in agreement with the books of
account;
iv.In our opinion, these accounts have been prepared in compliance with
the applicable Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956 except as otherwise mentioned in the accounts
and Notes thereon;
v.On the basis of the information and explanations given by the
management, we report that none of the Directors is disqualified as on
the date of the Balance Sheet under report from being appointed as a
Director in terms of Section 274(1)(g) of the Companies Act,1956;
vi.In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Statement of
Profit and Loss and the Cash Flow Statement subject to and read with
Notes thereon and attached thereto, give in the prescribed manner, the
information so required by the Companies Act, 1956 and give a true and
fair view:
a. in the case of Balance Sheet of the state of affairs of the Company
as at 30th June 2012;
b. in the case of the Statement of Profit & Loss of the Loss of the
Company for the period ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows of the
Company for the period ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF WEBSOL ENERGY SYSTEM LIMITED FOR THE PERIOD ENDED 30th JUNE,
2012
(i) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. The
company has a regular programme of physical verification of its fixed
assets by which all fixed assets are verified in phased manner. In
accordance with the policy, the majority of Fixed Assets of the Company
have been physically verified during the period by the management and
as informed to us no material discrepancies were noticed on
verification between the book records and the physical records. During
the period under report, the Company has not disposed off any
substantial part of its Fixed Assets and therefore, don't affect the
going concern assumption.
(ii) The Inventories of the Company consisting of stocks of raw
materials, finished goods, work-in-progress and stores and spares parts
have been physically verified by the management at regular intervals
during the period. The discrepancies between the physical stocks and
book records which were not material have been properly dealt with in
the books of account. The Company is maintaining proper records of the
Inventories. In our opinion, the frequency of physical verification is
reasonable. The procedure of physical verification followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(iii) The Company has, during the period under report, granted
unsecured loan to one party covered under section 301 of the Companies
Act, 1956. The balance outstanding at the beginning of the year was Nil
and after considering the amount given of 18.45 lacs and interest
accrued of Rs.2.35 lacs, the balance outstanding as at the date of the
balance sheet was Rs.20.80 lacs. The Company has also taken unsecured
loans from four companies as covered in the register maintained under
section 301 of the Companies Act, 1956. The balance outstanding at the
beginning of the year was Rs.2,503.73 lacs and after considering the
amount taken of 1,496.62 lacs and amount repaid Rs.2,904.49 lacs and
interest Rs.391.87 lacs (net of tax deducted at source), the balance
outstanding as at the date of the balance sheet was 1,487.73 Lacs. The
rate of interest and other terms and conditions of the Loans given and
taken by the Company are not prima facie prejudicial to the interest of
the Company. The receipt and payment of principal and interest has not
been regular as per terms of the loan given and taken. In case of loan
given, the company has initiated legal course. In case of loan taken,
the company could not be regular in payment because of financial
constraints.
(iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, fixed assets and
with regards to sale of goods. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal controls.
(v) According to the information and explanations given to us, we are
of the opinion that the particulars of 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. There are
no contracts or arrangements to in Section 301 of the Companies Act,
1956 that exceeds the value of Rs.5.00 lacs during the year except those
stated in para (iii) above.
(vi) As far as we have been able to ascertain, the Company has not
accepted any deposits from the public, hence the question of complying
with the provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 does not arise.
(vii) The Company had a competent team of staff and officials for
conducting internal audit commensurate with the size and nature of its
business. With effect from 1st April 2012 an external entity has been
appointed as the Internal Auditor of the company and their first report
is yet to be submitted
(viii) We have broadly reviewed the books of account maintained by the
company pursuant to the rules prescribed by the Central Government for
maintenance of cost records 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. However we have not
made a detailed examinations of the records
(ix) The Company has made delayed deposits with appropriate authorities
the amount deducted/accrued in the books of accounts in respect of
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and any other statutory dues as applicable to it. As
per the information and explanations given to us the following
undisputed amounts in respect of the abovementioned statutory dues were
outstanding as at 30th June, 2012 for a period of more than six months
from the date they became payable:
Name of Statute Nature of Dues Amount (Rs.
In Lacs)
Delhi Value Added Tax 2004 Delhi Value Added Tax 12.85
Income Tax Act, 1961 Income Tax 39.46
Finance Act, 1994 Service Tax 6.64
WB VAT Act, 2003 Works Contract Tax 0.65
Income Tax Act, 1961 Tax Deducted at Source 17.70
Further the following statutory dues have not been deposited on account
of dispute:
Nature of dues Forum where dispute
is pending Amount
(Rs. in Lacs) Remarks
Excise Duty &
Penalty High Court at Kolkata 216.55 The Company has
paid Rs.100.00
Lacs against
this demand
Excise Duty &
Penalty Custom, Excise and
Service Tax 478.34 -
Appellate Tribunal
Excise Duty &
Penalty Commissioner -Appeals 51.05 -
Sales Tax Assistant Commissioner 222.44 -
Income Tax Commissioner of
Income Tax -Appeal 61.57 -
(x) The accumulated losses of the Company as at the date of the balance
sheet are more than its net worth and it has incurred cash losses
during the fifteen months period covered by audit. However the company
did not incur any cash losses in the immediately preceding financial
period.
(xi) In our opinion and according to the information and explanations
given to us, and on the basis of our examination of the books of
accounts and related records, we observed following delays in the
repayment of the principal sums and interest thereon to banks /
financial institutions:
Name of the Lender Period of
Default in
days Minimum Amount
of Default
(Rs. In Lacs) Maximum Amount
of Default
(Rs. In Lacs)
Standard Chartered Bank 1 to 253 10.00 1265.70
Dena Bank 46 to 334 0.98 793.38
HDFC Bank 29 to 182 0.21 13.62
EXIM Bank 1 to 204 19.10 307.20
However as explained in Note 26 annexed to the financial statements,
the lead bank of the company i.e., Allahabad Bank has approved the
restructuring scheme of the borrowings of the company on 27th March
2012 under bilateral scheme of restructuring, but the above mentioned
Banks have not yet restructured the loans as on the date of the Balance
Sheet. Further the Company does not have any Debentures.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities, hence the question of maintenance of records thereof does
not arise.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to it.
(xiv) The Company is not dealing in Shares and Securities in the normal
course of its business but has investment in a Joint Venture situated
in Germany during the period under report. Proper records have been
maintained by the company for such investments and as reported timely
entries have been made therein. The Joint Venture has been called off
prior to the date of the balance sheet and proportionate consolidation
has not been felt appropriate by the management.
(xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
(xvi) During the period under audit as verified from the relevant books
and records of the Company, it was ascertained that the term loan
obtained by the Company was applied for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised for short term basis have been used for
long term investment.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures hence the question of
creating securities there against does not arise.
(xx) The Company has not raised any money by way of fresh issues from
the public during the period under review and hence, any disclosure
regarding its end use is not applicable.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period covered by our audit.
For AGARWAL SANGANERIA & CO.
Chartered Accountants
Firm Registration No. 317224E
P. K. AGARWAL
KOLKATA Partner
Dated, the 29th day of August, 2012 C. A. MEMBERSHIP No.53496
Mar 31, 2011
We have audited the attached Balance sheet of WEBSOL ENERGY SYSTEMS
LIMITED as at 31 st March, 2011, the Profit and Loss Account and also
the Cash Flow Statement for nine months period ended on that date
together with the notes and schedules thereon annexed thereto. These
financial statements are the responsibility of the-Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether financial statements
are free of material mis-statements. An audit includes examining, on a
test basis, evidences supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion. With these
comments we report that:
1. The Balance Sheet of the said Company as at 31 st March, 2011
signed by us under reference to this report and the annexed Profit and
Loss Account and the Cash Flow Statement are in agreement with the
books of account.
2. Further to our comments in the Annexure referred to in Paragraph 3
below :
2.1 In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit and Loss
Account and the Cash Flow Statement subject to and read with notes
thereon and attached thereto, give in the prescribed manner, the
information so required by the Companies Act, 1956 and give a true and
fair view :
a. in the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2011;
b. in the case of the Profit & Loss Account of the Profit of the
Company for nine months period ended on that date ; and
c. in the case of the Cash Flow Statement, of the cash flow of the
Company for nine months period ended on that date.
2.2 We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for our audit. In our
opinion, proper books of account have been kept by the Company as
required by law, so far as appears from our examination of those books.
2.2 In our opinion, these accounts have been prepared in compliance
with the applicable Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 except as otherwise mentioned in the
accounts and notes thereon.
2.3 On the basis of the information and explanations given by the
management, we report that none of the Directors is disqualified as on
the date of the Balance Sheet under report from being appointed as a
Director in terms of Section 274(1 )(g) of the Companies Act, 1956.
3. As required by Companies (Auditor's Report) Order, 2003 issued by
the Central Government under section 227(4A) of the Companies Act, 1956
and on the basis of such checks of the books and the records of the
Company as we considered appropriate and as per the information and
explanations given to us during the course of our Audit, we set out in
the Annexure a statement on the matters specified in Paragraphs 4 and 5
of the said Order.
Annexure to Auditor's Report
Annexure referred to in paragraph 3 of the report of even date of the
Auditors to the members of Websol Energy Systems Limited for the period
ended 31st March, 2011.
i) The Fixed Assets records of the Company are incomplete and are being
currently updated to show full particulars including quantitative
details and situation thereof. The Fixed Assets of the Company have
been physically verified during the year by the management and any
discrepancies between the book records and the physical inventory can
be determined on updating of the book records. During the year under
report, the Company has not disposed off any substantial part of its
Fixed Assets.
ii) The Inventories of the Company consisting of stocks of finished
goods, work-in-progress, stores, spare parts and raw materials have
been physically verified by the management at regular intervals during
the period. The discrepancies between the physical stocks and book
stocks which were not material have been properly dealt with in the
books of account. The Company is maintaining proper records of the
Inventories. In our opinion, the frequency of physical verification is
reasonable. The procedure of physical verification followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
iii) The Company has not granted secured or unsecured loan to any of
the party covered under section 301 of the Companies Act, 1956. The
Company, during the period under report, had taken unsecured loans from
four companies as covered in the register maintained under section 301
of the Companies Act, 1956. The balance outstanding at the beginning of
the year was NIL and after considering the amount taken of Rs.3605.00
lacs and amount repaid Rs.1160.00 lacs and interest Rs.58.73 lacs (net
of Tax deducted at source), the balancing outstanding as at the date of
the balance sheet was Rs.2503.73 Lacs. The rate of interest and other
terms and conditions of the Loan taken by the Company are not prima
facie prejudicial to the interest of the Company. The payment of
principle and interest was also regular as per terms of the loan taken.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, fixed assets, and
with regards to sale of goods. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal controls.
v) According to the information and explanations given to us, we are of
the opinion that the Company has not entered into any transaction for
the sale, purchase or supply of any goods, materials or services that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956. The contracts and arrangements as per Section
299 required to be entered in the register under Section 301 have been
properly entered.
vi) As far as we have been able to ascertain, the Company has not
accepted any deposits from the public, hence the question of complying
with the provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 does not arise.
vii) The Company has a competent team of staffs and officials for
conducting internal audit in place. It was observed that all
transactions are carried out under the personal supervision of senior
officials and/or the Managing Director of the Company.
viii) The rules regarding the maintenance of cost records are not
applicable to the Company.
ix) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other statutory dues as
applicable to it. As per the information and explanations given to us
no undisputed amount in respect of the abovementioned statutory dues
were outstanding as at 31st March, 2011 for a period of more than six
months from the date they became payable and there are no such
statutory dues which have not been deposited on account of any dispute
except the following :
Act Nature of Forum where Amount
dues dispute is (Rs.in Lacs)
pending
Central Excise Excise Duty High Court at 216.55
Act, 1944 Kolkata
Central Excise Excise Duty & Custom, Excise and 114.25
Act, 1944 Penalty Service Tax Appel
late Tribunal
Central Excise Excise Duty & Custom, Excise and 6.55
Act, 1944 Penalty Service Tax Appel
late Tribunal
Central Excise Excise Duty & Custom, Excise and 357.54
Act, 1944 Penalty Service Tax Appel
late Tribunal
Central Excise Excise Duty & Commissioner - 7.04
Act, 1944 Penalty Appeals
Central Excise Excise Duty & Commissioner - 30.73
Act, 1944 Penalty Appeals
Central Excise Excise Duty & Commissioner - 10.85
Act, 1944 Penalty Appeals
Central Excise Excise Duty Commissioner - 20.08
Act, 1944 Appeals
Act Remarks
Central Excise The Company has paid
Act, 1944 Rs.100.00 Lacs
against this demand
Central Excise -
Act, 1944
Central Excise -
Act, 1944
Central Excise -
Act, 1944
Central Excise -
Act, 1944
Central Excise -
Act, 1944
Central Excise -
Act, 1944
Central Excise -
Act, 1944
x) The Company does not have accumulated losses as on the date of the
Balance Sheet under report and has not incurred any cash losses during
the nine months period covered by audit as well as in the immediately
preceding financial year.
xi) The Company does neither have any dues payable to financial
institutions nor does it have any debentures. In respect of dues of
Term Loan taken from Bank, the Company has not defaulted on scheduled
repayment thereof during the year under report.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
hence the question of maintenance of records therefor does not arise.
xiii) The Company is not a chit fund or a nidhi/mutual fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to it.
xiv) The Company is not dealing in Shares and Securities in the normal
course of its business and substantial part of investment held by it in
the unquoted Equity Shares of certain Companies and also ordinary
shares of erstwhile Joint Venture Company at Singapore has been sold by
the Company during the period. Proper records have been maintained by
the Company for such disposals and as reported timely entries have been
made therein. The remaining shares have been held by the company in its
own name as on the date of the balance sheet under consideration.
xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
xvi) During the period under audit as verified from the relevant books
and records of the Company, it was ascertained that the term loan
obtained by the Company was applied for the purpose for which the loans
were obtained.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised for short term basis have been used for
long term investment.
xviii) The Company has made preferential allotment of shares to a
Promoter Group Company being a Company covered in the Register
maintained under section 301 of the Act and in our opinion the price at
which shares have been issued was not prejudicial to the interest of
the Company.
xix) The Company has not issued any debentures, hence, the question of
creating securities there against does not arise.
xx) The Company has not raised any money by way of fresh issues from
the public during the period under review and hence, any disclosure
regarding its end use is not applicable.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period covered by our audit
For Agarwal Sanganeria & Co.
Chartered Accountants
Firm Regn. No. 317224E
P. K. Agarwal
Partner
C. A. Membership No. 53496
Kolkata
Dated, the 28th day of May,2011.
Jun 30, 2010
We have audited the attached Balance sheet of WEBSOL ENERGY SYSTEMS
LIMITED as at 30th June, 2010, the Profit and Loss Account and also the
Cash Flow Statement for the fifteen months period ended on that date
together with the notes and schedules thereon 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether financial statements
are free of material mis- statements. An audit includes examining, on a
test basis, evidences supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion. With these
comments we report that:
1. The Balance Sheet of the said Company as at 30th June, 2010 signed
by us under reference to this report and the annexed Profit and Loss
Account and the Cash Flow Statement are in agreement with the books of
account.
2. Further to our comments in the Annexure referred to in Paragraph 3
below :
2.1 In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit and Loss
Account and the Cash Flow Statement subject to and read with notes
thereon and attached thereto, give in the prescribed manner, the
information required by the Companies Act, 1956 and give a true and
fair view :
a) in the case of Balance Sheet of the state of affairs of the Company
as at 30th June 2010;
b) in the case of the Profit & Loss Account of the Loss of the Company
for the fifteen months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flow of the
Company for the fifteen months period ended on that date.
2.2 We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for our audit. In our
opinion, proper books of account have been kept by the Company as
required by law, so far as appears from our examination of those books.
2.3 In our opinion, these accounts have been prepared in compliance
with the applicable Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 except as otherwise mentioned in the
accounts and notes thereon.
2.4 On the basis of the information and explanations given by the
management, we report that none of the Directors is disqualified as on
the date of the Balance Sheet under report from being appointed as a
Director in terms of Section 274(1)(g) of the Companies Act, 1956.
3. As required by Companies (Auditors Report) Order, 2003 issued by
the Central Government under section 227(4A) of the Companies Act, 1956
and on the basis of such checks of the books and the records of the
Company as we considered appropriate and as per the information and
explanations given to us during the course of our Audit, we set out in
the Annexure a statement on the matters specified in Paragraphs 4 and 5
of the said Order.
Annexure referred to in paragraph 3 of the report of even date of the
Auditors to the members of Websol Energy Systems Limited for the period
ended 30th June, 2010
i) The Fixed Assets records of the Company are incomplete and are being
currently updated to show full particulars including quantitative
details and situation thereof. The Fixed Assets of the Company have
been physically verified during the year by the management and any
discrepancies between the book records and the physical inventory can
be determined on updating of the book records. During the year under
report, the Company has not disposed off any substantial part of its
Fixed Assets.
ii) The Inventories of the Company consisting of stocks of finished
goods, work-in-progress, stores, spare parts and raw materials have
been physically verified by the management at regular intervals during
the period. The discrepancies between the physical stocks and book
stocks which were not material have been properly dealt with in the
books of account. The Company is maintaining proper records of the
Inventories. In our opinion, the frequency of physical verification is
reasonable. The procedure of physical verification followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
iii) The Company has not granted secured or unsecured loan to any party
covered under section 301 of the Companies Act, 1956. The Company had
taken unsecured loans from Companies covered in the register maintained
under section 301 of the Companies Act, 1956 which were repaid during
the period and hence their was no balance outstanding as at the date of
the Balance Sheet. The rate of interest and other terms and conditions
of the Loan taken by the Company are not prima facie prejudicial to the
interest of the Company. The payment of principle and interest was also
regular as per terms of the loan taken.
iv) In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, fixed assets, and
with regards to sale of goods. During the course of our audit, we have
not come across any continuing failure to correct major weaknesses in
internal controls.
v) According to the information and explanations given to us, we are of
the opinion that the Company has not entered into any transaction for
the sale, purchase or supply of any goods, materials or services that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956. Hence, the question of their being entered
into the said register does not arise.
vi) As far as we have been able to ascertain, the Company has not
accepted any deposits from the public, hence the question of complying
with the provisions of sections 58A and 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 does not arise.
vii) The Company does not have a formal internal audit system. However,
it was observed that all transactions are carried out under the
personal supervision of senior officials and/or the Managing Director
of the Company.
viii) The rules regarding the maintenance of cost records are not
applicable to the Company.
ix) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other statutory dues as
applicable to it. As per the information and explanations given to us
no undisputed amount in respect of the abovementioned statutory dues
were outstanding as at 30th June, 2010 for a period of more than six
months from the date they became payable and there are no such
statutory dues which have not been deposited on account of any dispute
except the following :
Forum where
Nature of dispute is Amount
Act dues pending (Rs. in Lacs) Remarks
Central Excise Excise Duty High Court 216.55 The Company
Act, 1944 at Kolkata has paid
Rs. 100.00 Lacs
against this
demand
Central Excise Excise Duty & Custom, Excise
Act, 1944 Penalty and Service Tax
Appellate
Tribunal 114.24
Central Excise Excise Duty & Custom, Excise
Act, 1944 Penalty and Service Tax
Appellate
Tribunal 6.55
Central Excise Excise Duty & Custom, Excise
Act, 1944 Penalty and Service Tax
Appellate
Tribunal 357.54
Central Excise Excise Duty & Commissioner -
Act, 1944 Penalty Appeals 7.05
Central Excise Excise Duty & Commissioner -
Act, 1944 Penalty Appeals 30.73
Central Excise Excise Duty & Commissioner -
Act, 1944 Penalty Appeals 7.04
x) The Company does not have accumulated losses as on the date of the
Balance Sheet under report and has not incurred any cash losses during
the fifteen months period covered by audit as well as during the
immediately preceding financial year.
xi) The Company does neither have any dues payable to financial
institutions nor does it have any debentures. In respect of dues of
Term Loan taken from Bank, the Company has not defaulted on scheduled
repayment thereof during the year under report.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
hence the question of maintenance of records therefor does not arise.
xiii) The Company is not a chit fund or a nidhi/mutual fund/society.
Therefore, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to it.
xiv) The Company is not dealing in Shares and Securities, but has an
investment in unquoted Equity shares of certain Companies and also
ordinary shares of erstwhile Joint Venture Company situated at
Singapore. Proper records have been maintained by the Company for such
acquisitions and as reported timely entries have been made therein. The
said shares have been held by the in its own name as on the date the
balance sheet under consideration.
xv) The Company has not given any guarantee for loans taken by others
from bank or financial institutions, hence the question of terms and
conditions whereof being prejudicial to the interest of the Company
does not arise.
xvi) During the period under audit, the Company has not raised any new
term loan from a Bank.
xvii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we are of the
opinion that no funds raised for short term basis have been used for
long term investment.
xviii) The Company has made preferential allotment of shares to a
Promoter Group Company being a Company covered in the Register
maintained under section 301 of the Act and also to a Strategic
Investor and in our opinion the price at which shares have been issued
was not prejudicial to the interest of the Company.
xix) The Company has not issued any debentures, hence, the question of
creating securities there against does not arise.
xx) The Company has raised money by way of Qualified Institutional
Placement of fresh Equity Shares during the period under report. The
end use of proceeds thereof has been disclosed by the management in
schedule of notes on accounts (Schedule 21-note no.10). Such use has
been verified by us with reference to the books of accounts of the
Company.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period covered by our audit.
For Agarwal Sanganeria & Co.
Chartered Accountants
P. K. Agarwal
Partner
Kolkata C.A. Membership No-53496
Dated: 30th August, 2010 Firm Regn. No. 317224E
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