| We have audited the accompanying standalone financial statements of
Alfa Transformers Limited('the Company'), which comprise the balance
sheet as at 31 March 2015, the statement of profit and loss and the
cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities selection and application of appropriate accounting
policies making judgments and estimates that are reasonable and prudent
and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act,2013, we give in the
Annexure a statement on the matters specified in the paragraphs 3 and 4
of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that :
(a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) the balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account and returns;
(d) in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 25(8) to
the financial statements;
ii. the Company did not have any on long-term contracts including
derivative contracts for which there were any material foreseeable
losses; and
iii. there were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that :
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(ii) (a) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion, the Company has maintained proper records of
inventory and no material discrepancies were noticed on physical
verification.
(iii) (a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013. Accordingly, the provisions of clause
3(iii)(b)&(c) of the Order are not applicable to the Company and hence
not commented upon.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination, we have neither
come across nor have we been informed of any instance of major weakness
in the aforesaid internal control systems.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the cost records maintained by the
Company, including the records prescribed by the Central Government
under Section 148(1) of the Companies Act, for the products of the
Company, and are of the opinion that prima facie the prescribed cost
records have been maintained and are being made up. We have, however,
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees' state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, value
added tax, excise duty, cess and other statutory dues have generally
been regularly deposited during the year by the Company with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of provident
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, duty of customs, value added tax, excise duty, cess and
other statutory dues were in arrears as at 31 March 2015 for a period
of more than six months from the date they became payable except Rs
27645/-& Rs 5028/- pertaining to entry tax & sales tax respectively.
(b) As at March 31, 2015 details of disputed statutory dues of
provident fund, investor education and protection fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax,
customs duty, value added tax, excise duty, cess and other statutory
dues are as follows:
Name of the Statute Period Dispute (in brief)
Income Tax Act,1961 1994-95 Deduction U/S 80 I
disallowed in assessment
Income Tax Act,1961 1995-96 Deduction U/S 80 I
disallowed in assessment
Income Tax Act,1961 2006-07 Disallowance of Deposit/
advances written off, loss on
discarded assets.
Income Tax Act,1961 2009-10 Disallowance of expenses
(Appeals)
Income Tax Act,1961 2010-11 Disallowance of advances
written off, loss on discarded
assets Disallowance of
expenses
Central Sales Tax,1956 1989-90 Disallowance of CST
exemption
Central Sales Tax,1956 1990-91 Disallowance of CST
exemption Bhubaneswar
Central Sales Tax,1956 1991-92 Disallowance of CST
exemption
The Orissa Sales 1996-97 Disallowance of Price
Tax Act, 1947 Variation Bill
The Orissa Sales 2003-04 Wanting Form IV & XXXIV
Tax Act, 1947
The Orissa Entry 2004-05 Demand on Purchase of
Tax Act, 1999 Raw Materials
The Orissa Entry 2005-06 Demand on Purchase of
Tax Act, 1999 Raw Materials
Name of the Statute Disputed Forum where disputeis
Amount Rs. pending
Income Tax Act,1961 2,77,227 High Court of Orissa
Income Tax Act,1961 2,71,209 High Court of Orissa
Income Tax Act,1961 11,90,020 Income Tax Appellate
Tribunal, Cuttack
Income Tax Act,1961 23,860 Commissioner of Income Tax
(Appeals)
Income Tax Act,1961 5,960 Commissioner of Income Tax
(Appeals)
Central Sales Tax,1956 2,51,039 High Court of Orissa
Central Sales Tax,1956 1,08,000 Commissioner of Sales Tax,
Bhubaneswar
Central Sales Tax,1956 15,50,740 Sales Tax Tribunal
The Orissa Sales 73,008 Sales Tax Tribunal
Tax Act, 1947
The Orissa Sales 6,62,384 Assistant Commissioner of
Tax Act, 1947 Sales Tax
The Orissa Entry 2,77,791 Sales Tax Tribunal, Cuttack
Tax Act, 1999
The Orissa Entry 87,06,714 Orissa High Court, Cuttack
Tax Act, 1999
(c) According to the information and explanations given to us there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any financial
institution, bank or to debenture holders during the year.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xii) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the Management.
For A.K.SABAT & CO
Chartered Accountants
Sd/-
(A.K.BHUYAN)
PARTNER
Firm's registration number: 321012E
Partner Membership number: 062684
Bhubaneswar
29th May 2015 |