TO THE MEMBERS OF ALFA TRANSFORMERS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Alfa TransformersLimited( the Company ) which comprise the balance sheet as at 31 March 2015 thestatement of profit and loss and the cash flow statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ( the Act ) with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies making judgments andestimates that are reasonable and prudent and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Auditor s Responsibility
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on the auditors judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company s preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company s Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas 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 bythe Central Government of India in terms of sub-section (11) of section 143 of theAct2013 we give in the Annexure a statement on the matters specified in the paragraphs 3and 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 bestof 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 theCompany 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 statementdealt 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 theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
(e) on the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) with respect to the other matters to be included in the Auditor s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition 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 contractsfor which there were any material foreseeable losses; and
iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||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 || |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat :
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification.
In our opinion this periodicity of physical verification is reasonable having regardto the size of the Company and the nature of its assets.
(ii) (a) As explained to us the inventories were physically verified during the yearby the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion the Company has maintained proper records of inventory and nomaterial discrepancies were noticed on physical verification.
(iii) (a) According to information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii)(b)&(c) of the Order are not applicable to the Company andhence not commented upon.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control systems commensurate with the size of the Company andthe nature of its business for the purchase of inventory fixed assets and for the sale ofgoods and services. Further on the basis of our examination we have neither come acrossnor have we been informed of any instance of major weakness in the aforesaid internalcontrol 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 therecords prescribed by the Central Government under Section 148(1) of the Companies Actfor the products of the Company and are of the opinion that prima facie the prescribedcost records have been maintained and are being made up. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees stateinsurance income tax sales tax wealth tax service tax duty of customs value addedtax excise duty cess and other statutory dues have generally been regularly depositedduring the year by the Company with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect ofprovident fund employees state insurance income tax sales tax wealth tax service taxduty of customs value added tax excise duty cess and other statutory dues were inarrears as at 31 March 2015 for a period of more than six months from the date they becamepayable except Rs 27645/-& Rs 5028/- pertaining to entry tax & sales taxrespectively.
(b) As at March 31 2015 details of disputed statutory dues of provident fund investoreducation and protection fund employees state insurance income tax sales tax wealthtax service tax customs duty value added tax excise duty cess and other statutorydues are as follows:
|Name of the Statute ||Period ||Dispute (in brief) ||Disputed Amount Rs. ||Forum where disputeis pending |
|Income Tax Act1961 ||1994-95 ||Deduction U/S 80 I disallowed in assessment ||277227 ||High Court of Orissa |
|Income Tax Act1961 ||1995-96 ||Deduction U/S 80 I disallowed in assessment ||271209 ||High Court of Orissa |
|Income Tax Act1961 ||2006-07 ||Disallowance of Deposit/ advances written off loss on discarded assets. ||1190020 ||Income Tax Appellate Tribunal Cuttack |
|Income Tax Act1961 ||2009-10 ||Disallowance of expenses ||23860 ||Commissioner of Income Tax (Appeals) |
|Income Tax Act1961 ||2010-11 ||Disallowance of advances written off loss on discarded assets Disallowance of expenses ||5960 ||Commissioner of Income Tax (Appeals) |
|Central Sales Tax1956 ||1989-90 ||Disallowance of CST exemption ||251039 ||High Court of Orissa |
|Central Sales Tax1956 ||1990-91 ||Disallowance of CST exemption ||108000 ||Commissioner of Sales Tax Bhubaneswar |
|Central Sales Tax1956 ||1991-92 ||Disallowance of CST exemption ||1550740 ||Sales Tax Tribunal |
|The Orissa Sales Tax Act 1947 ||1996-97 ||Disallowance of Price Variation Bill ||73008 ||Sales Tax Tribunal |
|The Orissa Sales Tax Act 1947 ||2003-04 ||Wanting Form IV & XXXIV ||662384 ||Assistant Commissioner of Sales Tax |
|The Orissa Entry Tax Act 1999 ||2004-05 ||Demand on Purchase of Raw Materials ||277791 ||Sales Tax Tribunal Cuttack |
|The Orissa Entry Tax Act 1999 ||2005-06 ||Demand on Purchase of Raw Materials ||8706714 ||Orissa High Court Cuttack |
(c) According to the information and explanations given to us there were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.
(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year and in the immediatelypreceding financial year.
(ix) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to any financial institution bank or to debenture holdersduring the year.
(x) According to the information and explanations given to us the Company has notgiven 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 theterm loans have been applied for the purposes for which they were obtained.
(xii) Based on the audit procedures performed and the information and explanationsgiven to us we report that no fraud on or by the Company has been noticed or reportedduring 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 || |