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Endurance Technologies Ltd.

BSE: 540153 Sector: Auto
NSE: ENDURANCE ISIN Code: INE913H01037
BSE LIVE 15:40 | 18 Aug 985.20 -15.95
(-1.59%)
OPEN

995.40

HIGH

996.85

LOW

966.00

NSE 15:40 | 18 Aug 985.90 -17.20
(-1.71%)
OPEN

1000.00

HIGH

1002.95

LOW

964.35

OPEN 995.40
PREVIOUS CLOSE 1001.15
VOLUME 8328
52-Week high 1024.95
52-Week low 518.25
P/E 59.24
Mkt Cap.(Rs cr) 13,858
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 995.40
CLOSE 1001.15
VOLUME 8328
52-Week high 1024.95
52-Week low 518.25
P/E 59.24
Mkt Cap.(Rs cr) 13,858
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Endurance Technologies Ltd. (ENDURANCE) - Auditors Report

Company auditors report

To

The Members of

Endurance Technologies Limited

(Formerly known as Endurance Technologies Private Limited)

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of EnduranceTechnologies Limited (formerly known as Endurance Technologies Private Limited) ("theCompany") which comprise the Balance Sheet as at March 31 2017 the Statement ofProfit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of the significantaccounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS 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 ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2017 and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable that: a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit. b) In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books. c) The BalanceSheet the Statement of Profit and Loss including Other Comprehensive Income the CashFlow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the relevant books of account. d) In our opinion the aforesaid standaloneInd AS financial statements comply with the Indian Accounting Standards prescribed underSection 133 of the Act. e) On the basis of the written representations received from thedirectors as on March 31 2017 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2017 from being appointed as a director in termsof Section 164(2) of the Act. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting. g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its standalone Ind AS financialstatements – Refer Note 28 (a) to the financial statements. ii. The Company has madeprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts. iii.There were no amounts which were required to be transferred to the Investor Education and

Protection Fund by the company. iv. The Company has provided requisite disclosures inthe standalone Ind AS financial statements as regards its holding and dealings inSpecified Bank Notes as defined in the Notification S.O. 3407(E) dated November 8 2016 ofthe Ministry of Finance during the period from November 8 2016 to December 30 2016.Based on audit procedures performed and the representations provided to us by themanagement we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management. Refer Note- 9 to thestandalone Ind AS financial statements.

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 theOrder.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No.117366W/W - 100018)
Hemant M. Joshi
Place: Mumbai Partner
Date: 10th May 2017 (Membership No.038019)

Annexure "A" to The Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of EnduranceTechnologies Limited (formerly known as Endurance Technologies Private Limited) ("theCompany") as of March 31 2017 in conjunction with our audit of the standalone Ind ASfinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe 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 givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No.117366W/W - 100018)
Hemant M. Joshi
Place: Mumbai Partner
Date: 10th May 2017 (Membership No.038019)

Annexure "B" to The Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) Some of the fixed assets werephysically verified during the year by the Management in accordance with the programme ofverification which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/ transfer deed/ conveyancedeed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date.

(ii) As explained to us the inventories (except for stock lying with third parties forwhich confirmations have been received) were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noted on physicalverification. (iii) According to the information and explanations given to us the Companyhas not granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. (iv) The Company has not granted any loans made investments or provided guaranteesand hence reporting under clause 3 (iv) of the Order is not applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit as per directives issued by Reserve Bank of India and in terms of theprovisions of Section 73 to 76 of the Act. (vi) The maintenance of cost records has beenspecified by the Central Government under Section 148(1) of the Act in respect ofproduction of specified goods. We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amendedprescribed by the Central Government under sub-section (1) of Section 148 of the Act andof the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax cess and other material statutory duesapplicable to it to the appropriate authorities. (b) There were no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income tax Sales TaxService Tax Customs Duty Excise Duty Value Added Tax cess and other material statutorydues in arrears as at March 31 2017 for a period of more than six months from the datethey became payable. (c) Details of dues of the Income-tax Sales Tax Service TaxCustoms Duty Excise Duty and Value Added Tax which have not been deposited as on March31 2017 on account of disputes are given below:

` in million
Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount (Net of paid under protest) Amount paid under protest
Service Tax Assistant / Deputy / Additional / Joint 2004-2017 6.63 0.01
Central Excise Laws Commissioner of Central Excise & Customs CESTAT 2008-2014 0.73 0.10
Commissioner of Central Excise and Customs 2010-2016 7.40 0.26
(Appeals)
Excise Duty Assistant / Deputy / Additional / Joint
Commissioner of Central Excise & Customs 2003-2015 14.26 -

 

` in million
Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount (Net of paid under protest) Amount paid under protest
CESTAT 2003-2009 23.68 0.38
Commissioner of Central Excise and Customs 2011-2014 7.06 0.32
(Appeals)
High Court 2001-2002 0.13 -
Supreme Court 2001-2009 1.30 1.00
2004-2005
Sales Tax Sales Deputy Commissioner of Sales Tax (Appeals) 2012-2013 5.88 -
Laws Tax Income Joint Commissioner of Sales Tax (Appeals) 2005-2012 8.84 0.11
Income Tax Tax Commissioner of Income Tax (Appeals) 2010-2015 65.02 0.60
Act 1961
Income Tax Appellate Tribunal 2008-2012 70.46 7.07

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks financialinstitutions and government. The Company has not issued any debentures. (ix) In ouropinion and according to the information and explanations given to us the term loans havebeen applied by the Company during the year for the purposes for which they were raised.The Company did the initial public offer during the year by way of an offer for sale bythe existing equity shareholders which did not result in any monies raised by the Company.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year. (xi) In our opinion andaccording to the information and explanations given to us the Company has paid managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe Order is not applicable. (xiii) In our opinion and according to the information andexplanations given to us the Company is in compliance with Section 188 and 177 of theAct where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirector or director of subsidiary companies or persons connected with him and henceprovisions of Section 192 of the Act are not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm's Registration No.117366W/W - 100018)
Hemant M. Joshi
Place: Mumbai Partner
Date: 10th May 2017 (Membership No.038019)