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Energy Development Company Ltd.

BSE: 532219 Sector: Infrastructure
NSE: ENERGYDEV ISIN Code: INE306C01019
BSE LIVE 15:40 | 15 Dec 27.30 -1.05
(-3.70%)
OPEN

28.10

HIGH

28.70

LOW

27.05

NSE 15:58 | 15 Dec 27.10 -1.30
(-4.58%)
OPEN

28.70

HIGH

28.70

LOW

26.90

OPEN 28.10
PREVIOUS CLOSE 28.35
VOLUME 94481
52-Week high 83.85
52-Week low 14.35
P/E 59.35
Mkt Cap.(Rs cr) 130
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.10
CLOSE 28.35
VOLUME 94481
52-Week high 83.85
52-Week low 14.35
P/E 59.35
Mkt Cap.(Rs cr) 130
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Energy Development Company Ltd. (ENERGYDEV) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

ENERGY DEVELOPMENT COMPANY LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Energy DevelopmentCompany Limited ("the Company") which comprise the Balance Sheet as at March31 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules2014 ("the Rules"). This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate 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.

Auditors' 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 inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' 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 circumstance. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Opinion

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 31st March 2016 its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note No. 12(b) of the financial statements regarding investment ofRs. 5864.55 lacs as on 31st March 2016 (' 1465.95 lacs as on 31st March 2015) insubsidiaries which are involved in setting up hydel power plants at various locations.The Company has entered into agreements for disposal of 76% of the investments in thesesubsidiaries at cost to another strategic investor which are to be implemented by 30thSeptember 2016. Pending this no diminution in value of these investments has beenconsidered necessary by the management.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and according to the information and explanations given to us and also on thebasis of such checks as we considered appropriate we give in the "Annexure-A" astatement on the matters specified in paragraphs 3 and 4 of the Order.

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 purpose 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.

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 theRules.

e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure-B".

g) 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. Pending litigations (other than those already recognised in the financialstatements) having material impact on the financial position of the Company have beendisclosed in the financial statements as required in terms of relevant accountingstandards and provisions of the Act [Note No. 26(a)].

ii. As explained to us the Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts [Note No. 29(b)].

iii. During the year the amounts which were required to be transferred to the InvestorEduction and Protection Fund have been transferred by the Company within the due date.

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No. 301051E
Sd/- H K Verma
Place : Kolkata Partner
Dated : 30th May 2016 Membership No. 055104

"ANNEXURE-A" TO AUDITORS' REPORT referred to in our report of even date

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management during the year whichin our opinion is reasonable having regard to the size of the Company and nature of itsassets. No material discrepancies in respect of the assets verified during the year werenoticed.

(c) According to information and explanations given to us the title deeds of immovableproperty are held in the name of the Company.

ii) The inventory has been physically verified by the management during the year. Inour opinion and according to the information and explanations given to us the frequencyof verification is reasonable. As far as ascertained discrepancies noticed on physicalverification of inventory were not material as compared to the book records and these havebeen properly dealt within the books of account.

iii) According to information and explanations given to us the Company has givenunsecured loans to companies listed in the register maintained under Section 189 of theAct.

(a) As informed to us the terms and conditions of such loans are not prejudicial tothe Company's interest.

(b) According to the information and explanations given to us the principal amount duefor repayment and interest thereon has been regularly received.

(c) As informed to us having regard to terms and conditions of the loan as mentionedabove there is no overdue amount outstanding in respect of such loan and interestthereon.

iv) According to the information and explanations given to us the Company has givenloans and guarantee for loan taken by a subsidiary from banks or financial institutionswhich are in accordance with the provisions of Section 185 and 186 of the Act and therules made thereunder.

v) The Company has not accepted any deposits from the public and accordingly theprovisions of Section 73 to 76 or any other relevant provisions of the Act are notapplicable.

vi) We have broadly reviewed the cost records and accounts prescribed by the CentralGovernment under Section 148(1) of the Act and are of the opinion that prima-facie suchrecords have been made and maintained by the Company. However we have not carried out anydetailed examination of such accounts and records.

vii) (a) According to the information and explanations given to us except in respectof tax deducted at source the Company is generally regular in depositing with theappropriate authorities undisputed statutory dues including Provident Fund Employee'sState Insurance Income Tax Sales Tax Service Tax Customs Duty Excise Duty ValueAdded Tax Cess and other statutory dues applicable to it. According to the informationand explanations given to us there are no undisputed amounts payable in respect ofaforesaid dues for a period of more than six months from the date they become payableexcept Rs. 989047/- in respect of tax deducted at source.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Income tax Sales Tax Service Tax CustomsDuty Excise Duty and Value Added Tax which have not been deposited on account of disputeexcept as given below :

Statute Nature of Tax Forum where Dispute is Pending Amount (Rs.) Period to which amount relates
The Income Tax Act 1961 Income Tax CIT (Appeals) 35113330 FY 2010-11 and 2011-12
The West Bengal Value Joint Commissioner 2252013 FY 2012-13
Added Tax Rules 2005 Sales Tax Revision Board 9381687 FY 2010-11 and 2011-12

viii) According to the information and explanations given to us the Company has notdefaulted in repayment of borrowings from banks. The Company has no loans or borrowingsfrom financial institutions government or debenture holders during the year. Accordinglythe provisions of Clause 3(viii) of the Order are not applicable to the Company.

ix) In our opinion and according to the information and explanations given to us termloans have been utilised for the purposes for which they were raised. The Company has notraised any amount by way of public offer.

x) During the course of our examinations of the books of accounts carried out inaccordance with the generally accepted auditing practices in India we have neither comeacross any incidence of fraud on or by the Company nor have we been informed of any suchcase by the management.

xi) According to the information and explanations given to us the managerialremuneration paid or provided during the year was in accordance with provisions of Section197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and accordingly the provision of Clause 3(xii) of theOrder is not applicable to the Company.

xiii) According to the information and explanations given to us the Company is incompliance with Section 188 and 177 of the Act where applicable for all transactionswith the related parties and the details of related party transactions have been disclosedin the financial statements as required by the applicable accounting standards.

xiv) During the year the Company has made preferential allotment of fully paid upequity shares and complied with the requirements of section 42 of the Act with respect tosuch allotment. The amounts raised have been used for the purposes for which they wereraised.

xv) According to the information and explanations given to us and based on ourexamination of the records during the year the Company has not entered into any non-cashtransactions with directors or persons connected with the directors and accordingly theprovisions of Clause 3(xv) of the Order are not applicable to the Company.

xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934 andaccordingly the provision of Clause 3(xvi) of the Order is not applicable to the Company.

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No. 301051E
Sd/- H K Verma
Place : Kolkata Partner
Dated : 30th May 2016 Membership No. 055104

"ANNEXURE-B" TD AUDITORS' REPORT referred to in our report of even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of EnergyDevelopment Company Limited ("the Company") as at March 31 2016 in conjunctionwith our audit of the financial 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgment 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No. 301051E
Sd/- H K Verma
Place : Kolkata Partner
Dated : 30th May 2016 Membership No. 055104