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Eon Electric Ltd.

BSE: 532658 Sector: Engineering
NSE: EON ISIN Code: INE076H01025
BSE LIVE 15:40 | 15 Dec 115.00 0.80
(0.70%)
OPEN

109.50

HIGH

116.70

LOW

109.50

NSE 15:31 | 15 Dec 114.55 0.40
(0.35%)
OPEN

115.00

HIGH

116.90

LOW

112.50

OPEN 109.50
PREVIOUS CLOSE 114.20
VOLUME 8700
52-Week high 140.40
52-Week low 55.15
P/E 68.86
Mkt Cap.(Rs cr) 194
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 109.50
CLOSE 114.20
VOLUME 8700
52-Week high 140.40
52-Week low 55.15
P/E 68.86
Mkt Cap.(Rs cr) 194
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eon Electric Ltd. (EON) - Auditors Report

Company auditors report

To The Members of Eon Electric Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Eon ElectricLimited ("the Company") which comprise the Balance Sheet as at March 312017the Statement of Profit and Loss 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 theauditor's 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. 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 March 312017 its profit 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 2016 ("the Order")issued by the Central Government of India in terms of sub- section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure I a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

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 the law have been kept bythe 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 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 theCompanies (Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on March312017 taken on record by the Board of Directors none of the director is disqualified ason March 312017 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 II; and

(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) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 32(a) to the financial statements.

(ii) the Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) there were no amounts which were required to be transferred to Investor Educationand Protection Fund by the Company.

(iv) the Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company - Refer Note 43 to the standalone financialstatements.

Rajesh Sethi
Partner
M. No. 085669
For and on behalf of
JC Bhalla & Co.
Place: New Delhi Chartered Accountants
Dated: May 24 2017 Firm Regn. No: 001111N

Annexure I to Independent Auditor's Report

(Referred to in Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our report of even date on the financial statements for theyear ended on March 312017 of Eon Electric Ltd.)

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of all fixed assets.

(b) The fixed assets have been physically verified by the management at the year-end.We are informed that no material discrepancies have been noticed by the management on suchverification as compared with the record of fixed assets maintained by the Company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventory (excluding stocks lying with third parties) has been physicallyverified by the management during the year. In respect of inventories lying with the thirdparties these have been substantially confirmed by them. In our opinion frequency ofverification is reasonable. The discrepancies noticed on verification between the physicalstock and the book records were not material and have been properly dealt with in thebooks of account.

(iii) According to the information and explanations given to us and in our opinion theCompany has not granted any loans secured or unsecured to companies firms limitedLiability partnerships or other parties covered in register maintained under section 189of the Companies Act 2013. Accordingly clauses (iii) (a) (iii) (b) and (iii) (c) ofparagraph 3 of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

(iv) According to the information and explanations given to us and in our opinion theCompany has not advanced any loan investment guarantee or security to any person asspecified under sections 185 and 186 of the Companies Act 2013. Accordingly clause (iv)of paragraph 3 of the Companies (Auditor's Report) Order 2016 is not applicable to theCompany.

(v) In our opinion and according to the information and explanation given to us theCompany has not accepted deposits from the public during the year within the meaning ofSection 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rulesframed there under.

(vi) On the basis of the records produced we are of the opinion that prima facie thecost accounting records prescribed by the Central Government under section 148(1) of theCompanies Act 2013 have been maintained by the Company. However we are not required toand have not carried out any detailed examination of such records.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand other statutory dues applicable to it and there are no undisputed amounts payable inrespect of the aforesaid dues outstanding as at March 312017 for a period of more thansix months from the date they became payable.

(b) According to the information and explanations given to us the particulars ofdisputed dues of duty of excise and sales tax aggregating to Rs.53568841/- and Rs.5374917/- as at March 312017 which have not been deposited on account of disputedmatters are as follows:

Nature of Dues Demand in Dispute (Rs.) Amount Deposited (Rs.) Period to which amount relates Forum where pending
Excise Duty Cases
Excise Duty including penalty 1810652 515000 August 1998 to December 1998 Central Excise and Service Tax Appellant Tribunal New Delhi (CESTAT)
Excise Duty including penalty 10450866 2500000 2007-2008 Central Excise and Service Tax Appellant Tribunal New Delhi (CESTAT)
Excise Duty including penalty 39484604 - May-04 Central Excise and Service Tax Appellant Tribunal New Delhi (CESTAT)
Penalty 1822719 182272 July 2008 to September 2008 Central Excise and Service Tax Appellant Tribunal Allahabad (CESTAT)
TOTAL 53568841 3197272

 

Nature of Dues Demand in Dispute (Rs.) Amount Deposited (Rs.) Period to which amount relates Forum where pending
Sales Tax / Vat Cases
Tamil Nadu Value Added Tax including penalty 5374917 806702 2006-07 2007-08 2008-09 2009-10 & 2010-11 Appellate Deputy Commissioner of Commercial Taxes Chennai
TOTAL 5374917 806702

Appeals filed by Central Excise Department as at March 31 2017

Nature of Dues Demand in Dispute (Rs.) Amount Deposited (Rs.) Period to which amount relates Forum where pending
Excise Duty including penalty 2065676 - December 2007 to September 2008 Central Excise and Service Tax Appellant Tribunal New Delhi(CESTAT)
Service Tax including education cess 119921 - July 2004 to March 2007 Central Excise and Service Tax Appellant Tribunal New Delhi(CESTAT)
TOTAL 2185597 -

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to a financial institution bank and government. The Company has nooutstanding dues to debenture holders.

(ix) According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments). The Company has raised term loans during the year and were applied for thepurposes for which they were raised.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 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. Accordingly clause (xii) of paragraph 3 of the Companies(Auditor's Report) Order 2016 is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has made preferential allotment ofconvertible equity warrants during the year. The requirements of Section 42 of theCompanies Act 2013 have been complied with and the amounts raised have been used for thepurposes for which the funds were raised.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly clause (xv) ofparagraph 3 of the Companies (Auditor's Report) Order 2016 is not applicable.

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

Rajesh Sethi
Partner
M. No. 085669
For and on behalf of
JC Bhalla & Co.
Place: New Delhi Chartered Accountants
Dated: May 24 2017 Firm Regn. No: 001111N