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EPC Industrie Ltd.

BSE: 523754 Sector: Industrials
NSE: N.A. ISIN Code: INE215D01010
BSE LIVE 15:41 | 21 Sep 176.15 -2.25
(-1.26%)
OPEN

180.25

HIGH

180.25

LOW

175.35

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 180.25
PREVIOUS CLOSE 178.40
VOLUME 39627
52-Week high 215.00
52-Week low 122.00
P/E 47.48
Mkt Cap.(Rs cr) 487
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 180.25
CLOSE 178.40
VOLUME 39627
52-Week high 215.00
52-Week low 122.00
P/E 47.48
Mkt Cap.(Rs cr) 487
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

EPC Industrie Ltd. (EPCINDS) - Auditors Report

Company auditors report

TO THE MEMBERS OF EPC INDUSTRIE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of EPC Industrie Limited("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the 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 prescribedunder Section 133 of the Act as applicable.

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.

Auditors’ 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 and the Order under Section 143(11) ofthe Act.

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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 theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers the internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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) I n 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 financial statements comply with the AccountingStandards prescribed under Section 133 of the Act as applicable.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164(2) of the Act.

(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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Auditors’ 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 in accordance with the generally accepted accountingprinciples -

Refer Note 27.1 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in Annexure "B" a statement on the matters specified in paragraphs 3 and 4of the Order.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm’s Registration No. 117364W)
Ketan Vora
Partner
Nashik 27th April 2016 Membership Number: 100459

ANNEXURE "A" TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date to the members of EPC IndustrieLimited on the financial statements for the year ended 31st March 2016)

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 EPCIndustrie Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon 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 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") 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 auditors’ 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 31st March 2016 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 Accountants ofIndia.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm’s Registration No. 117364W)
Ketan Vora
Partner
Nashik 27th April 2016 Membership Number: 100459

ANNEXURE "B" TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and

Regulatory Requirements’ section of our report of even date to the members of EPCIndustrie Limited on the financial statements for the year ended 31st March2016)

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

(b) The Company has a programme of verification of fixed assets to cover all the itemsin a phased manner over a period of three years which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. Pursuant to theprogram certain fixed assets were physically verified by the Management during the year.According to the information and explanations given to us no material discrepancies werenoticed 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 buildings which are freehold are held in the name of the Company as at thebalance sheet date. Immovable properties of land and buildings whose title deeds have beenpledged as security for loans availed from banks are held in the name of the Company basedon the confirmations directly received by us from the bank. In respect of immovableproperties of land that have been taken on lease and disclosed as fixed asset in thefinancial statements the lease agreements are in the name of the Company where theCompany is the lessee in the agreement.

2. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

3. The Company has not granted any loans secured or unsecured to companies firmsand limited liability partnerships or other parties covered in the register maintainedunder Section 189 of the Act.

4. The Company has not granted any loans made investments or provided guarantees towhich the provisions of Sections 185 and 186 of the Act apply and hence reporting underclause (iv) of the Order is not applicable.

5. According to the information and explanations given to us the Company has notaccepted any deposit during the year. In respect of unclaimed deposits the Company hascomplied with the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the Companies (Acceptance of Deposits) Rules 2014 as amended. According to theinformation and explanations given to us no order has been passed by the Company

Law Board or the National Company Law Tribunal or the Reserve Bank of India or anyCourt or any other Tribunal.

6. The maintenance of cost records has been prescribed by the Central Government underSection 148(1) of the Act. 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 Section 148(1) of the Act and are of theopinion that prima facie the prescribed cost records have been made and maintained Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

7. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees’ state insurance income- tax sales-tax servicetax customs duty excise duty value added tax cess and other material statutory duesapplicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of provident fundemployees’ state insurance income-tax sales tax service tax customs duty exciseduty value added tax cess and other material statutory dues in arrears as at 31st March2016 for a period of more than six months from the date they became payable.

(c) Details of dues of income-tax sales-tax service tax customs duty excise dutyand value added tax which have not been deposited as on 31st March 2016 onaccount of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is pending Period to which the amount relates Amount unpaid (Rupees)
Central Excise Act 1944 Excise Duty Commissioner of Central Excise (Appeals) FY 1996-97 3576000
Commissioner of Central Excise FY 1997-98 812000
Superintendent of Central Excise FY 1998-99 3556000
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) FY 1992-93 2366859
Maharashtra Value Added Tax 2002 Value Added Tax Dy. Commissioner of Sales Tax (Appeals) FY 2008-09 228870
Dy. Commissioner of Sales Tax (Appeals) FY 2009-10 514682

8. In our opinion and according to the information and explanations given to us theCompany has not

defaulted in repayment of loans or borrowings to banks and government. The Company hasnot borrowed from financial institutions and has not issued any debentures.

9. In our opinion and according to the information and explanations given to us moneyraised by way of further public offer (rights offer) in the earlier years have beenapplied by the Company during the year for the purposes as revised with appropriateapprovals other than temporary deployment pending application of proceeds. The Companyhas not raised moneys by way of public offer of debt instruments or term loans.

10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company by its officers oremployees has been noticed or reported during the year other than that disclosed in Note34 to the financial statements.

11. In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements etc. as required by the applicable accountingstandards.

14. 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 (xiv) of the Order is not applicable to the Company.

15. 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 itsdirectors or persons connected with him and hence provisions of Section 192 of the Actare not applicable.

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

For Deloitte Haskins & Sells
Chartered Accountants
(Firm’s Registration No. 117364W)
Ketan Vora
Partner
Nashik 27th April 2016 Membership Number: 100459

CEO AND CFO CERTIFICATION

We the undersigned in our respective capacities as Chief Executive Officer and ChiefFinancial Officer to the best of our knowledge and belief certify that:

A) We have reviewed the financial statements and the cash flow statement for the yearended 31st March 2016 and that to the best of our knowledge and belief Weconfirm that:

1) these statements do not contain any materially untrue statement or omit any materialfact or contain statements that might be misleading;

2) these statements together present a true and fair view of the Company’s affairsand are in compliance with existing accounting standards applicable laws and regulations.

B) To the best of our knowledge and belief no transactions entered into by the Companyduring the year ended 31st March 2016 are fraudulent illegal or violative of theCompany’s code of conduct/ethics.

C) We accept responsibility for establishing and maintaining internal controls forfinancial reporting and that we have evaluated the effectiveness of the internal controlsystems of the Company pertaining to financial reporting and we have disclosed to theAuditors and the Audit Committee deficiencies in the design or operation of internalcontrols over financial reporting if any of which we are aware and the steps we havetaken or propose to take to rectify these deficiencies.

D) We have indicated to the Auditors and the Audit Committee that:

1) there has not been any significant change in internal control over financialreporting during the year under reference;

2) there has not been any significant change in the accounting policies during the yearrequiring the disclosure in the notes to the financial statements; and

3) We are not aware of any instance during the year of significant fraud withinvolvement therein of the Management or any employee having a significant role in theCompany’s internal control system over financial reporting.

Mayur Bumb Sanjeev Mohoni
Chief Financial Officer Chief Executive Officer
Nashik 27th April 2016