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GE Power India Ltd.

BSE: 532309 Sector: Engineering
NSE: GEPIL ISIN Code: INE878A01011
BSE LIVE 15:17 | 18 Oct 653.25 3.75
(0.58%)
OPEN

651.65

HIGH

654.00

LOW

650.00

NSE 15:31 | 18 Oct 653.75 0.75
(0.11%)
OPEN

651.00

HIGH

656.50

LOW

647.70

OPEN 651.65
PREVIOUS CLOSE 649.50
VOLUME 297
52-Week high 746.50
52-Week low 440.50
P/E 46.00
Mkt Cap.(Rs cr) 4,392
Buy Price 649.40
Buy Qty 15.00
Sell Price 652.90
Sell Qty 12.00
OPEN 651.65
CLOSE 649.50
VOLUME 297
52-Week high 746.50
52-Week low 440.50
P/E 46.00
Mkt Cap.(Rs cr) 4,392
Buy Price 649.40
Buy Qty 15.00
Sell Price 652.90
Sell Qty 12.00

GE Power India Ltd. (GEPIL) - Auditors Report

Company auditors report

To the Members of ALSTOM India Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone Financial Statements of ALstom IndiaLimited (the "Company") which comprise the Balance Sheet as at March 312016 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

2. 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 the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. 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.

5. 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 of material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand 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.

7. 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

8. 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 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

9. Without qualifying our opinion we draw attention to note 48 to the financialstatements. As mentioned thereto the Company has realigned the remaining milestonesrelating to project revenue recognition for ongoing contracts.

Accordingly the company now recognizes revenue on the basis of the revised milestonesonly if the same has been achieved. As a result revenue from operations has beenpostponed and for the year is lower by ' 1471.0 million and loss before tax is higher by' 226.4 million. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditors' Report) Order 2016 ("theorder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

11. 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;

(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 written representations received from the directors as at March 312016 taken on record by the Board of Directors none of the directors is disqualified asat 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 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 - Refer Note 35 and 36 to the financial statements.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note 7 39 and 46 to the financial statements.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

For S. N. Dhawan & Co.
Chartered Accountants
Firm Registration No.: 000050N
Vijay dhawan
Place: Noida Partner
Date: May 9 2016 Membership No.: 12565

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 10 of the Independent Auditors' Report of even date to themembers of ALSTOM India

Limited on the standalone financial statements as of and for the year ended March 312016.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and

situation of fixed assets.

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all items over a period of three years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe management during the year and no material discrepancies have been noticed on suchverification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties included in fixed assets asdisclosed in Note 11 to the financial statements are held in the name of the company.

(ii) The inventory (excluding stocks with third parties) has been physically verifiedduring the year by the management. In respect of inventory lying with third parties thesehave substantially been confirmed by them. In our opinion the frequency of verificationis reasonable. Further the discrepancies noticed on physical verification of inventory ascompared to books of account were not material.

(iii) As per the information and records made available to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clause 3 (iii) of the Order are not applicable to theCompany.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Act with respectto the loans and investments made.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of Sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records underSection 148 (1) of the Companies Act 2013 and we are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have however notmade a detailed examination of the records with a view to determine whether they areaccurate or complete.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us

the Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues to theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of outstanding statutory dues were in arrears as atMarch 31 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us and the records of theCompany examined by us there are no dues of duty of customs which have not been depositedon account of any dispute. The particulars of dues of income tax sales tax service taxvalue added tax and duty of excise as at March 31 2016 which have not been deposited onaccount of a dispute are as follows:

Name of statute Nature of dues Amount (' in Million) period to which the amount relates Forum where dispute is pending
Andhra Pradesh General Sales Tax (GST) 1957; Andhra Pradesh Value Added Tax (VAT) 2005 and Central Sales Tax (CST) Act 1956 Works Contract Tax on Inter State Sales 90.1 2005-2008 High Court
Bombay Sales Tax Act 1957 and Central Sales Tax Act 1956 Works Contract Tax on Inter State Sales 10.2 1984-1992 First/ Second appellate authority
Orissa General Sales Tax Act 1947 and Central Sales Tax Act 1956 Works Contract Tax on Inter State Sales 3.6(1) 1984-1997 High Court
Central Excise Act 1944 Excise Duty and Penalty 159.7(2) 1979-2014 CESTAT/ Comm. Appeal
Central Sales Tax Act 1956 Central Sales Tax Penalty 129.1(3) 1993-2014 First/ Second appellate authority
Construction Worker Welfare Cess Act 1996 Labour Cess on Cost of Construction 18.6 2010-2011 Assistant Labour Commissioner
Finance Act 1994 (Service Tax) Service Tax and Penalty 127.2(4) 2005-2012 CESTAT / Tribunal/Comm. Appeal
Jharkhand Value Added Tax Interstate Sales 4.0 2006-2010 Dy. Commissioner Appeal
West Bengal VAT Act Sales Tax 11.4(5) 2012-2013 Taxation Tribunal
Himachal Pradesh VAT Act 2005 Sale In Transit disallowed 58.2 2007-2009 Dy. Excise & Taxation Commissioner Chamba H.P.
Karnataka VAT Act 2003 Statutory Forms Liability 4.5(6) 2007-2008 Second Appellate Authority & Assessing Authority
J&K GST Act 1962 Sales Tax 3.3 2010-2011 Appellate Authority Sales Tax

Excludes amount deposited against demand (1)' 4.47 million. (2'8.75 million. (3)' 33.86 million (4)' 0.75 million. (5'2.50 million. (6)' 4.48 million

(viii) The Company does not have any loans or borrowings from any financialinstitution banks government or debenture holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording 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 given 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 paragraph 3(xii) of the Order is notapplicable.

(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 Act where applicable and details of suchtransactions have been disclosed in note 32 to the financial statements as required by theapplicable accounting standard.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year

(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 him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

For S. N. Dhawan & Co.
Chartered Accountants
Firm Registration No.: 000050N
Vijay Dhawan
Place: Noida Partner
Date: May 9 2016 Membership No.: 12565

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF ALSTOM INDIA LIMITED

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 ALSTOMIndia Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 Companies Act 2013.

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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 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 S. N. Dhawan & Co.
Chartered Accountants
Firm Registration No.:000050N
Vijay dhawan
Place: Noida Partner
Date: May 9 2016 Membership No.: 12565