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High Energy Batteries (India) Ltd.

BSE: 504176 Sector: Engineering
NSE: N.A. ISIN Code: INE783E01015
BSE LIVE 15:08 | 23 Oct 332.20 15.80
(4.99%)
OPEN

332.20

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332.20

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332.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 332.20
PREVIOUS CLOSE 316.40
VOLUME 667
52-Week high 415.20
52-Week low 171.00
P/E 17.17
Mkt Cap.(Rs cr) 59
Buy Price 332.20
Buy Qty 318.00
Sell Price 0.00
Sell Qty 0.00
OPEN 332.20
CLOSE 316.40
VOLUME 667
52-Week high 415.20
52-Week low 171.00
P/E 17.17
Mkt Cap.(Rs cr) 59
Buy Price 332.20
Buy Qty 318.00
Sell Price 0.00
Sell Qty 0.00

High Energy Batteries (India) Ltd. (HIGHENERGYBAT) - Auditors Report

Company auditors report

To the Members of HIGH ENERGY BATTERIES (INDIA) LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying Standalone Financial Statements of HIGH ENERGYBATTERIES (INDIA) LIMITED(‘the Company’) which comprise the Balance Sheet as at31 March 2017 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of 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 preparationand presentation of these Standalone Financial Statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

AUDITOR’S 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 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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers 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 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:-

a) In the case of the Balance sheet of the state of affairs of the company as at 31stMarch 2017.

b) In the case of Statement of Profit and loss of the Profit for the year ended on thatdate and

c) In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.

EMPHASIS OF MATTER:

We draw attention to:

i) Note No 28 regarding recognition of Deferred Tax Asset (Net) of Rs.818.86 lakhsrecognised so far including reversal of deferred tax asset of Rs.12.77 lakhs for thecurrent year.The Management is of the view that the company will have adequate taxableincome in the future and there exists virtual certainty for taking benefit of Deferred TaxAsset.

ii) Note No 44 regarding non receipt of confirmation of balances/pending reconciliationin respect of certain debtors/creditors and advance from customers. Adjustments if anywhich may arise upon receipt of confirmation/ completion of reconciliation will be dealtwith in the year of receipt of confirmation/ completion of reconciliation.

Our opinion is not qualified in respect of the above matter.

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) 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 the written representations received from the Directors as on 31March 2017 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2017 from being appointed as a Director in terms of Section164(2) of the Act; and

(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".

(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 No. 19 to the financial statements;

(ii) the Company did not have any long-term contracts including derivative contractsthat requires a provision for material foreseeable losses in these financial statements;and

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

(iv)The Company has provided adequate disclosures in the financial statements as toholdings as well as dealing in Specified Bank notes during the period from November 82016 to December 30 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountsmaintained by the Company and as produced to us by the management – Refer Note 42.

2 As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Subsection (11) ofSection 143 of the Act we give in the Annexure "B" a statement on the mattersspecified in the Paragraphs 3 and 4 of the Order to the extent applicable.

For M/s. R. SUBRAMANIAN AND COMPANY LLP

Chartered Accountants Firm Reg. No. 004137S/S200041

K JAYASHANKAR
Partner
Membership No. 14156
Chennai
May 29 2017

ANNEXURE "A" to The Independent Auditor’s Report of even date on theStandalone Financial Statements of High Energy Batteries (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 High EnergyBatteries (India) Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat 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 assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the Auditor’s judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 :

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and Directors of the company; and

(iii)provide reasonable assurance regarding prevention or timelydetection ofunauthorised acquisition use or disposition of the company’s assets that could havea 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 2017 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 M/s. R. SUBRAMANIAN AND COMPANY LLP

Chartered Accountants Firm Reg. No. 004137S/S200041

K JAYASHANKAR
Partner
Membership No. 14156
Chennai
May 29 2017

Annexure "B" to the Independent Auditors’ Report of even date on theStandalone Financial Statements of High Energy Batteries (India) Limited.

The Annexure referred to in Paragraph 2 under the heading "Report on Other Legaland Regulatory Requirements" of our Report of even date:

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

(b) These fixed assets have been physically verified by the Management at reasonableintervals and no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

(ii) The Management has conducted physical verification of inventory at reasonableintervals and no material discrepancies were noticed.

(iii) The Company has not granted any loans to any party covered in the registermaintained under section 189 of the Companies Act 2013.

(iv) The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of investments made by the Company. The company has notprovided any loans or guarantee or security to any company covered under Section 185.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has prescribed maintenance of Cost Records under Subsection(1) of Section 148 of the Companies Act 2013 and such accounts and records have been madeand maintained.

(vii) According to the information and explanations given to us in respect of Statutorydues :

(a) The Company is regular in depositing undisputed statutory dues including ProvidentFund Income Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value AddedTax Cess and any other Statutory Dues to the appropriate authorities and there were noundisputed amounts payable which were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable. However there are somedelays in remitting certain undisputed statutory dues during the year.

b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs or Dutyof Excise or Value Added Tax have not been deposited as on 31st March 2017 onaccount of disputes are given below :

Name of the Statute Tamilnadu VAT Act
Nature of Dues VAT
Amount Rs in Lakhs `84.65 Lakhs (`15 Lakhs paid as per court order)
Forum where the dispute is pending Period to which the dues belong Madurai Bench Madras High Court Financial Years 2007 – 08 to 2010 – 11
Name of the Statute Income Tax Act 1961
Nature of Dues Income Tax
Amount Rs in Lakhs ` 21.91 Lakhs
Forum where the dispute is pending CIT Appeals
Assessment Year
Period to which the dues belong 2000 – 2001 2004 – 2005 & 2007 – 2008

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(x) As per the information and explanations made available to us the Company has notnoticed any fraud by the Company or any fraud on the Company by its Officers or employeesor reported during the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) The Company is not a Nidhi Company and hence complying with the provisions of theNidhi Rules 2014 does not arise.

(xiii) All transactions with the related parties are in compliance with Sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. as required by the applicable Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company has not entered into any non-cash transactions with Directors orpersons connected with him.

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

For M/s. R. SUBRAMANIAN AND COMPANY LLP

Chartered Accountants Firm Reg. No. 004137S/S200041

K JAYASHANKAR
Partner
Membership No. 14156
Chennai
May 29 2017