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Honda Siel Power Products Ltd.

BSE: 522064 Sector: Engineering
NSE: HONDAPOWER ISIN Code: INE634A01018
BSE LIVE 15:40 | 23 Aug 1432.50 13.10
(0.92%)
OPEN

1420.05

HIGH

1437.35

LOW

1420.05

NSE 15:41 | 23 Aug 1428.00 0.40
(0.03%)
OPEN

1425.05

HIGH

1444.85

LOW

1418.80

OPEN 1420.05
PREVIOUS CLOSE 1419.40
VOLUME 433
52-Week high 1750.00
52-Week low 1233.00
P/E 25.48
Mkt Cap.(Rs cr) 1,453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1420.05
CLOSE 1419.40
VOLUME 433
52-Week high 1750.00
52-Week low 1233.00
P/E 25.48
Mkt Cap.(Rs cr) 1,453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Honda Siel Power Products Ltd. (HONDAPOWER) - Auditors Report

Company auditors report

To the Members of Honda Siel Power Products Limited Report on the Financial Statements

We have audited the accompanying financial statements of Honda Siel Power ProductsLimited ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

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 specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 presentationofthe 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 31March 2017 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 the Companies (Auditor's Report) Order 2016 (‘Order') issuedby the Central Government of India in terms of sub-section

(11) of section 143 ofthe Act we give in "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the said 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 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 specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directorsnone of the directors is disqualifiedas on 31 March 2017 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"; 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 30 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.

iv. The Company has provided requisite disclosures in the financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8 November to30 December 2016. Based on audit procedures performed by us and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management. Refer Note 49 to thefinancial statements.

For BSR&Co.LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Vikram Advani
Place : New Delhi Partner
Date : 15 May 2017 Membership No.: 091765

Annexure A to the Independent Auditor's Report of even date on the financial statementsof Honda Siel Power Products Limited

The Annexure A referred to in our Independent Auditor's Report to the members of theCompany on the financial statements for the year ended

31 March 2017 we report that:

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

(b) As explained to us the Company has a regular programme of physical verification ofits fixed assets in a phased manner over a period of three years. In accordance with thisprogramme certain fixed assets were physically verified by the Company during the currentyear. In our opinion this periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its fixed assets. The discrepanciesnoticed on such verification were not material and have been properly adjusted in thebooks of account. For assets lying with third parties at the year-end writtenconfirmations have been obtained 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 except materials-in-transit and stock lying with third parties hasbeen physically verified by the management during the year. In our opinion the frequencyof such verification is reasonable. The discrepancies noticed on such verification werenot material and have been properly adjusted in the books of account. For stock lying withthird parties as at year end written confirmations have been obtained by the Company.

(iii) According to the information and explanation given to us we are of the opinionthat there are no companies firms limited liability partnerships or other partiescovered in the register required to be maintained under section 189 of the Act.Accordingly paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanation given to us the Company has notgiven any loans or made any investments or provided any guarantee or security asspecified under Section 185 and 186 of the Act. Accordingly paragraph 3(iv) of the Orderis not applicable.

(v) The Company has not accepted any deposits covered under Section 73 to 76 or anyother provisions of the Act and the rules framed thereunder.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records undersub section (1) of section 148 of the Act in respect of its products and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the records.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts

deducted/ accrued in the books of account in respect of undisputed statutory duesincluding Provident Fund Employees' State Insurance Income tax Sales tax Service taxduty of customs duty of excise Value added tax and other material statutory dues havebeen regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income tax Sales taxService tax duty of customs duty of excise Value added tax and other statutory dueswere in arrears as at 31st March 2017 for a period of more than six months fromthe date they became payable.

(b) According to the information and explanations given to us there are no dues ofService tax which have not been deposited with the appropriate authorities on account ofany dispute. Further according to the information and explanations given to us except asstated below there are no dues of Income tax Sales tax duty of excise duty of customsand Value added tax which have not been deposited by the Company on account of disputes:

(Amount in ' lakhs)

Name of the Statute Nature of dues Amount

disputed

Amount deposited under protest Period to which the amount relates (Financial Year) Forum where dispute is pending
Income-tax Act 1961 Income tax 56.89 20.00 1995-1996 Commissioner of Income tax (Appeals)
Income tax 30.90 - 2004-2005 Commissioner of Income Tax (Appeals)
Income tax 1612.00 - 2011-2012 Commissioner of Income tax (Appeals)
Income tax 1340.00 218.00 2012-2013 Commissioner of Income tax (Appeals)
Various Sales Tax Sales tax 0.72 0.72 1995-1996 Assistant Commissioner
Acts Sales tax 0.27 0.27 2005-2006 Joint Commissioner (Appeals)
Sales tax 3.55 0.89 1999-2000 High Court
Sales tax 21.12 - 2000-2001 WBCT Appellate & revision board
Sales tax 5.23 1.57 2000-2001 Sales Tax Tribunal
Sales tax 1.74 0.43 2001-2002 Sales Tax Tribunal
Sales tax 0.52 - 2001-2002 Additional Commissioner (Appeals)
Sales tax 0.15 - 2002-2003 Deputy Commissioner (Appeals)
Name of the Statute Nature of dues Amount

disputed

Amount deposited under protest Period to which the amount relates (Financial Year) Forum where dispute is pending
Various Sales Tax Sales tax 1.19 - 2003-2004 Deputy Commissioner (Appeals)
Acts Sales tax 5.96 - 2004-2005 Joint Commissioner (Appeals)
Sales tax 4.67 1.48 2007-2008 Deputy Commissioner (Appeal).
Sales tax 1.78 0.18 2007-2008 The Appellate Authority
Sales tax 1.93 0.71 2008-2009 Deputy Commissioner (Appeal)
Sales tax 22.83 - 2009-2010 Deputy Commissioner (Appeals)
Sales tax 0.74 - 2012-2013 Deputy Commissioner (Appeals)
Sales tax 32.77 16.38 2015-2016 Deputy Commissioner (Appeals)
Sales tax 14.03 7.02 2015-2016 Deputy Commissioner (Appeals)
Central Excise Act 1944 Excise duty 1201.14 - July 2000 to December 2002 Customs Excise Service Tax Appellate Tribunal
Excise duty 2.47 0.35 December 2003 to March 2004 Customs Excise Service Tax Appellate Tribunal
Excise duty 181.36 - May 2003 to Feb 2004 Supreme Court
Customs Act 1962 Customs duty 49.67 49.67 2011-2014 CESTAT
Customs duty 7.11 7.11 2012-2014 Commissioner Of Customs (Appeals)
Customs duty 22.76 22.76 2014-2015 CESTAT
Customs duty 1.36 1.36 2015-2016 Commissioner Of Customs (Appeals)
Customs duty 89.33 89.33 2014-2015 Commissioner Of Customs (Appeals)

The above amounts include interest and penalty wherever indicated in the demand order.

(viii) The Company did not have any loans or borrowings from any financialinstitutions banks government or dues to debenture holders during the year. Thusparagraph 3(viii) of the Order is not applicable.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3 (ix) of the Order isnot applicable.

(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during theyear.

(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) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly paragraph 3(xii) of the Order 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 Act where applicable and the details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given 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. Accordingly paragraph 3(xiv) of the Order is not applicable.

(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 any 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.

For BSR&Co.LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Vikram Advani
Place : New Delhi Partner
Date : 15 May 2017 Membership No.: 091765

Annexure - B to the Independent Auditor's Report of even date on the financialstatements of Honda Siel Power Products Limited Report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of Honda SielPower Products Limited ("the Company") as of 31 March 2017 in conjunction withour 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's 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 systemoverfinancial 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 overfinancialreporting 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 overfinancialreporting 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 overfinancial reporting and such internal financial controlsoverfinancial reporting were operating effectively as at 31st March 2017 basedon the internal control overfinancial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

ForBSR&Co. LLP
Chartered Accountants
Firm Registration No.: 101248W/W-100022
Vikram Advani
Place : New Delhi Partner
Date : 15 May 2017 Membership No.: 091765