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HPL Electric & Power Ltd.

BSE: 540136 Sector: Engineering
NSE: HPL ISIN Code: INE495S01016
BSE LIVE 15:40 | 22 Nov 128.70 -1.75
(-1.34%)
OPEN

132.00

HIGH

132.00

LOW

128.10

NSE 15:49 | 22 Nov 128.60 -1.85
(-1.42%)
OPEN

131.65

HIGH

131.70

LOW

128.45

OPEN 132.00
PREVIOUS CLOSE 130.45
VOLUME 11341
52-Week high 164.45
52-Week low 74.20
P/E 28.79
Mkt Cap.(Rs cr) 828
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 132.00
CLOSE 130.45
VOLUME 11341
52-Week high 164.45
52-Week low 74.20
P/E 28.79
Mkt Cap.(Rs cr) 828
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HPL Electric & Power Ltd. (HPL) - Auditors Report

Company auditors report

To the Members of

HPL ELECTRIC & POWER LTD.

Report on the Financial Statements

We have audited the accompanying financial statement of HPL ELECTRIC & POWERLTD. (‘the Company') which comprise the balance sheet as at march 31 2017statement of Profit and loss and the Cash Flow Statement for the year then ended and asummary of 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 Accounting Standards specified underSection 133 of the Act as applicable. 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 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 there under and the Order under section 143(11)of the Act.

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 disclosuresin the financial statements.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 March31 2017 and its Profit 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) 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 and Statement of Profit and Loss and the Cash Flow Statement dealtwith 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 written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct; 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"; and

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 litigation on its financialstatements.

ii. The company did not have any long term contract including derivative contract forwhich there were any material foreseeable losses.

iii. There was no amount which was required to be transferred to the Investor Educationand Protection Fund by the Company.

iv. The Company has provided disclosure in its financial statements as to holding aswell as dealing in specified bank notes during the period 8th November 2016 to 30thDecember 2016 and the same are in accordance with the books of accounts maintained by thecompany. Refer note no.50 in the notes to financial statements.

2. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in term of Sub-Section (11) of Section 143 ofthe Act we given in ‘Annexure B' a statement on the matters specified on paragraph 3and 4 of the Order.

For SAHNI MEHRA & CO.
Chartered Accountants
(Registration No. 000609N)
(Ramesh Sahni)
(Proprietor)
Membership No. : 009246
Place: New Delhi
Date: May 22 2017

ANNEXURE ‘A' To The Independent Auditors' Report

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 HPLELECTRIC & POWER LTD. (‘the Company') as of March 31 2017 in conjunctionwith our audit of the financial statement of the company for the year then ended and as onthat date.

Management's Responsibility for the 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 on internal control statedin the Guidance Note on Audit of Internal Financial Controls Over financial Reportingissued by the Institute of Chartered Accountants of India (the ‘Guidance Note').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the act.

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 Standards on Auditing prescribed under Section 143(10) of the Act and theGuidance Notes to the extant applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note required that we comply with the ethical requirements andplan and perform the audit to obtain reasonable assurance about internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 of the auditors' judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statement 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 controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purpose in accordance with generallyaccepted accounting principles. A company's internal financial controls 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 statement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisation of themanagement 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 limitation 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 controlsover financial reporting may become inadequate because of change 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 March 31 2017 based on the internal financialcontrols over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note.

For SAHNI MEHRA & CO.
Chartered Accountants
(Registration No. 000609N)
(Ramesh Sahni)
(Proprietor)
Membership No. : 009246
Place: New Delhi
Date: May 22 2017

ANNEXURE ‘B' To The Independent Auditors' Report

Report on Companies (Auditor's Report) Order 2016 (‘the Order') issued by theCentral Government in terms of Section 143(11) of the Companies Act 2013 (‘the Act')of HPL ELECTRIC & POWER LTD. (‘the Company)

(1) In respect of the Company's fixed assets:

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

b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which on our opinion providesphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the conveyance deed provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the balance sheet date.

(2) As explained to us the inventories were physical verified during the year by themanagement at reasonable intervals and no material discrepancies were noticed on suchverification.

(3) The Company has not granted any loans secured or unsecured to companies firmlimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(5) The company has not accepted any deposits during the year and does not have anyunclaimed deposits as at March 31 2017 and therefore the provision of the clause 3(v) ofthe Order are not applicable to the Company.

(6) We have broadly reviewed the books of accounts maintained by the company in respectof the products where pursuant to the rules made by the Central Government of India themaintenance of cost records have been prescribed under sub-section (1) of Section 148 ofthe Act and are of the opinion that prima-facie the prescribed accounts and records havebeen made and maintained.

(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 Service TaxValue Added Tax duty of Custom duty of Excise Cess and other material statutory duesapplicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Sales tax Service Tax Value Added Tax duty of Customsduty of Excise Cess and other material statutory dues in arrear as at March 31 2017 fora period of more than six months from the date they became payable.

(c) According to the information and explanations given to us by the management andrecords of the Company examined by us the particulars of dues of Income Tax Sales TaxService Tax and Excise Duty as at March 31 2017 which have not been deposited on accountof dispute are given below:

Nature of dues Financial year to which the matter pertains Forum where the Dispute is pending Amount
(Rs. in Lakhs)
Service Tax Service Tax 2007-2008 to 2010-2011 CESTAT New Delhi. 22.83
Service Tax Service Tax 2008-09 CESTAT New Delhi. 132.59
Central Excise Act1944 Excise Duty 2007-2008 CESTAT New Delhi. 10.40
Central Excise Act1944 Excise Duty 2007-2008 CESTAT New Delhi. 45.37
Central Excise Act1944 Excise Duty 2008-2009 Addl. Comm LTU New Delhi. 16.40
Service Tax Service Tax 2012-2013 to 2016-17 Comm. (A) LTU Delhi 2.54
Haryana VAT 2003 Sales Tax 2008-2009 Haryana Tax Tribunal Chandigarh. 25.51
Haryana VAT 2003 Sales Tax 2011-2012 Jt.Comm.(A) Ambala 4.38
Haryana VAT 2003 Sales Tax 2010-2011 Jt.Comm.(A)Rohtak. 17.82
Haryana VAT Sales Tax 2009-2010 Haryana Tax Tribunal Chandigarh. 4.78
Service Tax Service Tax 2011-2012 CESTAT New Delhi. 1.13
Haryana VAT Sales Tax 2011-2012 Haryana Tax Tribunal Rohtak. 18.45
Haryana VAT Sales Tax 2011-2012 Haryana Tax Tribunal Sonepat. 23.19
Central Excise Act1944 Excise Duty 2009-10 to 2015-16 Comm. (A)New Delhi. 84.11
Central Excise Act1944 Excise Duty 2001-02 to 2004-05 CESTAT New Delhi 50.19
Haryana VAT Sales Tax 2012-13 Haryana Tax Tribunal Rohtak 10.06
Haryana VAT Sales Tax 2010-11 Haryana Tax Tribunal Rohtak 49.22
Service Tax Service Tax 2010-11 to 2014-15 CESTAT New Delhi. 163.04
Service Tax Service Tax 2015-16 CESTAT New Delhi. 1.34
Employee ‘s Provident Fund Act 1952 EPF Demand For EPF EPF AppelllateTruibunal New Delhi 8.87
Liability towards banks against receivable by buyouts Liability towards banks Liability towards banks against receivable buyouts Facility Banks 4600.00

(8) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loan or borrowing to banks. The Company does nothave any loans or borrowing from financial institutions or government and has not issuedany debentures.

(9) In our opinion and according to the information and explanations given to us themonies raised by way of IPO have been applied for the purposes for which they wereobtained. Further the Company has not obtained any term loan during the year.

(10) To the best of our knowledge and according to the information and explanations tous no fraud by the Company and no fraud on the Company by its officers or employees hasbeen noticed or reported during the year.

(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 provision of Section 197 read with Schedule V to the Act.

(12) The Company is not a Nidhi Company and hence reporting under clause 3(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 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements 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 debenture and hence reporting underclause 3(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 to its Directors and hence provisions of Section 192 of theact are not applicable.

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

For SAHNI MEHRA & CO.
Chartered Accountants
(Registration No. 000609N)
(Ramesh Sahni)
(Proprietor)
Membership No. : 009246
Place: New Delhi
Date: May 22 2017