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India Nippon Electricals Ltd.

BSE: 532240 Sector: Auto
NSE: INDNIPPON ISIN Code: INE092B01017
BSE LIVE 15:40 | 13 Dec 1078.20 -12.45
(-1.14%)
OPEN

1093.35

HIGH

1100.00

LOW

1070.00

NSE 15:31 | 13 Dec 1077.90 -18.55
(-1.69%)
OPEN

1089.00

HIGH

1106.95

LOW

1071.10

OPEN 1093.35
PREVIOUS CLOSE 1090.65
VOLUME 971
52-Week high 1424.80
52-Week low 472.00
P/E 30.46
Mkt Cap.(Rs cr) 1,219
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1093.35
CLOSE 1090.65
VOLUME 971
52-Week high 1424.80
52-Week low 472.00
P/E 30.46
Mkt Cap.(Rs cr) 1,219
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

India Nippon Electricals Ltd. (INDNIPPON) - Auditors Report

Company auditors report

To

The Members of

India Nippon Electricals Limited

Report on the Standalone IndAS Financial Statements

We have audited the accompanying standalone IndAS financial statements of India NipponElectricals Limited (the Company) which comprises the Balance Sheet as at March 31 2017the statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the statement of changes in equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information. (Hereinafter referredto as "the Standalone IndAS financial statements").

Management's Responsibility for the Standalone Ind AS 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 standalone IndAS financial statements that give a true and fair view of thefinancial position profit (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsprescribed under Section 1 33 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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 standalone IndAS financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone IndAS financialstatements based on our audit.

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 therunder.

We conducted our audit of the standalone IndAS financial statements in accordance withthe Standards on Auditing specified under section 1 43(1 0) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone IndAS financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone IndAS financial statements. The procedures selected dependon the auditor's judgement including the assessment of the risks of materialmisstatements of the standalone IndAS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone IndAS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by CompanyDirectors as well as evaluating the overall presentation of the standalone IndASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone IndAS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone IndAS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the IndAS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive incomeits cash flows and the changes in the equity for theyear ended on that date.

Report on other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 201 3 we give in the Annexure-A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.

As required by section 1 43(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 purpose 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 Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof 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 31 stMarch 2017 taken on record by the board of directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Sec164(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-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 opinionto 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 financial positionin its standalone IndAS financial statements - Refer Note : 39 to the Standalone IndASfinancial statements disclosing Contingent Liabilities;

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts; 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 requisite disclosures in its Standalone IndAS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the company. Refer Note: 44 to the Standalone IndAS financialstatement

For BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No.: 000511S
Place of signature : Chennai (P S Kumar)
Date of signature : 18th May 2017 Partner
Membership Number:15590

Annexure-A referred to in paragraph 1 of our report of even date.

The provisions of the following clauses of Companies (Auditor's Report) Order 2016 arenot applicable to the Company for the year.

a) Clause 3(v) with regard to acceptance of deposits from the public since the Companyhas not accepted any deposits.

b) Clause 3(viii) with regard to default in repayment of dues to a financialinstitution or Bank or Debenture Holders since the Company has not borrowed any amountduring the year.

c) Clause 3(ix) with regard to Money raised by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

d) Clause 3(xii) with regard to Compliance by the Nidhi Company.

e) Clause 3(xiv) with regard to preferential allotment (or) private placement of sharessince the Company has not made any preferential allotment (or) private placement of shares(or) fully (or) partly convertible debentures during the year.

f) Clause 3(xvi) since the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.

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

(b) The Company has a regular programme of physical verification of its fixed assets atreasonable intervals. The fixed assets are physically verified by the external agencywhich in our opinion is reasonable having regard to the size of the group and nature ofits assets . No material discrepancies were noticed on such verification.

(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) (a) The management has conducted physical verification of inventory at reasonableintervals.

(b) The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) On the basis of the examination of the records of the inventory we are of theopinion that the Company is maintaining proper records of inventory. The discrepanciesnoticed on verification between the physical stock and the book records were not materialand have been properly dealt with in the books of accounts.

(iii) The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of The Companies Act2013.

(iv) 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 Companies Act 2013with respect to the loans and investments made.

(v) On the basis of the records we are of the opinion that prima facie cost recordsand accounts specified by the Central Government of India under sub-section (1) of section148 of the Companies Act 2013 have been maintained. However we are not required to andhave not carried out any detailed examination of such accounts and records.

(vi) (a) According to the records of the Company the Company is regular in depositingwith appropriate authorities undisputed statutory dues including Provident Fund EmployeesState Insurance Income Tax Sales Tax Service Tax Duty of Customs Duty of ExciseValue Added Tax cess and other statutory dues.

(b) Based on the audit procedures and on the information and explanations given by themanagement we furnish below the details of dues of Service Tax/Duty of Excise/Local areaDevelopment Tax/Income Tax which have not been deposited on account of disputes.

Statute Nature of dues Period to which relates (Financial Year) Amount due In Rs.Lakhs Forum where dispute is pending
Service tax under Finance Act1994 Non- payment of service tax on commercial training 2012-2015 and 2015-2016 10.08 Customs Excise and Service Tax Appellate Tribunal (CESTAT)
Service tax under Finance Act 1994 Disallowance of Service Tax credit availed. 2005-06 and 2006-07 11.49 Customs Excise and Service Tax Appellate Tribunal (CESTAT)
Service tax under Finance Act 1994 Disallowance of Service Tax Credit availed. 2006-07 0.27 Commissioner of Central Excise (Appeals).
Service tax under Finance Act 1994 Disallowance of Service Tax Credit availed. 2007-08 2012-13 1.50 Office of the Superintendent Central Excise
Local Area Development Tax of Haryana state. Local Area Development Tax Assessment demand 2003-04 and 2004-05 0.41 Joint Excise Taxation Commissioner
Tamil Nadu VAT Act 2006 VAT ineligible credits 2007-08 to 2015-16 193.41 Assistant Commissioner of Commercial Taxes
Central Sales Act 1956 Penalty for issuing C-Forms without inclusion of B- Certificate 2010-11 to 2015-16 1.63 Assistant Commissioner of Commercial Taxes
Income Tax Act 1961 Deduction under Sec 80IB-with respect to Disallowance of Royalty payment Apportionment of R&D Expenditure. 2012-13 64.77 Commissioner of Income Tax (Appeals)

(vii) Based upon the audit procedures performed and information and explanations givenby the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

(viii) Based on our examination of the records of the Company the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Companies Act 2013.

(ix) Based on our examination of the records of the Company transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

(x) Based on our examination of the records of the Company the Company has not enteredinto

non-cash transactions with directors or persons connected with them.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No.: 000511S
Place of signature : Chennai (P S Kumar)
Date of signature : 18th May 2017 Partner
Membership Number:15590

Annexure-B to the Independent Auditors' Report

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 IndiaNippon Electricals Limited ("the Company") as of 31 March 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 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 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 ICAI. 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 auditor's judgment 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 31 March 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 ICAI.

For BRAHMAYYA & CO.
Chartered Accountants
Firm Registration No.: 000511S
Place of signature : Chennai (P S Kumar)
Date of signature : 18th May 2017 Partner
Membership Number:15590