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JSW Energy Ltd.

BSE: 533148 Sector: Infrastructure
NSE: JSWENERGY ISIN Code: INE121E01018
BSE LIVE 19:46 | 19 Oct 80.95 -0.15
(-0.18%)
OPEN

82.00

HIGH

82.00

LOW

79.65

NSE 19:44 | 19 Oct 80.70 -0.45
(-0.55%)
OPEN

81.70

HIGH

81.90

LOW

79.50

OPEN 82.00
PREVIOUS CLOSE 81.10
VOLUME 710354
52-Week high 83.25
52-Week low 53.50
P/E 622.69
Mkt Cap.(Rs cr) 13,276
Buy Price 0.00
Buy Qty 0.00
Sell Price 79.90
Sell Qty 2500.00
OPEN 82.00
CLOSE 81.10
VOLUME 710354
52-Week high 83.25
52-Week low 53.50
P/E 622.69
Mkt Cap.(Rs cr) 13,276
Buy Price 0.00
Buy Qty 0.00
Sell Price 79.90
Sell Qty 2500.00

JSW Energy Ltd. (JSWENERGY) - Auditors Report

Company auditors report

TO THE MEMBERS OF JSW ENERGY LIMITED

Report on the Standalone IND AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of JSWEnergy Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash flows the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act and relevant rules thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS 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 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS 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 Ind AS 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 the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS 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 Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2017 and its profit(financial performance including other comprehensive income) its cash flows and changesin equity for the year 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 Act we give in the Annexure A a statement on the matters specified in paragraph 3 and4 of the Order.

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 (including Other ComprehensiveIncome) Statement of Changes in Equity and Statement of Cash Flows dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Ind AS specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 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 Section164 (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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.; and

(g) With respect to other matter to be included in the Auditor's Report in accordancewith the Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinion andto 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 its standalone Ind AS financial statements- Refer Note No. 28 to the standaloneInd AS 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.

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 disclosure in its standalone Ind AS financialstatements as to holding as well as dealings in Specified Bank Notes (SBN) during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance withbooks of account maintained by the Company - Refer Note 13A to the standalone Ind ASfinancial statements

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
A. M. Hariharan
Place: Mumbai Partner
Date: 29th April 2017 Membership No. 38323

"Annexure A"

Annexure referred to in paragraph "Report on Other Legal and RegulatoryRequirements" of our report to the Members of "the Company"for the yearended 31st March 2017

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:

1. a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) The fixed assets have been verified in accordance with a phased program designed tocover all assets once in three years. The frequency of verification is consideredreasonable having regard to the size of the Company and nature of its fixed assets.Pursuant to the program physical verification of fixed assets has been carried out duringthe year and no material discrepancies were noticed on such verification.

c) Based on the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.

2. The inventory has been physically verified by the management at reasonable intervalsduring the year. The procedures of physical verification of the inventories followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business. As per the information and explanations given to us discrepanciesnoticed on physical verification between the physical stocks and book records were notmaterial.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of clause 3(iii) of the Order are notapplicable to the Company.

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 to the extentapplicable with respect to the loans and investments made guarantees given and securityprovided.

5. No deposits have been accepted by the Company within the meaning of directivesissued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevantprovisions of the Act and Rules framed there under.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theOrder of the Central Government under sub- section (1) of Section 148 of the Act and areof the opinion that prima facie the prescribed records have been made and maintained. Weare however not required to make a detailed examination of the records with a view todetermine whether they are accurate or complete.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records the Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax cess and otherstatutory dues applicable to the Company with appropriate authorities. No undisputedamounts payable in respect of the aforesaid statutory dues were outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of income tax sales taxservice tax duty of customs duty of excise value added tax which have not beendeposited on account of any dispute except those mentioned in the table below:

Name of the statute Nature of dues Period to which it relates Amount (Rs. in crore) Forum where dispute is pending
Karnataka Electricity (Taxation on Consumption) Act 1959 Electricity Tax Financial Year 2012-13 2013-14 & 2014-15 65.33 Department of Electrical Inspectorate Karnataka
Finance Act 1994 Service Tax Financial year 2008-09 & 2009-10 0.82 CESTAT Bangalore
The Customs Act 1962 Custom Duty Financial year 2011-12 & 2012-13 294.86 CESTAT Bangalore Chennai Mumbai

8. The Company has not defaulted in repayment of loans or borrowings to financialinstitutions banks and dues to debenture holders during the year. The Company has nottaken any loans or borrowings from Government during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year or in the recent past. Based on theinformation and explanations given to us by the management term loans were applied forthe purpose for which the loans were obtained.

10. 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 we have neither come across anyinstance of fraud by or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of such case by the management.

11. According to the information and explanations given to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V of the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.

13. 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 all transactions with therelated party are in compliance with Section 177 and 188 of the Act and the details havebeen disclosed as required by the applicable Ind AS (Refer Note no 42 to the StandaloneInd AS Financial Statements).

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. Therefore the provisions ofclause 3(xiv) of the Order are not applicable to the Company.

15. Based on the information and explanations given to us the Company has not enteredinto any non-cash transactions prescribed under Section 192 of the Act with directors orpersons connected with them during the year.

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

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
A. M. Hariharan
Place: Mumbai Partner
Date: 29th April 2017 Membership No. 38323

"Annexure B"

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 JSW EnergyLimited ("the Company") as of 31st March 2017 in conjunction with our audit ofthe Standalone Ind AS 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 Act.

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 tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 standalone Ind AS financial statements whether due to fraudor 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 control over reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 31st 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 the Institute of CharteredAccountants of India.

For LODHA & CO.
Chartered Accountants
Firm Registration No: 301051E
A. M. Hariharan
Place: Mumbai Partner
Date: 29th April 2017 Membership No. 38323