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Visaka Industries Ltd.

BSE: 509055 Sector: Industrials
NSE: VISAKAIND ISIN Code: INE392A01013
BSE LIVE 19:40 | 19 Oct 699.20 -4.20
(-0.60%)
OPEN

705.00

HIGH

712.05

LOW

680.95

NSE 19:46 | 19 Oct 696.50 -8.00
(-1.14%)
OPEN

706.95

HIGH

713.00

LOW

677.80

OPEN 705.00
PREVIOUS CLOSE 703.40
VOLUME 4018
52-Week high 733.90
52-Week low 172.30
P/E 23.55
Mkt Cap.(Rs cr) 1,110
Buy Price 0.00
Buy Qty 0.00
Sell Price 694.90
Sell Qty 202.00
OPEN 705.00
CLOSE 703.40
VOLUME 4018
52-Week high 733.90
52-Week low 172.30
P/E 23.55
Mkt Cap.(Rs cr) 1,110
Buy Price 0.00
Buy Qty 0.00
Sell Price 694.90
Sell Qty 202.00

Visaka Industries Ltd. (VISAKAIND) - Auditors Report

Company auditors report

To

The Members of

Visaka Industries limited

Report on the Financial Statements

We have audited the accompanying financial statements of Visaka Industries limited("the Company") which comprise the Balance Sheet as at 31st March 2017 theStatement 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 Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 financial statements that give a true and fair view and are free from materialmisstatement 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 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 presentationof the financial statements.

We believe that the audit evidence we have obtained is su3cient 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 a3airs of the Company as at 31stMarch 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 ("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 paragraphs 3and 4 of the Order to the extent applicable.

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 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 e3ectiveness of such controls refer to ourseparate report in "Annexure B".

(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 35 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 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 financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 38 to the financial statements.

For M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 5th May 2017 Membership No.018404

Annexure - A to the Auditors' Report

The Annexure referred to in our report to the members of the Company for the year endedon 31st 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 fixed assets have been physically verified by themanagement in a periodical manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its business. No material discrepancies werenoticed on such physical 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) The inventories have been physically verified during the year by the management.The discrepancies noticed on verification between the physical stocks and book recordswere not material.

(iii) 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 paragraph 3 (iii) (a) to (c) of the Order is notapplicable.

(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 the Act with respectto loans investments guarantees and securities made.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of sections 73 to 76 or any other relevant provisions of the Act and the rulesframed there under in respect of deposits accepted. We are informed that no order hasbeen passed by the Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any court or any other tribunal.

(vi) We have broadly reviewed the cost records maintained by the Company as prescribedunder sub-section (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us the Company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax value addedtax wealth tax service tax customs duty excise duty cess and any other statutory duesas applicable with the appropriate authorities and there were no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and records of theCompany examined by us the particulars of income tax sales tax valued added tax wealthtax service tax customs duty excise duty or cess as at 31st March 2017 which have notbeen deposited on account of any dispute pending are as under:

Name of the Statute Nature of dues Amount Period to which the Forum where dispute is
(` in Lakhs) amount relates pending
Income-Tax Act 1961 Income Tax 11.99 2007-08 CIT (Appeals) Hyderabad
Income-Tax Act 1961 Income Tax 24.23 2008-09 CIT (Appeals) Hyderabad
Income-Tax Act 1961 Income Tax 6.79 2010-11 CIT (Appeals) Hyderabad
Income-Tax Act 1961 Income Tax 9.41 2011-12 CIT (Appeals) Hyderabad
Income-Tax Act 1961 Income Tax 13.44 2009-10 CIT (Appeals) Hyderabad
Central Excise Act 1944 Excise Duty 873.85 2003-04 & 2004-05 CESTAT Chennai
Central Excise Act 1944 Penalty 1323.85 2003-04 & 2004-05 CESTAT Chennai
Central Excise Act 1944 Excise Duty 14.86 August.13 to Asst Commissioner
January.16 Central Excise Pune
Customs Central Excise & Duty Draw Back 152.10 July 2009 to March Joint Secretary
Service Tax Drawback Rules 2011 Revisionary Authority
1995 New Delhi.
Central Sales Tax Act 1956 Central Sales Tax 9.02 2008-09 Telangana VAT Appellate
Tribunal Hyderabad
Central Sales Tax Act 1956 Central Sales Tax 7.92 2008-09 Commercial Taxes
Tribunal Lucknow
Bihar VAT Act 2005 VAT/Interest 3.77 2005-06 Joint Commissioner
(Appeals)
Orissa VAT Act 2004 VAT/Penalty 10.97 October 2009 to Orissa Sales Tax Tribunal
March 2011 Bhubaneswar
Karala VAT Act2003 VAT/Interest 0.23 2010-11 Deputy Commissioner
(Appeals)Commercial
Taxes Ernakulam

 

Name of the Statute Nature of dues Amount Period to which the Forum where dispute is
(` in Lakhs) amount relates pending
Jharkhand VAT Act2005 VAT/Penalty 20.38 2010-11 Commissioner of
Commercial Taxes
Ranchi
Orissa Entry Tax Act 1999 Entry Tax/Penalty 10.38 October 2009 to Orissa Sales Tax Tribunal
March 2011 Bhubaneswar

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution banks and Governments.

(ix) The Company did not raise any money by way of initial public o3er or furtherpublic o3er during the year. In our opinion and according to the information andexplanations given to us the term loans have been applied for the purpose for which theloans were obtained other than amounts temporarily invested pending utilization of thefunds for the intended use.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theyear.

(xi) According to the information and explanations give 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) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3 (xii) of the Order is notapplicable.

(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 section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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.

(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)of the 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 M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 5th May 2017 Membership No.018404

Annexure - B to the 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 VisakaIndustries Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit 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 e3cientconduct 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.

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 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 operatinge3ectiveness. 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 e3ectiveness 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 su3cient 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 e3ect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting Because ofthe inherent limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 M.Anandam & Co.
Chartered Accountants
(Firm's Registration No. 000125S)
A.V.Sadasiva
Place: Secunderabad Partner
Date: 5th May 2017 Membership No.018404