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High Energy Batteries (India) Ltd.

BSE: 504176 Sector: Engineering
NSE: N.A. ISIN Code: INE783E01015
BSE 00:00 | 24 Jan 275.00 -3.40
(-1.22%)
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278.40

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278.40

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NSE 05:30 | 01 Jan High Energy Batteries (India) Ltd
OPEN 278.40
PREVIOUS CLOSE 278.40
VOLUME 222
52-Week high 376.00
52-Week low 141.70
P/E 8.87
Mkt Cap.(Rs cr) 49
Buy Price 266.00
Buy Qty 20.00
Sell Price 278.00
Sell Qty 50.00
OPEN 278.40
CLOSE 278.40
VOLUME 222
52-Week high 376.00
52-Week low 141.70
P/E 8.87
Mkt Cap.(Rs cr) 49
Buy Price 266.00
Buy Qty 20.00
Sell Price 278.00
Sell Qty 50.00

High Energy Batteries (India) Ltd. (HIGHENERGYBAT) - Auditors Report

Company auditors report

FOR THE YEAR ENDED 31st MARCH 2018

To the Members of M/s. HIGH ENERGY BATTERIES (INDIA) LIMITED

REPORT ON THE STANDALONE Ind AS FINANCIAL STATEMENTS

We have audited the accompanying standalone Ind AS Financial Statements of HIGH ENERGYBATTERIES (INDIA) LIMITED (‘the Company") which comprise the Balance Sheet asat 3181 March 2018. the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement the Statement of Changes in Equity for the year thenended and a summary of the Significant Accounting Policies and other explanatoryinformation

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.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and

design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theAudit Report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS Financial Statements are freefrom 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 Auditors' 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 financialcontrols relevant to the Company's preparation of the Standalone Ind AS FinancialStatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the StandaloneInd AS Financial Statements.

We believe that the audit evidence obtained by us 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 of the state of affairs of theCompany as at 31st March 2018. and its profit total comprehensive income its cash flowsand the changes in equity for the year ended on that date.

OTHER MATTERS

The comparative financial information of the company for the year ended 31 * March.2017 and the transition date opening balance sheet as at 01s' April. 2016 included inthese standalone Ind AS financial statements are based on the statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the predecessor auditor whose report for the year ended 31M March 2017 and3131 March 2016 dated 29h May. 2017 and 28:n May 2016 respectively expressed an

unmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the company on transition to Ind AS.which have been audited by us.

Our opinion on the Standalone Ind AS Financial Statements and our report on Other Legaland Regulatory Requirements below is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1 As required by Section 143(3) of the Act

based on our audit we report to the

extent applicable 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 the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act.

(e)on the basis of the written representations received from the Directors as on 31March 2018 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31 March 2018 from

being appointed as a Director in terms of Section 164(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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's Internal Financial Controls overfinancial reporting.

(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 Standalone Ind AS Financial Statements.

(ii) The Company did not have any longterm contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund.

2 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure "B" a statement on the matters specified in the Paragraphs 3 and4 of the Order to the extent applicable.

For M/s. MAHARAJ N R SURESH AND CO.
CHARTERED ACCOUNTANTS
Firm Reg No. 001931S
N R Suresh
Partner
Membership No. 021661
Chennai
May 26 2018

ANNEXURE "A" to The Independent Auditor's Report of even date on theStandalone

Ind AS Financial Statements of M/s. High Energy Batteries (India) Limited.

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 HIGH ENERGYBATTERIES (INDIA) LIMITED ("the Company") as of March 312018 in conjunctionwith our audit of the Standalone Ind AS Financial Statements of the Company for the yearended 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). 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 deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of Internal Financial Controlsboth applicable to an audit of Internal Financial Controls and both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate InternalFinancial Controls over Financial Reporting was established and maintained and if suchcontrols 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 Auditors' 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 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 the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sInternal Financial Control over Financial Reporting includes those policies and proceduresthat:

(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company:

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and Directors of the company: and

(iii) provide reasonable assurance regarding prevention ortimelydetection ofunauthorised acquisition use. or disposition of the company's assets that could have amaterial 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 March 31 2018 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/s. MAHARAJ N R SURESH AND CO.
CHARTERED ACCOUNTANTS
Firm Reg No. 001931S
N R Suresh
Partner
Membership No. 021661
Chennai
May 26 2018

Annexure "B" to the Independent Auditors' Report of even date on theStandalone

Financial Statements of M/s. High Energy Batteries (India) Limited.

The Annexure referred to in Paragraph 2 under

the heading "Report on Other Legal and

Regulatory Requirements" of our Report of even

date:

(i) (a) The Company is maintaining proper

records showing full particulars including quantitative details and situation of fixedassets;

(b) These fixed assets have been physically verified by the Management at reasonableintervals and no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

(ii) The Management has conducted physical verification of inventory at reasonableintervals and no material discrepancies were noticed.

(iii) The Company has not granted any loans to any party covered in the registermaintained under section 189 of the Companies Act 2013.

(iv) The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of investments provided by the Company. The company hasnot provided any loans or guarantee or security to any company covered under Section 185.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has prescribed maintenance of Cost Records under Subsection(1) of Section 148 of the Companies Act 2013 and such accounts and records have been madeand maintained.

(vii) According to the information and explanations given to us in respect of Statutorydues :

(a) Undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax. Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax.Cess Goods and Service Tax and any other Statutory Dues have generally been regularlydeposited with the appropriate authorities though there has been a slight delay in a fewcases. However there are no such dues pending as on 3151 March 2018.

(b) Details of dues of Income Tax or Sales Tax or Service Tax or Duty of Customs orDuty of Excise or Value Added Tax. Cess and Goods and Service Tax have not been depositedas on 31!t March 2018 on account of disputes are given below:

Name of the Statute Tamilnadu VAT Act
Nature of Dues VAT
Amount ? in Lakhs 782.36 Lakhs (out of the above 715 Lakhs paid as per court order)
Forum where the dispute is pending Madurai Bench Madras High Court
Period to which the dues belong Financial Years 2007 - 08 to 2010 - 11

(viii) The Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

<ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year.

(x) The Company has not noticed any fraud by the Company or any fraud on the Company byits Officers or employees or reported during the year.

<xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) The Company is not a Nidhi Company and hence complying with the provisions of theNidhi Rules 2014 does not arise.

(xiii) All transactions with the related parties are in compliance with Sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. as required by the applicable Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) The Company has not entered into any non-cash transactions with Directors orpersons connected with him.

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

For M/s. MAHARAJ N R SURESH AND CO.
CHARTERED ACCOUNTANTS
Firm Reg No. 001931S
N R Suresh
Partner
Membership No. 021661
Chennai
May 26 2018