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Mahindra EPC Irrigation Ltd.

BSE: 523754 Sector: Industrials
NSE: N.A. ISIN Code: INE215D01010
BSE 00:00 | 16 Sep 93.30 1.85
(2.02%)
OPEN

92.80

HIGH

95.00

LOW

91.50

NSE 05:30 | 01 Jan Mahindra EPC Irrigation Ltd
OPEN 92.80
PREVIOUS CLOSE 91.45
VOLUME 9695
52-Week high 125.65
52-Week low 82.00
P/E 21.60
Mkt Cap.(Rs cr) 263
Buy Price 91.60
Buy Qty 3.00
Sell Price 93.30
Sell Qty 2500.00
OPEN 92.80
CLOSE 91.45
VOLUME 9695
52-Week high 125.65
52-Week low 82.00
P/E 21.60
Mkt Cap.(Rs cr) 263
Buy Price 91.60
Buy Qty 3.00
Sell Price 93.30
Sell Qty 2500.00

Mahindra EPC Irrigation Ltd. (MAHINDRAEPC) - Auditors Report

Company auditors report

TO THE MEMBERS OF EPC INDUSTRI LIMITED

Report on the Ind AS financial statements

We have audited the accompanying Ind AS financial statements of EPCIndustri Limited ("the Company") which comprise the Balance Sheet as at 31March 2018 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's responsibility for the Ind AS financial statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(IND AS) prescribed under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India. This responsibility also includes 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 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 Ind AS 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 Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under Section 143 (11) of the Act. We conducted our audit of the IndAS financial statements 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the 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 Ind AS financial statements that give a trueand 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 Ind AS financialstatements. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 Ind AS and other accounting principles generally accepted in India of the stateof affairs of the Company as at 31 March 2018 and its profit total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Report on other legal and regulatory requirements

1. As required by Section 143(3) of the Act based on our auditwe report that: (a) We have sought and obtained all the information and explanations whichto the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books. (c) TheBalance Sheet the Statement of Profit and Loss including Other Comprehensive Income theCash Flow Statement and Statement of Changes in Equity dealt with by this report are inagreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards prescribed under Section 133 of the Act. (e) On thebasis of the written representations received from the directors of the Company as on 31March 2018 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 Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure "A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting. (g) With respect to the other matters to be included inthe Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its Ind AS financial statements in accordancewith generally accepted accounting principles – [Refer Note 32 to the Ind ASfinancial statements]. ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in Annexure "B" a statement on the matters specified inparagraphs 3 and 4 of the Order.

For Deloitte Haskins & Sells
Chartered Accountants
(Firm's Registration No. 117364W)
Ketan Vora
Partner
Membership Number: 100459
Nashik 3 May 2018

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on other legal andregulatory requirements' section of our report of even date to the members of EPCIndustri Limited on the Ind AS financial statements for the year ended 31 March 2018)

Report on the internal financial controls over financial reportingunder clause (i) of sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of EPC Industri Limited ("the Company") as of 313 March 2018 inconjunction with our audit of the 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. 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.

Auditor's responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting ( the " Guidance Note") issued by theInstitute of Chartered Accountants of India and the Standards on Auditing prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 financialreporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 2018 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For Deloitte Haskins & Sells

Chartered Accountants (Firm's Registration No. 117364W)

Ketan Vora

Partner Membership Number: 100459 Nashik 3 May 2018

(Referred to in paragraph 2 under ‘Report on other legal andregulatory requirements' section of our report of even date to the members of EPCIndustri Limited on the Ind AS financial statements for the year ended 31 March 2018)

1. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment. (b) The Company has a programme of verification of property plant andequipment to cover all the items in a phased manner over a period of three years which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the program certain fixed assets were physically verified by theManagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed/transferdeed / conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of buildings which are freehold are held in the name of the Companyas at the balance sheet date. Immovable properties of buildings whose title deeds havebeen pledged as security for loans availed from banks are held in the name of the Companybased on the confirmations directly received by us from the bank. In respect of immovableproperties of land that have been taken on lease and disclosed as prepaid asset in the IndAS financial statements the lease agreements are in the name of the Company where theCompany is the lessee in the agreement.

2. As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals except stock lying with thirdparties for which confirmations have been obtained and no material discrepancies werenoticed on physical verification.

3. The Company has not granted any loans secured or unsecuredto companies firms limited liability partnerships or other parties covered in theregister maintained under Section 189 of the Act.

4. The Company has not granted any loans made investments orprovided guarantees to which the provisions of Sections 185 and 186 of the Act apply andhence reporting under clause (iv) of the Order is not applicable.

5. According to the information and explanations given to usthe Company has not accepted any deposit during the year. In respect of unclaimeddeposits the Company has complied with the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposits) Rules 2014 asamended. According to the information and explanations given to us no order has beenpassed by the Company Law Board or the National Company Law Tribunal or the Reserve Bankof India or any Court or any other Tribunal.

6. The maintenance of cost records has been prescribed by theCentral Government under Section 148(1) of the Act. We have broadly reviewed the costrecords maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under Section 148(1) of theAct and are of the opinion that prima facie the prescribed cost records havebeen made and maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

7. According to the information and explanations given to us inrespect of statutory dues: (a) The Company has generally been regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax goods and services tax sales tax service tax customs duty excise dutyvalue added tax cess and other material statutory dues applicable to it with theappropriate authorities. (b) There were no undisputed amounts payable in respect ofprovident fund employees' state insurance income-tax goods and services tax sales taxservice tax customs duty excise duty value added tax cess and other material statutorydues in arrears as at 31st3March 2018 for a period of more than six months from the datethey became payable.

(c) Details of dues of income-tax goods and services tax sales taxservice tax customs duty excise duty and value added tax which have not been depositedas on 31st March 2018 on account of disputes are given below:

Name of statute Nature of dues Forum where dispute is pending

Period to which the amount relates

Amount unpaid

(Rs. in lakhs)

Central Excise Act 1944 Excise Duty Commissioner of Central Excise (Appeals)

FY 1996-97

35.76

Commissioner of Central Excisce

FY 1997-98

8.12

Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals)

FY 1992-93

24.20

8. In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to banks and government. The Company has not borrowed from financialinstitutions and has not issued any debentures.

9. In our opinion and according to the information andexplanations given to us money raised by way of further public offer (rights offer) inthe earlier years have been applied by the Company during the year for the purposes asrevised with appropriate approvals other than temporary deployment pending application ofproceeds. The Company has not raised moneys by way of public offer of debt instruments orterm loans.

10. To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no material fraud on the Company byits officers or employees has been noticed or reported during the year.

11. In our opinion and according to the information and explanationsgiven to us the Company has paid / provided managerial remuneration in accordance withthe requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act.

12. The Company is not a Nidhi Company and hence reporting under clause(xii) of the Order is not applicable. 13. In our opinion and according to the informationand explanations given to us the Company is in compliance with Sections 177 and 188 ofthe Act where applicable for all transactions with the related parties and the detailsof related party transactions have been disclosed in the Ind AS financial statements etc.as required by the applicable accounting standards.

14. During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of the Order is not applicable to the Company. 15. Inour opinion and according to the information and explanations given to us during theyear the Company has not entered into any non-cash transactions with its directors ordirectors of its holding company or persons connected with them and hence provisions ofSection3192 of the Act are not applicable.

16. The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934.

For Deloitte Haskins & Sells

Chartered Accountants (Firm's Registration No. 117364W)

Ketan Vora

Partner Membership Number: 100459

Nashik 3 May 2018