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Panasonic Energy India Company Ltd.

BSE: 504093 Sector: Consumer
NSE: LAKHNNATNL ISIN Code: INE795A01017
BSE 00:00 | 14 Aug 140.05 1.15
(0.83%)
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NSE 05:30 | 01 Jan Panasonic Energy India Company Ltd
OPEN 142.90
PREVIOUS CLOSE 138.90
VOLUME 4192
52-Week high 197.45
52-Week low 91.00
P/E
Mkt Cap.(Rs cr) 105
Buy Price 140.15
Buy Qty 10.00
Sell Price 144.75
Sell Qty 2.00
OPEN 142.90
CLOSE 138.90
VOLUME 4192
52-Week high 197.45
52-Week low 91.00
P/E
Mkt Cap.(Rs cr) 105
Buy Price 140.15
Buy Qty 10.00
Sell Price 144.75
Sell Qty 2.00

Panasonic Energy India Company Ltd. (LAKHNNATNL) - Auditors Report

Company auditors report

To the Members of Panasonic Energy India Company Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Panasonic Energy IndiaCompany Limited ("the Company") which comprise the Balance Sheet as at 31 March2019 and the Statement of Profit and Loss (including other comprehensive income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2019 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Description of Key Audit Matter

Contingencies and litigations

With respect to accounting policies applied please refer to Note 3(k)to the financial statements

The key audit matter How the matter was addressed in our audit
As at 31 March 2019 the Company's contingent liabilities were INR 1052.54 Lakhs (31 March 2018: INR 1060.80 Lakhs) and provision for the disputed matters aggregating to INR 220.92 Lakhs (31 March 2018: INR 220.92 Lakhs). • The Company's management seeks legal advice from the Company's external advisors on various litigation matters containing their views and conclusions on likely exposures across the Company.
In the normal course of business estimates towards provisions for contingencies and litigations may arise from various tax proceedings and investigations (including other claims) involving the Company before various Government / Departmental authorities. • With respect to direct and indirect tax litigations we seek assistance of our own tax specialists.
These estimates could change substantially over time as new facts emerge and each legal case progresses. Given the inherent complexity and magnitude of likely possibility of liabilities across the Company and the judgement necessary to estimate the amount of provisions required or to determine required disclosures this is a key audit matter. • We have inquired the status of significant litigations with the Company's external advisors and senior management personnel who have knowledge of these matters and assessed their responses. W e have circulated legal confirmations to external legal advisors of the Company.
• For matters where the Company's management concluded that no provisions are required we have reviewed the adequacy and completeness of the disclosures made in the financial statements.

Other Information

The Company’s management and Board of Directors are responsiblefor the other information. The other information comprises the Corporate Governance Reportand Board’s Report included in the Company’s annual report but does not includethe financial statements and our auditors’ report thereon.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management’s Responsibility for the Financial Statements

The Company’s management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese financial statements that give a true and fair view of the state of affairs profitand other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management and Board ofDirectors are responsible for assessing the Company’s ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing theCompany’s financial reporting process.

Auditor’s Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors’ report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016("the Order") issued by the Central Government in terms of Section 143 (11) ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

A) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31 March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2019 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

B) With respect to the other matters to be included in theAuditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact of pending litigations as at 31March 2019 on its financial position in its financial statements - Refer Note 30 to thefinancial statements;

ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company; and

iv) The disclosures in the financial statements regarding holdings aswell as dealings in specified bank notes during the period from 8 November 2016 to 30December 2016 have not been made in these financial statements since they do not pertainto the financial year ended 31 March 2019.

C) With respect to the matter to be included in the Auditors’Report under Section 197(16):

In our opinion and according to the information and explanations givento us the remuneration paid by the company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) whichare required to be commented upon by us.

For B S R & Associates LLP
Chartered Accountants
Firm’s Registration No. 116231W/W-100024
Jeyur Shah
Place : Vadodara Partner
Date : 29 May 2019 Membership No. 045754

ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS- 31 MARCH 2019

(Referred to in Paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of property plant andequipment.

(b) The Company has a regular programme of physical verification of itsproperty plant and equipment by which all the items of property plant and equipment areverified in a phased manner over a period of three years. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets. Accordingly part of the property plant and equipment werephysically verified by the management in the current year and no material discrepancieswere noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties including leasehold land included in property plant and equipment asdisclosed in Note 5 to the financial statements are held in the name of the Company.

(ii) The inventory except goods-in-transit has been physicallyverified by the management during the year. In our opinion the frequency of suchverification is reasonable. The discrepancies noticed on verification between the physicalstocks and the book records were not material and have been dealt with in books ofaccount.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Accordingly paragraph 3(iii) of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not given any loans or provided any guarantees or securityto the parties covered under Section 185 of the Act. Accordingly compliance under Section185 and Section 186 of the Act is not applicable to the Company.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits to which the directives issued by theReserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder apply. Accordingly paragraph 3(v) ofthe Order is not applicable to the Company.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules prescribed by the Central Government for maintenance of costrecords under Section 148(1) of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company amounts deducted / accruedin the books of account in respect of undisputed statutory dues including Provident FundEmployees’ State Insurance Income Tax Customs Duty Goods and Services TaxProfessional Tax and other material statutory dues have been generally regularly depositedduring the year by the Company with the appropriate authorities. The Company is not havingany dues in respect of Cess.

According to the information and explanations given to us noundisputed amounts payable in respect of Provident Fund Employees’ State InsuranceIncome Tax Sales Tax Service Tax Wealth Tax Excise Duty Customs Duty Value AddedTax Goods and Services Tax Professional Tax and other material statutory dues were inarrears as at 31 March 2019 for a period of more than six months from the date they becamepayable.

In respect of Provident Fund as explained in Note 30(f) to thefinancial statements pending clarity on the matter the Company is currently unable todetermine the extent of arrears of such Provident Fund outstanding as at 31 March 2019 fora period of more than six months from the date they become payable and hence we areunable to comment on such Provident Fund arrears if any.

(b) According to the information and explanations given to us thereare no dues of Income Tax Sales Tax Customs Duty Excise Duty Service Tax Value AddedTax Goods and Services Tax as at 31 March 2019 which have not been deposited with theappropriate authorities on account of any dispute other than those mentioned in the"Appendix I" to this report.

(viii) In our opinion and according to the information and explanationsgiven to us the Company does not have any loans or borrowings from financial institutionsor banks or Government or dues to debenture holders during the year. Accordinglyparagraph 3(viii) of the Order is not applicable to the Company.

(ix) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not raised anymoney by way of initial public offer or further public offer (including debt instruments)and term loans. Accordingly paragraph 3(ix) of the Order is not applicable to theCompany.

(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Company’s management.

(xi) According to the information and explanations given to us andbased on our examination of the records of the Company the managerial remuneration hasbeen paid / provided by the Company in accordance with the requisite approvals mandated bythe provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable to theCompany.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby applicable accounting standards.

(xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3 (xiv) of the Order is not applicableto the Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non-cash transactions with directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly paragraph 3 (xvi) of the Order is notapplicable to the Company.

For B S R & Associates LLP
Chartered Accountants
Firm’s Registration No. 116231W/W-100024
Jeyur Shah
Place : Vadodara Partner
Date : 29 May 2019 Membership No. 045754

Appendix –I

Sr. Name of Statute Nature of Amount Period to which amount Forum where the
Dues (INR Lakhs)* related Dispute is pending
1 Customs Act 1962 Custom duty 81.81 March 2011 to CESTAT Ahmedabad
September 2012
1.11 June 2008 to
November 2009
2 Finance Act 1994 Service tax 34.09 March 2006 to March 2010 CESTAT Mumbai
3 Finance Act 1994 Service tax 22.37 July 2015 to December 2016 Appeals Authorities Commissioner (Appeals)
44.31 2013-14 to June 2015
8.66 April 2016 to June 2017
14.64 From
February 2008 to
February 2009
2.34 FY 2005-07
19.87 From 2013-14 to
June 2016
4 Sales Tax Sales Tax 89.31 FY 1986 to 2008-09 Sales Tax Tribunal
5 Sales Tax Sales Tax 7.32 FY 1996-97 High Court
6 Sales Tax Sales Tax 215.73 FY 2003 to 2016 Appeals Authorities
Commissioner (Appeals)

* Net of amounts paid under protest for Sales tax matters aggregatingto INR 51.81 Lakhs and Service tax aggregating to INR 6.08 Lakhs.

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS- 31 MARCH 2019

Report on the internal financial controls with reference to theaforesaid financial statements under Clause (i) of Subsection 3 of Section 143 of theCompanies Act 2013 (Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements’ section of our report of even date) Opinion

We have audited the internal financial controls with reference tofinancial statements of Panasonic Energy India Company Limited ("the Company")as of 31 March 2019 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2019 based on the internalfinancial controls with reference to financial statements criteria 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 ("the Guidance Note").

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors areresponsible for establishing and maintaining internal financial controls based on theinternal financial controls with reference to financial statements criteria established bythe Company considering the essential components of internal control stated in theGuidance Note. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols with reference to financial statements were established and maintained andwhether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols 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 ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company’s internalfinancial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to FinancialStatements

A company’s internal financial controls with reference tofinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany’s internal financial controls with reference to financial statements includethose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

For B S R & Associates LLP
Chartered Accountants
Firm’s Registration No. 116231W/W-100024
Jeyur Shah
Place : Vadodara Partner
Date : 29 May 2019 Membership No. 045754