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Panasonic Energy India Company Ltd.

BSE: 504093 Sector: Consumer
NSE: LAKHNNATNL ISIN Code: INE795A01017
BSE 00:00 | 18 Apr 205.20 3.50
(1.74%)
OPEN

205.55

HIGH

213.00

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203.00

NSE 05:30 | 01 Jan Panasonic Energy India Company Ltd
OPEN 205.55
PREVIOUS CLOSE 201.70
VOLUME 2420
52-Week high 388.00
52-Week low 180.00
P/E 21.49
Mkt Cap.(Rs cr) 154
Buy Price 201.00
Buy Qty 1.00
Sell Price 205.20
Sell Qty 28.00
OPEN 205.55
CLOSE 201.70
VOLUME 2420
52-Week high 388.00
52-Week low 180.00
P/E 21.49
Mkt Cap.(Rs cr) 154
Buy Price 201.00
Buy Qty 1.00
Sell Price 205.20
Sell Qty 28.00

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 IndAS Financial Statements

We have audited the accompanying Ind AS financial statements of Panasonic Energy IndiaCompany Limited (‘the Company') which comprise the Balance Sheet as at 31 March2018 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand summary of significant accounting policies and other explanatory information(hereinafter referred to as ‘Ind AS financial statements').

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the state of affairsprofit (including other comprehensive income) changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct read with relevant rules issued thereunder.

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 financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Ind AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the I reasonableness ofthe accounting estimates made by the Company's directors as well as evaluating theoverall 1 presentation of the Ind AS financial statements.

We are also responsible to 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 entity's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the Ind l AS financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern. *

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2018 its profit (including other comprehensive income) changes in equityand its cash flows for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31 March 2017and the transition date opening balance sheet as at 01 April 2016 included in the Ind ASfinancial statements are based on the previously issued statutory financial statementsprepared in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of Companies (Accounts) Rules 2014 audited by the predecessor auditors whose reportsfor the year ended 31 March 2017 and 31 March 2016 dated 30 May 2017 and 24 May 2016respectively expressed an unmodified opinion on those financial statements as adjustedfor the difference in the accounting principles adopted by the Company on transition tothe Ind AS which have been audited by us.

Our opinion is not modified in respect of the above matter.

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' to this Report a statement on the mattersspecified in paragraphs 3 and 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 purpose of our audit of the Ind ASfinancial statements;

(b) In our opinion proper books of account as required by law relating to preparationof the aforesaid Ind AS financial statements have been kept by the Company so far as itappears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account maintained for the purpose of preparation of the Ind AS financialstatements;

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevantrules issued thereunder;

(e) On the basis of the written representations received from the directors 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 controls with reference toInd AS financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in ‘Annexure B' to this Report; and

(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 Ind AS financial statements - Refer Note 31 to the Ind AS financialstatements;

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 during the year ended 31 March2018; and

iv. The disclosures in the Ind AS financial statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made since they do not pertain to the financial year ended 31 March2018. However amounts as appearing in the audited financial statements for the year ended31 March 2017 have been disclosed - Refer Note 13(d) to the Ind AS financial statements.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No. 116231W/W-100024
Jeyur Shah
Place: Vadodara Partner
Date : 28 May 2018 Membership No. 045754

ANNEXURE A TO THE INDEPENDENT AUDITORS'REPORT - 31 March 2018

(Referred to in our Report of even date)

With reference to the ‘Annexure A' referred to in the Independent Auditors' Reportto the Members of the Company on the Ind AS financial statements for the year ended 31March 2018 we report the following:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details andsituation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all the items are verified in a phased manner over a period of three years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. However pursuant to the aforesaid regularprogramme of physical verification over a period of three years which concluded in thecurrent year certain fixed assets were not physically verified and hence it is notpossible to determine whether there were any material discrepancies with respect to thesame.

(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 propertiesincluding leasehold land as disclosed in Note 5 to the Ind AS financial statements areheld in the name of the Company.

(ii) The inventory except goods-in-transit has been physically verified by themanagement during the year. In our opinion the frequency of such verification isreasonable. The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been dealt with in books of account.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Accordinglyparagraph 3(iii) of the Order is not applicable to the Company

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. Accordingly compliance under Section 185 andSection 186 of the Act is not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits to which the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand rules framed thereunder apply. Accordingly paragraph 3(v) of the Order is notapplicable to the Company.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Act for the year ended 31 March 2018 and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained. Howeverwe have not made a detailed examination of the records with a view to determine whetherthey are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the recordsof the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees' StateInsurance Income Tax Customs Duty Excise Duty Service Tax Sales Tax Value Added TaxGoods and Services Tax and other material statutory dues have been generally regularlydeposited during the year by the Company with the appropriate authorities. The Company isnot having any dues in respect of Cess.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income Tax CustomsDuty Excise Duty Service Tax Sales Tax Value Added Tax Goods and Services Tax andother material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable.

(c) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Customs Duty Excise Duty Service Tax Sales Tax Value Added TaxGoods and Services Tax as at 31 March 2018 which have not been deposited with theappropriate authorities on account of any dispute other than those mentioned in‘Appendix I' to this Report.

(viii) In our opinion and according to the information and explanations given to usthe Company does not have any loans or borrowing from financial institutions or banks orGovernment or dues to debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable to the Company.

(ix) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) and term loans.Accordingly paragraph 3(ix) of the Order is not applicable to the Company.

(x) 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 material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration has been paid /provided by the Company in accordance with the requisite approvals mandated by theprovisions of Section 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 as prescribed under section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company.

(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 Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Ind AS financial statements as required byapplicable accounting standards.

(xiv) According to the information and explanations given 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. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(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 them as referred to in Section 192of the Act. Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable to the Company.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No. 116231W/W-100024
Jeyur Shah
Place: Vadodara Partner
Date : 28 May 2018 Membership No. 045754

Appendix - I

Name of Statute Nature of Dues Amount (INR Lakhs)* Period to which amount related Forum where the Dispute is pending
Income Tax Act 1961 Income tax 32.71 A.Y. 2008-09 ITAT
Customs Act 1962 Custom duty 81.81 March 2011 to September 2012 CESTAT Ahmedabad
1.11 June 2008 to November 2009
Finance Act 1994 Service tax 4.98 January 2014 to July 2015 CESTAT Ahmedabad
3.49 February 2008 to February 2009 Commissioner (Appeals)
44.89 F.Y. 2013-14 to June 2015
19.87 F.Y. 2013-14 to June 2016
22.72 July 2015 to December 2016
8.77 April 2016 to June 2017
Sales Tax Sales Tax 99.49 F.Y. 1986-87 to 1989-1990 1996-97 to 1997-98 2005-06 to 2006-07 and 2008-09 Sales tax tribunal
233.11 F.Y. 2003-2008 2011-16 Commissioner of Sales Tax (Appeals)

* Net of INR 650.36 lakhs paid under protest.

ZU1/-1 O

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT- 31 March 2018

(Referred to in our Report of even date)

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 statements of PanasonicEnergy India Company Limited (‘the Company') as of 31 March 2018 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal financial controls over financial statementsissued by the Institute of Chartered Accountants of India (‘the Guidance Note').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial statements based on our audit. We conducted our audit inaccordance with the Guidance Note and the Standards on Auditing deemed to be prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the Institute of Chartered Accountants of India (‘ICAI'). Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial statements and their operatingeffectiveness. Our audit of internal financial controls over financial statements includedobtaining an understanding of internal financial controls over financial statementsassessing 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 Ind AS 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 statements.

Meaning of Internal Financial Controls Over Financial Statements

A company's internal financial control over financial statements is a process designedto provide reasonable assurance regarding the reliability of financial statements and thepreparation of Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial statements 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 Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and Directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the Ind ASfinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Statements

Because of the inherent limitations of internal financial controls over financialstatements 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 financialstatements to future periods are subject to the risk that the internal financial controlover financial statements 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 statements and such internal financial controlsover financial statements were operating effectively as at 31 March 2018 based on theinternal control over financial statements criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No. 116231W/W-100024
Jeyur Shah
Place: Vadodara Partner
Date : 28 May 2018 Membership No. 045754