THE MEMBERS OF STAR DELTATRANSFORMERS LIMITED
Report on the Financial Statements Opinion
We have audited the accompanying financial statements of STAR DELTA TRANSFORMERSLIMITED ("the Company") which comprise the Balance Sheet as at 31/03/2019 theStatement of Profit and Loss the Cash Flow Statement and the statement of Change inEquity for the year then ended and a summary of the significant accounting policies andother explanatory information.
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 including Ind AS specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31st March 2019and its Profit (financial performance including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion
Management's Responsibility andThose ChargedWith Governance for the FinancialStatements
1. 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 financial statements that give a true and fair view of the state ofaffairs(financial position) Profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards ('Ind AS') specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Auditor's Responsibility for the Audit of Financial Statements
2. Our responsibility is to express an opinion on these financial statements based onour audit.
3. 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.
4. 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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether these financial statements are freefrom material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls 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.
6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
Report on Other Legal and Regulatory Requirements
7. 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 - A" a statement on the matters specified in the paragraphs 3and 4 of the Order.
8. 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 financial statements dealt with by this Report are in agreement with the booksof account.
(d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act;
(e) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on31/03/2019 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 - B" to this report;
(g) With respect to the other matters to be included in Auditor's Report in accordancewith Rule 11 of the Companies (Audit & Auditors) Rules 2014 (as amended) in ouropinion and to the best of our information and according to the explanations given to us;
i. The Company as detailed in Note No. 31 to the financial statements has disclosedthe impact of pending litigations on its financial position;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. The Company has transferred amounts which were required to be transferred to theInvestor Education and Protection Fund during the year.
| ||For S. L. KHABYA & CO. |
| ||Firm Reg. No. 000004C |
| ||Chartered Accountants |
| ||Sd/- |
|Place : Bhopal ||CA. SUMIT KHABYA |
|Date : 29th May 2019 ||Partner |
| ||Membership No. 0414887 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
The annexure referred to in independent auditors report to the members of the Companyon the financial statements for the year ended March 31 2019. We report that:
(i) (a) On the basis of available information the company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us all the assets have been physically verified by the managementas per a program of verification in a periodical manner which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.
('c) According to the information and explanations given to us and the record examinedby us and based on the examination of the registered sale deed/ transfer deed/ conveyancedeed and other relevant records evidencing title provided to us we report that the titledeeds comprising all the immovable properties of land and building which are free holdare held in the name of the Company as at the balance sheet date.
In respect of immovable properties of land and buildings that have been taken on leaseand disclosed as fixed asset in the financial statements the lease agreements are in thename of the Company where the Company is the lessee in the agreement.
(ii) As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals and no material discrepancies were noticed on physicalverification.
(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 Companies Act 2013.
(iv) In our opinion and according to the information and explanations given to uswherever applicable the Company has complied with the provisions of Section 185 and 186 ofthe Companies Act2013 in respect of grant of loans making investments and providingguarantees as applicable. The Company has not granted any security in term of Section 185and 186 of the Companies Act 2013.
(v) According to the information and explanations given to us the company has notaccepted any deposits from the public during the year and accordingly paragraph 5 of theorder is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government under sub section (1) of Section 148(1)of the Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the records with a view to determine whether they are accurate and complete.
(vii) According to the information and explanations given to usin respect of statutorydues;
(a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees state insurance income tax goods and service taxcustom duty excise duty cess and any other material statutory dues with the appropriateauthority.
(b) There were no undisputed amounts payable in respect of provident fund employees'state insurance income tax goods and services tax custom duty excise duty cess andother material statutory dues in arrears as at March 31 2019 for a period of more thansix months from the date they became payable.
(c) According to the records of the company examined by us and information andexplanations given to us no statutory dues were outstanding on account of a dispute as on31st March 2019.
|Name of the Statute ||Nature of demand ||Amount of demand unpaid as on 31/03/2019 ||Period to which the amount relates ||Forum where dispute is pending |
| || ||(Rs.) (In Lakhs.) ||(Assessment Yr) || |
|The Income Tax Act 1961 ||IncomeTax and/or interest ||1.289 ||2013-14 ||Appellate Authorities |
|The Income Tax Act 1961 ||IncomeTax and/or interest ||0.85 ||2015-16 ||Appellate Authorities |
|Service Tax Act ||Service tax ||11.84 ||April-2009 to December- 2011 ||CESTAT New Delhi |
|Central Sales Tax Act ||CST ||1.51 ||2015-16 ||Comm. Commercial Tax Bhopal |
|Central Sales Tax Act ||CST ||4.22 ||2014-15 ||Comm. Commercial Tax |
|Central Sales Tax Act ||CST ||1.83 ||2012-13 ||Comm. Commercial Tax |
(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of loans or borrowings to financialinstitutions government and banks.
(ix) The Company did not raise any moneys by way of initial public offer (includingdebt instruments) during the year. In our opinion and according to the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees have been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals managed by the provisions of section 197 read with schedule V to the CompaniesAct 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the CARO 2016 Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors associate company or persons connected with them and hence provisions ofsection 192 of the Companies Act 2013 are not applicable.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
| ||For S.L. KHABYA & CO. |
| ||Chartered Accountants |
| ||Firm Reg. No. 000004C |
| ||Sd/- |
|Place : Bhopal ||CA. SUMIT KHABYA |
|Date : 29th May 2019 ||Partner. |
| ||Membership No. 0414887 |