You are here » Home » Companies » Company Overview » Techno Electric & Engineering Company Ltd

Techno Electric & Engineering Company Ltd.

BSE: 542141 Sector: Engineering
NSE: TECHNOE ISIN Code: INE285K01026
BSE 00:00 | 20 Feb 298.50 -1.45
(-0.48%)
OPEN

297.00

HIGH

298.50

LOW

297.00

NSE 00:00 | 20 Feb 299.60 0.15
(0.05%)
OPEN

298.95

HIGH

300.25

LOW

295.65

OPEN 297.00
PREVIOUS CLOSE 299.95
VOLUME 105
52-Week high 320.70
52-Week low 218.90
P/E 16.07
Mkt Cap.(Rs cr) 3,284
Buy Price 298.50
Buy Qty 13.00
Sell Price 309.00
Sell Qty 101.00
OPEN 297.00
CLOSE 299.95
VOLUME 105
52-Week high 320.70
52-Week low 218.90
P/E 16.07
Mkt Cap.(Rs cr) 3,284
Buy Price 298.50
Buy Qty 13.00
Sell Price 309.00
Sell Qty 101.00

Techno Electric & Engineering Company Ltd. (TECHNOE) - Auditors Report

Company auditors report

To the Members of Techno Electric & Engineering Company Limited (formerly SimranWind Project Ltd.).

Independent Auditor's Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of Techno Electric& Engineering Company Limited (formerly Simran Wind Project Ltd.). ("theCompany") which comprise the Balance sheet as at March 31 2019 the Statement ofProfit and Loss (including the Statement of Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the Standalonefinancial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone 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 Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2019 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the 'Code of Ethics' issuedby the Institute of Chartered Accountants (ICAI) of India together with the ethicalrequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements for the financial yearended March 31 2019. These matters were addressed in the context of our audit of theStandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context.

Descriptions of Key Audit Matter How we addressed the matter in our audit
Revenue Recognition - The accuracy of amounts recorded as revenue is an inherent risk due to the complexity involve. As part of our audit we understood the Company's policies and processes control mechanisms and methods in relation to the revenue recognition and evaluated the design and operative effectiveness of the financial controls from the above through our test of control procedures.
The application of revenue recognition accounting standards Ind AS 115 is complex and involves a number of judgments and estimates. Refer note no 5.19 (a)-to Critical accounting judgments including those involving estimations related to Revenue recognition. In addition disclosure is required of the expected impact of the new standard on revenue recognition Ind AS 115 which is effective from 1st April 2018. In view of the complexity of the revenue recognition under Ind AS 115 and the judgments and estimates involved the recognition of revenue was a matter of most significance to our audit. • Tested a sample of sales transactions for compliance with the Company's accounting principles to assess the completeness occurrence and accuracy of revenue recorded. Also revenue is recognised when the Company satisfies a performance obligation.
• performing procedures to ensure that the revenue recognition criteria adopted by Company for all major revenue streams is appropriate and in line with the Company's accounting policies.
• We tested the company's system generated reports based on which revenue is accrued at the year end and performed tests of details on the accrued revenue and accounts receivable balances recognized in the balance sheet at the year end.
Our tests of detail focused on transactions occurring within proximity of the year end and obtaining evidence to support the appropriate timing of revenue recognition based on terms and conditions set out in sales contracts and delivery documents or system generated reports. We considered the appropriateness and accuracy of any cut-off adjustments
• Traced disclosure information to accounting records and other supporting documentation.
Our Observation:
Based on the audit procedures performed we did not obtain any material exceptions in the revenue recognition.

Information Other than the Standalone financial statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation.

The other information comprises the information included in the annual reports butdoes not include the standalone financial statements and our auditor's report thereon.

Our opinion on the Standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. 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 the designimplementation 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 Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those charged with governance are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalonefinancial 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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 the audit in order todesign audit procedures that are appropriate in the circumstances.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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" a statement on the matters specified inparagraphs 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 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 the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended from time to time;

(e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct;

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

(g) In our opinion the managerial remuneration for the year ended March 31 2019 hasbeen paid/ provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act; and

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

I. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements- Refer Note No. 43 to the standalonefinancial statements;

II. The Company has made provisions as required under the applicable laws or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.

III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Navindra Kumar Surana)
Place : Kolkata Partner
Date : May 30 2019 Membership No. 53816

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1 with the heading 'Report on Other Legal and RegulatoryRequirements' section of our report of even date in respect to statutory audit of TechnoElectric & Engineering Company Limited (Formerly Simran Wind Project Ltd.) for theyear ended 31st March 2019)

We report that:

i. In respect of its Property Plant & Equipment:

a) The Company has maintained proper records of Property Plant & Equipment showingfull particulars including quantitative details and situation of Property Plant &Equipment.

b) The Company has a phased program of physical verification of its Property Plant& Equipment which in our opinion is reasonable having regard to the size of theCompany and the nature of its business. In accordance with such program the managementhas physically verified certain Property Plant & Equipment as per the program duringthe year and no material discrepancies were noticed on such verification.

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 properties areheld in the name of the Company.

ii. As explained to us inventories were physically verified during the year by themanagement at reasonable intervals. In our opinion and according to the information andexplanations given to us the discrepancies noticed on such verifications of inventories ascompared to the book records were not material and have been properly dealt with in thebooks of account.

iii. During the year the Company has not granted any secured or unsecured loans tocompanies firms limited liability partnership or other parties covered in the registermaintained under section 189 of the Act. Accordingly the provisions of paragraph 3(iii)3(iii)(a) to 3(iii)(b) of the said order are not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments made and providing guarantees and securities as applicable.

v. According to information and explanations given to us the Company has not acceptedany deposits from public within the meaning of Section 73 74 75 and 76 of the Act andRules framed thereunder to the extent notified.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the product & services rendered by the Company.

vii. According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of Provident Fund Employees' State InsuranceIncome-tax Sales-tax Service Tax duty of customs duty of excise value added taxgoods & service Tax cess and other statutory dues as applicable with theappropriate authorities.

There are no arrears in respect of the aforesaid dues as at 31st March 2019 for aperiod of more than six months from the date they became payable.

Name of the Statue Nature of Dues Amount (?) Period to which the amount relates Forum Where Dispute is Pending
Orissa Value Added Tax Act 2004 Due to non submission of books of Accounts at the time of assessment 4951605 2005-06 to 2008-09 Tribunal Authority Angul
Madhya Pradesh Vat Act 2002 Dispute on account of Extra freight & Entry Tax charge on Purchase etc 2058719 2012-13 Appellante Authority Jabalpur
Madhya Pradesh Vat Act 2002 TDS Credit not admitted. 510404 2014-15 Appellante Authority Jabalpur

viii According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not defaulted in repayment ofdues to any financial institution bank or debenture holders as at Balance Sheet date. Thecompany does not have any borrowings or loans from Central Government as at Balance Sheetdate.

ix. Based on our audit procedures and according to the information and explanationsgiven to us the company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year.

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 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. Accordingly paragraph 3(xii) of the Order is notapplicable.

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.

The details of such related party transactions have been disclosed in the standalonefinancial statements as required under Indian Accounting Standards (IND AS) 24.

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.

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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

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

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Navindra Kumar Surana)
Place : Kolkata Partner
Date : May 30 2019 Membership No. 53816

Annexure - B to the Independent Auditor's Report

(Referred to in paragraph 2 (f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Techno Electric & EngineeringCompany Ltd. (formerly Simran Wind Project Ltd.) of even date)

Report on the Internal Financial Controls with reference to standalone financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the internal financial controls with reference to standalone financialstatements of Techno Electric & Engineering Company Ltd. (formerly Simran WindProject Ltd.)

("the Company") as of March 31 2019 in conjunction with our audit of theStandalone financial statements of the Company for the year ended 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 criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India. These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls withreference to standalone financial statements based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to audit of internal financialcontrols and both issued by ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to standalonefinancial statement was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto standalone financial statements included obtaining an understanding of internalfinancial controls with reference to standalone financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 systemwith reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to financial statement

A company's internal financial control with reference to financial statement is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone financial statements for external purposes inaccordance with generally accepted accounting principles.

A company's internal financial control with reference to standalone financial statementincludes those policies and procedures that (1) pertain to the maintenance of recordsthat in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Standalone 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 standalone financial statements.

Limitations of Internal Financial Controls with reference to financial statement

Because of the inherent limitations of internal financial controls with reference tostandalone financial statement 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 financial controls with referenceto standalone financial statement to future periods are subject to the risk that theinternal financial control with reference to standalone financial statement may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to standalone financial statement and such internal financialcontrols with reference to standalone financial statement were operating effectively as atMarch 31 2019 based on the internal control criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Singhi & Co.
Chartered Accountants
Firm Registration No.302049E
(Navindra Kumar Surana)
Place : Kolkata Partner
Date : May 30 2019 Membership No. 53816