To the Members of Toyama Electric Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Toyama ElectricLimited(the Company) which comprise the Balance Sheet as at March 31 2015the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with the ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers the internal financial control relevant to the Companyspreparation of financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal controlssystem over financial reporting and the operating effectiveness of such controls. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Companys Directors as wellas evaluating the overall presentation of the financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the financial statements.
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 of the state of affairs of the Company as at March31 2015 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 (theOrder) issued by the Central Government of India in exercise of powers conferred bythe sub-section 11 of Section 143 of the Act we enclose in the Annexure a statement onthe matters specified in paragraphs 3 and 4 of the Order.
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 ofProfit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account; .
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of section 164(2)of theAct; and
(f) With respect to the other matters to be included in the Auditors 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 confirmed that there is no pending litigation against the Companybearing any financial implication.
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.
|For K.S.Aiyar && CO |
|Chartered Accountants ~ |
|ICAI Firms Registration number-100186W |
|Membership No: 23206 |
|Place: Bangalore |
|Date: 29/05/2015 |
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the financial statements for the year ended 31st March 2015 wereport that:
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
2. a) The inventory has been physically verified by the management during the year.In respect of inventory lying with third parties these have been confirmed by them. Inour opinion the frequency of such verification is reasonable.
b) The procedures for the physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c) The Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.
3. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013.
4. In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of inventories and fixed assets andsale of goods and services. In our opinion and according to the information andexplanations given to us there is no continuing failure to correct major weakness ininternal control system.
5. According to the information and explanations given to us the Company has notaccepted any deposits from the public in accordance with the provisions of sections 73 to76 of the Act and the rules framed there under.
6. We have broadly reviewed the records maintained by the Company pursuant to the rulesprescribed by the Central Government for maintenance of cost records under subsection 1 ofSection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.
7. According to the information and explanations given to us in respect ofstatutory dues:
a) According to information and explanation given to us and on the basis of ourexamination of the records of the company amount deducted/accrued in the books of accountin respect of undisputed statutory dues including provident fund employees stateinsurance income tax sales tax wealth tax service tax custom duty excise duty valueadded tax cess professional tax and other material statutory dues have been regularlydeposited during the year by the Company with the appropriate authorities.
b) According to information and explanation given to us there were no undisputedamounts payable in respect of provident fund employees state insurance income-taxsales tax wealth tax service tax customs duty excise duty value added tax cess andother material statutory dues were in arrears as at March 31 2015 for a period of morethan six months from the date they became payable.
c) According to the information and explanation given to us there are no material duesof sales tax wealth tax service tax custom duty value added tax and cess which havenot been deposited with appropriate authorities on account of any dispute.
d) The Company has been regular in transferring amounts to the Investor Education andProtection Fund in accordance with the relevant provisions of the Companies Act 1956 (1of 1956) and Rules made there under within time.
8. The Company has no accumulated losses as at the end of the financial year and hasincurred cash losses during the financial year and previous financial year.
9. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. There are no outstanding duesto financial institutions and the Company has not issued any debentures.
10. In our opinion and according to the information and the explanations given tous the Company has not given any guarantee for loans taken by others from banks orfinancial institutions.
11. The Company did not have any term loans outstanding during the year.
12. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no fraud on the Company has been noticed orreported during the year.
|For K.S.Aiyar && CO |
|Chartered Accountants |
|ICAI Firms Registration number-100186W |
|Ramamohan Hegde |
|Membership No: 23206 |
|Place: Bangalore |