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Voltamp Transformers Ltd.

BSE: 532757 Sector: Engineering
NSE: VOLTAMP ISIN Code: INE540H01012
BSE 00:00 | 30 Oct 984.45 -19.75
(-1.97%)
OPEN

1004.50

HIGH

1005.20

LOW

980.35

NSE 00:00 | 30 Oct 985.80 -21.65
(-2.15%)
OPEN

1009.00

HIGH

1011.40

LOW

980.00

OPEN 1004.50
PREVIOUS CLOSE 1004.20
VOLUME 372
52-Week high 1475.00
52-Week low 710.00
P/E 10.85
Mkt Cap.(Rs cr) 996
Buy Price 980.30
Buy Qty 1.00
Sell Price 984.45
Sell Qty 2.00
OPEN 1004.50
CLOSE 1004.20
VOLUME 372
52-Week high 1475.00
52-Week low 710.00
P/E 10.85
Mkt Cap.(Rs cr) 996
Buy Price 980.30
Buy Qty 1.00
Sell Price 984.45
Sell Qty 2.00

Voltamp Transformers Ltd. (VOLTAMP) - Auditors Report

Company auditors report

To

The Members of Voltamp Transformers Limited

Report on the audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of Voltamp Transformers Limited(the Company) which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then endedand notes to theFinancial Statements including a summary of significant accounting policies and otherexplanatory information. In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid financial statements give the informationrequired by 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 accountingprinciples generally accepted in India of thestateof affairs of the Company as at31st March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the independence requirements that arerelevant to our audit of the Financial Statements under the provisions of the CompaniesAct 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtainedis sufficient and appropriate to provide a basisfor our opinion on the Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinionon these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin ourreport.

Sr No Key Audit Matter Auditor's Response
1 Litigations Provisions and Contingent Liabilities The Company has several litigations for direct tax as well as indirect tax which include matters under dispute which involves significant management judgement and estimates on the possible outcome of the litigations and consequent provisioning thereof or disclosure as contingent liabilities. Principal Audit Procedures As part of the audit process we obtained from the management details of matters under disputes including ongoing and completed tax assessments demands and other litigations. Our audit approach for the above consists of the following audit procedures:
Refer note no. 42 of financial statement. - Evaluation and testing of the design of internal controls followed by the company relating to litigations and open tax positions for direct and indirect taxes and process followed to decide provisioning or disclosure as Contingent Liabilities;
- Discussed with company s legal team and taxation team for sufficient understanding of on-going and potential legal matters impacting the company.
- We involved our internal expert to evaluate the management s underlying judgements in making their estimates with regard to such matters.

Information other than the Financial Statement 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 Board s Reportincluding Annexure to that Board s Report Corporate Governance and Shareholder sInformation but does not include the Financial Statements and our auditor s reportthereon.

Our opinion on the Financial Statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 of theseFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income changes in equity and cash flows oftheCompany in accordance with the Ind AS and other accounting principles generallyaccepted in India including the accounting Standards specified under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error;

In preparing the Financial Statements management is responsible for assessing theCompany s abilityto 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;

The Board of Directors are also responsible for overseeing the company s financialreporting process.

Auditor's Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor s report that includesour opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control;

- Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and theoperatingeffectiveness of such controls;

- Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management;

- Conclude on the appropriateness of management s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists relatedto events or conditions thatmay 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 Financial Statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor sreport. However future events or conditions may cause the Company to cease to continue asa going concern;

- Evaluate the overall presentation structure and content of the Financial Statementsincluding thedisclosures and whether the Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation;

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statementsmay be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of ourauditwork and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the financial statements.

We communicate with those charged with governance of the Companyof which we are theindependent auditors regarding among other matters the planned scope and timing of theaudit and significant audit findings including any significant deficiencies in internalcontrol that we identify during our audit;

We also provide those chargedwith 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 Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor s report unless law or regulation precludes public disclosureabout the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in ourreport because the adverse consequences of doing so would reasonably beexpected 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 bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 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 other comprehensiveincome) the Statement of changes in equity and the Cash Flow Statement dealt with by thisreport are in agreement with therelevant 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 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B ;

(g) With respect to the other matters to be included in the Auditor s Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best ofour information and according to the explanationsgiven to us theremuneration paid by the Company to its directors during the year is inaccordance with the provisions of section197 of 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 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 financial statements Refer Note 42 to the Financial Statements;

ii. The Company has made provision as required under the applicable law 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 during the year ended 31st March2020.

Place : Vadodara Date : 10th June 2020

For C N K & Associates LLP

Chartered Accountants FRN: 101961W/W-100036

Alok Shah

Partner Membership Number: 42005 UDIN No. : 20042005AAAAEL5204

Annexure 'A' to the Independent Auditors' Report

Referred to in Para 1 Report on Other Legal and Regulatory Requirements in ourIndependent Auditors Report to the members of the Company on the Financial Statements forthe year ended 31st March 2020.

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets;

(b) As informed to us the company has a phased programme of physical verification ofits fixed assets so as to cover all assets once in three years. In accordance with thisprogramme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets; (c) According to the information and explanations given to us and onthe basis of our examination of therecords of the Company the title deeds of immovableproperties are held in the name of the Company; ii. As per the information andexplanations given to us physical verification of inventory has been conducted atreasonable intervals by the management and no material discrepancies were noticed onphysical verification; iii. According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnership or any other parties covered in the register maintained undersection 189 of the Companies Act 2013. Hence clause 3(a) 3(b) and 3(c) are notapplicable for the year; iv. In our opinion and according to the information provided tous there are no loan to directors including entities in which they are interested inrespect of which provision of section 185 are applicable and hence not commented upon.Further in our opinion and according to information and explanation given to usprovision ofsection 186 in respect of loans and advances given and investment made havebeen complied with by the Company. There are no guarantees and securities given in respectof which provision of section 186 of the Act are applicable and hence not commented upon;v. In our opinion and as explained to us the Company has not accepted any deposits duringthe year andtherefore the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder are not applicableto the Company; vi. We have broadly reviewed the cost records maintained by the Company asprescribed by the Central Government under sub section (1) of Section 148 of the CompaniesAct 2013 and are of the opinion that prima facie the prescribed cost records have beenmade and maintained by the Company. We have however not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete; vii. (a)According to the information and explanations given to us and the records examined by usthe Company is regular in depositing with appropriate authorities undisputed statutorydues including Provident Fund Employees State Insurance Income-Tax Goods and ServiceTax (GST) Custom Duty Cess and other statutory dues and there are no undisputedstatutory dues outstanding as at 31st March 2020 for a period of more thansix months from the date they became payable; (b) According to the information andexplanations given to us and the records examined by us there areno dues of income taxsales tax wealth-tax service tax duty of customs duty of excise value added tax orcess that has not been deposited on account of disputes except the following:

Name of the Statute

Nature of Dues

Amount* (` in Lakhs)

Period to which the amount relates

Forum where dispute is pending

Central Excise Act 1994 Excise Duty (Including interest and penalty thereon) 553.78 April 2004 to June 2017 Appeal filed at CESTAT Ahmedabad
Income Tax Act 1961 Income Tax 146.42 2009-10 Appeal to HC by the RevenueDepartment
Income Tax Act 1961 Income Tax 269.92 2010-11 Appeal to HC by the RevenueDepartment
Income Tax Act 1961 Income Tax 56.87 2010-11 Appeal to ITAT by Assessee
Income Tax Act 1961 Income Tax 174.16 2011-12 Appeal to ITAT by the RevenueDepartment
Income Tax Act 1961 Income Tax 251.08 2012-13 Appeal to ITAT by the RevenueDepartment
Income Tax Act 1961 Income Tax 2.42 2009-10 Appeal to CIT(A) by Assessee
Income Tax Act 1961 Income Tax 18.74 2010-11 Appeal to CIT(A) by Assessee
Income Tax Act 1961 Income Tax 122.94 2016-17 Appeal to CIT(A) by Assessee

*Net of amount paid under protest viii. In our opinion and according to the informationand explanation given by the us company has not taken any borrowing from any financialinstitution bank or Government and there are no dues to debenture holders during theyear; ix. According to the information and explanations given to us no moneys were raisedby way of initial public offer or further public offer (including debt instruments) duringthe year and also there are no term loans availed by the Company hence reporting underthis clause is not applicable to Company; x. During the course of our examination ofthebooks of account and records of the Company carried outin accordance with the generallyaccepted auditing practices in India and according to the information and explanationsgiven to us we have neither came across any incidence of fraud on or by the Companynoticed or reported during the year nor we have been informed of any such case by themanagement; xi. In our opinion and according to the information and explanations given tous the Company has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act; xii.In our opinion and according to the information and explanation given to us theprovisions relatedto Nidhi Company are not applicable; xiii. In our opinion and accordingto the information and explanations given to us the Company is in compliance with Section177 and 188 of the Companies Act 2013 where applicable for all transactions with therelated parties and the details of related party transactions have been disclosed in theFinancial Statements as required by the applicable accounting standards; xiv. According tothe information and explanations given to us the Company has not made anypreferentialallotment or private placement of shares or fully or partly convertibledebentures during the year under review; xv. According to the information and explanationgiven to us and based on our examination of the records the Company has not entered intonon-cash transactions with the directors or persons connected with them. Hencetheprovisions of Section 192 of the Act are not applicable; xvi. The Company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.

Place : Vadodara Date : 10th June 2020

For C N K & Associates LLP

Chartered Accountants FRN: 101961W/W-100036

Alok Shah

Partner Membership Number: 42005 UDIN No. : 20042005AAAAEL5204

Annexure ‘B' to the Independent Auditors' Report

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of VOLTAMPTRANSFORMERS LIMITED (the Company) as of 31st March 2020 in conjunction withour audit of the Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering theessential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls with reference to financial statements of the Company that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to respective company s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over FinancialReporting(theGuidance Note)and the Standards onAuditing prescribed under section143(10) of theCompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonableassurance about whether adequate internalfinancial controls with reference to financial statements of the company were establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internalfinancial controls with reference to financial statements of the company andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controlsover financialreporting 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 judgment including the assessment of therisks of material misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basisfor our audit opinion on the Company s internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company s internal financial control over financial reporting is a process designedto provide reasonable assurance regardingthe reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company s internal financial control overfinancialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding preventionor timely detection ofunauthorised acquisition use or disposition of the Company s assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraudmay occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies 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 internal financial controls withreference to financial statements of the Company and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2020 based onthe internal control over financial reporting 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.

Place : Vadodara Date : 10th June 2020

For C N K & Associates LLP

Chartered Accountants FRN: 101961W/W-100036

Alok Shah

Partner Membership Number: 42005 UDIN No. : 20042005AAAAEL5204

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