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Websol Energy System Ltd.

BSE: 517498 Sector: Engineering
NSE: WEBELSOLAR ISIN Code: INE855C01015
BSE 00:00 | 18 Apr 25.85 -0.30
(-1.15%)
OPEN

25.90

HIGH

26.10

LOW

25.65

NSE 00:00 | 18 Apr 25.75 -0.30
(-1.15%)
OPEN

26.70

HIGH

26.70

LOW

25.60

OPEN 25.90
PREVIOUS CLOSE 26.15
VOLUME 5817
52-Week high 89.90
52-Week low 21.15
P/E
Mkt Cap.(Rs cr) 75
Buy Price 25.85
Buy Qty 50.00
Sell Price 26.15
Sell Qty 25.00
OPEN 25.90
CLOSE 26.15
VOLUME 5817
52-Week high 89.90
52-Week low 21.15
P/E
Mkt Cap.(Rs cr) 75
Buy Price 25.85
Buy Qty 50.00
Sell Price 26.15
Sell Qty 25.00

Websol Energy System Ltd. (WEBELSOLAR) - Auditors Report

Company auditors report

TO THE MEMBERS OF

WEBSOL ENERGY SYSTEM LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Websol EnergySystem Limited (‘the Company') which comprise the Balance Sheet as at March 312018 the Statement of Pro t and Loss and the Cash Flow Statement for the year then endedand a summary of the signi cant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (‘the Act') with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash ows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspeci ed under Section 133 of the Act as applicable. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of these financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder and the Order under Section143(11) of the Act.

We conducted our audit in accordance with the Standards on auditingspeci ed under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is suf cient andappropriate to provide a basis for our audit opinion on the financial statements.

EMPHASIS OF MATTERS

We draw attention to the matter that the con rmations in respect ofbalances of Sundry Debtors Sundry Creditors and Advances from and to various parties havenot been received in all cases. However we do not modify our opinion on this matter.

OPINION

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the 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 March 31 2018 and its pro t and its cash ow for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by Section 143(3) of the Act we report that: (a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. (b) In our opinionproper books of account as required by law relating to the preparation of the financialstatements have been kept by the Company so far as it appears from our examination ofthose books.

(c) The Balance Sheet the Statement of Pro t and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of accountmaintained for the purpose of preparation of these financial statements. (d) In ouropinion the aforesaid financial statements comply with the Accounting Standards speci edunder Section 133 of the Act as applicable.

(e) On the basis of the written representations received from theDirectors as on March 31 2018 taken on record by the Board of Directors none of theDirectors is disquali ed as on March 31 2018 from being appointed as a Director interms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in ‘Annexure A'. Our report expresses an unmodi edopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

(g) With respect to the other matters to be included in the IndependentAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i) The Company has disclosed the impact of pending litigationson its financial position in its financial statements. (Refer note 37) ii) The Company hasmade provision in its financial statements as required under the applicable law oraccounting standards for material foreseeable losses if any on long term contractsincluding derivative contracts; iii) The Company has transferred to the Investor educationand Protection Fund (IePF) the following amounts which was required to be transferred :

Description

Rs in Lakhs

Transferred on

Unclaimed Dividend

2.67

22 05 2017

Unclaimed Dividend

2.93

22 05 - 2017

2. As required by the Companies (Auditor's Report) Order 2016(‘the Order') issued by the Central government in terms of Section 143(11) ofthe Act we give in ‘Annexure B' a statement on the matters speci ed inparagraphs 3 and 4 of the Order.

For T. MORE & CO.

Chartered Accountants Firm Regn. no.327844e

TANISHA MORE

Proprietor C.A. Membership no. 301569

Place : Kolkata Date : the 11th June 2018

Annexure ‘A' to the Independent Auditors' Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on the Internal financial Controls Over financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (‘theAct')

We have audited the internal financial controls over financialreporting of Websol Energy System Limited (‘the Company') as of March 31 2018in conjunction with our audit of the financial statements of the Company for the yearended and as on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the guidance note on Audit of Internal financial Controls overfinancial Reporting issued by the Institute of Chartered Accountants of India (the‘guidance note'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and ef cient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Standards on Auditing prescribed under Section 143(10) of theAct and the guidance note to the extent applicable to an audit of internal financialcontrols. Those Standards and the guidance note require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that may cause material weakness and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' 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 suf cient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial controlover financial reporting includes those policies and procedures that : (1) pertain to themaintenance of records that in reasonable detail accurately and fairly re ect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrols over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the guidance note.

For T. MORE & CO.

Chartered Accountants Firm Regn. no.327844e

TANISHA MORE

Proprietor C.A. Membership no. 301569 Place : Kolkata Date : the 11thJune 2018

Annexure ‘B' to the Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 (‘theOrder') issued by the Central Government in terms of Section 143(11) of the CompaniesAct 2013 (‘the Act') of Websol Energy System Limited (‘the Company')

1. In respect of the Company's xed assets:

(a) The records maintained by the Company are incomplete and currentlybeing updated to show full particulars including quantitative details and situation ofxed assets.

(b) The xed assets were physically veri ed during the year by theManagement in accordance with a regular programme of veri cation which in our opinionprovides for physical veri cation of all the xed assets at reasonable intervals. Accordingto the information and explanations given to us the discrepancies if any between thebook records and physical veri cation can be determined on updation of the book records.(c) According to the information and explanations given to us and the records examined byus and based on the examination of the relevant records provided to us we report thatthe Land as mentioned in the financial Statements is leasehold Land and the Leaseagreement is in the name of the Company.

2. As explained to us the inventories were physically veri ed duringthe year by the Management at reasonable intervals and discrepancies noticed on suchphysical veri cation were not material and those immaterial discrepancies have beenproperly dealt with in the books of account.

3. The Company has not granted any loans secured or unsecured tocompanies rms limited liability partnerships or other parties covered in the registermaintained under Section 189 of the Act.

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theAct in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

5. The Company has not accepted deposits during the year under reportand does not have any unclaimed deposits as at March 31 2018 and therefore theprovisions of the clause 3 (v) of the Order are not applicable to the Company.

6. Reporting under clause 3(vi) of the Order is not applicable as theCompany's business activities are not covered by the Companies (Cost Records andAudit) Rules 2014 as amended by the Companies (Cost Records and Audit) Amendment Rules2014 dated December 31 2014.

7. According to the information and explanations given to us inrespect of statutory dues: (a) The Company has made delayed deposits with appropriateauthorities the amount deducted/accrued in the books of accounts in respect of undisputedstatutory dues including Provident Fund employees State Insurance Income-tax Sales-taxWealth Tax Service Tax duty of Customs duty of excise Value Added Tax Cess and otherstatutory dues as applicable to it.

(b) As per the information and explanations given to us the followingundisputed amounts in respect of the above mentioned statutory dues were outstanding as atMarch 31 2018 for a period of more than six months from the date they became payable:

Name of Statute Nature of Dues

Amount

(Rs in Lakhs)

Delhi Value Added Delhi Value Added

51.76

Tax Act 2004 Tax
Finance Act 1994 Service Tax and

00.18

Works Contract
Service Tax at Delhi

(c) Details of statutory dues which have not been deposited as at March31 2018 on account of dispute are given below:

Nature of dues Forum where dispute is pending

Amount

Remarks

(Rs in Lakhs)

excise Duty and Penalty excise Duty and Penalty excise Duty and Penalty Settlement Commission

216.55

The Company had paid H100.00 Lakhs against this demand in the year 2004-05.
High Court at Kolkata

57.12

High Court at Kolkata

13.87

Income Tax Act Penalty Commissioner of Income Tax (Appeals)

628.05

The Company has paid H55.00 Lakhs against this demand and has submitted a petition for stay of this demand.

8. The Company had Foreign Currency Convertible Bonds("FCCBs") amounting to US$ 12.00 million out of which FCCBs of the value US$6.43 million has been converted into 4702667 equity Shares of the Company during theyear under report as per the rates approved by regulators and shareholders.

The Company did not have any borrowing from financial institutions orgovernment.

9. The Company has not raised money by way of initial public offer orfurther public offer (including debt instruments) or term loans and hence reporting underclause 3 (ix) of the Order is not applicable.

10. To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no fraud on the Company by its ofcers or employees has been noticed or reported during the year. 11. In our opinion andaccording to the information and explanations given to us the Company has paid / providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

12. The Company is not a nidhi Company and hence reporting under clause3(xii) of the Order is not applicable. 13. In our opinion and according to the informationand explanations given to us the Company is in compliance with Section 177 and 188 of theAct wherever applicable for all transactions with the related parties and the details ofrelated party transactions if any have been disclosed in the financial statements asrequired by the applicable accounting standards.

14. During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause 3(xiv) of the Order is not applicable to the Company. 15. Inour opinion and according to the information and explanations given to us during the yearthe Company has not entered into any non-cash transactions with its Directors or personsconnected to its Directors and hence provisions of Section 192 of the Act are notapplicable. 16. The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934.

For T. MORE & CO.

Chartered Accountants Firm Regn. no.327844e

TANISHA MORE

Proprietor C.A. Membership no. 301569

Place : Kolkata

Date : the 11th June 2018