To the Members of Whirlpool of India Limited
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Whirlpool of India Limited("the Company") which comprise the Balance Sheet as at March 31 2019 and theStatement of Profit and Loss Statement of Changes in Equity and Statement of Cash Flowsfor the year then ended and notes to the standalone financial statements including asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the standalone financial 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 accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 and profit changes in equityand its cash flows 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 Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
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 of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.
Description of Key Audit Matter
Evaluation of uncertain tax positions (Direct Tax and Indirect Tax)
The Company has transactions with related parties in other countries and hence issubject to transfer pricing regulations as specified under Income-Tax Act 1961 in India.Certain transactions with related parties and various tax positions taken by the Companyare challenged by the relevant tax authorities. Further certain tax positions relating toreporting of taxable turnover selection of tax rates non-collection of statutory formsetc. in indirect tax are challenged by relevant tax authorities. Management has assessedthe Litigations/ Assessments status and has applied judgement in classifying/ takingappropriate actions as required under Ind AS 37 - Provisions ContingentLiabilities and Contingent Assets'.
We have determined this matter to be key audit matter due to the significance of theamounts and judgements involved.
Description of Auditor's Response
Our audit procedure in respect of this area included:
1. Analysed the list of ongoing litigations Management's assessment of the possibleoutcome of the case and related accounting/ disclosures made in the standalone financialstatements.
2. Verified the completenessof the information by corroborating prior year work papersand changes if any to tax litigations status with the underlying documents.
3. Auditor's expert was involved to reassess Management's assessment of the possibleoutcome.
4. Assessed the appropriateness of presentation/ disclosures in the standalonefinancial statements.
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management report Chairman'sstatement Director's report etc but does not include the standalone financial statementsand 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 in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial 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 changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in the Accounting Standards specified under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancialstatement that give a true and fair view and are free from material misstatementwhether due to fraud or error.
In preparing the standalone financial statements the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative 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 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.
We give in "Annexure A" a detailed description of Auditor's responsibilitiesfor Audit of the standalone financial statements.
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 "Annexure B" 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
(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 31 March 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 C";
(g) 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 standalone financial statements Refer Note 34 to the standalone financialstatements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
3. As required by The Companies (Amendment) Act 2017 in our opinion according toinformation explanations given to us the remuneration paid by the Company to itsdirectors is within the limits laid prescribed under Section 197 of the Act and the rulesthereunder.
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF WHIRLPOOL OF INDIA LIMITED
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism 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 theAct we are also responsible for expressing our opinion on whether the Company hasinternal financialcontrols with reference to financial statements in place and theoperating effectiveness 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 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 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 the the financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
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 financialstatements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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.
ANNEXURE B TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF WHIRLPOOL OF INDIA LIMITED FOR THE YEAR ENDED MARCH 31 2019
[Referred to in paragraph under Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report] i.
(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (Property Plant and Equipment).
(b) All the fixed assets (Property Plant and Equipment) have not been physicallyverified by the management during the year but there is a regular program of verificationwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. 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 except for one immovable properties aggregating INR 3 lacsas at March 31 2019 for which title deeds were not available with the Company and hencewe are unable to comment on the same.
ii. The inventory has been physically verified by the Management during the year exceptfor inventories in transit aggregating to INR 11496 lacs as on March 31 2019. In ouropinion the frequency of verification is reasonable. No material discrepancies werenoticed on verification between the physical stocks and the book records.
iii. The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships (LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 (the Act'). Accordingly the provisionsstated in paragraph 3 (iii) (a) to (c) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us theCompany has not either directly or indirectly granted any loan to any of its directors orto any other person in whom the director is interested in accordance with the provisionsof section 185 of the Act and the Company has not made investments through more than twolayers of investment companies in accordance with the provisions of section 186 of theAct. Accordingly provisions stated in paragraph 3(iv) of the Order are not applicable tothe Company.
v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 7374 75 and 76 of the Act and the rules framed there under.
vi. We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company pursuant as specified by the CentralGovernment for the maintenance of cost records under sub-section (1) of section 148 of theAct and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete. vii.
(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax goods and service tax duty of customs cess and any otherstatutory dues applicable to it.
No undisputed statutory dues were in arrears as at March 31 2019 for a period of morethan six months from the date they became payable.
(b) According to the information and explanation given to us and examination of recordsof the Company the outstanding dues of income-tax goods and service tax customs dutycess and any other statutory dues on account of any dispute are as follows:
| || || || ||Amount in INR Lacs |
|Name of the statute ||Nature of dues ||Amount ||Amount paid under protest ||Period Forum where dispute (Financial is pending year) |
|Central Excise Act 1994 ||Differential duty demanded by the department on washers ||17 ||- ||2000-03 CESTAT |
| ||Recovery of CENVAT Credit ||101 ||96 ||1993-94 |
|Customs Act 1962 ||Denial of exemption on account of classification issue of water purifiers ||36 ||- ||2010-11 |
|Service Tax Rule 1994 ||Service Tax on Technical Assistance and bill discounting ||174 ||40 ||2005-07 |
| ||Service tax on export of services ||22 ||- ||2007-08 |
| ||Disallowance of input credit transferred ||5 ||- ||2003-05 |
| ||Disallowance of input credit on Rent a cab service ||41 ||2 ||2003-05 Commissioner Appeal |
|Income tax Act 1961 ||Penalty under section 271 (1)(c) (Appeal filed by tax Department) ||148 ||- ||2004-05 ITAT |
|Andhra Pradesh ||Tax levied on optional service contacts ||7 ||4 ||2000-01 Tribunal |
|General Sales Tax Act 1957 || ||14 ||14 ||2001-02 Sales tax officer |
| || ||19 ||10 ||2002-03 High Court |
| || ||9 ||5 ||2003-04 Additional Commissioner |
|Andhra Pradesh GST ||Check post penalty ||2 ||- ||2018-19 Commissioner Appeal |
|Andhra Pradesh Value Added Tax Act 2005 ||Dispute on tax rate at Gas ||7 ||7 ||2006-07 Sales tax officer 2007-08 |
|Bihar Sales Tax Act 1959 ||Entry Tax ||1 ||- ||2003-04 Sales tax officer |
| ||Penalty at Check Post ||4 ||1 ||2002-03 Tribunal |
| ||Rebate disallowed ||1 ||- ||2004-05 Deputy Commissioner |
|Bihar Value Added Tax Act 2005 ||CAG objection ||47 ||14 ||2013-14 Revision with Commissioner |
| ||Tax rate dispute ||2 ||2 ||2007-08 Tribunal |
| ||Tax on discount through credit note ||8 ||8 ||2009-10 Joint Commissioner |
| || ||15 ||15 ||Tribunal |
| || ||40 ||40 ||2010-11 Tribunal |
| ||Entry tax ||7 ||7 ||2009-10 Deputy Commissioner |
| ||Forms short ||25 ||25 ||2009-10 Tribunal |
| ||Forms short ||71 ||71 ||2010-11 |
| ||Forms short ||4 ||1 ||2006-07 Sales tax officer |
| ||Road Permit Mismatch ||1 ||# ||2014-15 Commissioner |
| ||Non submission of forms ||1 ||- ||2005-06 Deputy Commissioner |
| ||Penalty ||1 ||- ||2011-12 |
| ||Penalty ||67 ||20 ||2014-15 Commissioner |
| || ||31 ||- ||2015-16 |
| ||Tax on discount through credit note ||101 ||30 ||2012-13 Joint Commissioner |
| ||Post sale discount and sales return disallowed ||85 ||26 ||2014-15 Commissioner |
| || ||47 ||19 ||2013-14 |
| ||Tax on discount through credit note ||24 ||24 ||2012-13 Joint Commissioner 2011-12 |
| || ||26 ||16 || |
| ||Tax on discount through credit note ||6 ||- ||2008-09 Commissioner of sales |
| || ||10 ||- ||2009-10 tax |
| || ||3 ||- ||2010-11 |
| ||Tax on discount through credit note ||43 ||- ||2005-06 Sales tax officer |
| || ||1 ||- ||2006-07 Deputy Commissioner |
| || ||34 ||- ||Sales tax officer |
| ||Tax rate dispute ||10 ||10 ||2008-09 Tribunal |
|Bombay Sales Tax Act 1959 ||Tax on CQB excess claimed and non submission of C forms ||11 ||3 ||2004-05 Joint Commissioner |
|Haryana General Sales Tax Act 1973 ||Enhancement of turnover by taxing on Maximum retail price value ||9 ||9 ||2002-03 Joint Commissioner |
| ||Interest under section 59 of the sales tax act ||17 ||17 ||1982-83 High Court |
| || ||16 ||16 ||1983-84 |
| || ||82 ||82 ||1984-85 |
| || ||42 ||42 ||1985-86 |
|Haryana Value ||Entry Tax ||59 ||- ||2007-08 High Court |
|Added Tax Act 2003 ||C forms ||66 ||- ||2014-15 Excise & Taxation Officer |
| ||Short payment of tax and interest for unverified forms ||98 ||- ||2015-16 Joint Excise & Taxation Commissioner (Appeal) |
|J & K General Sales ||Rejection of claim ||5 ||5 ||2002-03 Sales tax officer |
|Tax Act 1962 || || || || |
|J & k Value Added ||Penalty at Check Post ||2 ||- ||2007-08 Deputy Commissioner |
|Tax Act 2005 || || || ||2012-13 |
| || || || ||2014-15 |
| ||Rejection of claim ||3 ||3 ||2008-09 |
| || ||6 ||6 ||2009-10 |
| || ||2 ||2 ||2012-13 Sales tax officer |
|Jharkhand GST Act ||Penalty ||1 ||- ||2018-19 Joint Commissioner |
|Jharkhand Value ||Non submission of Canteen Store Department ||6 ||- ||2009-10 |
|Added Tax Act 2005 ||Certificate || || || |
|Kerala General ||Penalty at Check post ||1 ||1 ||2013-14 Intelligence |
|Sales Tax Act 1963 || ||1 ||1 ||2015-16 |
| ||Enhancement of turnover ||11 ||11 ||2002-03 Tribunal |
| ||Non submission of C forms ||6 ||2 ||2006-07 Deputy Commissioner |
| ||Penalty ||1 ||1 ||2002-03 Sales tax officer |
| ||Penalty at Check Post ||5 ||- ||2012-13 Intelligence 2013-14 |
| ||Rejection of credit notes on discounts ||18 ||18 ||2003-04 High Court |
| ||Rejection of sales returns and non submission of F-forms ||2 ||2 ||2000-01 Sales tax officer |
| ||Rejection of statutory forms ||5 ||5 ||2004-05 |
| ||Enhancement of turnover ||5 ||1 ||2014-15 Deputy Commissioner |
| ||Mismatch in Closing Stock ||30 ||9 ||2010-11 Tribunal |
| ||Non Submission of Form C and Form F ||511 ||- ||2008-09 Deputy Commissioner |
|Kerala Value Added Tax Act 2005 ||Penalty at Check Post ||1 ||- ||2016-17 Intelligence |
| ||Non submission of C Forms and others ||501 ||- ||2007-08 Deputy Commissioner |
| ||Dispute on tax rate ||8 ||8 ||2009-10 |
| ||Non submission of forms ||1 ||- ||2005-06 Sales tax officer |
| ||Penalty at Check Post ||3 ||3 ||2008-09 Deputy Commissioner |
| ||Penalty at Check Post ||2 ||1 ||2006-07 Deputy Commissioner |
| || ||# ||- ||2007-08 |
| || ||1 ||1 ||2009-10 |
| || ||2 ||# ||2010-11 Deputy Commissioner |
| || ||7 ||7 ||Sales tax officer |
| || ||1 ||- ||2009-10 Intelligence 2010-11 |
| || ||# ||- ||2016-17 Assistant Commissioner |
| ||Penalty due to stock difference at per physical inspection ||64 ||19 ||2007-08 Deputy Commissioner |
| ||Refund ||3 ||3 ||2001-02 Sales tax officer |
| ||Rejection of claim for concessional sale ||15 ||15 ||2008-09 Deputy Commissioner |
| ||Rejection of claim of Lakshadweep sale ||4 ||3 ||2009-10 Tribunal |
| ||Rejection of claim of stock transferred due to check post seal Canteen sale and Interest etc ||15 ||15 ||2009-10 Deputy Commissioner |
| || ||61 ||25 ||2011-12 |
| ||Rejection of credit notes and forms short deposited ||109 ||109 ||2005-06 Sales tax officer |
| ||Rejection of statutory forms ||58 ||38 ||2006-07 Deputy Commissioner |
| ||Enhancement of turnover ||1 ||- ||2014-15 Deputy Commissioner |
|Maharashtra Value ||CQB sales partially disallowed ||1107 ||75 ||2011-12 Joint Commissioner |
|Added Tax Act 2005 ||Refund ||29 ||29 ||2006-07 Sales tax officer |
| || ||3 ||3 ||2012-13 |
| ||Tax on CQB ||3 ||- ||2005-06 Joint Commissioner |
|MP commercial Tax Act 1944 ||Non submission of forms ||# ||- ||2004-05 Sales tax officer |
| ||Rejection of claim on discounts ||28 ||15 ||2002-03 Additional |
| || ||26 ||3 ||2003-04 Commissioner |
| ||Rejection of credit notes ||13 ||4 ||1998-99 Tribunal |
| || ||18 ||4 ||2001-02 High Court |
| ||Rejection of Forms ||# ||# ||2003-04 Additional Commissioner |
| ||Rejection of sales return ||3 ||1 ||1999-00 Tax Board |
|MP Value Added Tax Act 2005 ||Forms short ||2 ||- ||2011-12 Additional Commissioner |
| ||Rejection of sales return ||20 ||6 ||2005-06 Additional Commissioner |
|Orissa Sales Tax Act 1947 ||Enhancement of turnover ||7 ||6 ||2001-02 High Court |
| ||Non submission of forms ||2 ||2 ||1996-97 High Court |
| || ||1 ||1 ||1997-98 Sales tax officer |
| || ||2 ||- ||1998-99 Tribunal |
| || ||3 ||1 ||1999-00 |
| || ||1 ||- ||2000-01 |
| || ||1 ||1 ||2001-02 |
| ||Rejection of sales return ||1 ||1 ||1999-00 Tribunal |
| || ||6 ||2 ||2000-01 |
| ||Road permit ||1 ||1 ||2001-02 Sales tax officer |
| ||Entry tax ||3 ||- ||2002-03 Tribunal |
|Orissa Value Added Tax Act 2005 ||Tax on entry of goods ||332 ||- ||2008-09 High Court |
|Punjab value added tax act 2005 ||Penalty at Check Post ||1 ||- ||2006-07 Deputy Commissioner |
| || ||# ||# ||2010-11 Sales tax officer |
| ||Tax on freight charged on invoices ||31 ||8 ||2005-06 Sales Tax Officer |
| || ||235 ||59 ||2006-07 Tribunal |
| ||Turnover enhanced ||535 ||- ||2010-11 1st Appeal |
|Rajasthan Entry Tax Act 2005 ||Rejection of surcharge on tax on turnover ||12 ||- ||2013-14 Deputy Commissioner |
| || || || ||2014-15 |
| ||Entry Tax ||67 ||11 ||2008-09 |
| || ||46 ||8 ||2009-10 |
| || ||63 ||10 ||2010-11 |
| || ||60 ||11 ||2011-12 |
| || ||35 ||7 ||2012-13 |
| || ||14 ||3 ||2013-14 |
| || ||27 ||- ||2007-08 |
| || ||25 ||- ||2008-09 |
|Rajasthan Sales Tax Act 1954 ||CSD Certificate short submitted ||6 ||- ||2015-16 Assessing Authority |
| ||Rejection of surcharge ||6 ||5 ||2000-01 Sales tax officer |
|Rajasthan Value ||CSD form short ||2 ||2 ||2010-11 Deputy Commissioner |
|Added Tax Act 2005 ||Rejection of claim on credit notes for discount ||35 ||35 ||2006-07 High Court |
| || ||47 ||47 ||2007-08 |
| || ||17 ||17 ||2008-09 |
|Tamil Nadu ||Penalty at Check Post ||23 ||8 ||1994-95 |
|General Sales Tax Act 1959 || ||10 ||3 ||1995-96 |
| || ||9 ||8 ||1996-97 |
| || ||28 ||11 ||1997-98 |
| ||Demand on imported goods taxed at Higher rate ||53 ||16 ||2002-03 |
| || ||50 ||12 ||2003-04 |
| ||Demand on Statutory Form ||1 ||- ||2016-17 Deputy Commissioner |
| ||Entry Tax ||1 ||- ||2001-02 Tribunal |
| ||Penal interest on late payment - Entry tax ||3 ||- ||2002-03 High Court |
| ||Rejection of Discount and non submission of F-Form ||1 ||1 ||2005-06 Sales tax officer |
|Tamil Nadu Value Added Tax Act 2006 ||C Form short ||3 ||3 ||2015-16 First Appellate Authority |
| ||C Form short deposited ||2 ||1 ||2012-13 Joint Commissioner |
| ||Penalty at Check post ||8 ||- ||2014-15 |
| || ||1 ||- ||2015-16 |
| ||Forms C & F short submitted ||44 ||27 ||2010-11 Sales tax officer |
| ||Penalty at Road side ||8 ||8 ||2010-11 Joint Commissioner |
| ||Rejection of Stock Transfer and C-form short ||5 ||5 ||2008-09 Commercial Tax 2009-10 Officer |
| ||Check post penalty ||17 ||- ||2015-16 Deputy State Tax Officer |
|The Jharkhand ||Interest & penalty ||1 ||- ||2005-06 Sales tax officer |
|Value Added Tax ||Loss in trading account ||13 ||- ||2014-15 Joint Commissioner |
|Act 2003 ||Non submission of forms ||1 ||- ||2004-05 Sales tax officer 2006-07 |
| ||Penalty at Check Post ||6 ||6 ||2011-12 Commissioner of sales tax |
| ||Turnover enhanced ||42 ||- ||2010-11 Joint Commissioner |
|UP Entry Tax Act 2007 ||Entry Tax ||213 ||180 ||2008-09 High Court |
| ||Entry tax & interest ||54 ||47 ||2009-10 Tribunal |
|UP State Goods and Services Tax Act ||Penalty at Check Post ||9 ||- ||2010-11 Assistant Commissioner |
| || ||9 ||- ||2017-18 Joint Commissioner |
|UP Value Added ||Enhancement of turnover ||3 ||3 ||2007-08 Tribunal |
|Tax Act 2008 ||F-Form short and sales turnover increased Penalty at Check Post ||3 ||3 ||2011-12 |
| || ||1 ||1 ||2007-08 Assistant |
| || || || ||Commissioner |
| || ||6 ||6 ||2008-09 Tribunal |
| || || || ||2009-10 |
| || ||4 ||4 ||2009-10 |
| || ||2 ||- ||2013-14 Joint Commissioner |
| || ||9 ||9 ||2014-15 Deputy Commissioner |
| ||Penalty at Check Post ||# ||# ||2009-10 Commercial Tax Officer |
| || ||# ||- ||2010-11 Joint Commissioner |
| ||Turnover enhanced ||22 ||22 ||2014-15 Deputy Commissioner |
| ||Turnover increment as per departmental stock inspection ||71 ||25 ||2011-12 Tribunal |
|Uttrakhand Value Added Tax Act 2005 ||Tax on gas sales ||1 ||1 ||2008-09 First Appellate |
| || ||1 ||1 ||2009-10 Authority Sales Tax |
| || ||2 ||2 ||2010-11 Officer |
|West Bengal Sales Tax Act 1944 ||Rejection of claim of credit notes canteen store ||105 ||- ||2002-03 Special Commissioner |
| ||Department Certificate not available || || || |
| ||Rejection of claim for concessional sale ||36 ||5 ||2000-01 Revision Board |
| ||Rejection of claim of concessional sale ||7 ||- ||2001-02 Deputy Commissioner |
| || ||5 ||- ||2002-03 Special Commissioner |
| || ||2 ||- ||2004-05 Additional Commissioner |
| ||Rejection of claim of credit notes forms short etc ||32 ||- ||1998-99 Tribunal |
| || ||25 ||2 ||1999-00 Revision Board |
| || ||14 ||3 ||2001-02 Deputy Commissioner |
| || ||85 ||- ||2003-04 Revision Board |
| || ||120 ||10 ||2004-05 Revision Board |
|West Bengal Value Added Tax Act 2005 ||Entry tax computed without reversal on stock transfer ||152 ||- ||2015-16 Joint Commissioner |
| ||Export disallowed Mismatch with customer ||26 ||4 ||2013-14 |
| || ||14 ||2 ||2014-15 |
| ||Export partly disallowed ||1 ||- ||2015-16 |
| ||Increased in Turn over due to form rejection ||4 ||- ||2010-11 |
| ||Rejection of claim of concessional sale ||12 ||- ||2006-07 Additional Commissioner |
| ||Rejection of claim of credit notes forms short ||106 ||- ||2005-06 Assistant Commissioner |
| || ||1 ||- ||2005-06 Revision Board |
| ||Sales reversal not considered ||1 ||- ||2011-12 Joint Commissioner |
| ||Sales reversal rejected ||116 ||18 ||2012-13 |
| ||Wrong computation ||1 ||- ||2013-14 |
# Amount is below the round off norm. viii. The Company does not have any loans orborrowings from any financial institution banks government or debenture holders duringthe year. Accordingly the provision stated in paragraph 3(viii) of the Order is notapplicable to the Company.
ix. 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. Accordingly theprovisions stated in paragraph 3 (ix) of the Order are not applicable to the Company.
x. During the course of our audit examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employees.
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 theinformation and explanations given to us the Company is not a Nidhi Company.
Accordingly the provisions stated in paragraph 3(xii) of the Order are not applicableto the Company. xiii. According to the information and explanations given to us and basedon our examination of the records of the Company transactions with the related partiesare in compliance with sections 177 and 188 of the Act where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards. xiv. According to the information and explanations givento us and based on our examination of the records of the Company the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly the provisions stated in paragraph 3 (xiv) of theOrder are not applicable to the Company.
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 provisions statedin paragraph 3(xv) of the Order are not applicable to the Company. xvi. In our opinionthe Company is not required to be registered under section 45 IA of the Reserve Bank ofIndia Act 1934 and accordingly the provisions stated in paragraph clause 3 (xvi) of theOrder are not applicable to the Company.
ANNEXURE C TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF WHIRLPOOL OF INDIA LIMITED
[Referred to in paragraph 2(f) under Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date to the Members of Whirlpoolof India Limited on the Standalone Financial statements for the year ended March 31 2019]
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to financial statementsof Whirlpool of India Limited ("the Company") as of March 31 2019 inconjunction with our audit of the standalone financial 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 control with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI) (the "GuidanceNote"). These responsibilities include the design implementation and maintenance ofinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of business including adherence to Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether internal financial controls with reference to financial statementswas established and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financialcontrolswithreferencetofinancialstatements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 withreference to financial statements.
Meaning of Internal Financial Controls With reference to Financial Statements
A company's internal financial control with reference to financial statements is aprocess 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 control withreference 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 financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 With reference to financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
In our opinion the Company has in all material respects an internal financialcontrols with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2019 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote.
| ||For MSKA & Associates |
| ||Chartered Accountants |
| ||ICAI Firm Registration No. 105047W |
| ||Manish P Bathija |
|Place : Gurugram ||Partner |
|Date : May 24 2019 ||Membership No.: 216706 |