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WPIL Ltd.

BSE: 505872 Sector: Engineering
NSE: N.A. ISIN Code: INE765D01014
BSE 00:00 | 18 Apr 831.45 -19.55
(-2.30%)
OPEN

840.00

HIGH

854.45

LOW

830.00

NSE 05:30 | 01 Jan WPIL Ltd
OPEN 840.00
PREVIOUS CLOSE 851.00
VOLUME 2227
52-Week high 987.00
52-Week low 516.00
P/E 8.48
Mkt Cap.(Rs cr) 812
Buy Price 832.95
Buy Qty 1.00
Sell Price 840.00
Sell Qty 3.00
OPEN 840.00
CLOSE 851.00
VOLUME 2227
52-Week high 987.00
52-Week low 516.00
P/E 8.48
Mkt Cap.(Rs cr) 812
Buy Price 832.95
Buy Qty 1.00
Sell Price 840.00
Sell Qty 3.00

WPIL Ltd. (WPIL) - Auditors Report

Company auditors report

To the Members of WPIL Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of WPIL Limited("the Company") which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss including other comprehensive income the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information which includes three(3) joint operations audited by the other auditors.

Management's Responsibility for the Standalone Ind AS Financial Statements

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 ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company including its joint operations in accordance withaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. The Board of Directors of the Company andthe management of its joint operations are responsible for maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and its joint operations respectively and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and disclosuresin the standalone Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone Ind AS 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 standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence obtained by us and other auditors in terms of theirreports referred to in the Other Matters paragraph 2 below is sufficient and appropriateto provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the considerations of reports of the other auditors on separateInd AS financial statements of joint operations referred to in the Other Matters paragraph2 below the standalone Ind AS financial statements give the information required by theAct 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 its profit including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Other Matters

1) The comparative financial information of the Company for the year ended March 312017 and the transition date opening balance sheet as at April 01 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the accounting principles generallyaccepted in India including the Companies (Accounting Standards) Rules 2006 (as amended)specified under section 133 of the Act read with the Companies (Accounts) Rules 2014audited by the predecessor auditor whose report for the year ended March 31 2017 andMarch 31 2016 dated July 14 2017 and May 26 2016 respectively expressed an unmodifiedopinion on those standalone financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us.

2) We did not audit the Ind AS financial statements and other financial information forthree (3) joint operations which reflect Company's share in the financials of jointoperations and has been included in the accompanying standalone Ind AS financialstatements of the Company. Those Ind AS financial statements of the joint operationsinclude total assets of Rs. 6200.40 lacs and net assets of Rs 41.27 lacs as at March 312018 and total revenues of Rs 8595.58 lacs and net cash inflows of Rs 1.63 lacs for theyear ended on that date. These Ind AS financial statements of the joint operations havebeen audited by other auditors and whose reports have been furnished to us by themanagement. Our opinion on the standalone Ind AS financial statements in so far as itrelates to the amounts and disclosures included in respect of such joint operations andour report in terms of subsections (3) of Section 143 of the Act in so far as it relatesto the aforesaid joint operations is based solely on the reports of other auditors.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We / the other auditors whose reports we have relied upon have sought and obtainedall the information and explanations which to the best of our knowledge and belief werenecessary for the purpose 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 and the report of theother auditors;

(c) The Balance Sheet Statement of Profit and Loss including other comprehensiveincome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the Directors of the Companyas on March 31 2018 and taken on record by the Board of Directors none of the Directorsis disqualified as on March 31 2018 from being appointed as a Director in terms ofsection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure 2" to this report;

(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 and basedon the consideration of the report of the other auditors on separate Ind AS financialstatements of the joint operations as noted in the Other Matters paragraph 2:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer Note 39 to thestandalone Ind AS financial statements;

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 S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Sanjay Kumar Agarwal

Partner

Membership Number: 060352

Place of Signature: Kolkata

Date: May 30 2018

Annexure 1 referred to in paragraph 1 of the section on "Report on other legal andregulatory requirements" of our report of even date on the Standalone Ind ASFinancial Statements of WPIL Limited

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the company except for the immovable properties acquired during merger of asubsidiary. As explained to us registration of title deeds is in progress in respect ofan immovable property acquired pursuant to aforesaid merger aggregating Rs. 294.35 lacs.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at 31st March 2018 and no material discrepancies were noticed inrespect of such confirmations.

(iii) (a) The Company has granted loans to three body corporates covered in theregister maintained under section 189 of the Companies Act 2013. In our opinion andaccording to the information and explanations given to us the terms and conditions of thegrant of such loans are not prejudicial to the company's interest.

(b) The Company has granted loans that are re-payable on demand to body corporatescovered in the register maintained under section 189 of the Companies Act 2013 and theprincipal portion has been repaid as and when demanded. In respect of the said loanspayment of interest has not been regular and the overdue amount of interest as on March31 2018 is Rs. 376.14 lacs.

(c) There are no amounts of loans granted to companies listed in the registermaintained under section 189 of the Companies Act 2013 which are overdue for more thanninety days.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 and are of the opinion that prima facie thespecified accounts and records have been made and maintained.

We have not however made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax goods and service tax duty of custom dutyof excise value added tax cess and other statutory dues have generally been regularlydeposited with the appropriate authorities though there has been a slight delay in a fewcases.

(b) According to the information and explanations given to us no undisputed dues inrespect of provident fund employees' state insurance income-tax service tax sales-taxgoods and service tax duty of custom duty of excise value added tax cess and otherstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax goods and service tax duty on custom duty of excise value addedtax and cess on account of any dispute are as follows:

Name of the Statute Nature of dues Amount (Rs. in lacs) Period to which the amount relates (Financial Year) Forum where dispute is pending
Income Tax Act 1961 Arms' length pricing 64.52 2012-13 & 2013-14 Commissioner of Income Tax (Appeals)
Central Excise Act 1994 Despatch to mega power plant under exemption notification being disallowed 781.99 2005-2014 CESTAT & Commissioner Appeal-1
Central Excise Act 1994 Disallowance of cenvat credit 514.07 1997-98 2006-2015 CESTAT
Central Excise Act 1994 Disallowance of cenvat credit 3.49 2012-13 Commissioner Appeal-1
Finance Act 1994 Disallowance of cenvat credit 598.81 2006-07 to 2012-13 CESTAT
Finance Act 1994 Disallowance of cenvat credit 386.20 2008-09 to 2013-14 Commissioner Appeal-1

(viii) According to information and explanations given by the management we are of theopinion that the Company has not defaulted in repayment of loans or borrowings to banks.The Company did not have any outstanding loans or borrowings dues in respect of afinancial institution or to Government or dues to debenture holders during the year.

(ix) According to the information and explanations given by the management the Companyhas not raised any money by way of initial public offer / further public offer / debtinstruments and term loans hence reporting under clause (ix) is not applicable to theCompany and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone Ind AS financial statements and according to the informationand explanations given by the management we report that no fraud by the Company or on theCompany by the officers and employees of the Company has been noticed or reported duringthe year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) According to information and explanations given by the management the Company hasnot entered into any non-cash transactions with Directors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Sanjay Kumar Agarwal

Partner

Membership Number: 060352

Place of Signature: Kolkata

Date: May 30 2018

Annexure 2 to the Independent Auditor's Report of even date on the standalone Ind ASfinancial statements of WPIL Limited

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 over financial reporting of WPILLimited ("the Company") as of March 31 2018 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theStandalone Ind AS Financial Statements.

A company's internal financial control over financial reporting with reference to thestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofstandalone Ind AS financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting with reference to the standalone Ind AS financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of standalone Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and Directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Ind AS Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312018 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Sanjay Kumar Agarwal

Partner

Membership Number: 060352

Place of Signature: Kolkata

Date: May 30 2018