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Auditor Report of Shakti Pumps (India) Ltd.
Mar 31, 2025
1. We have audited the accompanying standalone financial
statements of Shakti Pumps (India) Limited ("the
Company"), which comprise the Standalone Balance Sheet
as at March 31, 2025, and the Standalone Statement of
Profit and Loss (including Other Comprehensive Income),
the Standalone Statement of Changes in Equity and the
Standalone Statement of Cash Flows for the year then
ended, and notes to the standalone financial statements,
including material accounting policy information and
other explanatory information in which are included the
financial information for the year ended on that date
audited by the branch auditors of the Company''s branch
located at Uganda.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 ("the Act") in the
manner so required and give a true and fair view in
conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company
as at March 31, 2025, and total comprehensive income
(comprising of profit and other comprehensive income),
changes in equity and its cash flows for the year then
ended.
BASIS FOR OPINION
3. We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the
Act. Our responsibilities under those Standards are
further described in the "Auditor''s Responsibilities for the
Audit of the Standalone Financial Statements" section
of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of
the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
4. Key audit matters are those matters that, in our
professional judgement, were of most significance 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 financial statements as a
whole and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
OTHER INFORMATION
5. The Company''s Board of Directors is responsible for the
other information. The other information comprises
the information included in the annual report, but does
not include the financial statements and our auditor''s
report thereon. The annual report is expected to be made
available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does
not cover the other information and we will not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance and take appropriate action as applicable
under the relevant laws and regulations.
Responsibilities of management and those charged with
governance for the standalone financial statements
6. The Company''s Board of Directors is responsible for the
matters stated in Section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance, changes in equity and cash flows
of the Company in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards specified under Section 133 of
the Act. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
7. In preparing the standalone financial statements,
management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
8. Those Board of Directors are also responsible for
overseeing the Company''s financial reporting process.
Auditor''s responsibilities for the audit of the standalone
financial statements
9. Our objectives are to obtain reasonable assurance
about whether the standalone financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor''s report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these standalone financial
statements.
10. As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
⢠Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to standalone financial statements in place and the
operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
⢠Conclude on the appropriateness of management''s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company''s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor''s report
to the related disclosures in the standalone 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''s
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
⢠Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the standalone
financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
⢠Obtain sufficient appropriate audit evidence
regarding the financial information of the branch
which is included within the Company to express an
opinion on the standalone financial statements. We
are responsible for the direction, supervision and
performance of the audit of the financial information
of such entities included in the standalone financial
statements of which we are the independent auditors.
For the branch included in the standalone financial
statements, which have been audited by branch
auditors, such branch auditors remain responsible
for the direction, supervision and performance of
the audit carried out by them. We remain solely
responsible for our audit opinion.
11. We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
12. We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
13. From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor''s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
OTHER MATTER
14. The standalone financial statements of the Company for
the year ended March 31, 2024, were audited by another
firm of chartered accountants under the Act who, vide
their report dated April 26, 2024, expressed an unmodified
opinion on those standalone financial statements.
15. The financial information of one branch included in the
standalone financial statements of the Company reflect
total assets of Rs. 104.10 crores and net assets of Rs. 0.97
crores as at March 31, 2025, total revenue of Rs. 162.90
crores, net profit after tax of Rs. 0.89 crores and total
comprehensive income (comprising of profit and other
comprehensive income) of Rs. 0.86 crores and net cash
flows amounting to Rs. 0.61 crores for the year ended on
that date. The financial information of this branch has
been audited by branch auditors whose report has been
furnished to us by the management, and our opinion on
the standalone financial statements (including other
information) in so far as it relates to the amounts and
disclosures included in respect of this branch, is based
on the report of such branch auditors and the procedures
performed by us.
Our opinion on the standalone financial statements and
our ''Report on Other Legal and Regulatory Requirements''
below, is not modified in respect of the above matter of
our reliance on the work done and report of the branch
auditors.
Report on other legal and regulatory requirements
16. As required by the Companies (Auditor''s Report) Order,
2020 ("the Order"), issued by the Central Government of
India in terms of sub-section (11) of Section 143 of the Act,
we give in the "Annexure B" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
17. 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 best of 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 the Company so far as it appears
from our examination of those books and the reports
of branch auditors except for the matters stated in
paragraph 17(i)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules, 2014 (as
amended).
(c) The reports on the accounts of the branch offices of
the Company audited under Section 143(8) of the Act
by branch auditors have been sent to us and have been
properly dealt with by us in preparing this report.
(d) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including other
comprehensive income), the Standalone Statement
of Changes in Equity and the Standalone Statement of
Cash Flows dealt with by this Report are in agreement
with the books of account and the financial information
received from the branch not visited by us.
(e) In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.
(f) On the basis of the written representations received
from the directors as on April 1, 2025, taken on record
by the Board of Directors, none of the directors
is disqualified as on March 31, 2025, from being
appointed as a director in terms of Section 164(2) of
the Act.
(g) With respect to the maintenance of accounts and
other matters connected therewith, reference is made
to our remarks in paragraph 17(b) above on reporting
under Section 143(3)(b) and paragraph 17(i)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 (as amended).
(h) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements of the Company and its branch and the
operating effectiveness of such controls, refer to our
separate Report in "Annexure A".
(i) With respect to the other matters to be included
in the Auditor''s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014
(as amended), in our opinion and 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 financial position in its standalone
financial statements - Refer Note 39(a) to the
standalone financial statements;
ii. The Company was not required to recognise a
provision as at March 31, 2025 under the applicable
law or Indian Accounting Standards, as it does not
have any material foreseeable losses on long-term
contract. The Company did not have any derivative
contracts as at March 31, 2025.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company
during the year.
iv. (a) The management has represented to us and
to the branch auditors that, to the best of its
knowledge and belief, as disclosed in Note
53(viii) to the standalone financial statements,
no funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Company or its branch to or
in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether
directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company or
its branch ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(b) The management has represented to us and
to the branch auditors that, to the best of its
knowledge and belief, as disclosed in the Note
53(viii) to the standalone financial statements,
no funds have been received by the Company
or its branch from any person(s) or entity(ies),
including foreign entities ("Funding Parties"),
with the understanding, whether recorded in
writing or otherwise, that the Company or its
branch shall, whether, directly or indirectly, lend
or invest in other persons or entities identified
in any manner whatsoever by or on behalf of
the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures that we
considered reasonable and appropriate in the
circumstances performed by us and those
performed by the branch auditors, nothing has
come to our or branch auditors notice that has
caused us or branch auditors to believe that the
representations under sub-clause (a) and (b)
contain any material misstatement.
v. The final dividend paid by the Company during
the year in respect of the same declared for the
previous year is in accordance with Section 123
of the Act to the extent it applies to payment of
dividend.
As stated in Note 37 to the standalone financial
statements, the Board of Directors of the Company
have proposed final dividend for the year which
is subject to the approval of the members at the
ensuing Annual General Meeting. The dividend
declared is in accordance with Section 123 of
the Act to the extent it applies to declaration of
dividend.
vi. Based on our examination, which included test
checks and that performed by branch auditors, the
Company and its branch has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit
log) facility that has operated during the year for
all relevant transactions recorded in the software,
except that the audit trail is not maintained for
certain transactions. Further, the audit trail
feature has not been enabled at the database
level to log any direct data changes. During the
course of performing our procedures, other than
the aforesaid instances of audit trail not enabled/
maintained where the question of our commenting
does not arise, we did not notice any instance of
audit trail feature being tampered with, or not
preserved by the Company as per the statutory
requirements for record retention.
18. The Company has paid/ provided for managerial
remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with
Schedule V to the Act.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Ali Akbar
Partner
Place: Indore Membership Number: 117839
Date: May 09, 2025 UDIN: 25117839BMNYYJ2053
Mar 31, 2024
We have audited the accompanying Standalone Financial Statements of Shakti Pumps (India) Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2024, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditors'' Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the âCode of Ethics'' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance 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 financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
|
Sr.No. Key Audit Matter |
Auditor''s Response |
|
1 Evaluation of uncertain tax positions |
Principal Audit Procedures |
|
The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Refer Notes 32 to the Standalone Financial Statements |
Obtained details of completed tax assessments and demands for the year ended March 31, 2024 from management. We involved our internal experts to challenge the management''s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management''s position on these uncertain tax positions. Additionally, we considered the effect of new information in respect of uncertain tax positions as at April 1, 2023 to evaluate whether any change was required to management''s position on these uncertainties. |
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS'' REPORT THEREON
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to that Board''s Report, Corporate Governance and Shareholder''s Information, but does not include the Standalone Financial Statements, consolidated financial statement and our auditor''s report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibility
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)0) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work and (ii) to evaluate the effect of an identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. 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 best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act; read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) on the basis of the written representations received from the directors as on 31 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024, from being appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure A''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) with respect to the other matters to be included in the Auditor''s 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements- Refer Note No. 32 of financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. a) The management has represented that, to the
best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The management has represented, that, to the best of their knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend to or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that
the representation under sub clause (i) and (ii) of Rule 11(e) of The Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contains any material misstatement.
v. The final dividend paid by the Company during the year in respect of the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend. b) As stated in the note 30 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing annual general meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to the declaration of dividend.
2. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order
For PGS & Associates
Chartered Accountants
Firm Registration Number: 122384W
UDIN: 24111592BKBIMO7650
Premal Gandhi
Partner
Membership Number: 111592
Place: Mumbai
Date: April,26, 2024
Mar 31, 2023
Independent Auditorsâ Report
To the Members of
SHAKTI PUMPS (INDIA) LIMITED
Report on the Audit of the Standalone Financial
StatementsOPINION
We have audited the accompanying Standalone Financial
Statements of Shakti Pumps (India) Limited (âthe Companyâ),
which comprise the Balance sheet as at March 31, 2023,
the Statement of Profit and Loss, including the statement of
Other Comprehensive Income, the Cash Flow Statement and
the Statement of Changes in Equity for the year then ended,
and notes to the Standalone Financial Statements, including
a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the
Companies Act, 2013, as amended (âthe Actâ) in the manner
so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2023, its profit
including other comprehensive income, its cash flows and the
changes in equity for the year ended on that date.
We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
(SAs), as specified under Section 143(10) of the Act. Our
responsibilities under those Standards are further described in
the âAuditors'' Responsibilities for the Audit of the Standalone
Financial Statements'' section of our report. We are
independent of the Company in accordance with the âCode
of Ethics'' issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the Standalone
Financial Statements.
Key audit matters are those matters that, in our professional
judgment, were of most significance 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 financial statements, and in forming our opinion
thereon, and we do not provide a separate opinion on these
matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
The Company''s Board of Directors is responsible for the other information. The other information comprises the information
included in the Management Discussion and Analysis, Board''s Report including Annexures to that Board''s Report, Corporate
Governance and Shareholder''s Information, but does not include the Standalone Financial Statements, consolidated financial
statement and our auditor''s report thereon.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other information
and, in doing so, consider whether such other information
is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact.
We have nothing to report in this regard.
RESPONSIBILITES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR
THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements that
give a true and fair view of the financial position, financial
performance, total comprehensive income, changes in equity
and cash flows of the Company in accordance with the Ind AS
and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, management
is responsible for assessing the Company''s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors are responsible for overseeing the
Company''s financial reporting process.
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
⢠Identify and assess the risks of material misstatement
of the standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
⢠Obtain an understanding of internal financial controls
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls system in place and
the operating effectiveness of such controls
⢠Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company''s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor''s report to the related disclosures in the
standalone 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''s report. However, future events or
conditions may cause the Company to cease to continue
as a going concern.
⢠Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financial statements that individually or in
aggregate makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work and
(ii) to evaluate the effect of an identified misstatements in the
standalone financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor''s report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory
Requirements
1. 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 best of our knowledge
and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and
Loss (including other comprehensive income), the
Cash Flow Statement and Statement of Changes in
Equity dealt with by this Report are in agreement
with the books of account;
d) in our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards prescribed under Section 133 of the Act;
read with Companies (Indian Accounting Standards)
Rules, 2015, as amended;
e) on the basis of the written representations received
from the directors as on 31 March 2023 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2023, from
being appointed as a director in terms of Section
164(2) of the Act;
f) with respect to the adequacy of the internal
financial controls over financial reporting of the
Company and the operating effectiveness of such
controls, refer to our separate report in Annexure
A''; and
g) With respect to the other matters to be included
in the Auditor''s Report in accordance with the
requirements of section 197(16) of the Act, as
amended, in our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the Company
to its directors during the year is in accordance with
the provisions of section 197 of the Act.
h) with respect to the other matters to be included in
the Auditor''s 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 the explanations given to us:
i. The Company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements- Refer
Note No. 31 of financial statements;
ii. The Company has made provision, as required
under the applicable law or accounting
standards, for material foreseeable losses,
if any, on long-term contracts including
derivative contracts;
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company;
iv. a) The management has represented that, to
the best of their knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the Company
to or in any other person or entity, including
foreign entity (âIntermediariesâ), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
whether, directly or indirectly lend to or
invest in other persons or entities identified
in any manner whatsoever by or on behalf
of the Company (âUltimate Beneficiariesâ)
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
b) The management has represented, that, to
the best of their knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been received by
the Company from any person or entity,
including foreign entity (âFunding Partiesâ),
with the understanding, whether recorded
in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend
to or invest in other persons or entities
identified in any manner whatsoever by or
on behalf of the Funding Party (âUltimate
Beneficiariesâ) or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries.
c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representation under
sub clause (i) and (ii) of Rule 11(e) of The
Companies (Audit and Auditors) Rules,
2014, as provided under (a) and (b) above,
contains any material misstatement.
v. The final dividend paid by the Company during
the year in respect of the previous year is in
accordance with Section 123 of the Act to
the extent it applies to payment of dividend.
b) As stated in the note 29 to the standalone
financial statements, the Board of Directors
of the Company has proposed final dividend
for the year which is subject to the approval
of the members at the ensuing annual
general meeting. The dividend declared is in
accordance with Section 123 of the Act to the
extent it applies to the declaration of dividend.
2. As required by the Companies (Auditor''s Report) Order,
2020 (âthe Orderâ) issued by the Central Government in
terms of Section 143(11) of the Act, we give in âAnnexure
Bâ a statement on the matters specified in paragraphs 3
and 4 of the Order
For PGS & Associates
Chartered Accountants
Firm Registration Number: 122384W
UDIN: 23111592BGXFCX3842
Premal Gandhi
Partner
Membership Number: 111592
Place: Mumbai
Date: May, 05, 2023
Mar 31, 2018
INDEPENDENT AUDITORSâ REPORT
To the Members of
SHAKTI PUMPS (INDIA) LIMITED
Report on the Standalone Indian Accounting Standards (âInd ASâ) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Shakti Pumps (India) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authorityâs pronouncements issued by Institute of Chartered Accountants of India (ICAI). Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to 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 explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act; read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018, from being appointed as a director in terms of Section 164(2) of the Act;
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure Bâ; and
g) with respect to the other matters to be included in the Auditorâs 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements- Refer Note 28 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 38 to the standalone Ind AS financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets in respect of all its locations on the basis of available information.
b. As explained to us, all the fixed Assets have been physically verified during the year by the management in accordance with a regular programme of verification of the fixed assets at reasonable intervals which in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such physical verification.
c. As per the records and information and explanation given to us, title deeds of immovable properties are in the name of the Company.
ii. In respect of its inventories:
a. The inventory (excluding stocks with third parties) has been physically verified by the management during the year at reasonable interval. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.
b. In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
c. On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. As explained to us, there was no material discrepancies noticed on physical verification.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a), (b) and (c) of the Order are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made and guarantees, and securities given have been complied with by the Company.
v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of 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 pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture of electrical goods, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same
vii. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, GST, duty of custom, duty of excise, value added tax, cess and other statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess which have not been deposited on account of any dispute, are as follows.
|
Name of Statute |
Nature of Dues |
Amount Involved (Rs. In Lacs) |
Unpaid (Rs. In Lacs) |
Period to which the amount relates (FY) |
Forum where dispute is pending |
|
The Central Excise Act , 1944 |
Excise Duty |
47.70 |
47.70 |
2005-06 |
Appellate Tribunal Central Excise, New Delhi |
|
Commercial Tax |
VAT & Entry Tax |
70.44 |
70.44 |
2010-11 |
M.P. High Court, Indore Bench |
|
Commercial Tax |
VAT & CST |
6.16 |
2.45 |
2010-11 |
M.P. Commercial Tax Appellate Board, Bhopal |
|
Commercial Tax |
VAT & CST |
12.07 |
3.27 |
2012-13 |
M.P. Commercial Tax Appellate Board, Bhopal |
|
Commercial Tax |
CST & Entry Tax |
11.39 |
Nil |
2013-14 |
M.P. Commercial Tax Appellate Board, Bhopal |
|
Commercial Tax |
CST |
9.99 |
7.49 |
2014-15 |
Appellate Authority, Commercial Tax, Indore |
|
Commercial Tax |
VAT & CST |
42.29 |
31.59 |
2015-16 |
Appellate Authority, Commercial Tax, Indore |
|
Income Tax Act, 1961 |
Income Tax |
1,475.85 |
1,180.68 |
2009-10 to 2011-12 |
CIT, Appeal, Indore |
viii. In our opinion and according to the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks. The Company did not have any outstanding dues in respect of a financial institution or debenture holders or government.
ix. According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer/ further public offer/ debt instruments and term loans hence, reporting under clause (ix) is not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
xi. According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 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 management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
xv. According to the information and explanations given by the management, the Company has not entered into any noncash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
xvi. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
The Annexure B referred to in our Report of even date to the Members of Shakti Pumps (India) Limited (âthe Companyâ) on the Ind AS financial statements for the year ended 31 March 2018.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Shakti Pumps (India) Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that:
1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of Management and directors of the Company; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
For Modi Manoj & Co.
Chartered Accountants
Firm Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 15 May 2018 Membership Number: 524225
Mar 31, 2017
Independent Auditor''s Report
To The Members of
SHAKTI PUMPS (INDIA) LIMITED
Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of SHAKTI PUMPS (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (âthe Act'') with respect to the preparation and presentation of these standalone financial statements that give true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the act, read with rule 7 of the Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into accounts the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017 and its profit and its cash flows for the year ended on that date.
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 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us during the course of audit, we give in the Annexure "A" statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.
b. In our opinion proper books of account as required by law have been kept by the company so far as it appears from our examination of those books;
c. The balance sheet, statement of profit and loss, and cash flow statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on March 31, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of section 164(2) of the Act.
f. As required by section 143(3) (i) of the Companies Act, 2013, and based on the checking of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, our report on the Internal Financial Controls over Financial Reporting is as per Annexure âB''.
3. With respect to the other matters to be included in the Auditors 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 the explanations given to us:
a) The Company does not have any pending litigations which would impact its financial position;
b) The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
d) The Company has provided requisite disclosures in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to 30 December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 16.2 to the standalone financial statements.
1. In respect of its fixed Assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets in respect of all its locations on the basis of available information.
b) As explained to us, all the fixed Assets have been physically verified during the year by the management in accordance with a regular programme of verification of the fixed assets at reasonable intervals which in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such physical verification.
c) As per the records and information and explanation given to us, title deeds of immovable properties are in the name of the Company.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been physically verified by the management during the year at reasonable interval. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. As explained to us, there was no material discrepancies noticed on physical verification.
3. In respect of loans, secured or unsecured, granted by the company to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013, according to the information and explanations given to us:
a) The company has granted loan to one body corporate covered in the register maintained under section 189 of the Act as follows:
|
Name of the Party |
Max. Amount Outstanding During The Year |
Balance as on 31.03.2017 |
|
Vintex Tools Pvt. Ltd |
H10,89,01,168/- |
H8,11,92,192/- |
b) In case of loan granted to the body corporate listed in the register maintained under section 189 of the Act, the borrower has been regular in the payment of the interest as stipulated. The terms do not stipulate any repayment schedule and the loans are repayable on demand.
c) There is no overdue amount in respect of the loan.
4. According to the information, explanations and representations provided by the Management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and security, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013.
5. In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public during the year. Therefore, the provisions of clause (v) of paragraph 3 of the order are not applicable to the company.
6. We have broadly reviewed the cost records maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2014 prescribed by the Central Government under section 148(1) of the Act and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a) According to the information and explanations given to us and the records of the company examined by us, in our opinion, the company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, Income Tax, VAT, wealth tax, service tax, custom duty, excise duty, cess and any other statutory dues as applicable with the appropriate authorities.
b) According to the information and explanations given to us and the records of the company examined by us, there are no dues of wealth tax, service tax, custom duty and cess which have not been deposited on account of any dispute. The particular of dues of excise duty, sales tax & income tax as at March 31, 2017 which have not been deposited or partially been deposited on account of a dispute, are as below:
|
Name of Statute |
Nature of Dues |
Amount (in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
|
The Central Excise Act, 1944 |
Excise Duty including interest and penalty |
47.70 |
FY 2015-16 |
Appellate Tribunal, New Delhi |
|
Commercial Tax |
Vat & entry Tax Demand |
70.44 |
FY 2010-11 |
M.P. High Court , Indore Branch |
|
Vat & Cst Demand |
6.16 |
FY 2010-11 |
M.P. Commercial Tax Appellate Board , Bhopal |
|
|
Vat & entry Tax Demand |
7.42 |
FY 2012-13 |
Appellate Authority, Commercial Tax, Indore |
|
|
Vat & entry Tax Demand |
10.78 |
FY 2013-14 |
Appellate Authority, Commercial Tax, Indore |
|
|
Vat & entry Tax Demand |
9.98 |
FY 2014-15 |
Appellate Authority, Commercial Tax, Indore |
8. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to financial institutions, banks, government (both State and Central). The Company did not have any outstanding debenture during the year.
9. On the basis of information and explanations given to us, term loans have been applied for the purposes for which they were obtained. The Company did not raise any money by way of initial/further public offer.
|
Managerial Position |
Excess amount of |
Financial year ended |
Treatment of the excess remuneration in the respective year Financial Statements |
Remarks |
|
Managing Director |
48,00,000 |
2015-16 |
Treated as expense in the financial statements for the FY 2015-16 |
Pursuant to the Company''s application in Form MR2 to Central Government for waiver of the excess remuneration paid by the Company, the authorities asked the Company to comply the requirement of sub clause (iv) of clause (B) of section II of part II of schedule V of the Companies Act, 2013. The same is under process. |
10. Based on the audit procedure performed and on the basis of information and explanations provided by the management, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the course of the audit.
11. On the basis of records and information and explanations made available and based on our examination of the records of the Company, the Company has paid/ provided managerial remuneration, in accordance with the requisite approval mandated under Section 197 read with Schedule V of the Act. In the year ended March 31, 2016, the details are given below:]
12. The Company is not a chit fund or a nidhi / mutual benefit fund/ society, therefore, the provisions of clause 4 (xii) of the said Order are not applicable to the Company, hence we are not offering any comment.
13. As per the information and explanations and records made available by the management of the Company and audit procedure performed, for the related parties transactions entered during the year, the Company has complied with the provision of Section 177 and 188 of the Act, where applicable. As explained and as per records/details, the related parties transactions have been disclosed as per the applicable Accounting Standards.
14. According to the information and explanations given to us, the Company has not made any preferential allotment of shares or fully/partly convertible debentures/shares during the year in terms of provision of Section 42 of the Act.
15. On the basis of records made available to us and according to information and explanations given to us, the Company has not entered into non-cash transactions with the directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under Section 45-1A of the Reserve Bank of India Act, 1934, as the provision of section is not applicable to the Company.
Annexure "B" to the Independent Auditors'' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Shakti Pumps (India) Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks 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 to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Modi Manoj & Co.
Chartered Accountants
Firm''s Registration Number: 030165N
(Manoj Modi)
Place: Mumbai Proprietor
Date: 19.05.2017 Membership Number: 524225
Mar 31, 2016
To The Members of,
SHAKTI PUMPS (INDIA) LTD.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SHAKTI PUMPS (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (''the Act'') with respect to the preparation and presentation of these standalone financial statements that give true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the act, read with rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into accounts the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure "A" statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent available.
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 best of our knowledge and belief were necessary for the purpose of our audit.
B. in our opinion proper books of account as required by law has been kept by the company so far as it appears from our examination of those books;
C. the balance sheet, statement of profit and loss, and cash flow statement dealt with by this Report are in agreement with the books of account;
D. in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors as on March 31, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of section 164(2) of the Act; and
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g. with respect to the other matters to be included in the Auditors 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 the explanations given to us:
I) The Company does not have any pending litigations which would impact its financial position;
ii) The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
1. In respect of its fixed Assets:
a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets in respect of all its locations on the basis of available information.
b) As explained to us, all the fixed Assets have been physically verified during the year by the management in accordance with a regular programmed of verification of the fixed assets at reasonable intervals which in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such physical verification.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been physically verified by the management during the year at reasonable interval. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification.
3. In respect of loans, secured or unsecured, granted by the company to companies, firms or other parties covered in the register maintained under section 189 of the act:
a) The company has granted loan to one body corporate covered in the register maintained under section 189 of the Act as follows:
|
Name of the Party |
Max. Amount Outstanding during The Year |
Balance as on 31.03.2016 |
|
Vintex Tools Pvt. Ltd |
Rs 1,00,582,659/- |
Rs 1,00,582,659/- |
b) In case of loan granted to the body corporate listed in the register maintained under section 189 of the Act, the borrower have been regular in the payment of the interest as stipulated. The terms do not stipulate any repayment schedule and the loans are repayable on demand.
c) There are no overdue amounts of more than rupees one lakh in respect of the loan granted to the body corporate listed in the register maintained under section 189 of the Act.
4. In our opinion and according to the information and explanation given to us, there is an adequate Internal Control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the company, carried out in accordance with the auditing standards generally accepted in India and according to the information and explanation given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.
5. In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the public during the year. Therefore, the provisions of clause (v) of paragraph 3 of the order are not applicable to the company.
6. We have broadly reviewed the cost records maintained by the company pursuant to the Companies (Cost Accounting Records) Rules, 2014 prescribed by the Central Government under section 148 of the Act and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a) According to the information and explanations given to us and the records of the company examined by us, in our opinion, the company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, Income Tax, VAT, wealth tax, service tax, custom duty, excise duty, cess and any other statutory dues as applicable with the appropriate authorities.
c) According to the information and explanations given to us the amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 ( 1 of 1956) and rules there under has been transferred to such fund time to time.
8. The company does not have accumulated losses as at March 31, 2016. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.
9. According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank or debenture holder.
10. According to the information and explanation given to us, the company has given guarantee to the tune of Rs.9.62 Crores for loans taken by Shakti Irrigation India Limited from banks during the year for setting up micro irrigation plant.
b) According to the information and explanations given to us and the records of the company examined by us, there are no dues of wealth tax, service tax, custom duty and cess which have not been deposited on account of any dispute. The particular of dues of excise duty, sales tax & income tax as at 31st March 2016 which have not been deposited or partially been deposited on account of a dispute, are as below:
11. In our opinion and according to the information and explanations given to us, on an overall basis, the term loans have been applied for the purpose for which they were obtained.
12. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, no material instance of fraud on or by the company noticed or reported during the year.
We have audited the internal financial controls over financial reporting of Shakti Pumps India Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAO. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks 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 to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
Vinay Gandhi
Place: Pithampur Proprietor
Date: 30.05.2016 M No. 75972
Mar 31, 2015
We have audited the accompanying financial statements of SHAKTI PUMPS
(INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act') with respect
to the preparation and presentation of these standalone financial
statements that give true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into accounts
the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent available.
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 best of our knowledge and belief were necessary for the
purpose of our audit.
b. in our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of those
books;
c. the balance sheet, statement of profit and loss, and cash flow
statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors
as on March 31, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015 from being
appointed as a director in terms of section 164(2) of the Act; and
f. with respect to the other matters to be included in the Auditors
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 the explanations given to us:
i) the Company does not have any pending litigations which would impact
its financial position;
ii) the company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii) there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
Annexure to the Auditor's Report
The Annexure referred to in our Independent Auditors Report to the
members of the company on the standalone financial statements for the
year ended 31 March 2015, we report that:
1. In respect of its fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets in respect
of all its locations on the basis of available information.
b) As explained to us, all the fixed Assets have been physically
verified during the year by the management in accordance with a regular
programme of verification of the fixed assets at reasonable intervals
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. According to the information and
explanation given to us, no material discrepancies were noticed on such
physical verification.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification.
3. In respect of loans, secured or unsecured, granted by the company to
companies, firms or other parties covered in the register maintained
under section 189 of the Act:
a) The company has granted loan to one body corporate covered in the
register maintained under section 189 of the Act as follows:
Name of the Max. Amount Balance as on
Party Outstanding 31.03.2015
During the Year
Vintex Tools Pvt. Rs.9,53,26,772/- Rs.9,53,26,772/-
Ltd
b) In case of loan granted to the body corporate listed in the register
maintained under section 189 of the Act, the borrower have been regular
in the payment of the interest as stipulated. The terms do not
stipulate any repayment schedule and the loans are repayable on demand.
c) There are no overdue amounts of more than rupees one lakh in respect
of the loan granted to the body corporate listed in the register
maintained under section 189 of the Act.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause (v) of paragraph 3
of the order is not applicable to the company.
6. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2014
prescribed by the Central Government under section 148 of the Act and
are of the opinion that prima facie the prescribed cost records have
been maintained. We have, however not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
7. In respect of statutory dues:
a) According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing undisputed statutory dues including
provident fund, employees' state insurance, Income Tax, VAT, wealth
tax, service tax, custom duty, excise duty, cess and any other
statutory dues as applicable with the appropriate authorities.
b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of wealth tax,
service tax, custom duty and cess which have not been deposited on
account of any dispute. The particular of dues of excise duty, sales
tax & income tax as at 31st March, 2015 which have not been deposited
or partially been deposited on account of a dispute, are as below :
Name of the statue Nature of dues Amount
(Rs.In Lakhs)
The Central Excise Excise duty Including 47.70
Act, 1944 Interest and penalty
The Income Tax Act, Income Tax Demand 19.09
1961 including Interest
Income Tax Demand 20.83
including Interest
Income Tax Demand 165.51
including Interest
Income Tax Demand 50.00
including Interest
Income Tax Demand 16.75
including Interest
Commercial Tax VAT and Entry 70.44
Tax demand
VAT and CST demand 6.16
VAT and CST 4.23
Tax demand
VAT, CST and 12.46
Entry Tax demand
Name of the statue Period to which the Forum where the
amount relates dispute is pending
The Central Excise FY 2005-06 Appellate Tribunal, New
Act, 1944 Delhi
The Income Tax Act, FY 2007-08 CIT - Appeal
1961
FY 2008-09 CIT - Appeal
FY 2009-10 CIT - Appeal
FY 2010-11 CIT - Appeal
FY 2011-12 CIT - Appeal
Commercial Tax FY 2010-11 M.P. High Court,
Indore Bench
FY 2010-11 M.P. Commercial Tax
Appeal Board, Bhopal
FY 2011-12 Add. Commissioner of
Comm. Tax, Indore
FY 2012-13 Appellate Authority,
Commercial Tax, Indore
c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules there under has been
transferred to such fund time to time.
8. The company does not have accumulated losses as at March 31,
2015.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
9. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder.
10. According to the information and explanation given to us, the
company has given guarantee to the tune of Rs.9.62 Crores for loans
taken by Shakti Irrigation India Limited from banks during the year for
setting up micro irrigation plant.
11. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
12. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, no material instance of fraud on or by the
company noticed or reported during the year.
For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
Vinay Gandhi
Place: Pithampur (Proprietor)
Date: 21.05.2015 M No. 75972
Mar 31, 2014
We have audited the accompanying financial statements of SHAKTI PUMPS
(INDIA) LIMITED ("the Company"). These comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. The standards require that we comply with ethical
requirements as also plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, the profit for the year
ended on that date; and
(c) in the case of the Cash Flow Statement, the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which are to
the best of our knowledge and belief were necessary for the purpose of
our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us];
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
Annexure to the Auditor''s Report
Referred to in Paragraph of Report on Other Legal & Regulatory
Requirements
1. In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets in respect
to all its locations on the basis of available information.
b) As explained to us, all the fixed assets have been physically
verified during the year by the management in accordance with a regular
programme of verification of the fixed assets at reasonable intervals
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. According to the information and
explanation given to us, no material discrepancies were noticed on such
physical verification.
c) In our opinion and according to the information and explanation
given to us, any substantial part of fixed assets has not been disposed
of by the company during the year.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the act:
a) The company has granted loan to two parties covered in the register
maintained under section 301 of the Act as follows:
Name of the Party Max. Amount Outstanding Balance as on
During The Year 31.03.2014
Vintex Tools Pvt. Ltd Rs. 8,32,17,585/- Rs. 8,32,17,585/-
Aquanox Pumps Limited Rs. 9,02,41,213/- Rs. 9,02,41,213/-
b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & conditions of loan
given by the Company, are not prima facie prejudicial to the interest
of the company.
c) The Principal amount are repayable over a period of one to three
years, while the interest is payable annually at the discretion of the
company.
d) In respect of the said loans and interest thereon, there are no
overdue amounts.
e) The company has not taken any loans, secured or unsecured from
companies, firms or other Parties covered in the register maintained
under section 301 of the Act. Accordingly, Clauses (iii) (f) and (iii)
(g) of the paragraph 4 of the order are not applicable to the company
for the current year.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the act:
a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements or
transactions referred to in section 301 of the Act have been entered in
the register required to be maintained under section 301 of the Act.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at price which are prima facie
reasonable, having regard to prevailing market price at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause (vi) of paragraph
4 of the order is not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section clause (d) of sub
section (1) of section 209 of the Act and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
9. In respect of statutory dues:
a) According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employees''
state insurance, Income Tax, VAT, wealth tax, custom duty, excise duty,
cess and other material statutory dues as applicable with the
appropriate authorities in India.
b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of wealth tax,
service tax, custom duty and cess which have not been deposited on
account of any dispute. The particular of dues of excise duty & income
tax as at 31st March 2014 which have not been deposited on account of a
dispute, are as follows
Name of the
statute Nature of dues Amount Period to which
the amount relates
The Central
Excise Act, Excise duty
Including Rs. 47,70,000 2005-06
1944 Interest and
penalty
The Income
Tax Act, Income Tax
Including Rs. 1,65,51,590 2010-11
1961 Interest &
Penalty
Name of the Statue Forum where the
dispute is pending
The Central Excise Act,
1944 Appellate Tribunal,
New Delhi
The Income Tax Act,
1961 Commissioner
(Appeals), Indore
10. The company does not have accumulated losses as at March 31,
2014.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder.
12. In our opinion and based on the information available , no loans
and advances have been granted by the company on the basis of security
by way of pledge of shares, debentures and other securities.
13. The provisions of clause (xiii) of paragraph 4 of the order
relating to chit fund/ nidhi/mutual benefit fund/society are not
applicable to the company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion and according to the information and
explanation given to us, there are no funds raised on short- term basis
which have been used for long term investment.
18. According to the information & explanations given to us the
company has made preferential allotment of shares warrants to parties
covered in the register maintained under section 301 of the Act. In our
opinion, the price on which this share warrants have been issued is not
prejudicial to the interest of the company.
19. The company has no Outstanding Debenture during the year.
20. The company has not raised any money by way of public issues
during the year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, no material instance of fraud on or by the
company noticed or reported during the year.
For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
SD/-
Vinay Gandhi
(Proprietor)
M No. (75972)
Place: Pithampur
Date : 14.05.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SHAKTI PUMPS
(INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements Management is
responsible for the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error. Auditor''s Responsibility Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India. Those
Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us];
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
1. In respect of its fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets in respect
of all its locations on the basis of available information.
b) As explained to us, all the fixed Assets have been physically
verified during the year by the management in accordance with a regular
programme of verification of the fixed assets at reasonable intervals
which in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. According to the information and
explanation given to us, no material discrepancies were noticed on such
physical verification.
c) In our opinion and according to the information and explanation
given to us, any substantial part of fixed assets has not been disposed
of by the Company during the year.
2. In respect of its inventories:
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the act:
a) The Company has granted loan to one party covered in the register
maintained under section 301 of the Act as follows:
Name of the Party Max. Amount Balance as on
Outstanding 31.03.2013
During The Year Vintex Tools Pvt. Ltd Rs.74928834.75/- Rs.60691783/-Aquanox
Pumps Ltd Rs.38286388.00/- Rs.38286388/-b) In our opinion and according to
the information and explanation given to us, the rate of interest and
other
terms & conditions of loan given by the Company, are not prima facie
prejudicial to the interest of the Company.
c) The Principal amount are repayable over a period of one to three
years, while the interest is payable annually at the discretion of the
Company.
d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or
Other Parties covered in the register maintained section 301 of the
Act. Accordingly, clauses (iii) (f) and (iii) (g) of the paragraph 4 of
the order are not applicable to the Company for the current year.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the act:
a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements or
transactions referred to in section 301 of the Act, have been entered
in the register required to be maintained under section 301 of the Act.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at price which are prima facie
reasonable, having regard to prevailing market price at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from the public
during the year. Therefore, the provisions of clause (vi) of paragraph
4 of the order is not applicable to the Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section clause (d) of sub
section (1) of section 209 of the Act and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
9. In respect of statutory dues:
a) According to the information and explanations given to us and the
records of the Company examined by
us, in our opinion, the Company is generally regular in depositing
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, Income Tax, Sales Tax,
wealth tax, custom duty, excise duty, cess and other material statutory
dues as applicable with the appropriate authorities in India.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of wealth tax,
service tax, custom duty and cess which have not been deposited on
account of any dispute. The particular of dues of excise duty as at
31st March 2013 which have not been deposited on account of a dispute,
are as follows
Name of the statue Nature of dues Amount Period to which the Forum
where the
amount relates dispute is pending
The Central Excise Excise duty Including 47,70,000 2005-06 Appellate
Tribunal,
Act, 1944 Interest and penalty New Delhi
The Income Tax Income Tax Including 1,65,51,590 2010-11 Commissioner
(Appeals),
Act, 1961 Interest & Penalty Indore
10. The Company does not have accumulated losses as at March 31,
2013.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder.
12. In our opinion and based on the information available , no loans
and advances has been granted by the Company on the basis of security
by way of pledge of shares, debentures and other securities.
13. The provisions of clause (xiii) of paragraph 4 of the order
relating to chit fund/ nidhi/mutual benefit fund/society are not
applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanation given to us, there are no funds raised on short- term basis
which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has no Outstanding Debenture during the year.
20. The Company has not raised any money by way of public issues during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, no material instance of fraud on or by the
Company noticed or reported during the year.
For Vinay Gandhi & Associates
Chartered Accountants
FRN: 014442C
Vinay Gandhi
Place : Indore (Proprietor)
Date : 29.05.2013 M No. 75972
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/S. SHAKTI PUMPS
(INDIA) LIMITED (the company) as on 31st March 2012, the statement of
Profit & Loss and the Cash Flow Statement of the company for the year
ended on that date annexed there to. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
accessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 as
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956 ( the act ), we give in the
annexure hereto a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow statement
dealt by with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of the Section 211 of the
Act.
e) On the basis of written representation received from the directors
of the company, as on 31st March, 2012 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on March 31, 2012 from being appointed as a director in terms clause
(g) of sub section (1) of section 274 of the Act.
5. In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements together
with the significant accounting policies and notes thereon give in the
prescribed manner the information required by the Act and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
i. in the case of Balance Sheet of the state of affairs of the company
as at 31st March, 2012 ;
ii. in the case of Statement of Profit and Loss, of the profit for the
year ended on that date and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. In respect of its fixed Assets
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets in respect
of all its locations on the basis of available information.
b) As explained to us, all the fixed Assets have been physically
verified during the year by the management in accordance with a regular
programme of verification of the fixed assets at reasonable intervals
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. According to the information and
explanation given to us, no material discrepancies were noticed on such
physical verification.
c) In our opinion and according to the information and explanation
given to us, any substantial part of fixed assets has not been disposed
of by the company during the year.
2. In respect of its inventories
a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification.
3. In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the act:
a) The company has granted loan to one party covered in the register
maintained under section 301 of the Act as follows:
Name of the Party Max. Amount Outstanding Balance as on 31.03.2012
During The Year
Vintex Tools Rs. 78,58,567/- Rs. 78,58,567/-
Pvt.Ltd
b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & conditions of loan
given by the Company, are not prima facie prejudicial to the interest
of the company.
c) The Principal amount are repayable over a period of one to three
years, while the interest is payable annually at the discretion of the
company.
d) In respect of the said loans and interest thereon, there are no
overdue amounts.
(e) The company has not taken any loans, secured or unsecured from
companies, firms or other Parties covered in the register maintained
section 301 of the Act. Accordingly, clauses (iii) (f) and (iii) (g) of
the paragraph 4 of the order are not applicable to the company for the
current year.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the act:
a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements or
transactions referred to in section 301 of the Act, have been entered
in the register required to be maintained under section 301 of the Act.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at price which are prima facie
reasonable, having regard to prevailing market price at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause (vi) of paragraph
4 of the order is not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under section clause (d) of sub
section (1) of section 209 of the Act and are of the opinion that prima
facie the prescribed cost records have been maintained. We have,
however not made a detailed examination of the cost records with a view
to determine whether they are accurate or complete.
9. In respect of statutory dues:
a) According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employees'
state insurance, Income Tax, Sales Tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities in India.
b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of income tax,
wealth tax, service tax, custom duty and cess which have not been
deposited on account of any dispute. The particular of dues of excise
duty as at 31st March 2012 which have not been deposited on account of
a dispute, are as follows.
Name of the Nature of Amount Period to which Forum where
statue dues the amount the dispute
relates is pending
The Central Excise duty 22,60,000 2005-06 Appellate
Excise Act, including 22,60,000 2005-06 Tribunal,
1944 interest 2,50,000 2005-06 New Delhi
and penalty
10. The company does not have accumulated losses as at March 31,
2012.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder.
12. In our opinion and based on the information available, no loans
and advances has been granted by the company on the basis of security
by way of pledge of shares, debentures and other securities.
13. The provisions of clause (xiii) of paragraph 4 of the order
relating to chit fund/ nidhi/mutual benefit fund/ society are not
applicable to the company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion and according to the information and
explanation given to us, there are no funds raised on shortterm basis
which have been used for long term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has issued Optionally Convertible debentures amounting
to Rs.97498400/- during the year. The company has not created
securities/ charges in respect of aforesaid OCDs. Those OCD's are
secured by way of pledge of 2400000 Equity Shares of Directors.
20. The company has not raised any money by way of public issues
during the year except private placement of 1597993 equity shares of
face value Rs.10/- each to Green India Venture Fund.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, no material instance of fraud on or by the
company noticed or reported during the year.
For Vinay Gandhi & Associates
Chartered Accountants
FRN:014442C
Vinay Gandhi
[Proprietor]
Place: Indore [M No. 75972]
Date : 08/08/2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/S. SHAKTI PUMPS
(INDIA) LIMITED (the company) as on 31st March 2011 and also the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date annexed there to. These financial statements
are the responsibility of the CompanyÃs management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
accessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 as
amended by the Companies (AuditorÃs Report) (Amendment) Order, 2004
(together the OrderÃ) issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956Ã of
India (the ActÃ) and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanation given to us, we give in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt by with by this report are in agreement with the books
of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of the Section 211 of the
Act.
e) On the basis of written representation received from the directors
of the company, as on 31st March 2011 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March 2011 from being appointed as a Director in terms clause
(g) of sub-section (1) of Section 274 of the Act.
i. In the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2011 and
ii. In the case of Profit and Loss Account, of the profit for the year
ended on that date and
iii. In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
[Referred to in Para 3 of our Auditors Report of even date to the
members of Shakti pumps (India) Limited on the financial statements for
the year 31st March 2011]
1. a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets in respect of all its locations on the basis of available
information.
b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification of
the fixed assets at reasonable intervals which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. According to the information and explanation given to us,
no material discrepancies between the book records and the physical
inventory have been noticed.
c) In our opinion and according to the information and explanation
given to us, a substantial part of fixed assets has not disposed of by
the Company during the year.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, The Company is maintaining proper records of inventory. In our
opinion, the discrepancies noticed on physical verification between
physical inventories as compared with book records.
3. a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
Section 301 of the Act. Accordingly, Clauses (iii) (b) to (d) of the
paragraph 4 of the order are not applicable to the company for the
current year.
d) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
section 301 of the Act.
Accordingly, Clauses (iii) (f) and (iii) (g) of the paragraph 4 of the
order are not applicable to the company for the current year.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the Company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements or
transactions referred to in Section 301 of the Companies Act,1956 have
been entered in the register required to be maintained under section
301 of the Companies Act,1956.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at price which are prima facie
reasonable, with regard to prevailing market price at the relevant time
where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of Clause 4 (vi) is not
applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of the products where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under Clause (d) of sub-section (1) of Section 209 of
the Act and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employeesÃ
state insurance, income tax, sales tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities in India.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
wealth tax, service tax, custom duty and cess which have not been
deposited on account of any dispute. The particular of dues of excise
duty as at 31st March 2011 which have not been deposited on account of
a dispute, are as follows:
Name of the statue Nature of Amount Period to Forum where
dues which the the dispute
amount is pending
relates
The Central Excise Excise duty 22,16,000 2005-06 Appellate
Act, 1944 including Tribunal,
interest and 22,60,000 2005-06 New Delhi
penalty 2,50,000 2005-06
10. The Company does not have accumulated losses as at 31st March
2011.The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder..
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit
fund/nidhi/society/mutual fund benefit fund are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanation given to us, there are no funds raised on short-term basis
which have been used for long- term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year hence
the provisions of Clause 4(xix) are not applicable to the Company.
20. he Company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, I have neither come across ant instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Vinay Gandhi & Associates
Chartered Accountants
Firm Reg. No: 014442C
Vinay Gandhi
Place: Indore [Proprietor]
Date: 30th August, 2011 [M No. 75972]
Jun 30, 2010
1. We have audited the attached Balance Sheet of M/S. SHAKTI PUMPS
(INDIA) LIMITED (the company) as on 30 June 2010 and also the Profit &
Loss Account and the Cash Flow Statement of the company for the year
ended on that date annexed there to. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
accessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the Order) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956 of
India (the Act) and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanation given to us, we give in the annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of the
books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow statement
dealt by with by this report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of the Section 211 of the
Act.
e) On the basis of written representation received from the directors
of the company, as on 30th June 2010 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 30th June 2010 from being appointed as a director in terms clause
(g) of sub section (1) of section 274 of the Act.
5. In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of Balance Sheet of the state of affairs of the company
as at 30th June 2010, in the case of Profit and Loss Account, of the
profit for the year ended on that date and
ii. in the case of the Cash Flow Statement , of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
[Referred to in Para 3 of our Auditors Report of even date to the
members of Shakti pumps (India) Limited on the Financial statements for
the year 30th June, 2010]
1. a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets in respect of all its locations on the basis of available
information.
b) The fixed Assets were physically verified during the year by the
management in accordance with a regular programme of verification of
the fixed assets at reasonable intervals which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. According to the information and explanation given to us,
no material discrepancies between the book records and the physical
inventory have been noticed.
c) In our opinion and according to the information and explanation
given to us, a substantial part of fixed assets has not disposed of by
the company during the year.
2. a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year at reasonable
interval. In respect of inventory lying with third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, The Company is maintaining proper records of inventory. In our
opinion, the discrepancies noticed on physical verification between
physical inventories as compared to book records.
3. a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
section 301 of the Act. Accordingly, clauses (iii) (b) to (d) of the
paragraph 4 of the order are not applicable to the company for the
current year.
b) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
section 301 of the Act. Accordingly, clauses (iii) (f) and (iii) (g) of
the paragraph 4 of the order are not applicable to the company for the
current year.
4. In our opinion and according to the information and explanation
given to us, there is an adequate Internal Control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
Further, on the basis of our examination of the books and records of
the company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanation given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements or
transactions referred to in section 301 of the Companies Act,1956 have
been entered in the register required to be maintained under section
301 of the Companies Act,1956.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at price which are prima facie
reasonable, having regard to prevailing market price at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public
during the year. Therefore, the provisions of clause 4 (vi) is not
applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of the products where, pursuant to the Rules made by
the Central Government of India, the maintenance of cost records has
been prescribed under clause (d) of sub section (1) of section 209 of
the Act and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
According to the information and explanations given to us and the
records of the company examined by us, in our opinion, the company is
generally regular in depositing undisputed statutory dues including
provident fund, investor education and protection fund, employees
state insurance, Income Tax, Sales Tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities in India.
b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of income tax,
wealth tax, service tax, custom duty and cess which have not been
deposited on account of any dispute. The particular of dues of excise
duty as at 30th June 2010 which have not been deposited on account of a
dispute, are as follows
Name of the
statue Nature of dues Amount Period to Forum where the
dispute
(Rs.) which the is pending
amount
relates
The Central
Excise Act, Excise duty 4,79,724 2004-05 Commissioner
Appeals, Indore
1944 including
interest 22,16,000 2005-06 Appellate Tribu-
nal, New Delhi
and penalty 22,60,000 2005-06 Appellate Tribu-
nal, New Delhi
2,50,000 2005-06 Appellate Tribu-
nal, New Delhi
10. The company does not have accumulated losses as at 30 June 2010.
The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder..
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi / society/ mutual fund benefit fund are not applicable to the
company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purpose for which they were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion and according to the information and
explanation given to us, there are no funds raised on short- term basis
which have been used for long term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has not issued any debentures during the year hence
the provisions of clause 4(xix) are not applicable to the company.
20. The company has not raised any money by public issues during the
year
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, I have neither come across ant instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For Vinay Gandhi & Associates
Chartered Accountants
Vinay Gandhi
Place: Indore Proprietor
Date : 9th September 2010 M No. 75972
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