| Report on the Financial Statements
1. We have audited the accompanying financial statements of Panasonic
Appliances India Company Limited (formerly Panasonic Home Appliances
India Company Limited) ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. 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 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 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
3. Our responsibility is to express an opinion on these 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.
4. 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.
5. 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. 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.
6. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
7. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid 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, 2015, and its Profit and its Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
8. 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 applicable.
9. 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;
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid 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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 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 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 financial statements - Refer Note 26(i) to
the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.; and
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 5 of our report of even date
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The company has a programme of verification of fixed assets whereby
all the fixed assets are physically verified by the management over a
period of three years in a phased manner which, in our opinion, is
reasonable having regard to the size of the company and the nature of
its assets. No material discrepancies were noticed on such verification
in respect of assets verified during the year.
2. a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt with in the books of account.
3. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan, secured or unsecured
to companies, firms or other parties covered in the register maintained
under section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. There is no continuing failure to correct major
weaknesses in internal control system.
5. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Section 73
to 76 or any other relevant provisions of the Act and the rules framed
thereunder, wherever applicable and the directives issued by the
Reserve Bank of India, wherever applicable, with regard to deposits
accepted from the public. According to the explanations given to us, no
order has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
6. 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 Act and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained.
7. According to the records of the company, the company is regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-Tax, Value
Added Tax, Service Tax, Custom Duty, Excise-Duty, Cess applicable to
it. There are no outstanding statutory dues as at 31st March 2015 for a
period of more than six months from the date they became payable.
8. Based on our audit procedures and on the information and
explanations given by the Management, there are no dues outstanding in
respect of excise duty, income tax, wealth tax, and cess on account of
any dispute. The details of disputed customs duty, service tax and
sales tax that have not been deposited with the appropriate authorities
are as follows:
9. According to the information and explanations given to us, the
amounts which were required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder have been
transferred to such fund within time.
10. The accumulated losses of the company as at the end of the
financial year are more than 50% of networth of the company. The
company has not incurred cash losses during the financial year ended
31st March, 2015 and has incurred cash losses in the immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from any financial
institutions or by way of debentures.
12. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
13. On the basis of review of utilisation of funds on overall basis
the term loans taken by the company were applied for the purposes for
which the loans were obtained.
14. Based upon the audit procedures performed and information and
explanations given by the management, we report that no material fraud
on or by the company has been noticed or reported during the year.
For Brahmayya & Co.,
Chartered Accountants
Firm Regn No: 000511S
R.Nagendra Prasad
Place: Chennai Partner
Date: June 05, 2015 Membership No: 203377 | 