We have audited the accompanying Standalone Financial Statements of
Eddy Current Controls (India) Ltd ("the Company") which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit & Loss, the
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
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 Standalone Financial Statements that give a
true and fair view of the financial position and financial performance
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 Companies (Accounts) Rules,
2014. 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting
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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Standalone 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 accounting policies used and the reasonableness of
the accounting estimates made by 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.
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, 2015, and its Profit and its cash flow 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 applicable.
2. As required by section 143(3) of the Act, We report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
those books;
c) The Balance Sheet and Statement of Profit and Loss 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 written representations received from the directors,
as on 31st March, 2015, and 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;
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:
a. The Company does not have any pending litigations which would impact
its financial position though there is a demand from sales tax
authorities for Rs.6,84,272/- towards non submission of C Form relating
to earlier years against which the company has filed appeal and the
company has been legally advised that the additional demand raised is
likely to be deleted or substantially reduced and hence no provision
has been made.
b. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
c. The company has no amount required to be transferred, to the
Investor Education and Protection Fund during the year.
Annexure to the Auditors' Report
Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' of our Report of even date to the members of Eddy Current
Controls (India) Ltd on the accounts of the company for the year ended
31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and Explanations given to us during the course of
our audit, we report that:
i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with the phased programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
ii) In respect of its inventory:
a) As explained to us, the inventories have been physically verified at
regular intervals as well as at the end of the year by the Management.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on physical verification of
stocks as compared to book records were not material and have been
properly dealt with in the books of account.
iii) In respect of loans, secured or unsecured, granted to the parties
covered in register maintained under section 189 of the Companies Act
2013:
(a) According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013; and therefore paragraph 3(iii) of the Order is not
applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. During the course of our Audit, we have not
observed any continuing failure to correct major weaknesses in internal
control.
v) In our opinion and according to the information and explanation
given to us, the company has not received any public deposits during
the year and therefore the provisions of clause (v) of paragraph 3 of
the CARO 2015 are not applicable to the company.
vi) As informed to us, the Central Government has not prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act, in respect of the activities carried on by the Company.
vii) In respect of statutory dues:
(a) According to the records of the company, the company is irregular
in depositing undisputed statutory dues including Sales Tax, Provident
Fund, Employees' State Insurance, to the extent applicable with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2015 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income-tax, Wealth
Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material
statutory dues in arrears /were outstanding as at 31 March, 2015 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there has
not been an occasion in case of the Company during the year under report
to transfer any sums to the Investor Education and Protection Fund. The
question of reporting delay in transferring such sums does not arise as
at 31st March, 2015, the Company has been registered for less than 5
years; hence, clause 3(vii)(c) of the Order is not applicable to it and
Therefore were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
viii) The company does not have the accumulated losses at the end of
financial year. The company has not incurred any Cash losses during the
financial covered by our Audit and the immediately preceding financial
year.
ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
x) In our opinion, and according to the information and the explanation
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year;
xi) The company has not obtained any term loan during the year, so this
para of order is not applicable.
xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Vasu and Jagan Associates,
Chartered Accountants.
(Sd) K. Sivaraamkrishnan
Partner
Place: Coimbatore
Date: 04/09/2015 M. No.: 024,74
FRN : 008966S
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