To the Members of
Techno Electric & Engineering Company Limited
REPORT ON THE STANDALONE Ind AS FINANCIAL STATEMENTS
We have audited the accompanying Standalone Ind AS Financial Statements of Techno
Electric and Engineering Company Limited ("the Company"), which comprise the
balance sheet as at 31st March, 2017, the statement of profit and loss ( including other
comprehensive income ) , the cash flow statement, and the statement of changes in equity
for the year then ended, and a summary of significant accounting policies and other
explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys 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 Ind AS Financial Statements that give a true and fair view of the
financial position, financial performance including other comprehensive income 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
relevant rules issued thereunder.
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 Ind
AS Financial Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS 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 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 Standalone 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 Financial Statements. The procedures selected depend on
the auditors judgment, including the assessment of the risks of material misstatement of
the Standalone Financial Statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Companys
preparation of the Standalone 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 Companys 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 Financial Statements.
OPINION
In our opinion and to the best of our information and according to the explanations
given to us, the 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 31st
March, 2017, and its financial performance 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 (Auditors Report) Order, 2016 ("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,
a statement on the matters specified in paragraphs 3 and 4 of the said Order to the
extent applicable to the company.
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 ,the Cash Flow Statement and
the 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 statement comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
companies (Accounts) Rules, 2014 read with relevant rules issued thereunder;
(e) On the basis of written representations received from the directors as at
31st March, 2017, taken on record by the Board of Directors, none of the directors as
on 31st March, 2017 are disqualified 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- B"; and
(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. As per information and explanations given to us, the Company does not have any
pending litigations which would impact the financial position;
ii. As per information and explanations given to us, 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 the amounts which were required to be
transferred to the Investor Education and Protection Fund by the Company.
iv. The company has provided requisite disclosures in the Financial Statements as the
holdings as well as dealing in Specified Bank Notes during the period from 8th November,
2016 to 30th December, 2016 and these are in accordance with the books of accounts
maintained by the Company. (Refer Note no 39 of Standalone Ind AS Financial Statements)
| For S. S. Kothari & Co |
| Chartered Accountants |
| Firms Registration No.302034E |
| Centre Point |
| 21, Old Court House Street |
| Kolkata 700 001 |
| R.N.Bardhan |
| Partner |
| Membership No 017270 |
| Dated, the 26th day of May, 2017 |
ANNEXURE - A TO THE INDEPENDENT AUDITORS
REPORT
(Referred to in paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements of our report of even date to the members of Techno Electric and
Engineering Company Limited on the Standalone Financial Statements for the year ended 31st
March,2017)
WE REPORT THAT,
1 a) The Company has maintained proper
records of Fixed Assets showing full particulars including quantitative
details and situation offixed assets.
b) The Company has a phased program of physical verification of its fixed assets which
in our opinion, is reasonable having regard to the size of the Company and the nature of
its business . In accordance with such program, the management has physically verified
fixed assets during the year and no material discrepancies were noticed on such
verification.
c) The title deeds of immovable properties are held in the name of the Company.
2 As explained to us, inventories have been physically verified by the management
during the year at reasonable intervals.
In our opinion and according to the information and explanations given to us the
discrepancies noticed on such verifications of inventories as compared to book records
were not material and have been properly dealt with in the books of account.
3. During the year the company has not granted any secured or unsecured loans to a body
corporate covered in the register maintained under Section 189 of the Companies Act, 2013
(the Act)
4. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of section 185 and 186 of the Companies Act 2013,
with respect to the loans, investments, guarantees and securities made.
5. The Company has not accepted any deposits from the public and consequently, the
directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or
any other relevant provisions of the Companies Act 2013 and rules framed there under, is
not applicable .
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 (11) of the Companies Act, 2013 in respect of Energy (Power) division of the Company
and are of the opinion that, prima-facie, the prescribed accounts and records have been
made and maintained. However, we have not made any detailed examination of cost records,
to ascertain the accuracy and completeness thereof.
7. a) According to the information and
explanations given to us and on the basis of our examination of the books of account,
the Company has generally been regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees state insurance,
income-tax, sales-tax, custom duty, service tax, value added tax, cess and any other
material statutory dues applicable to it and there is no outstanding as on 31st March,
2017 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 are no dues in
respect of Income-tax, sales-tax, service-tax, custom duty, excise duty, value added tax,
and cess that have not been deposited with the appropriate authorities on account of any
dispute.
8. The Company has not defaulted in repayment of dues to financial institution or bank
or debenture holders as may be ascertained from the examination of the books of account
and other records of the Company.
9. The Company did not raise any money by way of initial public offer or further public
offer (including debt instruments) and term loans during the year. Accordingly, paragraph
3 (ix) of the Order is not applicable.
10. To the best of our knowledge and belief and according to the information and
explanations given to us, no material fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our
examination of the records of the Company, managerial remuneration paid or provided by the
Company is in accordance with the provisions of section 197 read with Schedule V to the
Act, during the year.
12 In our opinion and according to the information and explanations given to us, the
Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
13. According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the Standalone Financial Statements as required by the
applicable accounting standards.
14. According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year.
15. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with 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-IA of the Reserve
Bank of India Act, 1934.
| For S. S. Kothari & Co |
| Chartered Accountants |
| Firms Registration No.302034E |
| Centre Point |
| 21, Old Court House Street |
| Kolkata 700 001 |
| R.N.Bardhan |
| Partner |
| Membership No 017270 |
ANNEXURE - B TO THE INDEPENDENT AUDITORS
REPORT
(Referred to in paragraph 2 (f) under the heading "Report on Other Legal and
Regulatory Requirements of our report of even date to the members of Techno Electric and
Engineering Company Limited on the Standalone Financial Statements for the year ended 31st
March,2017)
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUBSECTION 3 OF SECTION
143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of Techno
Electric and Engineering Company Limited ("the Company) as of 31st March, 2017 in
conjunction with our audit of the standalone Financial Statements of the Company for the
year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys 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 companys 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 Companys 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 auditors judgment, including the assessment of the risks of
material misstatement of the Standalone 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 Companys internal financial controls system
over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of Standalone Financial
Statements for external purposes in accordance with generally accepted accounting
principles. A companys 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 Standalone 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 companys assets that could have a
material effect on the Standalone 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 31st March, 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 S. S. Kothari & Co |
| Chartered Accountants |
| Firms Registration No.302034E |
| Centre Point |
| 21, Old Court House Street |
| Kolkata 700 001 |
| R.N.Bardhan |
| Partner |
| Membership No. 017270 |
+91-9892691696
