To The Members of ADVANCE POWERINFRA TECH LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ADVANCE POWERINFRA TECH
LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,
2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and
a summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the 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 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 Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, 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 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 financial statements based on our
audit. In conducting 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 there under and the Order
issued under section 143(11) of the Act.
We conducted our audit of the financial statements 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
auditors 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 Companys 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 Companys Directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our audit opinion on the financial statements.
Opinion
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:
(i) in the case of the balance sheet, of the state of affairs of the Company as at 31st
March 2018 and
(ii) in the case of the statement of profit and loss, of the loss for the year ended on
that date; and
(iii) in the case of Cash Flow Statement, of the Cash Flow for the year ended on that
date;
Other Matter
The comparative financial information of the Company for the year ended 31 March, 2017
and the transition date opening balance sheet as at 1st April, 2016 included in these
Standalone Ind AS financial statements, are based on the previously issued statutory
financial statements for the years ended 31st March, 2017 and 1st April, 2016, prepared in
accordance with the Companies (Accounting Standards) Rules, 2006 audited by the
predecessor auditor whose report for the year ended 31st March, 2017 and 31st March, 2016
dated 2nd June, 2017 and 30th May, 2016 respectively expressed an unmodified opinion on
those standalone financial statements, as adjusted for the differences in the accounting
principles adopted by the Company on the transition to the IndAs, which have been audited
by us.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the books of account.
d) in our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards prescribed under section 133 of the Act.
e) on the basis of the written representations received from the directors of the
Company as on March 31, 2018 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 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 A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
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, as amended, in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company has no pending litigations on its financial position in its financial
statements.
ii. The Company did not have any outstanding long term contracts including derivative
contracts as at 31st March, 2018 for which there were any material foreseeable contracts.
iii. The Company has no amount that is required to be transferred to the Investor
Education and Protection Fund.
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of Advance Powerinfra Tech Limited of
even date)
Report on the Internal Financial Controls Over Financial Reporting 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 ADVANCE
POWERINFRA TECH LIMITED ("the Company") as of March 31, 2018 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Board of Directors of the Company 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. 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, 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 internal financial controls over
financial reporting of the Company 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") issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. 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 judgement, 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 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 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 financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
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, to the best of our information and according to the explanations given
to us, 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, 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 Institute of Chartered Accountants of
India.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements
section of our report to the
Members of Advance Powerinfra Tech Limited of even date)
(i) In respect of the Companys fixed assets:
(a) The Company has maintained proper records showing full particulars including
Quantitative details and situation of its fixed assets.
(b) According to the information and explanation gives to us, the fixed assets are
physically verified by the management according to a phased programme designed to cover
all items over a period of three years, which in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to the programme, a
portion of the fixed assets has been physically verified by the management during the year
and no material discrepancies between the book records and the physical inventory has been
noticed.
(c) According to the information and explanation gives to us by the Management, no
immovable properties are held by the company.
(ii) As explained to us, inventories have been physically verified by the management at
regular intervals during the year. In our Opinion, the frequency of verification is
reasonable. As explained to us, no material discrepancies were noticed on physical
verification
(iii) The Company has not granted any loans secured or unsecured to Companies, Firm, or
other parties covered in the register maintained under section 189 of the Companies Act,
2013
(iv) In our opinion and according to the information and explanations given to us, the
Company has not granted any loans, investments, guarantees and security covered under
Section 185 and 186 of the Act. Consequently, requirements of clause (iv) of paragraph 3
of the order are not applicable.
(v) According to the information and explanations given to us, the Company has not
accepted any public deposits under the provisions of Sections 73 to 76 or any other
relevant provisions of the Companies Act 2013 and the Companies (Acceptance of Deposits)
Rules, 2014 framed there under. 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.
(vi) As per the information & explanations given to us, the Central Government has
not prescribed any rules for the maintenance of cost records by the Company under Section
148(1) of the Companies Act, 2013.
(vii) (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company has generally been regular in
depositing undisputed statutory dues in respect of Provident Fund, Investor Education and
protection Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material Statutory Dues as applicable with the
appropriate authorities in India. According to the information and explanations given to
us, there are no undisputed statutory dues outstanding for a period of more than six
months from the date they became payable.
(b) According to the information and explanation given to us, no disputed amounts
payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise
duty and cess were in arrears, as at 31st March, 2018 for a period of more than six months
from the date they become payable.
(viii) (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company has generally been regular in
depositing undisputed statutory dues in respect of Provident Fund, Employees State
Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value
Added Tax, Cess and other material Statutory Dues as applicable with the appropriate
authorities in India. According to the information and explanations given to us, there are
no undisputed statutory dues outstanding for a period of more than six months from the
date they became payable, as per books of accounts as at 31st March, 2018.
(b) According to the information and explanations given to us, there are no dues of
Income Tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax as
applicable as at 31st March, 2018 which have been deposited on account of a dispute are as
follow.
| Name of Statute |
Nature of Dues |
Amount (Rs.) |
Period to which the amount related |
Forum Whether Dispute is pending |
| Income Tax Act,1961 |
Income Tax |
Rs. 11073518/- |
A.Y 2007-2008 |
CIT-Appeal tribunal |
| W.B. VAT Act, 2005 |
VAT Tax |
Rs. 8841892/- |
F.Y. 2014-15 |
Tribunal Appeal |
| Central Sales Tax, 1958 |
Central Sales Tax |
Rs. 287945/- |
F.Y 2013-14 |
Tribunal-Appeal |
| Central Excise & Service Tax, 1944 |
Central Excise |
Rs. 85410392/- |
F.Y. 2004-05 to 2008-09 |
High Court |
(ix) In our opinion and according to information and explanation given to us, neither
any money have been raised by way of initial public offer or further public offer nor any
term loans have been raised by the Company during the year.
(x) During the course of our examinations 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 fraud on or by the Company
has been noticed or reported during the year in the course of our audit.
(xi) Managerial remuneration has not been paid. Consequently, the requirements of
clause (xi) of Paragraph 3 of the order is not applicable.
(xii) The Company is not a Nidhi Company. Consequently, requirements of clause (xii) of
paragraph 3 of the order are not applicable.
(xiii) In our opinion and according to the information and explanations given to us by
the Management, all transactions with related parties are in compliance with Section 177
and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the
financial statements as required by the applicable accounting standards.
(xiv) In our opinion and according to the information and explanations given to us by
the Management, the Company has not made any preferential allotment or private placement
of shares or fully or partly convertible debentures during the year under review.
Consequently, requirements of clause (xiv) of paragraph 3 of the order are not applicable.
(xv) According to the information and explanations given to us by the Management, the
Company has not entered into any non-cash transactions with directors or persons connected
with him.
(xvi) In our opinion and according to the information and explanations given to us, the
Company is not required to be registered under Section 45 IA of the Reserve Bank of India
Act, 1934. Consequently, requirements of clause (xvi) of paragraph 3 of the order are not
applicable.
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