Independent Auditors Report
To the Members of Thermax Sustainable Energy Solutions Limited Report on the
Financial Statements
1. We have audited the accompanying financial statements of Thermax Sustainable
Energy Solutions Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statements of Profit and Loss and Cash Flow for the year
then ended, and a summary of significant accounting policies and other explanatory
information.
Managements Responsibility for the Financial Statements
2. The Companys 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 notified under
the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act 2013. 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.
Auditors Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence about the amounts
and 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 control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
6. 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 31st
March, 2014;
(b) in the case of the Statement of Profit and Loss, of the 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.
Emphasis of matter
We draw attention to the fact that companys net-worth as on 31st March 2014 is INR
97.77 Lacs (Previous Year INR 159.96 Lacs). The management of the company is taking
necessary efforts to revive business operations of the company and shareholders of the
company have agreed to provide necessary financial support to revive the operations of the
Company (Also refer Note 19(2) to the Accounts). Our opinion is not qualified in respect
of this matter.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors Report) Order, 2003, as amended by the
Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Act (the "Order"), 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, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order
8. 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;
c. the Balance Sheet, the Statement of Profit and Loss and Cash Flow dealt with by this
Report are in agreement with the books of
d. In our opinion, the Balance Sheet, the Statements of Profit and Loss and Cash Flow
dealt with by this report comply with the Accounting Standards notified under the
Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;
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;
|
For B.K.Khare & Co. |
|
Chartered Accountants |
|
Firms Registration Number 105102W |
|
Prasad V. Paranjape |
| Place : Pune |
Partner |
| Date : April 25, 2014 |
Membership Number 047296 |
ANNEXURE REFERRED TO IN PARAGRAPH 7 UNDER THE HEADING
"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN
DATE
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) Fixed assets of the Company have been physically verified by the management at
reasonable intervals during the year & no material discrepancies were noticed on such
verification.
(c) In our opinion, and according to the information and explanations given to us, a
substantial part of fixed assets has not been disposed off by the Company during the year.
(ii) In our opinion and according to the information and explanations given to us, the
requirements of Paragraphs 4 (ii) of the Companies (Auditors Report) Order, 2003 (as
amended) in respect of Inventories are not, on facts, applicable to the Company and
hence no comments have been offered there under.
(iii) The Company has neither taken nor granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Accordingly, provisions of the clause
4 (iii) (b), (c), (d), (f) and (g) of the Companies (Auditors Report) Order, 2003 (as
amended) is not applicable and hence not commented upon.
(iv) In our opinion and according to the information and explanations given to us,
there is 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 and services. Further, during the course of our audit, we have neither come
across nor have been informed of any instance of continuing failure to correct major
weakness in the aforesaid internal control procedure.
(v) According to the information and explanations given to us, we are of the opinion
that there are no contracts or arrangements with parties referred to section 301 of the
Act. Accordingly, the provision of clause 4(v) (a) & (b) of Companies (Auditors
Report) Order, 2003 (as amended) is not applicable to the company and hence not commented
upon.
(vi) The Company has not accepted any deposits within the meaning of Section 58A and
58AA of the Act and the rules framed there under
(vii) In our opinion, the Companys present internal audit system is commensurate with
the size and nature of its business.
(viii) 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 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
(ix) (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education and protection
fund, employees state insurance, income-tax, sales-tax, wealth-tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, investor education and protection fund, employees
state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise
duty, cess and other undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) As at 31st March 2014,according to the records of the Company and the information
and explanation given to us ,there are no disputed dues on account of sales-tax,
income-tax, custom duty and Cess matters that have not been deposited.
(x) The Companys accumulated losses for the year have exceeded fifty per cent of its
net worth. Further, the Company has incurred cash loss in current and immediately
preceding financial year
(xi) Based on the information & explanations given to us, the Company has no dues
to financial institution or bank
(xii) According to the information and explanations given to us and based on the
documents and records produced to us, the Company has not granted loans and advances on
the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report)
Order, 2003 (as amended) are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from bank or financial institutions.
(xvi) The Company has not taken any term loan during the year.
(xvii) Based on the information and explanations given to us and on an overall
examination of the balance sheet of the Company, in our opinion, funds raised on short
term basis have not been used for long term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debenture during the year.
(xx) The Company has not raised any money through public issue during the year.
(xxi) During the course of our examination of the books of account carried out in
accordance with the generally accepted auditing practices in India, we have neither come
across any instance of fraud on or by the company, neither noticed nor reported during the
year, nor have we been informed of such case by the Management.
|
For B.K.Khare & Co. |
|
Chartered Accountants |
|
Firms Registration Number 105102W |
|
Prasad V. Paranjape |
| Place: Pune |
Partner |
| Date: April 25, 2014 |
Membership No.: 047296 |
+91-9892691696
