| 1. We have audited the accompanying financial statements of Standard
Batteries Limited ("the Company"), which comprise the balance sheet as
at March 31, 2015, and the statement of profit and loss and cash flow
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(as amended).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.
4. 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.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 1 43(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.
6. 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.
7. 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
8. 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 March 31,2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order, 2015, issued
by the Central Government of India in terms of sub-Section (11) of
Section 143 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 3
and 4 of the Order.
10. 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 and 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
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (as amended);
e. On the basis of written representations received from the Directors
as on March 31, 2015 taken on record by the Board of Directors, none of
the Directors are disqualified as on March 31,2015, 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(as amended), 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 no. 1.2 to
the financial statements.
ii. The Company did not have any long term contracts including
derivative contracts for which the Company was required to make
provision under the applicable law or accounting standards, for
material foreseeable losses.
iii. There were no amounts which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
Annexure to the Auditor's Report referred to in our report of even date
referred to in paragraph 9 of our report of even date on the accounts
of Standard Batteries Limited ended March 31,2015
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of the fixed
assets.
(b) The Company has a regular programme of verification, 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
verification.
2 (a) The inventory has been physically verified by the management
during the year.
(b) In our opinion, the procedures of physical verification of
inventory 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 inventory records, in our
opinion, the Company is maintaining proper records of the inventory. No
discrepancies were noticed on physical verification of inventory as
compared to the book records.
3 The Company has not granted any loans, secured or unsecured, to
Companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Therefore, the provisions
of clause (iii) (a) and (b) of Paragraph 3 of the said Order are not
applicable to the Company.
4 In our opinion and according to the information and explanations
given to us, there is an 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 sale of goods and
services. On the basis of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across, nor have we been informed of, any
continuing failure to correct any major weaknesses in the aforesaid
internal control system.
5 In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Sections 73, 74, 75 and 76 or any other relevant
provisions of the Act and Rules framed thereunder to the extent
notified. Consequently, no order has been passed by the Company Law
Board or National Company Law Commission or Reserve Bank of India or
any court or any other tribunal on the Company.
6 According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of subsection (1) of Section 209 of the Companies Act,
1956, in respect of the activities carried on by the Company.
Therefore the provisions of clause (vi) of paragraph 3 of the Order are
not applicable to the Company.
7 (a) According to the records of the Company and information and
explanations given to us, the Company is regular in depositing
undisputed statutory dues including Provident fund, Employees' state
insurance, Income tax, Sales tax, Wealth tax and service tax, duty of
customs, duty of excise, value added tax, cess and other applicable
statutory dues with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of such statutory dues are in arrears, as on 31st 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 and
records of the Company examined by us, there are no dues of income tax,
sales tax, wealth tax, service tax, duty of excise, duty of customs,
value added tax, and cess which have not been deposited on account of
any dispute other than the following disputed demands.
Name of the Statute Nature of the Dues
Cuttack
Central Sales Tax AY 96-97 Sales Tax
Sales Tax AY 95-96 Sales Tax
Sales Tax AY 96-97 Sales Tax
Sales Tax AY 97-98 Sales Tax
1. Guwahati
Central Sales Tax AY 94-95 Sales Tax
Central Sales Tax AY 95-96 Sales Tax
Central Sales Tax AY 96-97 Sales Tax
Central Sales Tax AY 97-98 Sales Tax
Sales Tax AY 93-94 Sales Tax
Sales Tax AY 94-95 Sales Tax
Sales Tax AY 95-96 Sales Tax
Sales Tax AY 96-97 Sales Tax
Sales Tax AY 97-98 Sales Tax
2. Indore
Sales Tax AY 1997-98 Sales Tax
3. Termination/Retirement
Benefits
4. Provident Fund Penalty
5. Income tax (A.Y)
1974 -75
1975-76
1978-79
1980-81
2007-08
2009-10
Forum where dispute is Amount
Name of the Statute pending (Rs. in 000)
Cuttack Appellate Tribunal 74
Central Sales Tax AY 96-97 Appellate Tribunal Appellate 284
Sales Tax AY 95-96 Tribunal Appellate Tribunal 188
Sales Tax AY 96-97 193
Sales Tax AY 97-98 739
1. Guwahati Appellate Tribunal Appellate 59
Central Sales Tax AY 94-95 Tribunal Appellate Tribunal 228
Central Sales Tax AY 95-96 Appellate Tribunal Appellate 314
Central Sales Tax AY 96-97 Tribunal Appellate Tribunal 381
Central Sales Tax AY 97-98 Appellate Tribunal Appellate 72
Sales Tax AY 93-94 Tribunal Appellate Tribunal 341
Sales Tax AY 94-95 396
Sales Tax AY 95-96 48
Sales Tax AY 96-97 246
Sales Tax AY 97-98 2085
Appellate Tribunal 54
2. Indore
Sales Tax AY 1997-98 High court 442
3. Termination/Retirement
Benefits PF Tribunal 1457
4. Provident Fund Penalty 1899
5. Income tax (A.Y) Bombay High Court Bombay 898
1974 -75 High Court Bombay High Court 110
1975-76 Bombay High Court CIT(A) 105
1978-79 CIT(A) 327
1980-81 10
2007-08 2609
2009-10 4059
8098
Total
(c) The Company is not required to transfer any amount to Investor
Education and Protection Fund.
8 Accumulated losses of the Company at the end of the financial year
are exceeding fifty per cent of its net worth. The Company has not
incurred cash losses in the current financial year and in the
immediately preceding financial year.
9 In our opinion and according to the information and explanations
given to us, the Company has not taken any loans or advances from
Financial Institutions and Banks or has not issued any debentures.
Therefore the provisions of clause (ix) of paragraph 3 of the Order are
not applicable to the Company.
10 According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
11 To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not taken any
term loan during the year. Therefore, the provision of clause (xi) of
paragraph 3 of the Order is not applicable to the Company.
12 During the course of our examination 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, we have neither come across any instance of fraud on or by
the Company, noticed or reported during the year, nor have we been
informed of such case by the management.
For B. K. Khare & Co.
Chartered Accountants
Firm's Registration Number 105102W
Naresh Kumar Kataria
Partner
Membership Number 37825
Mumbai, May 29, 2015 |