WABCO INDIA LIMITED
(FORMERLY WABCO-TVS (INDIA) LIMITED)
ANNUAL REPORT 2011-2012
AUDITOR`S REPORT
To
The Shareholders,
To
The Members of
WABCO INDIA LIMITED
(formerly known as WABCO-TVS (INDIA) LIMITED).
1. We have audited the attached Balance Sheet of WABCO INDIA LIMITED (the
Company`) (formerly known as WABCO-TVS (INDIA) LIMITED) as at March 31,
2012 and also the Profit and Loss account and the cash flow statement for
the year ended on that date annexed thereto. These financial statements are
the responsibility of the Company`s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (as amended)
issued by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit;
ii. 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;
iii. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956;
v. On the basis of the written representations received from the directors,
as on March 31, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012 from
being appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956, 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 March 31, 2012;
b) In the case of the profit and loss account, of the profit for the year
ended on that date; and
c) In the case of cash flow statement, of the cash flows for the year ended
on that date.
For S.R. Batliboi & Associates
Chartered Accountants
Firm Registration No.: 101049W
Per S. BALASUBRAHMANYAM
Place: Chennai Partner
Date : May 23, 2012. Member ship No.: 053315
Annexure referred to in paragraph 3 of our report of even date.
Re: WABCO INDIA LIMITED (the Company) (formerly known as WABCO-TVS (INDIA)
LIMITED).:
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets,
(b) Fixed assets have been physically verified by the management during the
year and no material discrepancies were identified on such verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) 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) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
(iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (a) to (d) of the Order are
not applicable to the Company and hence not commented upon.
(b) According to information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) (e) to (g) of the Order are
not applicable to the Company and hence not commented upon.
(iv) 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 the sale of goods and services. During
the course of our audit, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal control
system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have been
so entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
exceeding value of Rupees five lakhs have been entered into during the
financial year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system 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, related to the manufacture of automotive parts and accessories 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 materials
statutory dues were outstanding, at the year end, for a period of more than
six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty
and cess on account of any dispute, are as follows:
Nature of Statute & A B C
Nature of dues
Income Tax
Act, 1961
Income Tax 93.30 2006-2007 Commissioner of
Income Tax
(Appeals), Chennai
Income Tax Act, 1961
Income Tax 90.00 2007-2008 Commissioner of
Income Tax
(Appeals), Chennai
Central Excise
Act, 1944
Excise duty Cenvat
credit Reversal 11.27 2008-2009 Commissioner of
Central Excise
2009-2010 (Appeals), Chennai
Service tax
Service tax 8.67 2007-2010 Commissioner of
Credit reversal Central Excise
on certain (Appeals), Chennai
inputs
Service tax-
Service tax 81.10 2008-2009 Commissioner of
Credit reversal Central Excise,
on certain Chennai
inputs
Service tax
Service tax 44.25 2009-2010 Commissioner of
Credit reversal Central Excise,
on certain inputs Chennai
Service tax
Service tax 15.16 2010-2011 Additional
Credit reversal Commissioner of
on certain Central Excise,
inputs Chennai
Service tax-
Service tax- 1.27 2010-2011 Deputy
Credit reversal Commissioner of
on certain Central Excise,
inputs Chennai
Service tax-
For sales 40.49 2009-2010 Assistant
C form and Commissioner,
input tax credit Commercial Taxes,
availment for Chennai
capital goods
Service tax
For sales 45.56 2010-2011 Assistant
made without Commissioner,
C form and Commercial Taxes,
input tax credit Chennai
availment for
capital goods
A = Amount (Rs. in lakhs)
B = Period to which the amount relates
C = Forum where dispute is pending
(x) The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to banks.
The Company does not have dues payable to financial institutions, or
debenture holders.
(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 (Auditor`s 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 (Auditor`s 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 does not have any term loans outstanding during the year.
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that no
funds raised on short-term basis have 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 did not have any outstanding debentures during the year.
(xx) The Company has not raised any money by public issues and accordingly,
provisions of clause 4 (xx) of the Companies (Auditor`s Report) Order, 2003
(as amended) are not applicable to the Company.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the course
of our audit.
For S.R. Batliboi & Associates
Chartered Accountants
Firm Registration No.: 101049W
Per S. BALASUBRAHMANYAM
Place: Chennai Partner
Date : May 23, 2012. Member ship No.: 053315 |