Moneycontrol Be a Pro
Get App
SENSEX NIFTY
SPEL Semiconductor | Auditor's Report > Computers - Hardware > Auditor's Report from SPEL Semiconductor - BSE: 517166, NSE: SPICELEC
YOU ARE HERE > MONEYCONTROL > MARKETS > COMPUTERS - HARDWARE > AUDITORS REPORT - SPEL Semiconductor

SPEL Semiconductor

BSE: 517166|NSE: SPICELEC|ISIN: INE252A01019|SECTOR: Computers - Hardware
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 06, 16:00
3.84
0.17 (4.63%)
VOLUME 13,642
SPEL Semiconductor is not traded in the last 30 days
Mar 16
Auditor's Report (SPEL Semiconductor) Year End : Mar '18

INDEPENDENT AUDITORS'' REPORT

To The Members of SPEL SEMICONDUCTOR LIMITED Report on the Abridged Ind AS Financial Statements

The accompanying Abridged Ind AS financial statements of SPEL SEMICONDUCTOR LIMITED (''the Company''), which comprise the abridged Balance Sheet as at March 31, 2018, the abridged Statement of Profit and Loss (including Other Comprehensive Income), the abridged Statement of Cash Flows and the abridged Statement of Changes in Equity for the year then ended and related notes, are derived from the audited Ind AS financial statements of the Company for the year ended March 31, 2018. Our opinion dated May 29, 2018 on those Ind AS financial statements contain matter of emphasis. The abridged Ind AS financial statements do not contain all the disclosures required by the Indian Accounting Standards(lnd AS) referred to in Section 133 of the Companies Act, 2013 (the Act) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015(as amended) issued by Ministry of Corporate Affairs and accounting principles generally accepted in India, applied in the preparation of the audited Ind AS financial statements of the Company. Reading the abridged Ind AS financial statements, therefore, is not a substitute for reading the audited Ind AS financial statements of the Company.

Management''s Responsibility for the Abridged Ind AS Financial Statements

The Company''s Board of Directors is responsible for the preparation of summary of the audited Ind AS financial statements in accordance with first proviso to Section 136(1) read with Rule 10 of Companies (Accounts) Rules, 2014 (as amended) and are based on the audited Ind AS financial statements for the year ended 31 March 2018, prepared in accordance with Indian Accounting Standards referred to in Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) issued by Ministry of Corporate Affairs and accounting principles generally accepted in India.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Abridged Ind AS financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, Engagements to Report on Summary Financial Statements issued by the Institute of Chartered Accountants of India. Opinion

In our opinion, the Abridged Ind AS financial statements, prepared in accordance with first proviso to section 136(1) of the act read with Rule 10 of the Companies (Accounts) Rules, 2014(as amended) are derived from the audited Ind AS financial statements of the Company for the year ended March 31, 2018 are a fair summary of those Ind AS financial statements read with Emphasis of Matter paragraph. Emphasis of Matter

The Company has incurred losses during the year and in the preceding years generating negative operating cash flows and working capital deficiencies resulting in defaults in meeting obligations. Management has represented that the future plans drawn up and the infusion of the funds by the promoters indicate sufficient support to the Company to recover past losses within a reasonable period of time and settle its obligations as and when they fall due. The financial statements of the Company have been prepared on a going concern basis for the reasons stated in Note 3.16 to the Ind AS financial statements. We have considered the adequacy of disclosure made in Note 3.16 to the Ind AS financial statements in addressing the issue of Going Concernand note that the Company''s ability to continue as a going concern would depend upon the fruition of efforts/various plans laid down by the management as outlined therein. Our opinion is not modified in respect of this matter.

For M.S. Krishnaswami & Rajan

Chartered Accountants

Registration No. 01554S

M.S. Murali Partner

Membership No. 26453

Chennai

May 29, 2018

INDEPENDENT AUDITORS'' REPORT

To the Members of SPEL SEMICONDUCTOR LIMITED

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS

financial statements of SPEL SEMICONDUCTOR LIMITED (the Company), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income) , the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility forthe 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 Ind AS 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 accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act as applicable.

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

3. Our responsibility is to express an opinion

on these 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.

4. We conducted our audit of the Ind AS 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 Ind AS financial statements are free from material misstatement.

5. 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 Ind AS 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. 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.

6. 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

7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2018, and its loss, total comprehensive income, cash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

8. The Company has incurred losses during the year and in the preceding years generating negative operating cash flows and working capital deficiencies resulting in defaults in meeting obligations. Management has represented that the future plans drawn up and the infusion of the funds by the promoters indicate sufficient support to the Company to recover past losses within a reasonable period of time and settle its obligations as and when they fall due. The financial statements of the Company have been prepared on a going concern basis for the reasons stated in Note 3.16 to the Ind AS financial statements We have considered the adequacy of disclosure made in Note 3.16 to the Ind AS financial statements in addressing the issue of Going Concernand note that the Company''s ability to continue as a going concern would depend upon the fruition of efforts/ various plans laid down by the management as outlined therein. Our opinion is not modified in respect of this matter

Report on Other Legal and Regulatory Requirements

9. 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 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards prescribed under section 133 of the Act.

e) In our opinion, the going concern matter described under the Emphasis of Matter paragraph above may have an adverse effect on the functioning of the Company.

f) On the basis of the written representations received from the directors 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.

g) 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 a modified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.

h) 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, in accordance with the generally accepted accounting practice, disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 3.9 (i) to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses under the applicable law or accounting standards.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

10. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by the Central Government in terms of Section143(11) of the Act, we give in Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.

For M.S. Krishnaswami & Rajan

Chartered Accountants

Registration No. 01554S

M.S. Murali Partner

Membership No. 26453

May 29, 2018

Chennai

ANNEXUREATO THE INDEPENDENT AUDITORS'' REPORT

(Referred to in paragraph 9 (g) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date on the accounts of SPEL SEMICONDUCTOR LIMITED (the Company) for the year ended March 31, 2018)

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)

1. We have audited the internal financial controls over financial reporting of SPEL SEMICONDUCTOR LIMITED(the Company) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

2. The Company''s 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. 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 company''s 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

3. Our responsibility is to express an opinion on the Company''s 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 (theGuidance 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.

4. 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 auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company''s 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 company''s 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 Ind AS 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 company''s assets that could have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. 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.

Qualified Opinion

8. According to information and explanation given to us and based on our audit the following material weaknesses have been identified as at March 31, 2018:

(i) The Company did not have appropriate internal control system for customer acceptance and establishing customer credit limit for sale which could potentially result in the Company recognising revenue in the financial statements without establishing reasonable certainty of ultimate collection.

(ii) The Company did not have appropriate internal control system for inventory with regard to material issued for production, consumed and remaining in stock out of the said issue ie line work-in-progress. This could potentially result in material statement in Company''s closing line work-in-progress.

9. A material weaknesses is a deficiency or a combinations of deficiencies in internal financial control over financial reporting such that these is reasonable possibility that material misstatement of the company annual statements will not be prevented or deducted on a timely basis.

10. In our opinion and to the best of our information and according to the explanations given to us except for the effects / possible effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has maintained in all material respects, adequate internal financial controls over financial reporting and such internal financial controls were operating effectively as of 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 Guidance Note on Audit of Internal Financial Controls Over Financial reporting issued by the Institute of Chartered Accountants of India.

Nature of Dues Amount Rs lakhs)

Service tax 29.92

Goods and Service tax 12.17

Income tax 33.66

Tax deducted at source 8.81

Professional tax 5.13

Employee state insurance 0.61

11. We have considered the material weaknesses identified and reported above in determining the nature,timing and extent of audit tests applied in our audit of the March 31,2018 Ind AS financial statements of the Company and these material weaknesses do not affect our opinion on the financial statements of the Company.

For M.S. Krishnaswami & Rajan

Chartered Accountants

Registration No. 01554S

M.S. Murali Partner

Membership No. 26453

May 29, 2018

Chennai

ANNEXUREBTO THE INDEPENDENT AUDITORS'' REPORT

(Referred to in paragraph 10 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date on the accounts of SPEL SEMICONDUCTOR LIMITED (the Company) for the year ended March 31, 2018)

(i) In respect of its fixed assets:

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets were physically verified by the Management during the year under a phased programme of verification, which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals having regard to the size of the Company, nature and value of its assets. According to the information and explanations given to us, no material discrepancies have been noticed during the year on such verification.

c) The title deeds of immovable properties reflected in the books of the Company are held in the name of the Company.

(ii) In respect of its inventories as explained to us, the inventories have been physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans, secured or unsecured, to Companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013.

(iv) The Company has not granted any loans, made investments, provided guarantees, and security covered under provisions of section 185 and 186 of the Companies Act, 2013.

(v) According to information and explanations given to us, the Company has not accepted any deposit from public during the year and there are no unclaimed deposits to which the provisios of Section 73 to 76 and other relevant provisions of the Companies Act,2013 are applicable. For this puporse, the monies brought in by the promoters / their relatives by way of unsecured loans in pursuance of the stipulation of a bank, are not considered as deposits.

(vi) In our opinion and according to the information and explanations given to us, the requirement for maintenance of cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014 specified by the Central Government of India under Section 148 of the Companies Act, 2013 are not applicable to the Company for the year under audit.

(vii) According to the information and explanations given to us and the books of account examined by us, in respect of statutory dues:

a) The Company is not regular in depositing undisputed Provident fund, Employee state insurance, Income tax (TDS), Service tax, Goods and Service tax, Professional tax and Property tax during the year.

b) In respect of the above, delays were noticed in depositing undisputed service tax, Goods and service tax, Income tax, Professional tax, Employee state insurance with the appropriate authorities during the year and the arrears of such dues outstanding as at March 31, 2018 for a period of more than six months from the date they became payable are-

Name of the statute

Disputed dues (Rs In lakhs)

Period to which the amount relates

Forum where dispute is pending

Income Tax

37.62

Assessment year 2005-06

Assessing Officer under Section 154

Income Tax

2.57

Assessment year 2006-07

Commissioner of Income Tax (Appeals)

Income Tax

406.27

Assessment year 2012-13

Commissioner of Income Tax (Appeals)

c) There are no dues of Sales Tax, Service Tax, Excise Duty, Customs duty and Value Added Tax which have not been deposited on account of any dispute. Details of dues towards income tax that have not been deposited as at March 31, 2018 on account of disputes are as stated below:

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans 01 borrowings to banks and government and dues to debenture holders. There are no loans on borrowings from the financial institutions.

(ix) According to the information and explanations given to us and the records of the Compan\ examined by us, no moneys were raised by way of initial public offer or further public offei (including debt instruments) and no term loans have been availed by the Company during the year. Hence, the relative reporting requirements under the Order are not commented upon.

(x) To the best of our knowledge and belief, and according to the information and explanations given to us and considering the size and nature of the Company''s operations, no fraud by the Company and no fraud of material significance on the Company by its officers or employees has been noticed or reported during the year.

(xi) In our opinion and according to information and explanation given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by provisions of section 197 read with Schedule V to the Companies Act, 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of Paragraph 3 of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us the Company has complied with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and, hence, reporting under clause (xiv) of the order is not applicable to the company.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions during the year with its directors or persons connected with him/her and hence provisions of section 192 of the Companies Act, 2013 are not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For M.S. Krishnaswami & Rajan

Chartered Accountants

Registration No. 01554S

M.S. Murali Partner

Membership No. 26453

Chennai

May 29, 2018

Source : Dion Global Solutions Limited
Quick Links for spelsemiconductor
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.