Mar 31, 2023
BARTRONICS INDIA LIMITED
Corporate Insolvency Proceedings as per Insolvency and Bankruptcy Code, 2016:
The company has been under the corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016 (âthe Codeâ) National Company Law Tribunal order dated December 02, 2019. The powers of the Board of Directors stand suspended as per Section 17 of the Code and such powers were exercised by the Resolution professional appointed by the honourable National Company Law Tribunal (Hyderabad bench) by the said order under the provisions of the code. Thereafter, honourable NCLT has passed an order dated March 10 th 2022 approving the Resolution Plan submitted by the Resolution applicant. Consequently, new Board of Directors have been appointed by the company on 28.03.2023
We have audited the accompanying Standalone Financial Statements of BARTRONICS INDIA LIMITED (âthe Companyâ), which comprise the Standalone Balance Sheet as at March 31, 2023 and the Standalone Profit and Loss(including Other Comprehensive Income),, the Statement of Changes in Equity and the Standalone Cash flow statement for the year then ended, and notes to the Standalone financial statements, including a summary of the significant accounting policies and other explanatory information(herein after referred to as âthe Standalone Financial Statementsâ)
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its Loss, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financials statements in accordance with the standards on auditing specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the auditorâs responsibilities for the audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the code of ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statements.
We Draw attention to the following
(i) Note 2.45 forming part of the Statement regarding Exceptional Item as on 31st March 2023 represents the net difference between write back of liabilities/ provisions and write off of assets of the Company pursuant to the resolution plan approved by the Honourable National Company Law Tribunal, Hyderabad vide order dated 10 th March 2022. Pursuant to implementation of the Resolution Plan, the Company has written off/derecognized or provided for impairment of its assets, based on managementâs estimate, to the extent not receivable /recoverable and written back/ derecognized its liabilities, based on managementâs estimate, to the extent not payable extinguished/waived /cancelled to the Statement of Profit and Loss amounting to INR 15,752.20 Lakhs (net).
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone financial statements of the current period. These matters were addressed in the context of our audit of the
Standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined there are no key audit matters to be communicated in our report
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the consolidated financial statements, standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 Indian Accounting Standards specified under Section 133 of the Act, read with relevant Rules issued there under. 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.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters, related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are responsible for overseeing the Companyâs financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls
? Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
? Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1. 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 relating to preparation of the financial statements have been kept by the Company so far as it appears from our examination of those books.
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules,2014.
(e) On the basis of the written representations received from the Directors as on March 31, 2023, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2023 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 âAnnexure Aâ. Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to
the Act;
(h) With respect to the other matters to be included in the Independent Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company does not have any pending litigations which would impact its financial position.
(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) The Following amount to be transferred to the Investor Education and Protection Fund by the Company.
Particulars |
Amount |
Dividend for the year of 2010-11 |
505,632/- |
(iv) a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on the audit procedures that were considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v) Since the Company has not declared or paid any dividend during the year, the question of commenting on whether dividend declared or paid is in accordance with Section 123 of the Companies Act, 2013 does not arise
vi) As provision to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 01 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable
2. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Ordef) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable
For N G Rao & Associates
Chartered Accountants FRN: 009399S
Nageswara Rao G
Place: Hyderabad Mem No. 207300
Date: 30th May 2023 UDIN : 23207300BGVDHR7673
Mar 31, 2016
To
The Members of BARTRONICS INDIA LIMITED
Report on the Standalone Financial Statements
We have audited the ac Companying Standalone Financial Statements of Bartronics India Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone 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 prescribed under Section 133 of the Act, read with the rule 7 of the Companies (Accounts) Rules, 2014. 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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 there under and the Order under Section 143(11) of the Act. We conducted our audit of the standalone 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 auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a. Reference is invited to Note 2.8 of the financial statements, the Company has not provided interest on unsecured loans as terms are not clearly available with the Company and consequently uncertainty arises in Financial Statements as to the exact amount.
b) Reference is invited to Note 2.13 (i)(a) forming part of the Financial Statement regarding Capital advances to the extent of Rs. 9,061.49 Lakhs âWe are unable to ascertain whether such balances are fully recoverableâ. Accordingly, we are unable to ascertain the impact, if any, that may arise in case any of these advances are subsequently determined to be doubtful of recovery. Had the Company provided for the same, the loss for the period would have been higher by the said amount.
c) Note 2.15 forming part of the Statement regarding Trade Receivables aggregating to Rs. 95,635.12 Lakhs are more than three years old and in respect of which the Company provided only Rs.7,035.92 lakhs. We are unable to form an opinion on the extent to which the debts may be recoverable.
d) Note 2.29 forming part of the financial statements regarding the non-repayment of FCCB amounting to Rs. 33,088.70 lakhs which has fallen due as of February 2013 and the Company has defaulted the payments even after the expiry of extended time sought by it from the RBI.
e) Without qualifying our opinion, we invite attention to Note no 2.44 forming part of the financial statements regarding the uncertainties relating to MCD Project â âApke Dwar Projectâ, the matter is in arbitration.
f) The LIC of India, Andhra Bank, Bank of India, Indian Bank, Barclays Bank, IDBI Bank filed cases in DRT. A criminal case was also filed by a creditor at Delhi. There are certain cases against the Company pending at the Labour Court of India. Accordingly, we are unable to ascertain the impact, if any, that may arise in case any of these matters settle against the Company.
Our opinion is not modified on respect of these matters
Report on Other Legal and Regulatory Requirements
1. 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 relating to preparation of the standalone financial statements 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of these standalone financial statements.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the Directors as on March 31, 2016, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2016 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 âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Independent Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 â Also Refer Note 2.27 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 were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ Section of our report 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 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Bartronics India Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 Companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing deemed to be 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 auditorâs judgment, 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs 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 Companyâs 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 authorizations of management and directors of the Company and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent 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, 2016, 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.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ Section of our report of even date)
Report on Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Companies Act, 2013 (âthe Actâ) of Bartronics India Limited (âthe Companyâ)
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
b. The fixed assets were physically verified during the year by the Management in accordance with a phased programmed 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 explanation given to us, no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company
ii. The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
iii. According to the information and explanations given to us, the Company has not granted unsecured loan to a Company 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 complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v. According to information and explanations given to us, the Company has not accepted any deposit during the year. There are no unclaimed deposits to which the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 are applicable.
vi. The Company does not maintain the cost records pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 148 (1) of the Companies Act, 2013.
vii. (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-
tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities expect the following statutory dues were outstanding as at 31st March 2016 for a period of more than six months from the date becoming payable.
Sl. No |
Particulars |
Amount |
1. |
Central Sales Tax (2011-12) |
855,144/- |
2. |
Central Sales Tax (2012-13) |
529,916/- |
3. |
Dividend Distribution Tax (2010-11) |
5,655,516/- |
(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Natures of dues |
Disputed Dues |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax |
60,895,984/- |
2008-09 |
CTO-Hyderabad (Pending for Re-Assessment) |
Income tax-FBT |
66,765,550/- |
2008-09 |
Appellate authority â CIT Appeals |
Income tax |
85,086,235/- |
2008-09 |
Appellate authority â Income Tax Appellate Tribunal |
Income tax |
23,857,430/- |
2009-10 |
Appellate authority â Income Tax Appellate Tribunal |
Income tax |
64,855,030/- |
2010-11 |
Appellate authority â DRP Bangalore |
Income tax |
169,815,780/- |
2011-12 |
Appellate authority â Income Tax Appellate Tribunal |
viii. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the Management, we are of the opinion that the Company has defaulted in repayment of dues to financial institutions, banks or debenture holders details as follows :
Sl. No |
Name of the Bank / Financial Institutions |
Installment Type |
Principal Overdue |
Interest Overdue |
Due Since (No. of installments) |
1. |
Andhra Bank |
Monthly |
3,657.15 |
3321.42 |
24 |
2. |
Bank Of Baroda |
Quarterly |
2,036.09 |
1356.00 |
15 |
3. |
Bank of India |
Quarterly |
2,791.08 |
2,244.98 |
8 |
4. |
Indian bank |
Quarterly |
1,199.41 |
931.14 |
13 |
5. |
LIC |
Quarterly |
3.000.00 |
2,006.85 |
21 |
Totals |
12,683.72 |
9,860.40 |
ix. In our opinion and according to the information and explanation given to us, term loans have been applied by the Company during the year for the purpose for which they were raised. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year
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 Companyâs 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 the information and explanations given to us, the Company has paid/ provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.
xiii. In our opinion and according to the information and explanations given to us the Company is in compliance with Sections 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 etc. 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, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him 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 T. Raghavendra & Associates
Chartered Accountants
(Firm Regn No:003329S)
T. Raghavendra
Place: Hyderabad Proprietor
Date: 30-05-2016 (Membership No. 023806)
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
BARTRONICS INDIA LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the period 01-10-2013 and ended on 31-03-2015,
and a summary of the significant accounting policies and other
explanatory information, in which are incorporated the Unaudited
returns of the branches for the year ended on that date unaudited of
the Company''s branches at USA and Hong Kong.
Management''s Responsibility for the Standalone Financial Statements
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 standalone 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. This responsibility also includes
maintenance of adequate accounting records inaccordance with the
provisions of the Act for safeguarding of 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
Our responsibility is to express an opinion on these standalone
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
there under.
We conducted our audit 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 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. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a. Reference is invited to Note 10 of the financial statements, the
company has not provided interest on unsecured loans as terms are not
clearly available with the Company and consequently uncertainty arises
in Financial Statements as to the exact amount.
b. Reference is invited to Note 15(i)(a) of the financial statements,
the Company''s capital advances to the extent of Rs.9,062.09 Lakhs. We
are unable to ascertain whether such balances are fully recoverable.
Accordingly, we are unable to ascertain the impact, if any, that may
arise in case any of these advances are subsequently determined to be
doubtful of recovery. Had the Company provided for the same, the loss
for the period would have been higher by the said amount
c. Note 17 forming part of the financial statements regarding the
Trade Receivables to the extent of Rs.81,264.11 Lakhs are more than
three years old and in respect of which the company provided only
Rs.7,030.67 lakhs. We are unable to form an opinion on the extent to
which the debts may be recoverable.
d. Note 32 forming part of the financial statement s regarding the
non-repayment of FCCB amounting to Rs.31,302.20 Lakhs which has fallen
due as of February 2013 and the company has defaulted the payments even
after the expiry of extended time sought by it from the RBI.
e. Without qualifying our opinion, we invite attention to Note no 43
forming part of the financial statements regarding the uncertainties
relating to MCD Project - "Apke Dwar Project", the matter is in
arbitration.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
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 asit appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account and with the returns received from the branches not
visited by us.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 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, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any 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 Auditors'' Report
The Annexure referred to in our report to the members of Bartronics
India Limited for the period 01-10-2013 to 31-03- 2015. We report that:
S. Particulars Auditors Remark
No.
(1) (a) whether the company is The Company is in the
maintaining proper records process of re-constructing
showing full particulars, its fixed assets register
including quantitative details with a view towards
and situation of fixed assets; reflecting full particulars
including quantitative
details and situation of
the fixed assets.
(b) whether these fixed assets have Some of the fixed assets
been physically verified by the were physically verified,
management at reasonable in phases, by the Management
intervals; whether any material during the year as per the
discrepancies were noticed on regular program of
such verification and if so, verification, which in our
whether the same have been opinion is not reasonable
properly dealt with in the books having regard to the size of
of account; the company and the nature
of its assets. In respect
of the assets at third party
locations, confirmations
have been received. In view
of the fact that the fixed
assets register is in the
process of re-construction,
management has informed that
discrepancies, if any,
arising between the assets
verified and the book
records would be dealt with
in the period in which such
re-construction of the
register is completed
(2) (a) whether physical verification
of inventory has been conducted Yes
at reasonable intervals by the
management;
(b) are the procedures of physical Yes
verification of inventory
followed by the management
reasonable and adequate in
relation to the size of the
company and the nature of its
business. If not, the in
adequacies in such procedures
should be reported;
(c) whether the company is
maintaining proper records of Yes
inventory and whether any
material discrepancies were
noticed on physical verification
and if so, whether the same have
been properly dealt with in the
books of account;
(3) (a) whether the company has granted
any loans, secured or unsecured No
to companies, firms or other
parties covered in the register
maintained under section 189 of
the Companies Act. If so,
(b) whether receipt of the principal
amount and interest are also Not Applicable
regular; and
(c) if overdue amount is more than
rupees one lakh, whether Not Applicable
reasonable steps have been
taken by the company for
recovery of the principal and
interest;
(4) is there an adequate internal Yes
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. Whether there is a
continuing failure to correct major
weaknesses in internal control
system.
(5) in case the company has accepted The Company has not accepted
deposits, whether the directives any deposits during the
issued by the Reserve Bank of India reporting period.
and the provisions of sections 73
to 76 or any other relevant
provisions of the Companies Act and
the rules framed there under, where
applicable, have been complied
with? I not, the nature of
contraventions should be stated;
If an order has been passed by
Company Law Board or National
Company Law Tribunal or Reserve
Bank of India or any court or any
other tribunal, whether the same
has been complied with or not?
(6) where maintenance of cost records The Company does not
has been specified by the Central maintain the cost records
Government under sub-section (1) pursuant to the Companies
of section 148 of the Companies (Cost Accounting Records)
Act, whether such accounts and Rules, 2011 prescribed by
records have been made and the Central Government
maintained; under Section 148 (1) of
the Companies Act, 2013
(7) (a) is the company regular in No, the undisputed amounts
depositing undisputed statutory payable in respect of the
dues including provident fund, aforesaid dues were for a
employees'' state insurance, outstanding as at 31st March
income-tax, sales-tax, wealth 2015 period of more than six
tax, service tax, duty of months from the date
customs, duty of excise, value becoming payable are as
added tax, cess and any other follows
statutory dues with the
appropriate authorities and if Central Sales tax (2010-11)
not, the extent of the arrears Rs.314,256/-
of outstanding statutory dues
as at the last day of the Central Sales tax (2011-12)
financial year concerned for a Rs.590,577/-
period of more than six months
from the date they became Central Sales tax (2012-13)
payable, shall be indicated by Rs.476,090/-
the auditor.
(b) in case dues of income tax or Yes, the disputed statutory
sales tax or wealth tax dues that have not been
or service tax or duty of deposited on account of
customs or duty of excise or matters pending before
value added tax or cess have deposited on appropriate
not been account of any dispute, authorities are as follows:
then the amounts involved
and the forum where dispute is Nature of Financial
pending shall be mentioned. Dues Year
(A mere representation to the
concerned Department shall not Income tax 2007-08
constitute a dispute).
Fringe Benefit 2007-08
tax
Income tax 2009-10
Rs. In Pending
Lakhs Before
1268.89 ITAT
667.66 ITAT
35.14 CIT-
Appeals
(c) whether the amount required No amount required for
to be transferred to in transferring to investor
accordance with the relevant education and protection
provisions of the Companies fund
Act, 1956 (1 of 1956) and
rules made thereunder has
been transferred to such fund
within time.
(8) whether in case of a company which The Company has accumulated
has been registered for a period losses at the end of the
not less than five years, its financial year, The
accumulated losses at the end of accumulated losses are less
the financial year are not less than fifty per sent of its
than fifty per cent of its net net worth and has incurred
worth and whether it has incurred cash losses in the current
cash losses in such financial year financial year and also
and in the immediately preceding incurred cash losses in the
financial year; financial year immediately
preceding such financial
year.
(9) whether the company has defaulted the Company has not paid
in repayment of dues to a financial principal, and interest of
institution or bank or debenture 11,698.83 lakhs and 7,319.77
holders? If yes, the period and lakhs respectively to banks
amount of default to be reported; and financial institutions
as at the balance sheet date
details as follows:
Sl. Name of the Bank / Installment Principal Interest
No. Financial Institutions Type Overdue Overdue
1. Andhra Bank Monthly 3,657.15 2,274.21
2. Bank Of Boarda Quarterly 1,623.59 1,013.16
3. Bank of India Quarterly 2,791.08 1,704.97
4. Indian bank Quarterly 1,199.41 711.65
5. LIC Quarterly 2,427.60 1,615.78
Totals 11,698.83 7,319.77
Sl. Name of the Bank / Due Since
No. Financial Institutions (No. of installments)
1. Andhra Bank 24
2. Bank Of Boarda 12
3. Bank of India 8
4. Indian bank 13
5. LIC 17
Totals
(10) whether the company has given any The Company has not given
guarantee for loans taken by any guarantees to others
others from bank or financial during the reporting
institutions, the terms and period.
conditions whereof are prejudicial
to the interest of the company;
(11) whether term loans were applied The Company has not obtained
for the purpose for which the loans any term loan during the
were obtained; reporting period.
(12) whether any fraud on or by the
company has been noticed or reported No
during the year; If yes, the nature
and the amount involved is to be
indicated.
For T.Raghavendra & Associates
Chartered Accountants
(FRN -003329S)
T. Raghavendra
Proprietor
(Membership No.023806)
Place: Hyderabad
Date: 20-05-2015
Sep 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Bartronics
India Limited ("the Company"), which comprise the Balance sheet as
at September 30, 2013, and the Statement of Profit and Loss, and Cash
Flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 referred to in sub-section (3C) of section 211
of the Companies act, 1956 ("the Act"). 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
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.
The audit involves performing procedures to obtain audit evidence about
the amounts and 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, we
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. The 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
1. Without qualifying our opinion, we invite attention to Note no 47
forming part of the financial statements regarding the uncertainties
relating to MCD Project - "Apke Dwar Project"
2. We invite attention to: Note 17 forming part of the financial
statements regarding the Trade Receivables balance aggregating to
Rs.97,646.74 Lakhs (including Rs.94721.98 Lakhs relating to the period
prior to September 30th, 2012) and in respect of which no provision has
been made .In the absence of the required information, we are unable to
form an opinion on the extent to which the debts may be irrecoverable.
3. Note 14 forming part of the financial statements regarding the non
repayment of FCCB amounting to Rs.31,426 Lakhs which has fallen due as
of February 2013 and the company has defaulted the payments even after
the expiry of extended time sought by it from the RBI.
4. Attention is invited to Note 48 of the accompanying financial
statements, which explain the payment of managerial remuneration
amounting to 82.18 lakhs was paid in excess of the permissible
remuneration under Schedule XIII of the Companies Act, 1956, during the
year ended September 30, 2013
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, subject to the above comments and annexure
referred to in para 1 below and notes on accounts, 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:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
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 the cash Flow Statement, for the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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) The un-audited accounts of the overseas branch has been forwarded to
us as certified by the management and have been dealt with by us in
preparing this report.
c) 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;
d) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
e) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
f) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies act, 1956.
g) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
i. a. The Company is in the process of re-constructing its fixed
assets register with a view towards reflecting full particulars
including quantitative details and situation of the fixed assets.
b. Some of the fixed assets were physically verified, in phases, by
the Management during the year as per the regular program of
verification, which in our opinion is not reasonable having regard to
the size of the company and the nature of its assets. In respect of the
assets at third party locations, confirmations have been received. In
view of the fact that the fixed assets register is in the process of
re-construction, management has informed that discrepancies, if any,
arising between the assets verified and the book records would be dealt
with in the period in which such re-construction of the register is
completed.
c. The assets disposed off during the period in our opinion are not
substantial and therefore do not affect the going concern status of the
company.
ii. a. As explained to us, the stock of raw materials, stores and
finished goods other than in transit have been physically verified
during the year by the Management. In our opinion the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanations
given to us 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. In our opinion the company has maintained proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
property dealt with in the books of account.
iii. According to the information and explanations given to us, the
company has neither granted nor taken any loans from the companies,
firms or other parties listed in the register maintained under Section
301 of the companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, the internal control procedures are inadequate,
commensurate with the size of the company and the nature of its
business, with regard to purchase of inventory and fixed assets and for
the sale of goods and needs to be strengthened so as to be commensurate
with the current size of the Company and the nature of its business and
services. Except for the above we have not observed any other
continuing failure to correct major weakness in the internal control
system.
v. a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the contracts or arrangements that need to be entered in
the register maintained in pursuance of Section 301 of the Companies
Act, 1956 have been properly entered in the said register.
b. In our opinion and according to the information and explanations
given to us, the transactions entered in the register maintained under
Section 301 and exceeding during the period by Rupees five lakhs in
respect of each party have been made at prices which are reasonable and
in respect of which no comparable quotations were available and hence
unable to comment.
vi. The company does not have any internal audit system, which in our
opinion, is commensurate with its size and nature of its business.
vii. The Company has not maintained the cost records pursuant to the
Companies (Cost Accounting Records) Rules, 2011 prescribed by the
Central Government under Section 209 (1)(d) of the Companies Act, 1956
viii. a) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
irregular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees'' state insurance,
customs Duty, Excise Duty, and other material statutory dues as
applicable with the appropriate authorities with frequent delays in
deposit of dues.
b) According to the information and explanations given to us, the
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 30th September, 2013 for a period of more than six
months from the date becoming payable are as follows:
Nature of
the Dues Financial
Year Rs. In Lakhs Remarks Pending Before
Income Tax 2008-09 128.85 Asst to be
completed
Income Tax 2010-11 1.95 Self Asst
Tax Asst to be
completed
Provident
Fund 2012-13 48.02 Paid In
October 2013
c) According to the information and explanations given to us and the
records of the company examined by us, the disputed statutory dues that
have not been deposited on account of matters pending before
appropriate authorities are as follows:
Nature of Financial Rs.in
the Dues year Lakhs Remarks Pending Before
Income Tax 2007-08 1297.67 Regular Tax
demand u/s
143 (3) ITAT
Fringe
Benefit
Tax 2007-08 667.66 CIT (Appeals)
Value
Added tax 2007-08 7.96 Deputy Commissioner
Value
Added tax 2008-09 31.82 Deputy Commissioner
Value
Added tax 2009-10 53.74 Deputy Commissioner
Value
Added tax 2010-11 17.39 Deputy Commissioner
Center
Sales Tax 2007-08 16.83 Deputy Commissioner
ix. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not paid
principal, and interest of 11,088.32 lakhs and 4,112.79 lakhs
respectively to banks and financial institutions as at the balance
sheet date Details as follows :
Rupees in lakhs
Sl. Name of the Bank / Installment Principal Interest Due Since
No Financial
Institutions Type Overdue Overdue (No. of
install
ments)
1. Andhra Bank Monthly 3,657.15 982.68 24
2. Bank Of Boarda Quarterly 798.59 514.39 6
3. Bank of India Quarterly 2,791.08 897.89 8
4. Indian bank Quarterly 832.82 387.12 9
5. HSBC Monthly 404.42 89.87 4
6. LIC Quarterly 1,570.80 1,031.32 11
7. HP Financial
Services Quarterly 1,033.46 209.52 9
Totals 11,088.32 4,112.79
x. In our opinion and according to the information and explanation
given to us the term loans have been applied for the purpose for which
they were obtained, other than temporary deployment pending
application.
xi. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year but incurred cash losses in the financial year
immediately proceeding such financial year.
xii. According to the information and explanations given to us and an
overall examination of the balance sheet of the company, we report that
no funds raised on a short-term basis which have been used for long-
term investment, and vice versa.
xiii. 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.
xiv. Having regard to the nature of the Company''s business and
activities clauses 4 (vi), (xii), (xiii), (xiv), (xv), (xviii), (xix)
and (xx) of CARO are not applicable.
For T.Raghavendra & Associates
Chartered Accountants
FRN 003329S
Place: Hyderabad T.Raghavendra
Date : 29-11-2013 Mem 023806
Mar 31, 2011
1) We have audited the attached Balance Sheet of Bartronics India
Limited ("the Company") as at 31st March, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto in which are incorporated the
Returns from an overseas branch audited by other auditors. These
fnancial statements are the responsibility of the Company's Management.
Our responsibility is to express an opinion on these fnancial
statements based on our audit.
2) We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) Without qualifying our opinion, we invite attention to Note 25 of
Schedule 20 forming part of the fnancial statements regarding the
uncertainties relating to MCD - Aapke Dwar Project.
4) We invite attention to:
a) Note 9 of Schedule 20 forming part of the fnancial statements
regarding Sundry Debtors balance aggregating to Rs.36,577.76 Lakhs and
in respect of which no provision has been made for reasons stated
therein. We are unable to form an opinion on the extent to which the
debts may prove irrecoverable.
b) Note 11 of Schedule 20 regarding slow moving software inventory
aggregating to Rs.314.13 Lakhs. We are unable to form an opinion on the
appropriateness of the carrying cost of such items of inventory
5) As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specifed in paragraphs 4 and 5 of the said Order.
6) Further to our comments in paragraph 3 and the Annexure referred to
in paragraph 5 above, we report as follows:
a. Subject to paragraph 4 above, 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;
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 and proper returns adequate for the purposes of our audit
have been received from the overseas branch audited by other auditors.
c. the report on the accounts of the overseas branch audited by other
auditors has been forwarded to us and have been dealt with by us in
preparing this report;
d. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and the audited Branch Return;
e. 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;
f. 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 subject to the effect of adjustments
that may be required in respect of matters referred to in paragraph 4
above, the effect of which we have not been able to determine, 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, 2011;
(b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
7) On the basis of written representations received from the Directors
as on 31st March, 2011 taken on record by the Board of Directors, we
report that none of the Directors is disqualifed as on 31st March, 2011
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
Annexure to the Auditors' Report
(Referred to in paragraph 5 of our report of even date)
i) Having regard to the nature of the Company's business/activities
clauses 4 (v), (viii), (x), (xii), (xiii), (xiv),
(xv), (xviii), (xix) and (xx) of CARO are not applicable.
ii) In respect of its fixed assets:
(a) The Company is in the process of re-constructing its fixed assets
register with a view towards refecting full particulars including
quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verifed during the year by
the management in accordance with a program of verifcation, which in
our opinion, provides for physical verifcation of all fixed assets at
reasonable intervals. In respect of assets at third parties locations,
confirmations have been received. In view of the fact that the fixed
assets register is in the process of reconstruction, management has
informed that discrepancies, if any, arising between the assets verifed
and the book records would be dealt with in the period in which such
re-construction of the register is completed.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventories:
(a) As explained to us, the inventories were physically verifed during
the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verifcation.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured to / from companies, frms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations
given to us, internal control procedures with regard to purchase of
inventory and fixed assets and for the sale of goods need to be
strengthened so as to be commensurate with the current size of the
Company and the nature of its business. Except for the above, we have
not observed any other continuing failure to correct major weaknesses
in internal controls.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
(vii) In our opinion the internal audit functions carried out during
the year by a frm of Chartered Accountants appointed by the management
have been generally commensurate with the size of the Company and the
nature of its business.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) Except for delays in deposit of dues relating to provident fund,
employees state insurance, income- tax, wealth tax, value added tax,
fringe benefit tax and service tax, the Company has generally been
regular in deposit of excise duty, custom duty cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) The statutory dues in arrears as at 31st March 2011 for a period of
more than six months from the date they became payable are as follows:
Name of Nature of the Rs. in Period to which Date of
Due Date
the
Statute Dues Lakhs. the amount
relates Payment
3.25 2000-01 Various
Dates
111.69 2007-08 March 31,
2008
Income- Income Tax 334.59 2008-09 March 31,
2009
Tax Act,
848.41 2009-10 March 31,
2010
1961 515.33 2010-11 September
15, 2010 Not
paid
Fringe
benefit Tax 768.76 2007-08 March 31,
2008
3.42 2003-04 Various
Dates
The
Finance Service Tax 5.50 2004-05 Various
Dates
Act, 1994 0.84 2005-06 Various
Dates
(c) Details of dues of Income-tax which have not been deposited as on
31 March, 2011 on account of disputes are given below:
Name of the Nature of Financial Years
to which Rs. in Forum where
statute the Dues the matter
pertains Lakhs dispute is
pending
Income-Tax Income Tax 2005-2006 89.67 Commissioner of
Act, 1961
2006-2007 199.52 Income Tax-
Appeals
(ix) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to fnancial
institution and banks as follows :
Maximum
amount of Maximum
period Subsequent
Lender default
( Rs in
lakhs) of default
( days) Payment
Andhra Bank
Principal 152.78 78 Paid
Interest 60.09 58
Bank of India
Principal 330.00 109 Paid
Interest 55.69 69
Bank of Baroda
Principal 137.50 87 Paid
Interest 32.65 60
HSBC
Principal à à Paid
Interest 12.42 69
Indian Bank
Principal 91.67 94 Paid
Interest 20.03 70
Punjab National Bank
Principal 5000.00 138 Paid
Interest 60.74 79
LIC
Principal 142.86 78 Not Paid
Interest 33.12 164 Paid
(x) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained, other than temporary deployment pending
application.
(xi) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investment.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
Notes:
1) The Cash Flow Statement is prepared in accordance with the Indirect
Method as set out in Accounting Standard - 3 on Cash Flow Statements
notifed in Section 211(3C) of the Companies Act, 1956.
2) Cash and Cash Equivalents include Rs 223.25 lakhs (31.03.2010: Rs.
466.24 lakhs ) Deposits lodged with Banks against guarantees/ letter of
credit issued.
3) Previous year's figures have been regrouped/ rearranged/reclassified
wherever necessary to conform with those of the current year.
4) Figures in bracket represents cash outfow.
5) Schedules 19 and 20 form an integral part of the Cash Flow
statement.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 008072S)
C R Rajagopal
Partner
Membership No:23418
Hyderabad, 25 August, 2011
Mar 31, 2010
1) We have audited the attached Balance Sheet of BARTRONICS INDIA
LIMITED ("the Company") as at 31st March, 2010, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto in which are incorporated the return
from a overseas branch audited by other auditor. These financial
statements are the responsibility of the Companys Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2) We conducted our audit in accordance with the 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 the 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 (Auditors Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227 (4A)
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) a) The trading sales and purchases includes software transmitted
through electronic form without adequate documentary evidence with
respect to transfer of significant risks and rewards incidental to the
ownership aggregating to Rs.8,837.59 Lakhs and Its 8,461.87 Lakhs
respectively and are outstanding as on 31 March 2010, on which we are
unable to express our opinion. Had the adjustment been made in the
financial statements, the sales and the debtors would be lower by
Rs.8,837.59 Lakhs, the purchases and the creditors would be lower by
Rs.8,461.87 Lakhs,
b) The Company based on the expert opinion obtained, has recognized the
deferred tax expense using current applicable effective tax rate, being
Minimum Alternate Tax (MAT) rate, instead of regular tax rates as
specified by paragraph 21 of Accounting Standard 22 - "Accounting for
Taxes on Income". Had the Company recognised the deferred tax expense
using regular tax rates, the deferred tax expense for die year would be
higher by Rs.2,615.89 Lakhs.
Had the adjustments referred in (a) and (b) above, been made in the
financial statements, the profit after tax and Reserves and Surplus
would be lower by Rs 2,927.76 Lakhs. The basic and diluted earnings per
share would be lower by Rs. 9.55 and Rs 6.79 respectively.
5) Without qualifying our opinion, attention is invited to the
following regarding inventories and debtors for the reasons stated
therein:
a. note 9 of Schedule 21 regarding debtors balance aggregating to Rs.
4,761.49 lakhs outstanding for more than six months, considered good
for recovery by the management and no provision has been made.
b. note 11 of Schedule 21 regarding non-provision for slow moving
software inventories aggregating to Rs. 986.34 lakhs lying for more
than nine months, considered saleable by the Company and no provision
has been made.
6. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. we have obtained all the information and explanations except for
the matter stated in para 4(a) above, 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; and proper return adequate for the purpose of our audit
has been received from the foreign branch audited by other auditor. The
branch audit report has been forwarded to us and appropriately dealt
with;
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and the audited branch return;
d. in our opinion subject to our comments in paragraphs 4 above in
respect of trading sales and deferred tax liability, which is not in
accordance with Accounting Standard 9 - "Revenue Recognition" and
Accounting Standard 22 - "Accounting for Taxes on Income", 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;
e. 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
subject to the impact of die financial statements of die matters
referred to in paragraph 4(a) and 4(b) above, 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, 2010;
(b) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
7) On the basis of written representations received from the Directors
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that, none of the Directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
Annexure to the Auditors Report (Referred to in paragraph 3 of our
report of even date)
(i) Having regard to the nature of the Companys business/activities
clauses 4 (v), (vi), (viii), (x), (xii), (xiii), (xiv), (xv), (xix) and
(xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company is in the process of re-compiling its fixed assets
register with a view towards reflecting full particulars including
quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the year
by the management in accordance with a program of verification, which
in our opinion, provides for physical verification of all fixed assets
at reasonable intervals. For the fixed assets lying at the third
parties locations, confirmations have been obtained from them in
respect of physical existence of the fixed assets. In view of the fact
that the fixed assets register is in the process of reconstruction,
management has informed that discrepancies, if any, arising between the
assets verified and the book records would be dealt with in the period
in which such re- compilation of the register is completed.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
die year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or
unsecured to / from companies, firms or other parties listed in the
Register maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations
given to us, there is inadequate 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, which needs further improvement and needs to strengthen
systems and procedures relating to documentation.
(vi) In our opinion the internal audit functions carried out during the
year by a firm of Chartered Accountants appointed by the management
which is not commensurate with the si^e of the Company and the nature
of its business.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and
according to the records of the Company, undisputed statutory dues in
respect of provident fund, employees state insurance, professional tax,
income-tax, wealth tax, value added tax, fringe benefit tax and service
tax have not been regular and substantial delays in deposit of such
dues have been noticed, with the appropriate authorities. In respect of
other material undisputed statutory dues including investor education
and protection fund, custom duty and excise duty, the Company has been
generally regular in depositing with the appropriate authorities.
(b) According to the information and explanations given to us,
following are the undisputed statutory dues as at 31 March, 2010
outstanding for a period of more than six months from the date they
became payable :
Name of the Nature of Rs. Period to Due Date Date of
Statute the Dues in which the Payment
Lakhs amount
relates
Income-Tax
Act, 1961 Income Tax 3.25 2000-01 Various Dates
768.76 2007-08 March 31,2008
750.52 2008-09 March 31,2009
836.67 2009-10 September 15,
2010 Not paid
The Finance
Act, 1994 Service Tax 3.42 2003-04 Various Dates
5.50 2004-05 Various Dates
0.84 2005-06 Various Dates
(c) According to the information and explanations given to us, there
were no dues of sales tax, wealth tax, service tax, custom duty, excise
duty and cess which have not been deposited as on 31 March, 2010 on
account of any dispute. The details of the disputed dues of income tax
which have not been deposited as on 31 March, 2010 are given below:
Name of the
statute Nature of Financial Years to Rs. in Forum where
the Dues which the matter Lakhs dispute is
pertains pending
Income-Tax
Act, 1961 Income Tax 2006-2007 89.67 Commissioner
2007-2008 111.31 of Income Tax-
Appeals
(viii) In our opinion and according to the information and explanations
given to us, the Company has on few instances defaulted in repayment of
dues to financial institution and banks which is as follows:
Amount of default (Rs in lakhs) Delays in No of days
2,335.42 1-60
1,721.76 60-120
183.34 120-180
(ix) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained, other than temporary deployment pending
application.
(x) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet, we
report that funds raised on short term basis have not been used during
the year for long term investment.
(xi) According to the information and explanations given to us the
Company has made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956 at a price which is prima facie not prejudicial to
the interests of the company
(xii) To the best of our knowledge 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.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No.008072S)
C R Rajagopal
Partner
Hyderabad, 06 December, 2010
Mar 31, 2003
1. We have audited the attached Balance Sheet of M/s BARTRONICS INDIA
LIMITED as at March 31, 2003 and the relative Profit & Loss Account for
the year ended on that date, both of which we have signed under the
reference to this report. These financial statements are the
responsibility of the management of the company. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standard
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 Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Central Government of India in terms
of Section 227(4A) of The Companies Act, 1956 of India (the Act)
and on the basis of such checks as we considered appropriate and
according to the information and explanations given to us, we set out
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 paragraph 3
above, 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 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 appears from our examination of
those books;
(c) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report have been prepared in compliance with the
applicable accounting standards referred to in sub section (3C) of
Section 211 of the Companies Act; 1956.
(e) On the basis of written representations received from the
directors, as on March 31, 2003, and taken on record by the Board of
Directors of the Company, we report that none of the directors is
disqualified as on March 31, 2003 from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Act.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet and Profit and Loss
account together with the notes thereon and attached thereto give in
the prescribed manner the information required by the Act, and also
give respectively, 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 March 31,2003; and in the case of the Profit and Loss
Account, of the profit for the year ended on that date.
(ii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF BARTRONICS INDIA
LIMITED
Annexure referred to in Paragraph 3 of our Report of even date:
1. The company is maintaining its fixed asset register to reflect the
quantitative details and situation/location of fixed assets. We are
informed that the management conducted physical verification of fixed
assets and that no material discrepancies were noticed.
2. None of the fixed assets have been revalued during the year, so
far, as appears from the information and explanations given to us.
3. The stock of finished goods, stores, spare parts and raw materials,
were verified by the management at the time of annual closing.
4. The procedure for physical verification of stock followed by the
management is, in our opinion reasonable and adequate in relation to
the size of the company and the nature of its business at present.
5. The discrepancies arising out of physical verification of stocks
have been suitably dealt with in the books of accounts.
6. On the basis of our examination of the records made available to
us, in our opinion, the valuation of stocks, is fair and proper and in
accordance with the stated accounting policies of the company.
7. The company has not taken any loans from companies/firms listed in
the register to be maintained under section 301 and 370(1B) of the
Companies Act, 1956.
8. The company has not granted any loans to companies/firms or other
parties to the incorporated /listed in the register to be maintained
under section 301 and 370 (1C) of the Companies Act, 1956. In respect
of other loans and advances, the terms and conditions of the said loans
are prima-facie prejudicial to the interest of the company.
9. In our opinion and according to the information and explanations
given to us, the existing internal control procedures relating to
purchase of store, consumables, raw materials, Plant & Machinery,
equipment and other assets and for the sale of goods are adequate and
addressed in an on going manner.
10. According to the information and explanations given to us,
purchase of goods and materials and sale of goods, materials and
services, in pursuance of contracts or agreements to be entered in the
register to be maintained under section 301 of the Companies Act, 1956
and aggregating during the year to Rs.50,000 or more in value in
respect of each party have been made, in so far as appears from the
information and explanations given to us, at prices which are prima
facie reasonable.
11. As explained to us, the company did not have any unserviceable and
damaged goods during the year, which were significant in value.
12. The company has not invited or accepted any deposits from the
public attracting the provisions of section 58A of the Companies Act,
1956 and the rules framed hereunder.
13. The companys operations do not generate any scrap/by-products.
14. The company has an adequate internal audit system commensurate
with the nature and size of its business.
15. The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956 for any of
the products of the company.
16. The company has generally regularly deposited during the year
Provident Fund and Employees State Insurance dues with the appropriate
authorities.
17. According to the information and explanations given to us there
are no undisputed amounts payable in respect of Income Tax, Sales Tax,
Wealth Tax, Customs Duty and Excise Duty as at the Balance Sheet date
for a period of more than 6 months from the date they became payable.
18. To the best of our knowledge and on the basis of our examination
of the books of accounts, prevailing internal controls and information
and explanations given to us, there are no personal expenses charged to
revenue account other than expenses under service contract obligations
with employees, or in accordance with generally accepted business
practices.
19. To the best of our knowledge and on the basis of our examination
of the books of accounts, there are no dues outstanding more than Rs.1
lakh for more than 30 days to Small-Scale Industrial undertakings. The
total outstanding due to Small-Scale Industrial undertakings is nil.
Total outstanding due to creditors other than Small-Scale Industrial
undertakings is Rs.97,86,958/-.
20. The company is not a sick industrial company within the meaning of
clause (o) of sub section (1) of Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
21. The company is implementing a system of recording receipts of
materials and stores and a system of identifying issued and consumption
of material to relative jobs.
22. The company has a reasonable system of authorization at proper
levels and also an adequate internal control system commensurate with
its size and nature of activity.
23. In respect of the trading activities of the company, as per the
information and explanations given to us, the company does not have any
damaged goods. In view of the technical nature of the companys
activities and the products it trades in, we are not in a position to
examine the veracity thereof, and have therefore relied upon the same.
for Yaji Associates
Chartered Accountants
Sd/-
A.P.P. Kasipati
Partner
M.No.19442
Place : Hyderabad
Date : 30.08.2003