Mar 31, 2018
S JAYKISHAN
Chartered Accountants
Suite # 2D.2E & 2F, 12, Ho- Chi-minh Sarani, KOLKATA- 700 071
Phone No - (033)4003-5801, Fax (033) 4003-5832 Email: [email protected]
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF BEMCO HYDRAULICS LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of BEMCO HYDRAULICS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act. 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 standalone Ind AS 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 Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those statements are free from material misstatement. selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS 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 standalone Ind AS financial statements. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act.we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
ii) 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.
iii) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
iv) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
v) On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being appointed as a director in terms of Section 164(2) of the Act. our separate Report in "Annexure B".
vii) 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:
a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 5.26 to the standalone financial statements;
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Place: Camp Belgaum |
For S JAYKISHAN |
Vivek Newatia |
Date: 22-05-2018 |
Chartered Accountants |
Partner |
Firm''s Registration No. 309005E |
Membership No. 062636 |
Annexure ''A'' to Independent Auditor''s Report referred to in Paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date.
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuantto the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been 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) Physical verification of inventories has been conducted at reasonable intervals by the management. No material discrepancies were noticed on physical verification as compared to book record.
(iii) The Company has not granted any loans, secured or unsecured to Companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (''the Act1). Accordingly, paragraphs 3(iii)(a), 3(iii)(b) &3(iii)(c) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not given any loan/guarantee/security to or on behalf of any party referred to in Section 185 of the Companies Act 2013. The Company has complied with Section 186 in respect of investments made. The Company has not given any loan, guarantee or provided any security in connection with a loan to any body corporate or any other person.
(v) On the basis of our examination of books and records of the Company, in our opinion and according to the information and explanations given to us, the company has not accepted deposits during the year and therefore the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are not applicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) a) The Company is generally regular in depositing undisputed statutory dues including Income Tax and other statutory dues applicable to it with the appropriate authority. There are no undisputed amount payable in respect of applicable statutory dues which were in arrears as at 31.03.2018 for a period of more than six months from the date they became payable.
b) According to the information & explanation give to us, there are no dues of Income tax, Sales tax, Service Tax, Custom duty, or Excise duty which have not been deposited on account of any dispute except as stated as below:
Name of the Statute |
Nature of the Dues |
Amount (Rs ) |
Period to which the amount relates (Financial year) |
Forum where dispute is pending |
Karnataka Tax on Entry of Goods, 1979 |
Entry Tax |
75,755/- |
2006-07 |
Joint Commissioner of Commercial Taxes (Appeals) |
Karnataka Tax on Entry of Goods, 1979 |
Entry Tax |
28,666/- |
2007-08 |
Joint Commissioner of Commercial Taxes (Appeals) |
Karnataka Tax on Entry of Goods, 1979 |
Entry Tax |
34.580/- |
2008-09 |
Joint Commissioner of Commercial Taxes (Appeals) |
Karnataka Tax on Entry of Goods, 1979 |
Entry Tax |
70,632/- |
2009-10 |
Joint Commissioner of Commercial Taxes (Appeals) |
(viii) Based on our examination of books and records and according to the information & explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution or Banks or Government. The Company has not issued any debentures.
for the purposes for which those were raised.
(x) On the basis of our examination of books and records of the Company and according to the information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for 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 and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act and details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential
(xv) In our opinion and according to the information and explanations given to us, the company has not entered into any non cash transaction with directors or persons connected with him and therefore paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Place: Camp Belgaum |
For S JAYKISHAN |
Vivek Newatia |
Date: 22-05-2018 |
Chartered Accountants |
Partner |
Firm''s Registration No. 309005E |
Membership No. 062636 |
Annexure - B to the Independent Auditors'' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BEMCO HYDRAULICS LIMITED ("the Company") as of 31st March 2018 in conjunction with our audit of the standalone Ind AS Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 auditor''s 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the 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, 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 31st March 2018, 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.
Place: Camp Belgaum |
For S JAYKISHAN |
Vivek Newatia |
Date: 22-05-2018 |
Chartered Accountants |
Partner |
Firm''s Registration No. 309005E |
Membership No. 062636 |
Mar 31, 2015
We have audited the accompanying financial statements of Bemco
Hydraulics Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2015, 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.
Management's Responsibility for the 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 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 in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its 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, 2015 ("the
Order"), issued by the Central Government of India in terms of sub-
section (11) of Section 143 of the Act, We give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
to the extent applicable.
2. As required by Section 143(3)of the Act, we report that:
i. 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.
ii. 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.
iii. The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with this Report are in agreement with the books
of account.
iv. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
v. 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 31stMarch, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
vi. 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 has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
2.44 (c) 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.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
Annexure to Independent Auditor's Report referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date.
a. The Company is maintaining proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. The fixed assets have been physically verified by the management in
a phased manner, over a period of three years, which in our opinion is
reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification.
ii.
a. Physical Verification of inventory has been conducted at regular
intervals by the management. In our opinion, the frequency of
verification is reasonable.
b. In our opinion and according to the information and explanation
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. The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification as compared to book
record.
iii. As informed, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013 and accordingly
Para 3 (iii) of the Order is not applicable.
iv. In our opinion and according to the information & explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business for the purchases of
inventory, fixed assets and for the sale of goods and services. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. On the basis of our examination of books and records of the
Company, in our opinion and according to the information and
explanations given to us, the company has not accepted deposits during
the year and therefore the directives issued by the Reserve bank of
India and the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act, 2013 and the rules framed there under
are not applicable to the Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We are, however, not
required to make a detailed examination of the records with a view to
determine whether they are accurate or complete.
vii.
a. The Company is generally regular in depositing undisputed statutory
dues including provident fund, employee's state insurance, income tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and other statutory dues as applicable to it with
the appropriate authority. There are no undisputed amount payable in
respect of applicable statutory dues which were in arrears as at
31.03.2015 for a period of more than six months from the date they
became payable.
b. According to the information & explanation give to us, there are no
dues of income tax, sales tax, wealth tax, service tax, duty of customs
or duty of excise or value added tax or cess which have not been
deposited on account of any dispute except as stated below:
Name of the
Statute Nature of Amount Period to
the Due (Rs,) which the Forum where
amount dispute is
relates pending
Karnataka
Tax on Entry Entry Tax 53,028/- 2006-07 Commercial Tax
Officer (Audit &
of Goods,
1979 Recovery), Belgaum
Karnataka
Tax on
Entry Entry Tax 20,066/- 2007-08 Commercial Tax
Officer (Audit &
of Goods,
1979 Recovery), Belgaum
Karnataka
Tax on Entry Entry Tax 24,206/- 2008-09 Commercial Tax
Officer (Audit &
of Goods,
1979 Recovery), Belgaum
Karnataka
Tax on Entry Entry Tax 49,442/- 2009-10 Commercial Tax
Officer (Audit &
of Goods,
1979 Recovery), Belgaum
c. According to the information & explanation give to us, there is no
such amount which is required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under.
viii. The Company has accumulated losses exceeding fifty percent of its
net worth as at the end of the financial year. It has not incurred cash
losses during the financial year covered by our audit, but has incurred
cash losses in the immediately preceding financial year.
ix. Based on our audit procedures and as per the information &
explanation given by the management, there has been delays in
repayment of dues to working capital bankers aggregating to Rs.
1,73,40,452/- which had been made good during the year. The Company has
not issued any debentures. The company has not defaulted in payment of
dues to any financial institutions.
x. The Company has not given any guarantee for loan taken by others
from banks or financial institutions and accordingly Para 3 (x) of the
Order is not applicable.
xi. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purposes for which
they were raised.
xii. 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 any such case by the management.
For A.C. Bhuteria &Co
Chartered Accountants
Firm Regn. No. 303105E
Place: Kolkata (Mohit Bhuteria)
2, India Exchange Place
2nd Floor Room No: 10 Kolkata- 700 001 Partner
Phone: 2230 6990, Membership No.056832
E-mail: [email protected]
Website: www.acbhuteria.com
Date: 29-05-2015
Mar 31, 2014
We have audited the accompanying financial statements of Bemco
Hydraulics Limited (''the Company'') which comprise the Balance Sheet as
at 31st March 2014 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 and
financial performance 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.
Auditor''s 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.
An 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, the auditor
considers internal control relevant to the entity''s preparation of the
financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity''s internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014
AND
(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, of 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"), as amended, 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. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956.
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, 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 Independent Auditors Report referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date.
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets. The
fixed assets are physically verified by the management in a phased
manner, over a period of three years, which in our opinion is
reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification.
There was no substantial disposal of fixed assets during the year.
2) Physical verification of inventory has been conducted at reasonable
intervals by the management. In our opinion, the procedures of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and nature of its
business. The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification as compared to book
records, which were not material, have been properly dealt with in the
books of accounts.
3) a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan from five companies and one
party covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 9,84,34,925/- and year - end balance of such loan taken was Rs.
6,45,33,376/-.(including interest)
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
4) In our opinion and according to the information & explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business, for the purchases of
inventory and fixed assets and for sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5)
(a) According to the information and explanations given to us, we are
of the opinion the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except in cases where comparison could not be made in the
absence of similar transactions with other parties.
6) In our opinion & according to the information & explanations given
to us, the Company has not accepted any deposit from public during the
year.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Sec. 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We are, however, not
required to make a detailed examination of the records with a view to
determine whether they are accurate or complete.
9)
(a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income tax, Sales tax, Service tax, Excise duty, Cess and
other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income tax, Wealth tax, Sales
tax, Service Tax, Custom duty, Excise duty and Cesswere in arrears as
at 31.03.2014 for a period of more than six months from the date they
became payable.
(c) According to the information & explanation give to us, there are no
dues of Income tax, Wealth tax, Sales tax, Service Tax, Custom duty,
Excise duty or Cess which have not been deposited on account of any
dispute.
10) The Company does not have any accumulated losses. It has incurred
cash losses during the financial year covered by our audit. It has not
incurred any cash losses in the immediately preceding financial year.
11) Based on our audit procedures and as per the information &
explanation given by the management, there has been delays in repayment
of dues to working capital bankers aggregating to Rs.3,59,04,130 which
had been made good during the year. The status of belated payment as at
31st March, 14 which has since made good is as under:
Period Amount involved
Less than 30 days Rs. 59,15,387/-
12) As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund / nidhi / mutual benefit
fund/societies.
14) Since the Company is not dealing or trading in shares, securities,
debentures and other investment, clause 4(xiv) of the Order is not
applicable.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purposes for which
they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used to finance long term
investments.
18) The Company has made preferential allotment of 2,55,000 Equity
Shares to companies covered in the Register maintained under Section
301 of the Companies Act, 1956, based on price determined as per SEBI
guidelines. In our opinion, the price at which shares have been issued
is not prejudicial to the interest of the company.
19) During the period covered by our audit report, the Company has not
issued any debentures.
20) The Company has not raised any money from public issue during the
year.
21) 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 any such case by the management.
Place : 2, India Exchange Place, For A. C. BHUTERIA & CO.
Kolkata - 700 001. CHARTERED ACCOUNTANTS
Dated : 28-05-2014 Firm Registration No: 303105E
(MOHIT BHUTERIA)
Partner
Membership No.: 056832
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Bemco
Hydraulics Limited (''the Company'') which comprise the Balance Sheet as
at 31st March 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 and
financial performance 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.
Auditor''s 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.
An 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, the auditor
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. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013
AND
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date
AND
(iii) in the case of the Cash Flow Statement, of 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"), as amended, 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. 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 the Statement of Profit and Loss dealt with
by this Report are in agreement with the books of account;
d. In our opinion, the Balance Sheet and the Statement of Profit and
Loss comply with the Accounting Standards referred to in subsection
(3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. 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.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT OF BEMCO HYDRAULICS
LIMITED REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE:
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets. The
fixed assets are physically verified by the management in a phased
manner, over a period of three years, which in our opinion is
reasonable having regard to the size of the Company and nature of its
business. No material discrepancies were noticed on such verification.
There was no substantial disposal of fixed assets during the year.
2) Physical verification of inventory has been conducted at reasonable
intervals by the management. In our opinion, the procedures of physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the Company and nature of its
business. The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification as compared to book
records, which were not material, have been properly dealt with in the
books of accounts.
3) a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loan from five companies and one
party covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 6,94,26,748/- and year - end balance of such loan taken was Rs.
6,49,40,796/- (including interest)
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
4) In our opinion and according to the information & explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business, for the purchases of
inventory and fixed assets and for sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
5) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time except in cases where comparison could not be made in the
absence of similar transactions with other parties..
6) In our opinion & according to the information & explanations given
to us, the Company has not accepted any deposit from public during the
year.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Sec. 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We are, however, not
required to make a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income tax, Sales tax, Service tax, Excise
duty, Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income tax, Wealth tax, Sales
tax, Service Tax, Custom duty, Excise duty and Cess were in arrears as
at 31.03.2013 for a period of more than six months from the date they
became payable.
(c) According to the information & explanation give to us, there are no
dues of Income tax, Wealth tax, Sales tax, Service Tax, Custom duty,
Excise duty or Cess which have not been deposited on account of any
dispute except the following:
Name of the Nature of Disputed
Statute Dues Amount (Rs.)
Karnataka Value Sales Tax Rs. 70,832/-
Added Tax Act, 2003
Karnataka Value Sales Tax Rs. 75,062/-
Added Tax Act, 2003
Name of the Statute Period to which Forum where
the amount dispute is pending
relates
Karnataka value Added Tax
Act, 2003 2003 - 04 The Honorable High
Court of Karnataka
Karnataka value Added Tax
Act, 2003 2004 - 05 The Honorable High
Court of Karnataka
10) The Company does not have any accumulated losses. It has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11) Based on our audit procedures and as per the information &
explanation given by the management, the Company has not defaulted in
repayment of dues to financial Institution or Banks except for the
following:
Lender''s Name Description Period of Default Amount involved
of loan
State Bank of
India Cash Credit Unpaid / Less than 30 Rs. 85,58,098/-
days as at 31.03.2013
Bank of
Maharashtra Cash Credit Less than 30 days Rs. 1,00,943/-
Bank of
Maharashtra Cash Credit More than 30 days but Rs.1,38,85,988/-
less than 90 days
Bank of
Maharashtra Cash Credit Unpaid / Less than 30 Rs. 23,84,470/-
days as at 31.03.2013
Bank of
Maharashtra Cash Credit Unpaid / more than 30 Rs. 59,60,211/-
days but less than 90
days as at 31.03.2013
12) As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund / nidhi / mutual benefit
fund/ societies.
14) Since the Company is not dealing or trading in shares, securities,
debentures and other investment, clause (xiv) of the Order is not
applicable.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purposes for which
they were raised.
17) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
no funds raised on short term basis have been used to finance long term
investments.
18) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19) During the period covered by our audit report, the Company has not
issued any debentures.
20) The Company has not raised any money from public issue during the
year.
21) 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 any such case by the management.
For A.C.BHUTERIA & CO.
Chartered Accountants
Place : 2, India Exchange Place Firm Registration No. 303105E
Kolkata - 700 001 (MOHIT BHUTERIA)
Place: Kolkata Partner
Dated: 28.05.2013 Membership no. 56832
Mar 31, 2012
1. We have audited the attached Balance Sheet of BEMCO HYDRAULICS LTD
as at 31st March, 2012 and also the annexed Statement of Profit and
Loss and Cash Flow Statement of the Company for the year ended on that
date. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks of books and records we considered necessary and
according to the information and explanations given to us, we give
below our comments on the matters specified in paragraph 4 & 5 of the
said Order as far as applicable:
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its Fixed Assets. The
Fixed Assets have been physically verified by the Management during the
year. In our opinion, the frequency of verification is reasonable.
Discrepancies were noticed on such verification as compared to book
records, which were not material, have been adequately dealt with in
the books of accounts. There was no substantial disposal of fixed
assets during the year.
ii. a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies between book balance and physical records, which were not
material, have been adequately dealt with in the books of accounts.
iii. a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956
b) The Company has taken unsecured loan from five companies covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs.64, 127, 286 and
year - end balance of such loan taken was Rs. 24, 624, 391.
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information & explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company & nature of its business, for the
purchases of inventory and fixed assets and for sale of goods. During
the course of our audit, we have not observed any continuing failure to
correct major weaknesses in internal control system.
v. a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into a
register in pursuance of Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information & explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lacs in respect of
any party during the year have been made at prices, which are
reasonable, having regard to the prevailing market prices at the
relevant time.
vi. In our opinion & according to the information & explanations given
to us, the Company has not accepted any deposit from public during the
year.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Sec 209(l)(d) of the
Companies Act, 1956.
ix. a) The Company is regular in depositing undisputed statutory dues
with appropriate authorities. There were no undisputed statutory dues
as at the last day of the financial year outstanding for a period of
more than six months from the date they became payable.
b) As informed, there are no disputed dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty or cess as at the
year-end except the dues as given below:
Nature of Nature Amount Period Forum where dispute is
Statute of dues (Rs) pending
Karnataka
Value Sales Tax 17,17,545/- 2007-08 Joint Commissioner of
Added
Tax Act, (incl.
interest &
penalty) Commercial Taxes,2003 Belgaum Division,
Belgaum
Karnataka
Value Sales Tax 70,832/- 2003-04 High Court, Karnataka
Added
Tax Act,
2003
Karnataka
Value Sales Tax 75,062/- 2004-05 High Court, Karnataka
Added
Tax Act,
2003
x. The Company does not have accumulated losses at the end of the
financial year. It has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
xi.
(a) As per books and records maintained by the Company and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institution/ banks except
for the following
Period Amount(Rs)
Less than 30 days 3,718,499/-
More than 30 days upto 60 days 5,281,883/-
(b) The Company has not issued any debentures.
xii. As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund nidhi/mutual benefit fund/
societies.
xiv. In respect of Investment in Shares, proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. The shares are held in the name of the company or in
demat form.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. In our opinion, the Term Loan were applied for the purpose for
which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used to finance
long-term investments.
xviii. The Company has made any preferential allotment of 300,000
preference shares to a company covered in the register maintained under
section 301 of the Companies Act, 1956 during the year. In our
opinion, the prices at which the preference shares have been allotted
are not prima facie prejudicial to the interests of the Company.
xix. During the period covered by our audit report, the Company has not
issued any debentures.
xx. The Company has not raised any money from public issue during the
year.
xxi. 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.
Further to above-
4. 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.
5. In our opinion, proper books of accounts as required by law have,
been kept by the Company so far as appears from our examination of the
books.
6. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
7. In our opinion, the Profit and Loss Account, Balance Sheet and Cash
Flow Statement, comply with the applicable Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
8. On the basis of written representations received from the
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
9. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with 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 2012;
b. In the case of Statement of Profit and Loss, of the Profit for the
year ended on that date.
AND
c. In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For A.C.BHUTERIA & CO.
Chartered Accountants
Firm Registration No. 303105E
(MOHIT BHUTERIA)
Place: Kolkata Partner
Dated: 28.05.2012 Membership no. 56832
Mar 31, 2011
1. We have audited the attached Balance Sheet of BEMCO HYDRAULICS LTD
as at 31st March, 2011 and also the annexed Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date.
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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks of books and records we considered necessary and
according to the information and explanations given to us, we give
below our comments on the matters specified in paragraph 4 & 5 of the
said Order as far as applicable:
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its Fixed Assets. The
Fixed Assets have been physically verified by the Management during the
year. In our opinion, the frequency of verification is reasonable.
Discrepancies were noticed on such verification as compared to book
records, which were not material, have been adequately dealt with in
the books of accounts. There was no substantial disposal of fixed
assets during the year.
ii.
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies between book balance and physical records, which were not
material, have been adequately dealt with in the books of accounts.
iii.
a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956
b) The Company has taken unsecured loan from five companies and three
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.452.99 Lacs and year - end balance of such loan taken was Rs 387.10
Lacs.
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information & explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business, for the purchases of
inventory and fixed assets and for sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
V.
a) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into a
register in pursuance of Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information & explanations given
to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lacs in respect of
any party during the year have been made at prices, which are
reasonable, having regard to the prevailing market prices at the
relevant time.
vi. In our opinion & according to the information & explanations given
to us, the Company has not accepted any deposit from public during the
year.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Sec 209(1)(d) of the
Companies Act, 1956.
ix.
a) The Company is regular in depositing undisputed statutory dues with
appropriate authorities. There were no undisputed statutory dues as at
the last day of the financial year outstanding for a period of more
than six months from the date they became payable.
b) As informed, there are no disputed dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty or cess as at the
year-end except the dues as given below:
Nature of Statute Nature of Amount
dues (Rs)
Karnataka Value Sales Tax 17,17,545/-
Added Tax Act, (incl. interest
2003 & penalty)
Karnataka Value Sales Tax 70,832/-
Added Tax Act,
2003
Karnataka Value Sales Tax 75,062/-
Added Tax Act,
2003
Nature of Statute Period Forum where dispute
is pending
Karnataka Value 2007-08 Joint Commissioner of
Added Tax Act, Commercial Taxes,
2003 Belgaum Division,
Belgaum
Karnataka Value 2003-04 High Court, Karnataka
Added Tax Act,
2003
Karnataka Value 2004-05 High Court, Karnataka
Added Tax Act,
2003
x. The Company does not have accumulated losses at the end of the
financial year. It has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
xi. As per books and records maintained by the Company and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institution, banks or to
debenture holders.
xii. As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund nidhi/mutual benefit
fund/societies.
xiv. In respect of Investment in Shares, proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. The shares are held in the name of the company or in
demat form.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. In our opinion, the Term Loan were applied for the purpose for
which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used to finance
long-term investments.
xviii. The Company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
xix. During the period covered by our audit report, the Company has not
issued any debentures.
xx. The Company has not raised any money from public issue during the
year.
xxi. 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.
Further to above-
4. 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.
5. In our opinion, proper books of accounts as required by law have,
been kept by the Company so far as appears from our examination of the
books.
6. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
7. In our opinion, the Profit and Loss Account, Balance Sheet and Cash
Flow Statement, comply with the applicable Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
8. On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
9. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with 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 for the
year ended on that date.
AND
c. In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For A.C. BHUTERIA & CO.
Chartered Accountants
Firm Registration No. 303105E
(Arihant Kumar Baid)
Partner
Membership no. 65014
Place : Kolkata
Dated : 27.05.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of BEMCO HYDRAULICS LTD
as at 31st March 2010 and also the annexed Profit and Loss Account and
Cash Flow Statement of the Company for the year ended on that date.
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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks of books and records we considered necessary and
according to the information and explanations given to us, we give
below our comments on the matters specified in paragraph 4 & 5 of the
said Order as far as applicable:
i. The Company has maintained proper records showing full particulars,
including quantitative details and situation of its Fixed Assets. The
Fixed Assets have been physically verified by the Management during the
year. No material discrepancies were noticed on such verification.
There was no substantial disposal of fixed assets during the year.
ii.
a) The management has conducted physical verification of inventory at
reasonable intervals during the year.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies between book balance and physical records, which were not
material, have been adequately dealt with in the books of accounts,
iii.
a) As informed, the company has not granted any loan, secured or
unsecured, to companies, firms or parties covered in the register
maintained under Section 301 of the Companies Act, 1956
b) The Company has taken loan from five companies and three parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs. 266.81
Lacs and year - end balance of such loan taken was Rs 176.97 Lacs.
c) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from companies and parties covered in the
Register maintained under Section 301 of the Companies Act, 1956 are
not, prima facie, prejudicial to the interest of the Company.
d) The Company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
iv. In our opinion and according to the information & explanation given
to us, there is an adequate internal control system commensurate with
the size of the Company & nature of its business, for the purchases of
inventory and fixed assets and for sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
v. (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into a
register in pursuance of Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices, which are reasonable, having
regard to the prevailing market prices at the relevant time.
vi. In our opinion & according to the information & explanations given
to us, the Company has not accepted any deposit from public during the
year.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Sec 209(l)(d) of the
Companies Act, 1956.
ix. The Company is regular in depositing undisputed statutory dues with
appropriate authorities. There were no undisputed statutory dues as at
the last day of the financial year outstanding for a period of more
than six months from the date they became payable. As informed, there
are no disputed dues of sales tax, income tax, customs duty, wealth
tax, service tax, excise duty or cess as at the year-end.
x. The Company does not have accumulated losses at the end of the
financial year. It has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
xi. As per books and records maintained by the Company and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institution, banks or to
debenture holders.
xii. As informed and explained to us, the Company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund nidhi/mutual benefit
fund/societies.
xiv. In respect of Investment in Shares, proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. The shares are held in the name of the company or in
demat form.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. In our opinion, the Term Loan were applied for the purpose for
which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used to finance
long-term investments.
xviii. The Company has not made any preferential allotment of shares to
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956 during the year.
xix. During the period covered by our audit report, the Company has not
issued any debentures.
xx. The Company has not raised any money from public issue during the
year.
xxi. 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.
Further to above-
4. 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.
5. In our opinion, proper books of accounts as required by law have,
been kept by the Company so far as appears from our examination of the
books.
6. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
7. In our opinion, the Profit and Loss Account, Balance Sheet and Cash
Flow Statement, comply with the applicable Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
8. 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.
9. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with 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 for the
year ended on that date.
AND
c. In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For A.C.BHUTERIA & CO
Chartered Accountants
Place: Kolkata
Dated: 26.05.2010 (Arihant Kumar Baid)
Partner
Membership no. 65014
Firm Registration No. 303105E