Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of BIL ENERGY SYSTEMS LIMITED (âthe Companyâ), which comprise the Balance sheet as at March 31, 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Management is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 Indian Accounting Standards specified in the Companies (Accounts) Rules, 2015 ( as amended ) under Section 133 of the Act
These responsibilities also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, 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.
Auditorâs 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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 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 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 accounting policies used and the reasonableness of the accounting estimates made by 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 qualified audit opinion on the financial statements.
Basis for Qualified Opinion
(a) With regard to pending confirmation of balances of trade receivable.
The Company has sent letters to customers in respect of trade receivables for confirming balances as at March 31, 2018, but in most of the cases the customers have not sent written confirmation confirming the balance outstanding as at March 31, 2018. In the absence of confirmation, any provision to be made for adverse variation in the carrying amounts of trade receivable is not quantified.
(b) With regard to unsecured loans given to party not covered in the register maintained under section 189 of the Companies Act, 2013
The Company has sent balance confirmation letters to parties who are not covered in the register maintained under section 189 of the Companies Act, 2013, but in most of the cases the company have not received written confirmation confirming the balance outstanding as at March 31, 2018. Further in respect of loans granted, repayment of the principal amount was not as stipulated and payment of interest has also not been regular.
(c) Regarding non provision of demand of Rs.215.82 Crores received from State Bank of India in respect of Corporate Guarantee given by the company in respect of Loan Facilities availed by Bil Power Limited
The lender Bank of Bilpower Limited has pursuant to certain corporate guarantee given by the company demanded from the company their dues from Bilpower Limtied amounting to Rs. 215.82 crores. No provision has been made in the accounts for the probable loss that may arise on account of above demand of Rs. 215.82 crores.
(d) Regarding non provision of interest on various loans availed from State Bank of India for the financial year 2017-18
The Company has not provided for interest payable to State Bank of India amounting to Rs. 1484.13 Lacs for year ended 31st March, 2018. The company has also not made any provision for penal interest claimed by Bank. As a result the loss for the year ended 31st March, 2018 is understated by Rs. 1484.13 Lacs & Current liabilities as at 31st March,2018 are also understated by Rs. 1484.13 Lacs and also Reserves are overstated by Rs. 1484.13 Lacs.
The amount of penal interest cannot be quantified as the details have not been received from the bank. Also for the financial year 2016-17, 2015-16, 2014-15 the company has not provided for interest payable to State Bank of India amounting to Rs. 3546.23 lacs and as a result the accumulated losses in the Balance Sheet are understated by Rs. 5030.35 lacs upto 31st March, 2018.
(e) With regarding Physical verification of Inventory:
The company has not conducted periodic physical verification of inventory at reasonable intervals.
In respect of traded stock at Mumbai Head Office, the details of finished goods stock storage location not available for our verification.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters described in the basis for qualified opinion paragraph, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its Balance Sheet, Profit and Loss and cash flows statement for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
(c) 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.
(d) Except for the effects of the matters described in the basis for qualified opinion paragraph, in our opinion, the Balance Sheet, the Statement of Profit and Loss comply with the Accounting Standards specified under section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
(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 Bâ.
(g) With respect to the other matters included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to our best of our information and according to the explanations given to us:
(h) The company has disclosed the impact of pending litigations on its financial position in its financial statements -Refer Note 24 to the financial statements;
(i) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(j) There has been no delay in transferring amount, required to be transferred, to the Investors Education and Protection Fund by the Company.
ANNEXURE A TO THE INDEPENDENT AUDITORâS REPORT
In the Annexure, as required by the Companies (Auditorâs Report) Order, 2015 issued by the Central Government in terms of Section 143 (11) of the Companies Act 2013, on the basis of checks, as we considered appropriate, we report on the matters specified in paragraph 3 and 4 of the said order to the extent applicable to the Company.
1. In respect of Fixed Assets:
(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to 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) The title deeds of immovable properties, as disclosed in Note 8 on fixed assets to the financial statements, are held in the name of the Company.
2. In respect of Inventories:
The company has not conducted periodic physical verification of inventory at reasonable intervals. In respect of traded stock at Mumbai Head Office, the details of traded stock storage location not available for our verification.
3. The Company has not granted unsecured loans to any companies covered in the register maintained under Section 189 of the Act.
4. In our opinion, in respect of loans, investments, guarantees and security the provisions of section 185 has been complied & section 186 has not been complied.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions contained in Sections 73 to 76 of the Act, and Rules framed there under and any directive issued by the Reserve Bank of India are not applicable to the Company.
6. As per information and explanation given by the management, the company has maintained cost records as specified under Section 148(1) of the Act. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally irregular in depositing the undisputed statutory dues including Service Tax, Income Tax, Sales tax, Professional Tax etc.
(a) Following are the dues which are due since more than six months but still not paid or paid at later dates.
Nature of Statute |
Natures of Dues |
Amount (Rs. in Lacs) |
Period to which the amount relates |
Date of Payment |
Sales Tax Act |
ST- Interest |
3.87 |
F.Y.2010-11 |
Still not paid |
Sales Tax Act |
ST |
29.02 |
F.Y.2011-12 |
Still not paid |
Sales Tax Act |
ST- Interest |
27.53 |
F.Y.2011-12 |
Still not paid |
Sales Tax Act |
ST |
93.78 |
F.Y.2012-13 |
Still not paid |
Sales Tax Act |
ST - Interest |
75.78 |
F.Y.2012-13 |
Still not paid |
Sales Tax Act |
ST |
68.25 |
F.Y.2013-14 |
Still not paid |
Sales Tax Act |
ST - Interest |
47.25 |
F.Y.2013-14 |
Still not paid |
Sales Tax Act |
ST |
37.28 |
F.Y.2014-15 |
Still not paid |
Sales Tax Act |
ST - Interest |
21.50 |
F.Y.2014-15 |
Still not paid |
Tax Deducted at Source |
TDS |
1.62 |
F.Y.2017-18 |
Still not paid |
b) According to the records of the Company Income-Tax and Sales Tax which have not been deposited on account of disputes and the Forum where the dispute is pending are as under:
Nature of Statute |
Financial Year |
Nature of Dues Pending |
Amount Rs. in Lacs) |
Forum Where Dispute is pending |
Sales Tax Act |
F.Y.2010-11 F.Y.2013-14 |
VAT |
172.63 |
Deputy /Joint Commissioner of Sales Tax (Appeal) |
Sales Tax Act |
F.Y.2010-11, F.Y.2011-12 |
CST |
340.63 |
Deputy /Joint Commissioner of Sales Tax |
8. Based on our Audit Procedures and as per the information and explanation given by management, the company has defaulted in repayment of dues to banks. The detail of period and amount of default as ascertained by management is as follows:
Name of the Bank |
Nature of dues |
Amount (Rs. Lacs) |
Due Date |
Date of Payment |
|
State Bank of India |
Cash Credit facility, facility and Interest |
Over Draft |
94.53 |
Various Dates |
Not paid |
9. In our opinion and according to the information and explanations given to us, no term loans raised during the year. The company did not raise any money by way of public offer or further public offer (including debt instruments) during the year.
10. 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 material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
11. According to the information and explanations given to us and based on our examinations 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 Act.
12. In opinion and according to information and explanations given to us, the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
13. According to the information and explanations given to us and based on our examinations of the records of the company, the Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (IND AS) 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
14. According to the information and explanations given to us and based on our examinations of the records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
15. According to the information and explanations given to us, the Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
ANNEXURE B TO THE INDEPENDENT AUDITORâS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of Bil Energy Systems Ltd. (âthe Companyâ) as of March 31, 2018 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 (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 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 Act.
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) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act 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 ICAI. 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 judgement, 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 qualified 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 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 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.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the following weaknesses have been identified as at March 31, 2018.
a) The Company did not have an appropriate internal audit system.
b) The Company did not have an appropriate internal control system for inventory with regard to periodic verification of stock.
In our opinion, except for the possible effects of the weakness described above 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, 2017, 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.
For DALAL & KALA ASSOCIATES
CHARTERED ACCOUNTANTS
(CA Anand Drolia)
M.No.036718
PARTNERâ
Firm Registration No.: 102017W
Place: Mumbai,
Date: 30th May, â
Mar 31, 2015
Report on the Financial Statements : We have audited the accompanying
financial statements of Bil Energy Systems Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2015, 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 Principles generally accepted in India including Accounting
Standards referred to in Section 133 of the Companies Act, 2013 read
with Rule 7 of the Company (Accounts) Rules, 2014. 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 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 misstatements.
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 judgement, 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 qualified audit opinion.
Basis for Qualified opinion :
a) With regard to pending conformation of balances
The company has sent letters to customers in respect of trade
receivables for confirming balances outstanding as at March 31, 2015,
but in most of thecases the customers have not sent written
confirmation confirming the balance outstanding as at March 31, 2015.
In the absence of confirmation any provision to be made for adverse
variation in the carrying amounts of trade receivable is not quantified
b) Regarding non provision of demand of Rs. 215.80 Crores received from
State Bank of India in respect of Corporate Guarantee given by the
company in respect of Loan Facilities availed by Bil Power Limited
The lender Bank of Bilpower Limited has pursuant to certain corporate
guarantees given by the company demanded from the company their dues
from Bilpower Limited amounting to Rs. 215.80 crores. No provision has
been made in the accounts for the probable loss that may arise on
account of above demand of Rs. 215.80 crores.
c) Regarding non provision of Interest on various loans availed from
State Bank of India for the financial year 2014-15
The Company has not provided for interest payable to State Bank of
India amounting to Rs. 1045.12 Lacs for the year ended 31st March 2015.
The Company has not made any provision for penal interest claimed by
the bank. As a result the loss for the year ended 31st March 2015 is
understated by Rs. 1045.12 Lacs & current liabilities as at 31st March
2015 are also understated by Rs. 1045.12 Lacs and also reserves are
overstated by Rs. 1045.12 Lacs . The amount of penal interest cannot be
quantified as the details have not been received from the bank.
Qualified Opinion : In our opinion and to the best of our information
and according to the explanations given to us, except for the effects
of the matters described in the basis for qualified opinion paragraph,
the said 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015; and
b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
c) 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, 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.
2. As required by section 143(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 dealt with by
this Report are in agreement with the books of account;
d) Except for the effects of the matters described in the basis for
qualified opinion paragraph, in our opinion, the Balance Sheet, the
Statement of Profit and Loss comply with the Accounting Standards
Section 133 of the Companies Act, 2013, With Rule 7 of Companies
(Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of clause of Section 164(2) of the
Companies Act, 2013;
Annexure to Independent Auditor's Report
The annexure referred to in our report to the member of Bil Energy
System Limited for the year ended 31st March 2015, we report that :
1. In respect of its Fixed Assets :
a. The company has maintained proper records showing full particulars
including quantitative details and situation of its fxed assets.
b. As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c. In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. In respect of its inventories:
a. As explained to us that inventory has been physically verified
during the year by the management.
b. In our opinion and according to the information given to us the
procedures of physical verification of inventories followed by the
management were reasonable and adequate in relation to the size of the
entity and nature of their business.
c. In our opinion and according to the information given to us, proper
record of inventories has been maintained and no material discrepancies
were noticed on physical verification.
3. According to information and explanation given to us, the company
has granted unsecured loan to companies, firms or other parties covered
in the register maintained under section 189 of the Companies Act
amounting to Rs. 0.75 Lacs , Rs. 195.70 Lacs , Rs. 6 Lacs to Bilpower
Limited, Tarapur Transformers Limited and K2K Consultancy Services Pvt
Ltd. respectively. Also the company has given loan to Tarapur
Transformers Limited of Rs. 88.79 Lacs in the FY 13-14.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and with regard
to the sale of goods and services. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. The company has not accepted any deposits from the public.
6. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under sub-section (1) of section 148 of the Companies Act
2013 and we 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.
7. a) Undisputed amounts payable in respect of Sales Tax of Rs.
1,66,72,253/- (relating to Financial year 2011-12- Rs. 29,01,565/-,
relating to financial year 2012-
13 Rs. 93,78,242/-, related to financial year 2013-14 Rs. 43,92,446/- &
related to financial year 2014-15 Rs.. 35,46,051/- ), Interest on Sales
Tax of Rs. 28,67,080/-(relating to Financial year 2010-11- Rs.
3,87,364/-, relating to financial year 2011-12- Rs. 10,29,906/-,
relating to financial year 2012-13 Rs. 12,61,276/- & relating to
financial year 2013-14 Rs. 1,88,534/-), Profession Tax Rs. 57,225/-
(relating to financial year 2013-14) were outstanding for a period of
more than six months from the date they became payable. The due dates
for these amounts are as per the respective statutes.
b) The disputed statutory dues aggregating to Rs. 1545.11 Lacs that
have not been deposited, on account of matters pending before
appropriate authorities are as under :-
Sr.
No.Name of Statute Natures of Dues Period for which
the amount relates
1 Central Excise Act Excise Duty F.Y.2010-11,
2011-12 ,
2012-13 &
2013-14
Sr.Name of Statute Forum where Amount in
dispute is pending Lacs
1. Central Excise Act Office of Commissioner 1545.11
of Central Excise,
Thane-I
c) As Explain to us, the company does not have any dues on account of
investor education and protection fund .
8. The Company have accumulated losses at the end of the financial
year. The Company has not incurred cash losses in the financial year.
However the company incurred cash losses in the immediately preceding
financial year.
9. Based on our audit procedures and according to the information and
explanation given to us by the management, the company has defaulted in
repayment of loans and interest to bank.
The company has defaulted in repayment of dues to State Bank of India,
on its various fund facilities availed, outstanding at the year end
amounting to Rs. 79.69 Crores. The estimated unpaid interest on the
above loans amounts to Rs. 15.77 Crores.
10. According to the information and explanations given to us the
Company has given guarantee for loans taken by one Associate company
from Bank. According to the information & explanation given to us, we
are of the opinion that the terms & conditions thereof are not prima
facie prejudicial to the interest of the company.
11. The company has not raised any term loans.
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Bansal, Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
ANAND DROLIA
Partner
Mumbai, 30th May, 2015 Membership No. 036718
Mar 31, 2014
We have audited the accompanying financial statements of Bil Energy
Systems Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2014, the Statement of profit and Loss and Cash Flow
Statement for the year 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 Principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of general circular
15/2013 dated September 13th, 2013 of the Ministry of Corporate
Affairs). 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 misstatements.
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 judgement, 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 suffcient and
appropriate to provide a basis for our qualified audit opinion.
Basis for qualified Opinion
1) With regard to pending confirmation of balances
The company has sent letters to customers in respect of trade
receivables for confirming balances outstanding as at 31st March, 2014,
but in most of the cases the customers have not sent written
confirmation confirming the balance outstanding as at 31st March, 2014.
In the absence of confirmation any provision to be made for adverse
variation in the carrying amounts of trade receivables is not
quantifed.
2) Regarding non provision of demand of Rs.178.80 Crores received from
State Bank of India in respect of Corporate Guarantee given by the
company in respect of Loan Facilities availed by Bilpower Limited.
The lender Bank of Bilpower Limited has pursuant to certain corporate
guarantees given by the company demanded from the company their dues
from Bilpower Limited amounting to Rs. 178.80 crores. No provision has
been made in the accounts for the probable loss that may arise on
account of above demand of Rs.178.80 crores.
qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matters
described in the Basis for qualified Opinion Paragraph, 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of profit and Loss , of the Loss 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
Section 227(4A) of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
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) Except for the effects of the matters described in the Basis for
qualified Opinion Paragraph, 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 Section 211(3C) of the
Companies Act, 1956; (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of general circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs)
e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from being
appointed as a director in terms of clause of Section 274(1)(g) 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. In respect of fixed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, fixed assets have been physically verifed by the
management at reasonable intervals. However such physical report has
not been made available to us during the course of our audit. It is
explained that no material discrepancy has been reportedly noticed on
such verifcation.
(c) There was no substantial disposal of fixed assets during the year
2. In respect of inventories:
(a) As explained to us that inventory has been physically verifed
during the year by the management. However such physical verifcation
report has not been made available to us during the course of our
audit. Hence we are unable to comment on the reasonableness of
frequency and procedure of the verifcation of inventory. However,
inventories have also been audited by independent auditors appointed by
lending banks and also by bank offcials from time to time and no
adverse opinion has been given by the said auditors and offcials.
(b) The Company has maintained proper book records of inventory.
Packing and sample material and stores and spares purchased are written
off as expenses in the year of purchase.
3. (a) The Company has granted interest free unsecured loans, to two
parties listed in the register maintained under Section 301 of the
Companies Act, 1956.
The maximum amount involved during the year and the year end balance of
such loans aggregate to Rs. 1,96,49,564/- and Rs. 58,72,437.15
respectively.
(b) Except for the fact that these loans are interest free, in our
opinion and according to the information and explanations given to us,
the other terms and conditions of loans given are not prima facie
prejudicial to the interest of the Company.
(c) The principal amount is repayable over a period of two years.
(d) In respect of the aforesaid loans, there is no overdue amount.
(e) The Company has taken interest free loans from four parties listed
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year and the year end
balance of such loans aggregate to Rs. 6,52,02,500/- and Rs. Nil
respectively.
(f) The said loans are interest free loans. The other terms and
conditions of loans taken are not prima facie prejudicial to the
interest of the Company.
(g) No stipulations for repayment have been prescribed and as such no
comments regarding regularity of payments are being made.
4. In our opinion, and according to the Information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for sale of goods, keeping in
view the close supervision and authorization by the directors. During
the course of our audit, we have not observed any major weaknesses in
internal control system
5. In respect of contractor arrangements referred to in section 301 of
the Companies Act, 1956
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts
/arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
respect of the each party during the year have been made at prices
which are reasonable having regards to the prevailing market price at
the relevant time
6. As explained to us, during the year under reference the Company has
not accepted any Deposits from the Public within the meaning of
Provisions of Section 58A and 58AA of the Companies Act, 1956 and the
rules framed thereunder. Therefore, the provision of clause (vi) of the
Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the company
7. As explained to us, the Company has an internal audit system
commensurate with the size and nature of its business, however, report
of such internal audit has not been made available to us.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 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.
9. a) Undisputed Statutory dues in respect of Service tax, Sales tax,
Profession tax, Ta x deducted at source and Wealth Tax have not been
regularly deposited with the appropriate authorities. Undisputed
statutory dues in respect of Provident fund, Customs, Excise Duty, Cess
as applicable have generally been regularly deposited with the
appropriate authorities barring few months. b) According to the
information and explanations given to us :
(i) No amounts were outstanding as at year end on account of undisputed
amounts payable in respect of investor education and protection fund,
customs duty, excise duty and cess, service tax, tax deducted at source
for a period of more than 6 months from the date they became payable.
BILPOWE
(ii) Undisputed amounts payable in respect of Sales Tax of Rs.
1,66,72,253/- (relating to Financial year 2011-12 Rs. 29,01,565/-,
relating to financial year 2012-13 Rs. 93,78,242/-& related to financial
year 2013-14 Rs. 43,92,446/-), Interest on Sales Ta x of Rs.
28,67,080/-(relating to Financial year 2010-11 Rs. 3,87,364/-, relating
to financial year 2011-12 Rs. 10,29,906/-, relating to financial year
2012-13 Rs. 12,61,276/- & relating to financial year 2013-14 Rs.
1,88,534/-), Profession Ta x Rs. 57,225/- (relating to financial year
2013-14) were outstanding for a period of more than six months from the
date they became payable. The due dates for these amounts are as per
the respective statutes.
(iii) The disputed statutory dues aggregating to Rs. 1545.11 Lacs that
have not been deposited, on account of matters pending before
appropriate authorities are as under :-
Sr Period for which the
No Name of the Statute Nature of dues amount relates
F.Y. 2010-11, 2011-12,
1 Central Excise Act Excise Duty 2012-13 & 2013-14
Name of the Statute Forum where dispute Amt (Rs. in Lacs)
is pending
Central Excise Act office of Commissioner
of Central Excise, 1545.11
Thane-I
10. Based on our audit procedures and according to the information and
explanation given to us by the management, the company has defaulted in
repayment of loans and interest to bank.
The company has defaulted in repayment of dues including interest and
principal to State Bank of India, on its various fund factilities
availed, outstanding at the year end amounting to Rs. 79.69 Crores
(Previous Year Rs. Nil ). The unpaid interest provided for in the books
of accounts on the said loans amounts to Rs. 5.31 Crores (Previous Year Rs.
0.28 Crores due on 28/02/2013). Entire loans have been recalled by
State Bank Of India during the financial year 2013-2014.
11. According to the information and explanations given to us, no
loans & Advances have been granted by the company on the basis of the
securities by way of pledge of shares, debentures and other securities.
12. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
fund / society. Therefore, the provision of clause (xiii) of paragraph
4 of the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures and other investments. Hence the requirement of clause (xiv)
of paragraph 4 of the order is not applicable to the company.
14. According to the information and explanations given to us the
Company has given guarantee for loans taken by one Associate company
from Bank. According to the information & explanation given to us, we
are of the opinion that the terms & conditions thereof are not prima
facie prejudicial to the interest of the company.
15. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
16. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
17. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
18. The Company has not raised any money by public issue during the
year.
19. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Other clauses of the aforesaid order are not applicable to the Company
and hence our remarks on them are not required to be made.
For Bansal Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
Anand Drolia
Mumbai, 28th May, 2014 Partner
Annual Report 2010-11 Membership No: 036718
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Bil Energy
Systems Limited ("the Company"), which comprise the Balance Sheet as at
March 31st, 2013, the Statement of Proft and Loss and Cash Flow
Statement for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows of the Company in accordance with
the Accounting Principles generally accepted in India including
Accounting Standards referred to in Section 211(3C) 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 fnancial 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 fnancial
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 fnancial statements are free
from material misstatements.
BILPOWER LIMITED
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our qualifed audit opinion.
Basis for Qualifed Opinion
1) With regard to pending confrmation of balances The company has sent
letters to customers in respect of trade receivables for confrming
balances outstanding as at March 31st, 2013, but in most of the cases
the customers have not sent written confrmation confrming the balance
outstanding as at March 31st, 2013. In the absence of confrmation any
provision to be made for adverse variation in the carrying amounts of
trade receivables is not quantifed.
2) Recognition of Deferred Tax Credit in contravention of Accounting
Standard 22 on ''Accounting for Taxes on Income'' The company has
recognised Deferred Ta x Asset on account of unabsorbed losses and
allowances during the year aggregating to Rs. 46372574.75 (For year ended
March 31st, 2012 Â NIL)( Total amount recognised upto March 31st,2013 Rs.
46372574.75). This does not satisfy the virtual certainty test for
recognition of deferred tax credit as laid down in Accounting Standard
22
Qualifed Opinion Annual Report 2010-11
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matters
described in the Basis for Qualifed Opinion Paragraph, the aforesaid
fnancial 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2013;
b) in the case of the Proft and Loss Account, of the Loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash fows 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
("theOrder") issued by the Central Government of India in terms of
Section 227(4A) of the Act, we give in the Annexure a statement on the
matters specifed 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 Proft and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) Except for the effects of the matters described in the Basis for
Qualifed Opinion Paragraph, in our opinion, the Balance Sheet, the
Statement of Proft and Loss, and the Cash Flow Statement comply with
the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31st, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifed as on March 31st, 2013, from being
appointed as a director in terms of clause of Section 274(1)g of the
Companies Act, 1956.
f) Since the Central Government has not issued any notifcation 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 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. In respect of fxed assets:
(a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fxed assets.
(b) As explained to us, fxed assets have been physically verifed by the
management at reasonable intervals. However such physical report has
not been made available to us during the course of our audit. It is
explained that no material discrepancy has been reportedly noticed on
such verifcation.
(c) There was no substantial disposal of fxed assets during the year.
2. In respect of inventories:
(a) As explained to us that inventory has been physically verifed
during the year by the management. However such physical verifcation
report has not been made available to us during the course of our
audit. Hence we are unable to comment on the reasonableness of
frequency and procedure of the verifcation of inventory. However,
inventories have also been audited by independent auditors appointed by
lending banks and also by bank offcials from time to time and no
adverse opinion has been given by the said auditors and offcials.
(b) The Company has maintained proper book records of inventory.
Packing and sample material and stores and spares purchased are written
off as expenses in the year of purchase.
3. (a) The Company has granted interest free unsecured loans, to one
party listed in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year and
the year end balance of such loans aggregate to Rs. 13700000/- and Rs.
13700000/- respectively.
(b) Except for the fact that these loans are interest free, in our
opinion and according to the information and explanations given to us,
the other terms and conditions of loans given are not prima facie
prejudicial to the interest of the Company.
(c) The principal amount is repayable over a period of two years.
(d) In respect of the aforesaid loans, there is no overdue amount.
(e) The Company has taken interest free loans from four parties listed
in the register maintained under Section 301 of the Companies Act,
1956. The maximum
BILPOWER LIM amount involved during the year and the year end balance
of such loans aggregate to Rs. 25452500/- and Rs. 22352500/-.
(f) The said loans are interest free loans. The other terms and
conditions of loans taken are not prima facie prejudicial to the
interest of the Company.
(g) No stipulations for repayment have been prescribed and as such no
comments regarding regularity of payments are being made.
4. In our opinion, and according to the Information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fxed assets and for sale of goods, keeping in
view the close supervision and authorization by the directors. During
the course of our audit, we have not observed any major weaknesses in
internal control system.
5. In respect of contractor arrangements referred to in section 301 of
the Companies Act, 1956
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts
/arrangements entered in the Register maintained under section 301 of
the Companies Act 1956 and exceeding the value of Rupees Five Lacs in
respect of the each party during the year have been made at prices
which are reasonable having regards to the prevailing market price at
the relevant time.
6. As explained to us, during the year under reference the Company has
not accepted any Deposits from the Public within the meaning of
Provisions of Section 58A and 58AA of the Act and the rules framed
thereunder. Therefore, the provision of clause (vi) of the Companies
(Auditor''s Report) Order, 2003 (as amended) are not applicable to the
company
7. As explained to us, the Company has an internal audit system
commensurate with the size and nature of its business, however, report
of such internal audit has not been made available to us.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 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.
9. a) Undisputed Statutory dues in respect of Service tax, Sales tax,
Profession tax, Ta x deducted at source and Wealth Tax have not been
regularly deposited with the appropriate authorities. Undisputed
statutory dues in respect of Provident fund, Customs, Excise Duty, Cess
as applicable have generally been regularly deposited with the
appropriate authorities barring few months. b) According to the
information and explanations given to us:
(i) No amounts were outstanding as at year end on account of undisputed
amounts payable in respect of investor education and protection fund,
customs duty, excise duty and cess, service tax, tax deducted at source
for a period of more than 6 months from the date they became payable.
(ii) Undisputed amounts payable in respect of Sales Tax of Rs. 6304891/-
(relating to Financial year 2011-12 Â Rs. 2901565/- & relating to
fnancial year 2012-13 Â Rs. 3403326/-), Interest on Sales Tax of Rs.
1417270/- (relating to Financial year 2010-11 Â Rs. 387364/- & relating
to fnancial year 2011-12 Â Rs.1029906/-), Profession Tax Rs. 22450/-
(relating to fnancial year 2012-13) and Service Tax of Rs.104094/-
(relating to fnancial year 2012-13) were outstanding for a period of
more than six months from the date they became payable. The due dates
for these amounts are as per the respective statutes.
10. Based on our audit procedures and according to the information and
explanation given to us by the management, the company has defaulted in
payment of interest to bank. Delays were noticed in payment of interest
and principal on several occasions during the year. Estimated unpaid
overdues to bank as at March 31st,2013 are as per details given below:
11. According to the information and explanations given to us, no loans
& Advances have been granted by the company on the basis of the
securities by way of pledge of shares, debentures and other securities.
12. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual beneft
fund / society. Therefore, the provision of clause (xiii) of paragraph
4 of the Companies (Auditor''s Report) Order, 2003 (as amended) are not
applicable to the Company.
13. The company is not dealing or trading in shares, securities,
debentures and other investments. Hence the requirement of clause (xiv)
of paragraph 4 of the order is not applicable to the company.
14. According to the information and explanations given to us the
Company has given guarantee for loans taken by one Associate company
from Bank. According to the information & explanation given to us, we
are of the opinion that the terms & conditions thereof are not prima
facie prejudicial to the interest of the company.
15. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
16. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
17. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
18. The Company has not raised any money by public issue during the
year.
19. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
Other clauses of the aforesaid order are not applicable to the Company
and hence our remarks on them are not required to be made.
For Bansal Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
(Anand Drolia)
Partner
Mumbai, 29th May, 2013 Membership No. 036718
Mar 31, 2012
1. We have audited the attached Balance Sheet of BIL ENERGY SYSTEMS
LIMITED as at 3Ist March 20I2, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended), issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, I956, we enclose in the Annexure, a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) Save and except cases mentioned in the Statement of matters as per
clause 3 above and Note No. 14.2 and 41, 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 Accounts as required by law have
been kept by the Company so far as appears from our examination of
these books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, the Profit & Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 2II (3C) of the
Companies Act, I956;
e) On the basis of written representations received from the Directors
as on 3Ist March 20I2 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 3Ist March,
20I2 from being appointed as director in terms of clause (g) of sub
Section (I) of section 274 of the Companies Act, I956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said financial statements read with
the notes thereon give the Information required by the Companies Act,
I956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
1) In the case of Balance Sheet, of the State of Affairs of the Company
as at 31st March, 2012;
2) In the case of Profit and Loss Account, of the Loss of the Company
for the year ended on that date; and.
3) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
As required by the Companies (Auditor's Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, I956, we further report that -
1) In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situations of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals. However, such physical verification report has
not been made available to us during the course of our audit. No
material discrepancy has been reportedly noticed on such verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
(a) It is explained to us that the inventory has been physically
verified during the year by the management. However, such physical
verification report has not been made available to us during the course
of our audit. Hence we are unable to comment on the reasonableness of
frequency and procedure of the verification of inventory. However,
inventories have also been audited by independent auditors appointed by
lending banks and also by bank officials from time to time and no
adverse opinion has been given by said auditors and officials.
(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 has maintained proper records of Inventory and the
discrepancies noticed on such verifications between the physical
inventory and book records were not material. Packing & sample material
and stores & spares purchased are written off as expenses in the year
of purchase.
3. (a) The Company has granted interest free unsecured loans and
advances to one party covered in the register maintained under section
30I of the Act. The maximum amount involved during the year and the
yearend balance of such loans aggregate to Rs.137.00 Lacs and Rs.137.00
Lacs respectively.
(b) Except for the fact that these loans and advances are interest
free, in our opinion and according to the information and explanations
given to us, the other terms and conditions of loans given are not
prima facie prejudicial to the interest of the Company.
(c ) The principle amount is repayable over the period of two to three
years.
(d) In respect of the aforesaid loans, there is no overdue amount.
(e) The Company has taken interest free unsecured loans and advances
from one party covered in the register maintained under section 301 of
the Act. The maximum amount involved during the year and the year end
balance of such loans aggregate to Rs.148.50 Lacs and Rs.148.50 Lacs
respectively.
(f) The said loans are interest free loans. Other terms and conditions
on which the loans have been taken are prima facie, not prejudicial to
the interest of the Company.
(g) According to information provided to us, there is no default in
repayment of said loans.
4) In our opinion, and according to the Information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for sale of goods, keeping
in view the close supervision and authorization by the directors.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
5) In respect of the contract or arrangements referred to in section
301 of the Companies Act 1956.
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements that need to be entered in the register maintained under
section 30I of the Companies Act 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts
/arrangements entered in the Registered maintained under section 30I of
the Companies Act I956 and exceeding the value of Rupees Five Lacs in
respect of the each party during the year have been made at prices
which are reasonable having regards to the prevailing market price at
the relevant time.
6) As explained to us, during the year under reference the Company has
not accepted any Deposits from the Public within the meaning of
Provisions of Section 58A and 58AA of the Act and the rules framed
there under. Therefore, the provision of clause (vi) of the Companies
(Auditor's Report) Order, 2003 (as amended) are not applicable to the
company.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business, however, report
of such internal audit has not been made available to us.
8) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209 (I) (d) of the
Companies Act, 1956 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.
9) (a) The Company is generally regular in depositing Provident Fund
dues with appropriate Authorities.
(b) According to the records of the Company, undisputed material
statutory dues including, Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income - Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities, except some delays in payment of Sales Tax,
Service Tax, Professional Tax and TDS. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the aforesaid dues were outstanding as at 31st March 2012 for a
period of more than six months from the date of becoming payable except
Rs.3763304/ - towards MVAT.
10) Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the company has not
defaulted in the repayment of dues to financial institutions and banks.
11) According to the information and explanations given to us, no loans
& Advances have been granted by the company on the basis of the
securities by way of pledge of shares, debentures and other securities.
12) In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
fund / society. Therefore, the provision of clause (xiii) of paragraph
4 of the Companies (Auditor's Report) Order, 2003 (as amended) are
not applicable to the Company.
13) The company is not dealing or trading in shares, securities,
debentures, and other investments. Hence the requirement of clause
(xiv) of paragraph 4 of the order is not applicable to the company.
14) According to the information and explanation given to us the
Company has not given any guarantee for loans taken by others from
banks and other financial institutions.
15) Based on information and explanation given to us by the management,
term loans were applied for the purpose for which the loans were
obtained.
16) According to the information and explanation given to us and an
overall Examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized any amount from short term
sources towards long term investments.
17) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
18) The Company has not raised any money by public issue during the
year. Therefore, the provisions of clause 4 (xx) of the Companies
(Auditor's Report) Order 2003 (as amended) are not applicable to the
Company.
19) As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the course of our audit.
Other Clauses of the aforesaid order are not applicable to the Company
and hence our remarks on them are not required to be made.
For Bansal, Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
(Anand Drolia)
Partner
Mumbai, 14th August, 2012 Membership No. 036718
Mar 31, 2011
1. We have audited the attached Balance Sheet of BIL ENERGY SYSTEMS
LIMITED as at 31st March 2011, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (as
amended), issued by the Central Government 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. Further to our comments in the Annexure referred to in 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 purpose of our
audit;
b) 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
these books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, the Profit & Loss Account and
Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
e) 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 director in terms of clause (g) of sub
Section (1) of Section 274 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 financial statements read with
the 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 the accounting principles generally accepted in India:
1) In the case of Balance Sheet, of the State of Affairs of the Company
as at 31st March, 2011;
2) In the case of Profit and Loss Account, of the Profit of the Company
for the year ended on that date; and.
3) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
As required by the Companies (Auditor's Report) Order, 2003 (as
amended), issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we further report that Ã
1) In respect of its fixed assets:
(a) The Company is maintaining proper records showing full particulars
including quantitative details and situations of fixed assets.
(b) These fixed assets have been physically verified by the management
at reasonable intervals. No material discrepancy has been reportedly
noticed on such verification.
(c) In our opinion, the Company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
(a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of the verification is
reasonable.
(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 has maintained proper records of Inventory and the
discrepancies noticed on such verifications between the physical
inventory and book records were not material. Packing & sample material
and stores & spares purchased are written off as expenses in the year
of purchase.
3. (a) The Company has taken unsecured loans and advances from one
party covered in the register maintained under Section 301 of the Act.
The maximum amount involved during the year and the year end balance of
this loans amount to Rs. 4078.81 Lacs and Rs. 199.52 Lacs respectively.
(b) In our opinion, the rate of interest and other terms and Conditions
of loans taken are not prima facie prejudicial to the interest of the
Company.
(c) In respect of loans given, the parties are repaying the principal
amounts, where applicable and are also regular in payment of interest,
as and where stipulated.
(d) In respect of the aforesaid loans, there is no overdue amount of
more than Rupees one Lac.
4) In our opinion, and according to the Information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for sale of goods, keeping
in view the close supervision and authorization by the directors.
During the course of our audit, we have not observed any major
weaknesses in internal control system.
5) In respect of the contract or arrangements referred to in Section
301 of the Companies Act, 1956.
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of the contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us , the transactions made in pursuance of the contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in
respect of the each party during the year have been made at prices
which are reasonable having regards to the prevailing market price at
the relevant time.
6) As explained to us, during the year under reference the Company has
not accepted any Deposits from the Public within the meaning of
Provisions of Section 58A and 58AA of the Act and the rules framed
there under. Therefore, the provision of clause (vi) of the Companies
(Auditor's Report) Order, 2003 (as amended) are not applicable to the
Company.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) As explained to us by the Management, the Company is not required to
maintain the cost records under Section 209 (1) (d) of the Act.
9) (a) The Company is generally regular in depositing Provident Fund
dues with appropriate Authorities.
(b) According to the records of the Company, undisputed material
statutory dues including, Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income à Tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities, except some delays in payment of Sales Tax,
Service Tax and TDS. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March 2011 for a period of more than
six months from the date of becoming payable.
10) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year there was cash loss of Rs. 2.07 lacs after considering
Miscellaneous Expenditure amounting to Rs. 1.99 Lacs.
11) Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in the repayment of dues to financial institutions and banks.
12) According to the information and explanations given to us, no loans
& Advances have been granted by the Company on the basis of the
securities 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 Company is not a chit fund or a nidhi / mutual benefit
fund / society. Therefore, the provision of clause (xiii) of paragraph
4 of the Companies (Auditor's Report) Order, 2003 (as amended) are not
applicable to the Company.
14 The Company is not dealing or trading in shares, securities,
debentures, and other investments. Hence the requirement of clause
(xiv) of paragraph 4 of the order is not applicable to the Company.
15) According to the information and explanation given to us the
Company has not given any guarantee for loans taken by others from
banks and other financial institutions.
16) Based on information and explanation given to us by the management,
term loans were applied for the purpose for which the loans were
obtained.
17) According to the information and explanation given to us and an
overall Examination of the Balance Sheet of the Company, we are of the
opinion that the Company has not utilized any amount from short term
sources towards 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 Act.
19) The Company has not raised any money by public issue during the
year. Therefore, the provisions of clause 4 (xx) of the Companies
(Auditor's Report) Order 2003 (as amended) are not applicable to the
Company.
20) As per the information and explanations given to us and on the
basis of examination of records, no fraud on or by the Company has been
noticed or reported during the course of our audit.
Other Clauses of the aforesaid order are not applicable to the Company
and hence our remarks on them are not required to be made.
For Bansal, Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
(Anand Drolia)
Partner
Membership No. 036718
Mumbai, 16th July , 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of BIL ENERGY SYSTEMS
LIMITED as at 31st March 2010 and also the annexed Profit & Loss
Account of the Company for the period 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 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. We report that:
a. We have obtained all the information and explanations which to be
the best of our knowledge and belief were necessary for the purpose of
our Audit.
b. In our opinion, the company has kept proper Books of Account as
required by Law so far as appears from our examination of these Books.
c. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the Books of Accounts.
d. In our opinion, the Balance Sheet and the Profit & Loss Account
dealt with by this report are in compliance with the Accounting
Standards (AS) referred to in Section 211 (3C) of the Companies Act,
1956.
e. 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 Director in terms of Section 274(I)(g) 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 read with the 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 the
accounting principles generally accepted in India.
1. In the case of Balance Sheet of the State of Affairs of the Company
as at Ã31st March 2010 and
2. In the case of Profit and Loss Account, of the Loss of the Company
for the period ended on that date.
For Bansal, Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
(Manoj Agrawal)
Partner
Mumbai, 18th May, 2010 Membership No. 107624