Mar 31, 2015
We have audited the accompanying standalone financial statements of
HEMANG RESOURCES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, Implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on internal control on financial statements.
An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made
by the Company's Directors, as well as evaluating the overall
presentation of the financial statements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit 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"
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 it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements  Refer Note 2.7(b) to
2.7(i) & 2.11 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 has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure A" to the Auditor's Report as referred in paragraph first of
our report of even date to the members of Hemang Resources Limited for
the year ended 31st March 2015
As required by the Companies (Auditor's Report) Order issued by the
Central Government in the terms of Section 143(11) of the Companies
Act, 2013, we further report that:-
(1) Fixed Assets:-
(a) As informed to us, the company is maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets.
(b) As per information and explanation given to us these fixed assets
have been physically verified by the management at reasonable intervals
no material discrepancies were observed.
(2) Inventories: -
(a) As explained to us, physical verification of Inventories has been
conducted at reasonable interval by the management.
(b) In our opinion and according to the information and explanation
given to us, procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and no material discrepancies have been noticed on such
physical verification by the management.
(3) Loan Granted:-
(a) According to the information and explanation given to us, the
Company has granted unsecured loans to parties covered under section
189 of the Act. The number of parties and amount involved in the
transactions are as under:
(Amount in R)
Maximum balance Balance as on
S.
No. Name of Parties during the year 31/03/2015
1. Bhatia Global
Trading Limited 21,32,00,000/- NIL
(b) The rate of interest and other terms and conditions of such loan
are not prima facie prejudicial to the interest of the company.
(c) As per the terms of the agreement provided to us the receipt of
principal and interest are as per the terms of the agreement.
(d) As explained & informed to us, no amount is overdue as at the end
of the year.
(4) Internal Control Procedure: -
In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the Company and the nature of its business, for the
purchase of inventory and other assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct major weakness in the
internal control system of the company in respect of these areas.
(5) Public Deposit: -
In our opinion and according to the information and explanation given
to us, the company has neither accepted nor invited any deposit from
public within the provision of Section 73 to 76 of Companies Act, 2013
and rules made there under.
(6) Cost Record: -
As informed to us, the Central Government has not prescribed the
maintenance of cost record under Section 148(1) of the Companies Act,
2013.
(7) Statutory Dues: -
(a) According to the information and explanation given to us, the
Company has been generally regular in depositing undisputed dues
relating to Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Duties of Customs, Duties of
Excise, Value Added Tax, Cess and other material statutory dues
applicable to it with appropriate authorities. Following are undisputed
statutory dues payable which are outstanding as at 31-03-2015 for a
period of more than 6 months from the date they become payable.
(Amount in R)
Name of the Statute Nature of Amount Period to which
Dues the amount
relates
Employee's Provident Employee's and 8984 July 2014
Fund & miscellaneous Employers'
Provisions Act, 1952 Contribution to
PF
Employee's Provident Employee's and 8984 August 2014
Fund & miscellaneous Employers'
Provisions Act, 1952 Contribution to
PF
Name of the Statute Due Date Date of
Employee's Provident 20th August Not Paid
Fund & miscellaneous 2014
Provisions Act, 1952
Employee's Provident 20th September Not Paid
Fund & miscellaneous 2014
Provisions Act, 1952
(b) As informed and explained to us, there are dues of Income Tax,
Commercial Tax and other material statutory dues which have not been
deposited on accounts of dispute, which are detailed as below:-
(Amount in R)
Amount Financial Year to
Statue Forum where Dispute is involved which the amount
pending relates
Income Tax Act CIT (Appeals) 110,000/- 1995-96
Stamp Duty Act High Court 10,62,000/- 2004-05
Commercial Tax Joint Commissioner 36,67,832/- 2006-07
(Surat)
Sales Tax Deputy Commissioner 38,340/- 2007-08
(Maharashtra)
Custom Duty Commissioner
(Appeals) 2,35,04,116/- 2012-13
Maharashtra Vat Deputy
Commissioner 52,71,446/- 2010-11
As informed to us
the order was
received at the
end of the
Custom Duty
year, the Company
is in 81,91,647/- 2013-14
process of filing
of appeal with
CESTAT.
(c) As per the information and explanations given to us there is no
amount that is required to be transferred to Investor Education and
Protection Fund in accordance with relevant provisions of Companies
Act, 1956 (1 of 1956) and rules made hereunder.
(8) Accumulated Cash Losses: -
The Company has no accumulated losses at the end of the reporting
period. Further, the Company has not incurred any cash losses during
the period covered by the report and immediately preceding the
financial year.
(9) Default in repayment of dues to Financial Institutions, Banks or
debenture holders: -
According to information and explanation given to us, the company has
delayed in repayment of dues of Letter of Credit and Buyers' Line of
Credit to various Banks. The details of the delay are given as under:
(Amount in R)
Actual Date
S.
No. Party Amount Due Date of payment Delay in Days
1 Bank Of India 116545450 10-Feb-14 12-May-14 91
2 Bank Of India 43584065 15-Feb-14 16-May-14 90
3 Bank Of India 13178225 19-Feb-14 17-May-14 87
4 Bank Of India 112087031 26-Aug-14 09-Sep-14 14
5 Central Bank 55680174 23-Apr-14 01-May-14 8
of India
6 Central Bank 113445040 23-May-14 26-Jun-14 34
of India
7 Central Bank 42772411 23-May-14 03-Jul-14 6
of India
8 Central Bank 84944926 03-Oct-14 09-Oct-14 6
of India
(10) Guarantee given by the Company for Loan taken by others: -
As informed and explained to us, the company has given corporate
guarantee on behalf of group Company. In absence of terms, conditions
and interest for continuance of such guarantee by the company, we are
unable to comment on its effect on the interest of the company. The
name of the receiving party, nature of guarantee and amount involved
therein are detailed as below:
S.
No. Name of the
company Type of Guarantee Name of Bank / Amount
Party (In Rupees)
1 Bhatia Global
Trading Corporate Guarantee Union Bank of 181,66,00,000/-
Limited. for credit facility India
(11) Utilization of Terms Loans: -
According to information and explanation given to us, no term loan has
been obtained by the company either in current financial year or in
preceding financial years; hence the clause is not applicable.
(12) Fraud Noticed or Recorded: -
To the best of our knowledge and belief and according to the
information& explanation given to us, no fraud on or by the Company was
noticed or recorded during the period.
FOR: R.S. BANSAL & COMPANY
CHARTERED ACCOUNTANTS
FRN 000939C
Sd/-
(VIJAY BANSAL)
(PARTNER)
M.No. 075344
Date: 28th May 2015
Place: Indore
Mar 31, 2014
We have audited the accompanying financial statements of Bhatia
Industries and Infrastructure Limited ("the company), Registered
Address BCC House,8/5, Manoramaganj, NavratanBagh Main Road, Indore
(Madhya Pradesh), which comprise the Balance Sheet as at 31 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,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("The Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. 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, butnot 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2014;
(b) In the case of the 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.
Emphasis of Matter
We draw attention to Note 2.14 to the financial statements regarding
non confirmation of balance from sundry debtors and debtor of Rs.
6,902,634/- On which legal proceedings for recovery have been initiated
by the company. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) 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) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
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 the Auditor''s Report as referred in paragraph first of our
report of even date to the members of Bhatia Industries &
Infrastructure Limited for the year ended 31stMarch 2014.
As required by the Companies (Auditor''s Report) Order issued by the
Central Government in the terms of Section 227 (4A) of the Companies
Act, 1956, we further report that:- (1) Fixed Assets: - As informed to
us, the company does not have any fixed asset; hence this clause is not
applicable.
(a) As informed to us, the company does not have any fixed asset; hence
this clause is not applicable.
(b) In view of Paragraph (a)above, this clause is not applicable.
(c) In view of Paragraph (a) above, this clause is not applicable.
(2) Inventories: -
(a) As explained to us, physical verification of Inventories has been
conducted at reasonable interval by the management.
(b) In our opinion and according to the information and explanation
given to us, procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories andno material discrepancies have been noticed on such
physical verification by the management.
(3) Loan Granted: -
(a) According to the information and explanation given to us, the
Company has granted unsecured loans to parties covered under section
301 of the Act.
The Number of parties and amount involved in the transactions are as
under:- (Amount in Rs.)
S.
No. Name of Parties Maximum balance Balance as on
during the year 31/03/2014
1. Bhatia Global Trading
Limited 242,293,581/- NIL
(b) The rate of interest and other terms and conditions of such loan
are not prima facie prejudicial to the interest of the company.
(c) As per the terms of the agreement provided to us the receipt of
principal and interest are as per the terms of the agreement.
(d) As explained & informed to us, no amount is overdue as at the end
of the year.
Loan Taken: -
According to the information and explanation given to us, the Company
has not obtained any secured and/or unsecured loan from parties covered
in the register maintained under Section 301 of The Companies Act,
1956; hence this clause is not applicable.
(4) Internal Control Procedure: -
In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the Company and the nature of its business, for the
purchase of inventory and other assets and for the sale of goods and
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct major weakness in the
internal control system of the company in respect of these areas.
(5) Transaction with Parties u/s 301: -
(a) As explained and informed to us, Company has entered all
transaction, which are required to be entered in the register
maintained in pursuant of the section 301 of the Companies Act, 1956.
(b) As per information and explanation and other relevant record
provided before us these transaction have been entered at prevailing
market prices.
(6) Public Deposit: -
In our opinion and according to the information and explanation given
to us, the company has neither accepted nor invited any deposit from
public within the provision of Section 58A, 58AA of Companies Act, 1956
and rules made there under.
(7) Internal Audit System:-
In our opinion & according to the information & explanation given to
us, there is adequate internal audit system commensurate with the size
of the company & the nature of its business.
(8) Cost Record: -
As informed to us, the Central Government has not prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies
Act, 1956
(9) Statutory Dues: -
(a) According to the information and explanation given to us, the
Company has been generally regular in depositing undisputed dues
relating to Provident Fund, Employees'' State Insurance, Investor
Education & Protection Fund, Wealth Tax, Service Tax, Cess and other
material statutory dues applicable to it with appropriate authorities.
During the year there were some delays found in depositing undisputed
dues in respect of Service Tax &Sales Tax from the respective due
dates. There are no undisputed statutory dues payable which are
outstanding as at 31-03-2014 for a period of more than 6 months from
the date they become payable.
(b) As informed and explained to us, there are some dues of Income Tax,
Commercial Tax and other material statutory dues which have not been
deposited on accounts of some dispute, which are detailed as below:-
(Amount in Rs.)
Statute Forum where Dispute
is pending Amount Financial Year to which
the
involved amount relates
Income Tax
Act CIT (Appeals) 110,000/- 1995-96
Income Tax
Act CIT (Appeals) 12,58,354/- 2007-08
Stamp Duty
Act Revenue Board,
Gwalior 1,062,000/- 2004-05
Commercial
Tax(Surat) Joint Commissioner 3,667,832/- 2006-07
Sales Tax
(Maha.) Deputy Commissioner 18,340/- 2007-08
Sales Tax
(Maha.) High Court (Nagpur) 2,218,141/- 2009-10
Custom Duty
(Penalty) Commissioner of
Customs (Jamnagar) 70,000/- 2012-13
Custom Duty Order received at the
end of the year, 22,804,116/- 2012-13
Company is in process
of filing of appeal.
(10) Accumulated Cash Losses: -
The Company has no accumulated losses at the end of the reporting
period. Further, the Company has not incurred any cash losses during
the period covered by the report and immediately preceding the
financial year.
(11) Default in repayment of dues to Financial Institutions or Banks: -
According to information and explanation given to us, the company has
delayed in repayment of dues of Letter of Credit and Buyers'' Line of
Credit to various Banks. The details of the delay are given as under:
(Amount in Rs.)
S.
No. Party Amount Due Date
1 Bank Of India 95007913.00 24-Jan-2014
2 Bank Of India 66755907.00 2-Feb-2014
3 Bank Of India 26830282.00 3-Feb-2014
4 Bank Of India 27198542.00 10-Feb-2014
5 Bank Of India 116545450.00 10-Feb-2014
6 Bank Of India 43584065.00 15-Feb-2014
7 Bank Of India 13178225.00 19-Feb-2014
8 Central Bank of India 35199672.00 1-Nov-2013
9 Central Bank of India 59775707.00 1-Nov-2013
10 Central Bank of India 66884217.00 5-Dec-2013
11 Central Bank of India 66203774.00 12-Dec-2013
Party Actual Date Delay in
Of Payment Days
Bank Of India 4-Feb-2014 11
Bank Of India 12-Feb-2014 10
Bank Of India 13-Feb-2014 10
Bank Of India 26-Mar-2014 44
Bank Of India 12-May-2014 91
Bank Of India 16-May-2014 90
Bank Of India 17-May-2014 87
Central Bank of India 4-Nov-2013 3
Central Bank of India 4-Nov-2013 3
Central Bank of India 23-Dec-2013 18
Central Bank of India 31-Dec-2013 19
(12) Granting of Loans and Advances:-
According to the information & explanation given to us, the company has
not given any Loans & Advance on the basis of security by way of pledge
of shares, debentures and other securities.
(13) Chit Fund/Nidhi/Mutual benefit/Society Activities: -
According to the information & explanation given to us, provisions
relating to any special statute applicable to chit fund are not
applicable to the company.
Company not being Nidhi/Mutual Benefit Fund/Society hence this clause
is not applicable.
(14) Dealing or Trading in Shares: -
Company is not dealing or trading in investments but purchased
investments with a view to hold such investments to earn income from
dividend or interest thereon;hence this clause is not applicable.
(15) Guarantee given by the Company for Loan taken by others:-
As informed and explained to us, the company has not given any
guarantees for loans taken by others from banks or financial
institutions; hence this clause is not applicable to the company.
(16) Utilization of Terms Loans: -
According to information and explanation given to us, no term loan has
been obtained by the company either in current financial year or in
preceding financial years; hence the clause is not applicable.
(17) Application for short terms fund utilized for long terms
investment: -
According to the information and explanation given to us and books and
records examined by us during the course of audit of the company, we
report that no fund has been raised on short term basis have been used
for long term investment by the company.
(18) Preferential Allotment of Shares: -
We are informed that, the company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of Act, during the year.
(19) Creation of Securities for Debentures issue: -
According to the information and explanation given to us and the record
examined by us, the company has not issued any debentures; hence this
clause is not applicable to the company.
(20) Money raised by Public Issue: -
The Company has not raised any money by public issue of shares during
the period.
(21) Fraud Noticed or Recorded: -
To the best of our knowledge and belief according to the information&
explanation given to us, no fraud on or by the Company was noticed or
recorded during the period.
For: R. S. Bansal & Company
Chartered Accountants
Firm Regi. No. : 000939C
Sd/-
Vijay Bansal
Partner
Membership No. : 075344
Place: Indore
Date : 22nd May, 2014
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of Bhatia
Industries and Infrastructure Limited Registered Address BCC House,
8/5, Manoramaganj, Navratan Bagh Main Road, Indorc (Madhya Pradesh),
which comprise the Balance Sheet as at 31 March, 2013, and the
Statement of Profit and Loss and Cash Flow Statement for the year ended
31 March, 2013 and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial
performance and cash flows of the Company in accordance with the
Accounting Standards referred to In Sub-Seclion(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 mat give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the 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. Report on Other Legal and Regulatory
Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Sub-
Section(4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) 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 ofProfit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement ofProfit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2013, from being
appointed as a director in terms of clause (g) of Sub- Section(l) of
Section 274 of the Companies Act, 1956.
As required by the Companies (Auditor''s Report) Order issued by the
Central Government in the terms of Section 227 (4A) of the Companies
Act, 1956, we further reportthat:-
(1) Fixed Assets: -As informed to us, the company does not have any
fixed asset; hence this clause is not applicable.
(2) Inventories: -
(a) As explained to us, physical verification of Inventories has been
conducted at reasonable interval by the management.
(b) In our opinion and according to the information and explanation
given to us, procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and it is informed to us that stock of 3599 Metric Tonne of
coal lying at one of the branch has become obsolete and same has been
properly dealt with in books of accounts.
(3) Loan Granted: -
(a) According to the information and explanation given to us, the
Company has granted unsecured loans to parties covered in register
maintained under Section 301 of the Act.
The Number of parties and amount involved in the transactions are
detailed as below:-
(Amount in i)
S.
No Name of Parties Maximum
balance Balance as on
during
the year 31/03/2013
1. Asian Natural
Resources (India)
Limited 345,067,229 Nil
2. Bhatia Global
Trading Limited 257,300,000 36,311,449
(b) The rate of interest and other terms and conditions of such loan
are not prima facie prejudicial to the interest of the company.
(c) As per the terms of the agreement provided to us the receipt of
principal and interest are as per the terms of the agreement.
(d) As explained & informed to us, no amount is overdue as at the end
of the year.
Loan Taken:-
According to the information and explanation given to us, the Company
has not obtained any secured and/or unsecured loan from parties covered
in the register maintained under Section 301 of the Companies Act,
1956; hence this clause is not applicable.
(4) Internal Control Procedure: - In our opinion and according to the
information and explanations given to us, there is an adequate internal
control system commensurate with the size of the Company and the nature
of its business, for the purchase of inventory and other assets and for
the sale of goods and services. During the course of our audit, we have
not observed any major weakness or continuing failure to correct major
weakness in the internal control system of the company in respect of
these areas.
(5) Transaction with Parties u/s 301: -
(a) As explained and informed to us, the Company has entered all
transaction, which are required to be entered in the register
maintained in pursuant to the Section 301 of the Companies Act, 1956.
(b) As per information and explanation and other relevant record
provided before us these transactions have been entered at prevailing
market prices.
(6) Public Deposit: - In our opinion and according to the information
and explanation given to us, the company has neither accepted nor
invited any deposit from public within the provisions of Section 58A,
58AA of Companies Act, 1956 and rules made there under.
(7) Internal Audit System:- In our opinion & according to the
information & explanation given to us, there are adequate internal
control procedures commensurate with the size of the company & the
nature of its business.
(8) Cost Record: - As informed to us, the Central Government has not
prescribed the maintenance of cost record under Section 209 (l)(d) of
the Companies Act, 1956.
(9) Statutory Dues: -
(a) According to the information and explanation given to us, the
Company has been generally regular in depositing undisputed dues
relating to Investor Education & Protection Fund, Wealth Tax, Service
Tax, Cess and other material statutory dues applicable to it with
appropriate authorities. There are no undisputed statutory dues payable
which are outstanding as at 31 -03-2013 for a period of more than 6
months from the date they become payable.
(b) As informed and explained to us, there are some dues of Income Tax,
Commercial Tax and other material statutory dues which have not been
deposited on accounts of some dispute, which are detailed as below:-
(Amount in Rs.)
Statute Forum where
Dispute is pending Amount Financial Year
to which the
involved amount
relates
Income Tax
Act CIT (Appeals) 110000 1995-96
Income Tax Act ITAT 54520 2001-02
Income Tax Act ITAT 108824 2003-04
Stamp Duty Act Revenue Board, Gwalior 1062000 2004-05
CommercialTax Joint Commissioner 3667832 2006-07
Sales Tax Deputy Commissioner 18340 2011-12
(10) Accumulated Cash Losses: - The Company has no accumulated losses.
Further, the Company has not incurred any cash losses during the period
covered by the report and immediately preceding the financial year.
(11) Default in repayment of dues to Financial Institutions or Banks: -
According to information and explanation given to us, the company has
not defaulted in repayment of any dues to any Financial Institution or
Bank or Debenture holders.
(12) Granting of Loans and Advances:- According to the information &
explanation given to us, the company has not given any Loans & Advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(13) Chit Fund/Nidhi/Mutual benefit/Society Activities: -
According to the information & explanation given to us, provisions
relating to any special statute applicable to chit fund are not
applicable to the company.
The Company not being Nidhi/Mutual Benefit Fund/Society hence this
clause is not applicable.
(14) Dealing or Trading in Shares: - The Company is not dealing or
trading in investments but purchased investments with a view to hold
such investments to earn income from dividend or interest thereon;
hence this clause is not applicable.
(15) Guarantee given by the Company for Loan taken by others:- As
informed and explained to us, the company has not given any guarantees
for loans taken by others from banks or financial institutions; hence
this clause is not applicable to the company.
(16) Utilization of Terms Loans: - According to information and
explanation given to us, no term loan has been obtained by the company
either in current financial year or in preceding financial years; hence
the clause is not applicable.
(17) Application for short terms fund utilized for long terms
investment: - According to the information and explanation given to us
and books and records examined by us during the course of audit of the
company, we report that no fund raised on short term basis have been
used for long term investment by the company.
(18) Preferential Allotment of Shares: -We are informed that, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
Act, during the year.
(19) Creation of Securities for Debentures issue: -According to the
information and explanation given to us and the record examined by us,
the company has not issued any debentures; hence this clause is not
applicable to the company.
(20) Money raised by Public Issue: - The Company has not raised any
money by public issue of shares during the period.
(21) Fraud Noticed or Recorded: -To the best of our knowledge and
belief according to the information & explanation given to us, no fraud
on or by the Company was noticed or recorded during the period.
For: R. S. Bansal & Company
Chartered Accountants
Firm Regi. No.: 000939C
Sa/-
Vyjay Bansal
Partner
Membership No. : 075344
Place: Indore Date: 31 May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Bhatia Industries &
Infrastructure Ltd. having Registered Office at "BCC House, 8/5
Manoramaganj, Navratan Bagh, Main Road, Indore as at 31st March, 2012
and also Statement of Profit & Loss and 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.
We conducted our audit in accordance with Accounting 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.
1. [a] As required by the Companies (Auditor's Report) Order, 2003
(CARO) issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956 (here-in-after referred to as the Act), and on
the basis of such checks as we considered appropriate and according to
the information and explanations given to us during the course of
audit, we give in the annexure a statement on the matters specified in
the paragraphs 4 and 5 of the said order, to the extent applicable to
the Company.
[b] Subject to above, and read with statement on notes to Balance Sheet
and Statement of Profit & Loss forming parts of accounts.
2. Further to our comments in the annexure referred to paragraph 1
above:- [a] We have obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
[b] In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books.
[c] The Balance Sheet, Statement of Profit & Loss and Cash Flow
statements dealt with by this report are in agreement with the books of
accounts.
[d] In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standard referred to in Sub-Section (3C) of Section 211 of
Companies Act, 1956.
[e] 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 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 Balance Sheet, Statement of Profit &
Loss and Cash Flow Statement together with notes thereon and, gives 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 :- i) In the case of
the Balance Sheet, of the State of Affairs of the Company as at 31st
March, 2012 and
ii) In the case of the Statement of Profit & Loss, of the Profit of the
Company for the year ended on 31st March, 2012 and
iii) In the case of the Cash Flow statement of the cash flows for the
year ended on 31st March, 2012.
ANNEXURE TO THE AUDITOR'S REPORT AS REFERRED IN PARAGRAPH FIRST OF
OUR REPORT OF EVEN DATE TO THE MEMBERS OF
BHATIA INDUSTRIES & INFRASTRUCTURE LIMITED FOR THE YEAR ENDED 31ST
MARCH 2012.
As required by the Companies (Auditors' Report) Order,2003 issued by
the Central Government in term of Section 227 (4A) of the Companies
Act,1956,we further report that-
FIXED ASSETS : -
1. As informed to us, the Company has been maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets. [Paragraph 4(i) (a) ]
2. As informed to us the Company has physically verified the fixed
assets during the year at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification. [Paragraph 4(i) (b) ]
3. In our opinion and according to the information and explanation
given to us, the Company has not disposed off any substantial fixed
assets during the year, which affects the going concern status of the
company. [Paragraph 4(i) (c)]
INVENTORIES :-
4. As per explanation given to us, physical verification of inventories
has been conducted at reasonable intervals by the management.
[Paragraph 4(ii) (a) ]
5. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the Management is reasonable and adequate in relation to
the size of the company and the nature of its business. [Paragraph
4(ii) (b) ]
6. In our opinion and according to the information and explanation
given to us the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such physical
verification. [Paragraph 4(ii) (c) ]
Loan Granted :-
7. (a) According to the information and explanation given to us, the
Company has granted unsecured loans to Companies or parties covered in
the register maintained u/s 301 of Companies Act, 1956.The required
details are as under: [Paragraph 4 (iii) (a)]
Name Maximum Amount Amount Outstanding
(Rs in Millions) (Rs in Millions)
Bhatia International Limited 345.37 345.07
Bhatia Global Trading Limited 346.66 NIL
(b) The rate of interest and other terms and conditions of such loan
are not prima facie prejudicial to the interest of the company. [
Paragraph 4 (iii) (b)]
(c) As per the terms of the agreement provided to us the receipt of
principal and interest are as per the terms of the agreement. [
Paragraph 4 (iii) (c)]
(d) As explained & informed to us no amount is overdue as at the end of
the year. [Paragraph 4 (iii) (d)]
Loan Taken :-
8. (a) According to the information and explanation given to us, the
Company has obtained unsecured loans from following persons covered
under section 301. [Paragraph 4 (iii) (e)]. The details are as under :-
Name Maximum Amount Amount Outstanding
(Rs in Millions) (Rs in Millions)
Bhatia International Limited 0.10 NIL
Bhatia Global Trading Limited 9.00 NIL
(b) The rate of interest and other terms and conditions are prima facie
not prejudicial to the interest of the Company. [ Paragraph 4 (iii)
(f)]
(c) As per the terms of the agreement provided to us the payment of
principal and interest are as per the terms of the agreement. [
Paragraph 4 (iii) (g)]
Internal Control Procedures:-
9. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business of inventory and fixed assets and for the sale of Goods &
Services. [Paragraph 4 (iv)]
10. As informed to us the Company has entered all the transactions in
the register maintained in pursuance of Section 301 of the Companies
Act, 1956.
[Paragraph 4 (v) (a)]
11. As per information and explanation provided to us and documents
produced before us the transaction have been entered into during the
financial year at the prices which are reasonable having regards to the
prevailing market prices at the relevant time. [Paragraph 4 (v) (b)]
Public Deposit :-
12. In our opinion and according the information and explanation given
to us, the Company neither accepted nor invited any deposits from
Public within the provisions of Section 58A of Companies Act, 1956 and
rules made there under.
[Paragraph 4 (vi)]
Internal Audit System
13. As explained and informed to us, company has its own internal audit
system which in our opinion is adequate and commensurate with the size
and nature of its business. [Paragraph 4 (vii]
Cost Record :-
14. As informed to us, the Central Government has not prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies
Act, 1956.
[Paragraph 4 (viii)]
Statutory Dues :-
15. According to the information and explanation given to us there are
no undisputed statutory dues payable in respect of Provident Fund,
Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty and Cess, which are outstanding as at 31.03.2012 for
a period of more than six months from the date they became payable.
[Paragraph 4 (ix)(a)]
16. It has been explained & informed to us that all dues toward sales
tax / income tax / custom duty / wealth tax / excise duty / Cess, if
any are properly accounted for in the books & no dispute towards
aforesaid dues exist, except following:
[Paragraph 4 (ix)(b)]
S.No Particulars Financial Year Forum where
Pending Amount
which it relates (In Rs Millions)
1. Income Tax 1995-96 CIT (Appeals) 0.11
2. Income Tax 2001-02 ITAT 0.054
3. Income Tax 2003-04 ITAT 0.11
4. Stamp Duty 2004-05 Revenue Board,
Gwalior 1.06
5. Commercial
Tax 2006-07 Joint
Commissioner 3.67
Accumulated Cash Losses: -
17. The Company has no accumulated losses. Further, the Company has
not incurred any cash losses during the period covered by the report
and immediately preceding the financial year. [Paragraph 4 (x)]
Default in Repayment of dues to Financial Institutions or Bank
18 Based on our audit procedures and on the information and explanation
given by the management, company has not defaulted in the repayment of
loans from the financial institutions or banks, hence this clause is
not applicable. [Paragraph 4 (xi)]
19. According to the information and explanation given to us, the
Company has not given any loans and advances on the basis of security
by way of Pledge of Shares, debentures and other securities. [Paragraph
4 (xii)]
Chit Fund Nidhi Mutual Benefit Society Activities :-
20. Provisions relating to any special statute applicable to chit fund
are not applicable to the Company. [Paragraph 4 (xiii) first part]
21. Company not being Nidhi Mutual Benefit fund Society hence this
clause is not applicable. [Paragraph 4 (xiii) second part]
Dealing or trading in Shares : -
22. According to the information and explanation given to us, no
transaction in trading of shares is being done by the company during
the year. [Paragraph 4 (xiv)]
Guarantee given by the Company for Loan taken by others :-
23. As informed and explained to us the Company has not given any
guarantee in respect of loans taken by others from any bank or
financial institutions.
[Paragraph 4 (xv)]
Utilization of Term Loan :-
24. As per information and explanation given to us, the company has
not taken any term loans. [Paragraph 4 (xvi)] Application of Short Term
Fund for Long Term Investments :-
25. As explained and explanation given to us, fund raised on short term
basis have not been used for long term investment. [Paragraph 4 (xvii)]
Preferential Allotment of Shares:-
26. According to information and explanation given to us, the company
has not made any preferential allotment of Shares to the parties
covered in the Register maintained under section 301 of the Act during
the year. [Paragraph 4 (xviii)]
Creation of Securities for Debentures Issue :-
27. According to the information and explanation given to us and the
records examined by us, the company has not issued debentures and hence
regarding creation of securities in respect of debentures issued does
not arises. [Paragraph 4 (xix)]
Money raised by Public Issue: -
28. The Company has not raised any money by public issue of shares
during the year-ended review.[Paragraph 4 (xx)]
Fraud Notice or Reported: -
29. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
was noticed or reported during the year-ended review. .[Paragraph 4
(xxi)]
For R.S. Bansal & Co.
Chartered Accountants
FRN:000939C
Sd/-
(Vijay Bansal)
Place: Indore Partner
Date: 30th April, 2012 Membership No.075344
Mar 31, 2011
We have audited the attached Balance Sheet of Bhatia Industries &
Infrastructure Limited having Registered Office at "BCC House" 8/5,
Manoramaganj, Navratan Bagh, Main Road, Indore as at 31st March, 2011
and also Profit & Loss Account and Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the CompanyÃs management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Accounting Standards
generally accepted in India. Those standards require that we plan and
perfrom 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.
1. (a) As required by the Companies (AuditorÃs Report) Order, 2003
(CARO) issued by the Company Law Board in terms of Section 227 (4A) of
the
Companies Act, 1956 (here-in-after referred to as the Act), and on the
basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of audit, we
give in the annexure a statement on the matters specified in the
paragraphs 4 and 5 of the said order, to the extent applicable to the
Company.
(b) Subject to above, and read with statement on notes to Balance Sheet
and Profit & Loss Account forming part of accounts.
2. Further to our comments in the annexure referred to paragraph 1
above :- (a) We have obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books.
(c) The Balance Sheet, Profit and 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, Profit and Loss Account, Cash
Flow Statement and Segment Report dealt with by this report comply with
the accounting standard referred to in sub-section (3C) of Section 211
of Companies Act, 1956.
(e) On the basis of written representation 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 Balance Sheet and Profit & Loss
Account together with notes thereon gives 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 :- i) In the case of the Balance Sheet, of the State
of Affiairs of the Company as at 31st March, 2011 and ii) In the case
of the Profit and Loss Account, of the Profit of the Company for the
year ended on 31st March, 2011 and iii) In the case of the Cash Flow
Statement of the cash flows for the year ended on 31st March, 2011.
ANNEXURE TO THE AUDITORSÃ REPORT AS REFERRED IN PARAGRAPH THIRD OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF BHATIA INDUSTRIES &
INFRASTRUCTURE LIMITED FOR THE PERIOD ENDED 31.03.2011.
As required by the Companies (Auditorsà Report) Order, 2003 issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we further report that -
FIXED ASSETS :-
1. As informed to us, the Company has been maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets.
2. As informed to us the Company has physically verified the fixed
assets during the year at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
3. In our opinion and according to the information and explanation
given to us, the Company has not disposed off any substantial fixed
assets during the year, which affects the going concern status of the
company.
INVENTORIES :-
4. As per explanation given to us, physical verification of
inventories has been conducted at reasonable intervals by the
management.
5. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the Management is reasonable and adequate in relation to
the size of the company and the nature of its business. [Paragraph 4
(ii) (b) ]
6. In our opinion and according to the information and explanation
given to us the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such physical
verification.
LOAN GRANTED :-
7. As per information and explanation given to us, the Company has not
granted any unsecured loan during the year, hence this clause is not
appilicable [ Paragraph 4 (iii) (a), (b), (c) & (d)]
LOAN TAKEN :-
8. As per information and explanation given to us, the Company has not
taken any unsecured loan during the year, hence this clause is not
appilicable [ Paragraph 4 (iii) (e), (f) & (g)]
9. INTERNAL CONTROL PROCEDURES :- In our opinion and according to the
information and explanation given to us, there are adequate internal
control procedures commensurate with the size of the companyand the
nature of its business of inventory and fixed assets and for the sale
of goods and services. [Paragraph 4 (iv) ]
10. TRANSACTION WITH PARTIES U/S 301 :- As informed to us the Company
has entered all the transactions in the register maintained in
pursuance of Section 301 of the Companies Act, 1956. [Paragraph 4 (v)
(a) ]
11. As per information and explanations provided to us,and also in
absence of of relevant record we are unable to comment upon whether all
the transactions have been entered at prevailing market prices.
[Paragraph 4 (v)(b ) ]
PUBLIC DEPOSIT :-
12. In our opinion and according to the information and explanation
given to us, the Company neither accepted nor invited any deposits from
Public within the provisions of Section 58 A of the Companies Act, 1956
and rules made there under. [Paragraph 4 (vi ) ]
INTERNAL AUDIT SYSTEM:-
13. As explained and informed to us, company has its own internal audit
system which in our opinion is adequate/commensurate with the size and
nature of its business. [Paragraph 4 (vii) ]
COST RECORD :-
14. As informed to us, the Central Government has not prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies
Act, 1956. [Paragraph 4 (viii) ]
STATUTORY DUES :-
15. According to the information and explanation given to us there are
no undisputed statutory dues payable in respect of Provident Fund,
Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty and Cess, which are outstanding as at 31.03.2011 for
a period of more than six months from the date they became payable.
[Paragraph 4 (ix)(a) ]
16. It has been explained and informed to us that all dues towards
sales tax/ income tax/ custom duty/ wealth tax/ excise duty/ cess, if
any are properly accounted for in the books and no dispute towards
aforesaid dues exist, except following :
[Paragraph 4 (ix) (b)]
Sr.No. Particulars Financial year
which it relates Forum Where
Pending Amount
1 Income Tax 1995-96 CIT (Appeals) 1,10,344/-
2 Income Tax 2001-02 CIT (Appeals) 1,96,579/-
3 Income Tax 2003-04 CIT (Appeals) 2,49,228/-
4 Income Tax 2004-05 CIT (Appeals) 12,60,556/-
5 Income Tax 2005-06 CIT (Appeals) 1,77,993/-
6 Stamp Duty 2004-05 Revenue Board,
Gwalior 10,62,000/-
ACCUMULATED / CASH LOSSES :-
17. The Company has no accumulated losses. Further, the company has
not incurred any cash losses during the period covered by the report
and immediately preceding the financial year. [Paragraph 4 (x) ]
DEFAULT IN REPAYMENT OF DUES TO FINANCIAL INSTITUTIONS OR BANK :-
18. Based on our audit procedures and on the information and
explanation given by the management, company has not defaulted in the
repayment of loans from the financial institutions or banks, hence this
clause is not applicable. [Paragraph 4 (xi) ]
GRANTING OF LOAN AND ADVANCES :-
19. According to the information and explanation given to us, the
Company has not given any loans and advances on the basis of security
by way of Pledge of Shares, Debentures and other securities. [Paragraph
4 (xii) ]
CHIT FUND / NIDHI / MUTUAL BENEFIT / SOCIETY ACTIVITIES :-
20. Provisions relating to any special statute applicable to chit fund
are not applicable to the Company. [Paragraph 4 (xiii) first part ] 21.
Company not being Nidhi / Mutual Benefit Fund / Society, hence this
clause is not applicable. [Paragraph 4 (xiii) second part ]
DEALING OR TRADING IN SHARES:-
22. According to the information and explanation given to us, no
transaction in trading of shares is being done by the company during
the year. [Paragraph 4 (xiv)]
GUARANTEE GIVEN BY THE COMPANY FOR LOAN TAKEN BY OTHERS :-
23. As informed and explained to us the Company has not given any
guarantee in respect of loans taken by others from any bank or
financial institutions. [Paragraph 4 (xv)]
UTILIZATION OF TERM LOAN :- 24. As per information and explanation
given to us, the company has not taken any term loans. [Paragraph 4
(xvi)]
APPLICATION OF SHORT TERM FUND FOR LONG TERM INVESTMENTS :- 25. As
explained and explanation given to us, fund raised on short term basis
have not been used for long term investment. [Paragraph 4 (xvii)]
PREFERENTIAL ALLOTMENT OF SHARES :- 26. According to information and
explanation given to us, the company has not made any preferential
allotment of shares to the parties covered in the
register maintained under section 301 the Act during the year.
[Paragraph 4 (xviii)]
CREATION OF SECURITIES FOR DEBENTURES ISSUE :- 27. According to the
information and explanation given to us and the records examined by us,
the company has not issued debentures and hence regarding creation of
securities in respect of debentures issued does not arises. [Paragraph
4 (xix)]
MONEY RAISED BY PUBLIC ISSUE :- 28. The Company has not raised any
money by public issue of shares during the year ended review.
[Paragraph 4 (xx)]
FRAUD NOTICE OR REPORTED :- 29. To the best of our knowledge and
belief and according to the information and explanation given to us, no
fraud on or by the Company was noticed or reported during the year-
ended review. [Paragraph 4 (xxi)]
For R.S. Bansal & Co.
Chartered Accountants
FRN : 000939C
VIJAY BANSAL
Partner
Membership No. 75344
Place: Indore
Date : 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Bhatia Industries &
Infrastructure Ltd. having Registered Office at "BCC House" 8/5,
Manoramaganj, Navratan Bagh, Main Road, Indore as at 31st March, 2010
and also Profit & Loss Account and Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the CompanyÃs management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Accounting Standards
generally accepted in India. Those standards require that we plan and
perfrom 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.
1. (a) As required by the Companies (AuditorÃs Report) Order, 2003
(CARO) issued by the Company Law Board in terms of Section 227 (4A) of
the Companies Act, 1956 (here-in-after referred to as the Act), and on
the basis of such checks as we considered appropriate and according to
the information and explanations given to us during the course of
audit, we give in the annexure a statement on the matters specified in
the paragraphs 4 and 5 of the said order, to the extent applicable to
the Company.
(b) Subject to above, and read with statement on notes to Balance Sheet
and Profit & Loss Account forming part of accounts.
2. Further to our comments in the annexure referred to paragraph 1
above :- (a) We have obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of the
books.
(c) The Balance Sheet, Profit and 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, Profit and Loss Account, Cash
Flow Statement and segment report dealt with by this report comply with
the accounting standard referred to in sub-section (3C) of Section 211
of Companies Act, 1956.
(e) On the basis of written representation 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 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 Balance Sheet and Profit & Loss
Account together with notes thereon gives 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 :- i) In the case of the Balance Sheet, of the State
of Affiairs of the Company as at 31st March, 2010 and
ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on 31st March, 2010 and iii) In the case of
the Cash Flow Statement of the cash flows for the year ended on 31st
March, 2010.
ANNEXURE TO THE AUDITORS REPORT AS REFERRED IN PARAGRAPH THIRD OF OUR
REPORT OF EVEN DATE TO THE MEMBERS OF BHATIA INDUSTRIES &
INFRASTRUCTURE LIMITED FOR THE PERIOD ENDED 31.03.2010.
As required by the Companies (Auditorsà Report) Order, 2003 issued by
the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, we further report that -
FIXED ASSETS :-
1. As informed to us, the Company has been maintaining proper records
showing full particulars, including quantitative details and situation
of fixed assets.[Paragraph 4 (i) (a) ]
2. As informed to us the Company has physically verified the fixed
assets during the year at reasonable intervals. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification. [Paragraph 4 (i) (b) ]
3. In our opinion and according to the information and explanation
given to us, the Company has not disposed off any substantial fixed
assets during the year, which affects the going concern status of the
company. [Paragraph 4 (i) (c) ]
INVENTORIES :-
4. As per explanation given to us, physical verification of inventories
has been conducted at reasonable intervals by the management.
[Paragraph 4 (ii) (a) ]
5. In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the Management is reasonable and adequate in relation to
the size of the company and the nature of its business. [Paragraph 4
(ii) (b) ]
6. In our opinion and according to the information and explanation
given to us the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such physical
verification. [Paragraph 4 (ii) (c) ]
LOAN GRANTED :-
7. As per information and explanation given to us, the Company has not
granted any unsecured loan during the year . , hence this clause is not
appilicable [ Paragraph (iii) (a), (b), (c) & (d)]
LOAN TAKEN :-
8. As per information and explanation given to us, the Company has not
taken any unsecured loan during the year., hence this clause is not
appilicable [ Paragraph (iii) (e), (f) & (g)]
9. INTERNAL CONTROL PROCEDURES :- In our opinion and according to the
information and explanation given to us, there are adequate internal
control procedures commensurate with the size of the companyand the
nature of its business of inventory and fixed assets and for the sale
of goods and services. [Paragraph 4 (iv)
10. TRANSACTION WITH PARTIES U/S 301 :- As informed to us the Company
has entered all the transactions in the register maintained in
pursuance of Section 301 of the Companies Act, 1956. [Paragraph 4 (v)
(a) ]
11. As per information and explanations provided to us,and also in
absence of of relevant record we are unable to comment upon whether all
the transactions have been entered at prevailing market prices.
[Paragraph 4 (v)(b ) ]
PUBLIC DEPOSIT :-
12. In our opinion and according to the information and explanation
given to us, the Company neither accepted nor invited any deposits from
Public within the provisions of Section 58 A of Companies Act, 1956 and
rules made there under. [Paragraph 4 (vi ) ]
INTERNAL AUDIT SYSTEM:-
13. As explained and informed to us, company has its own internal audit
system which in our opinion is adequate/commensurate with the size and
nature of its business. [Paragraph 4 (vii) ]
COST RECORD :-
14. As informed to us, the Central Government has not prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies
Act, 1956. [Paragraph 4 (viii) ]
STATUTORY DUES :-
15. According to the information and explanation given to us there are
no undisputed statutory dues payable in respect of Provident Fund,
Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty and Cess, which are outstanding as at 31.03.2010 for
a period of more than six months from the date they became payable.
[Paragraph 4 (ix)(a) ]
16. It has been explained and informed to us that all dues towards
sales tax/ income tax/ custom duty/ wealth tax/ excise duty/ cess, if
any are properly accounted for in the books and no dispute towards
aforesaid dues exist, except following :
[Paragraph 4 (ix) (b)]
Sr.
No. Particulars Financial
year which
it relates Forum Where Pendin Amount
1. Income Tax 1995-96 CIT (Appeals) 1,10,344/-
2. Income Tax 2001-02 CIT (Appeals) 1,96,579/-
3. Income Tax 2003-04 CIT (Appeals) 2,49,228/-
4. Income Tax 2004-05 CIT (Appeals) 12,60,556/-
5. Income Tax 2005-06 CIT (Appeals) 1,77,993/-
6. Stamp Duty 2004-05 Revenue Board,
Gwalior 10,62,000/-
ACCUMULATED / CASH LOSSES :-
17. The CompanyÃs accumulated losses at the end of the financial year
are not more than 50% of its net-worth. Further, the company has not
incurred any cash losses during the period covered by the report and
immediately preceding the financial year. [Paragraph 4 (x) ]
DEFAULT IN REPAYMENT OF DUES TO FINANCIAL INSTITUTIONS OR BANK :-
18. Based on our audit procedures and on the information and
explanation given by the management, company has not defaulted in the
repayment of loans from the financial institutions or banks, hence this
clause is not applicable. [Paragraph 4 (xi) ]
GRANTING OF LOAN AND ADVANCES :-
19. According to the information and explanation given to us, the
Company has not given any loans and advances on the basis of security
by way of Pledge of Shares, Debentures and other securities. [Paragraph
4 (xii) ]
CHIT FUND / NIDHI / MUTUAL BENEFIT / SOCIETY ACTIVITIES :-
20. Provisions relating to any special statute applicable to chit fund
are not applicable to the Company. [Paragraph 4 (xiii) first part ] 21.
Company not being Nidhi / Mutual Benefit Fund / Society, hence this
clause is not applicable. [Paragraph 4 (xiii) second part ]
DEALING OR TRADING IN SHARES:-
22. According to the information and explanation given to us, no
transaction in trading of shares is being done by the company during
the year. [Paragraph 4 (xiv)]
GUARANTEE GIVEN BY THE COMPANY FOR LOAN TAKEN BY OTHERS :-
23. As informed and explained to us the Company has not given any
guarantee in respect of loans taken by others from any bank or
financial institutions.
[Paragraph 4 (xv)]
UTILIZATION OF TERM LOAN :-
24. As per information and explanation
given to us, the company has not taken any term loans. [Paragraph 4
(xvi)]
APPLICATION OF SHORT TERM FUND FOR LONG TERM INVESTMENTS :-
25. As
explained and explanation given to us, fund raised on short term basis
have not been used for long term investment. [Paragraph 4 (xvii)]
PREFERENTIAL ALLOTMENT OF SHARES :-
26. According to information and
explanation given to us, the company has not made any preferential
allotment of shares to the parties covered in the register maintained
under section 301 the Act. [Paragraph 4 (xviii)]
CREATION OF SECURITIES FOR DEBENTURES ISSUE :-
27. According to the
information and explanation given to us and the records examined by us,
the company has not issued debentures and hence regarding creation of
securities in respect of debentures issued does not arises. [Paragraph
4 (xix)]
MONEY RAISED BY PUBLIC ISSUE :-
28. The Company has not raised any
money by public issue of shares during the year ended review.
[Paragraph 4 (xx)]
FRAUD NOTICE OR REPORTED :-
29. To the best of our knowledge and
belief and according to the information and explanation given to us, no
fraud on or by the Company was noticed or reported during the
year-ended review. [Paragraph 4 (xxi)]
For R.S. Bansal & Co.
Chartered Accountants
FRN : 000939C
VIJAY BANSAL
Place: Indore Partner
Date: 30th August, 2010 Membership No. 75344
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