Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial Statement of Biral Cable Limited(âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs(financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date. Other Matter
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening Balance Sheet as at 1st April 2016 included in these Ind AS financial Statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rule, 2006 audited by V.Sankar Aiyar & Co., Chartered Accountants for the year ended 31.03.2016 and 31.03.2017, whose reports dated 18.05.2016 and 16.05.2017 respectively expressed an unmodified opinion on those financial statements as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind As, which have been audited by us. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâa 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, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 to be included in the Auditorâs 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 Ind AS financial statements.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorsâ Report of Birla Cable Limited
(Referred to in Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date)
i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management according to the regular programme of periodical verification in phased manner which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. No material discrepancies were noticed on such verification;
(c) The title deeds of immovable properties are held in the name of the company.
ii. The inventories of the Company at all its locations (except stock in transit) have been physically verified by the management at reasonable intervals and the discrepancies which were noticed on physical verification of inventory as compared to book records were not material.
iii. The Company has not granted any loan to companies, firms, or other parties covered in the Register maintained under section 189 of the Act. Therefore the provisions of clause 3 (iii) of the order are not applicable to the company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, the company has complied with provisions of section 185 and 186 of the Companies Act, 2013 with respect of loans, investments, guarantees and securities.
v. The Company has not accepted any deposit from public.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that, prima-facie, prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.
vii. (a) According to the information and explanations and records of the Company, the company is regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income tax, Sales tax, Service tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other statutory dues with the appropriate authorities. There are no arrears of outstanding statutory dues for a period of more than six months from the date they became payable as on 31st March, 2018.
(b) According to the records and information and explanations given to us, there are no dues in respect of custom duty that have not been deposited on account of any dispute. In our opinion and according to the information and explanations given to us, the dues in respect of income tax or sales tax or service tax or excise duty or value added tax that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below:
Name of Statute |
Nature of Dues |
Amount involved (Rs. in lakhs) |
Period to which it relates to |
Forum where matter is pending |
MP Vat Act, 2003 |
Demand of Interest on alleged payment of deferred Sales Tax loan/liability |
Rs. 86.86 |
F.Y.-2000-01 |
MP commercial Tax Appellate Board |
viii. The Company has not defaulted in repayment of loans or borrowings to banks.
ix. The Company did not raise any money by way of initial/further public offer(including debt instruments) and term loans taken during the year have been applied for the purpose for which they were obtained.
x. Based upon the audit procedure performed and information and explanation given to us, we report that no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit.
xi. Managerial Remuneration has been paid or provided in accordance with the requisite approvals mandated by the provision of Section 197 read with schedule V of the Companies Act, 2013.
xii Provision of Nidhi Company is not applicable to the Company.
xiii. According to the information and explanation give to us and based on our examination of the records of the company, all transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements, etc. as required by the applicable accounting standard.
xiv. The company has not made any preferential allotment or private placements of shares or fully or partly convertible debentures during the year under review.
xv. The company has not entered into any non-cash transaction with Directors or persons connected with him.
xvi. The company is not required to be registered under section 45-1A of the Reserve Bank of India Act 1934.
Annexure âBâ to the Independent Auditorsâ Report of even date on the Standalone Financial Statement of Birla Cable Limited. Report on the Internal Financial Controls under Clause (i) of sub -section 3 of section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Birla Cable Limited as at 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 "the Internal Financial Controls Over Financial Reporting issued by the institute of Chartered Accountants of India.â These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with Guidance note on Audit of Internal Financial Controls over Financial Reporting (theâ Guidance Noteâ) and the Standard on Auditing, issued by ICAI prescribed under section 143 (10) of the Companies Act 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that we Comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal financial controls system over financial reporting and their operating effectiveness, our audit of internal financial controls over financial reporting included obtaining and 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 statement, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs Internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable details, accurately and fairly reflect the transactions and disposition of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statement 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 unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitation of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has in all material respect, an adequate internal financial controls systems over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on "the internal control over financial reporting criteria established by the Company Considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.
For Jain Pramod Jain & Co.
Chartered Accountants
ICAI Firm Registration No. 016746N
P.K.Jain
Place : New Delhi Partner
Date : May 24, 2018 Membership No. 010479
Mar 31, 2017
Independent Auditorsâ Report
TO THE MEMBERS OF BIRLA CABLE LIMITED (Formerly Birla Ericsson Optical Limited)
Report on the Financial Statements
We have audited the accompanying financial statements of Birla Cable Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2017, 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.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these 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 as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
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. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, 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 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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).
(e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report express an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditorâs 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 No. 29 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosure in the financial statement as to holdings as well as dealings in specified bank note notes during the period 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management - Refer note no. 37.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the âAnnexure Bâ a statement on the matters specified in the paragraphs 3 and 4 of the said Order.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in Paragraph 1(f) under âReport on Other Legal and Regulatory requirementsâ of our report on even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of the Company as of March 31, 2017 in conjunction with our audit of the 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 (the âGuidance Noteâ) 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 Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and 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 issued by 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 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 issued by the ICAI.
(REFERRED TO IN PARAGRAPH 2 UNDER REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ SECTION OF OUR REPORT ON EVEN DATE)
i (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Major items of fixed assets were physically verified during the year by the management in accordance with regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets 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 and representation obtained from the management, the title deeds of immovable properties are held in the name of the Company.
ii The inventories, except goods-in-transit, have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed on physical verification.
iii The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties required to be covered in the register maintained under section 189 of the Act. Therefore, the provisions of clause 3(iii) (a) to (c) of the Order are not applicable.
iv The Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of or loans or guarantee or security provided to parties covered under Section 186. During the year, the Company has not made any investment or acquired any securities within the meaning of section 186 of the Act.
v The Company has not accepted deposits from the public in accordance within the provisions of sections 73 to 76 of the Act and the rules framed there under.
vi We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records for the year with a view to determine whether they are accurate and complete.
vii (a) According to the records of the Company, the Company has been generally regular in depositing undisputed statutory dues include ing provident fund, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities. There were no arrears of undisputed statutory dues as at 31st March, 2017, which were outstanding for a period of more than six months from the date they became payable. We are informed that there is no liability on account of Employeesâ state insurance.
(b) There are no disputed dues which have remained unpaid as on 31st March, 2017 in respect of income tax or sale tax or service tax or duty of customs or duty of excise or value added tax except as follows.
Name of Statute |
Nature of Dues |
Forum where Dispute is pending |
Period to which amount relates |
Amount Involved (Rs.in lacs) |
MP VAT Act, 2003 |
Demand of Interest on alleged payment of deferred sales tax loan/liability |
MP Commercial Tax Appellate Board |
FY 2011-12 |
86.86 |
viii On the basis of the verification of records and information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to banks. The Company does not have any loans or borrowings from financial institution, government or debenture holders in the books of accounts at any time during the year.
ix The Company did not raise any money by way of initial / further public offer (including debt instruments) and term loans taken during the year have been applied for the purpose for which they were obtained.
x Based on the audit procedure performed and the representation obtained from the management, no material fraud by the Company or on the Company by its officers and employees has been noticed or reported during the year.
xi According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
xii The Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable.
xiii According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Therefore, the provisions of clause 3(xiv) of the Order are not applicable.
xv According to the information and explanations given to us and the representation obtained from the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause 3(xv) of the Order are not applicable.
xvi In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
Karthik Srinivasan
Place : New Delhi Partner
Dated : May 16, 2017 Membership No. 514998
Mar 31, 2016
TO THE MEMBERS OF BIRLA ERICSSON OPTICAL LIMITED_
Report on Financial Statements
We have audited the accompanying financial statements of Birla Ericsson Optical Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, 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 Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, 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 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 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report express an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(g) 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 29 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure B" a statement on the matters specified in the paragraphs 3 and 4 of the said Order.
Annexure "A" to the Independent Auditors'' Report
(Referred to in Paragraph 1(f) under ''Report on Other Legal and Regulatory requirements'' of our report on even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of the Company as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria 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 (the "Guidance Note") issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and 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 issued by 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 auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
Annexure "B" to the Independent Auditors'' Report
(Referred to in Paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our Report on even date).
i (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) Major items of fixed assets were physically verified during the year by the management in accordance with regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets 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 and representation obtained from the management the title deeds of immovable properties are held in the name of the Company.
Immovable properties, whose title deeds have been mortgaged as security for loans, guarantees, etc., are held in the name of the Company based on the confirmations/Memorandum of entry of Mortgage of Mortgage by deposit of Title Deeds received from lenders.
ii The inventories, except goods-in-transit, have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed on physical verification.
iii The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties required to be covered in the register maintained under section 189 of the Act. Therefore, the provisions of clause 3(iii) (a) to (c) of the Order are not applicable.
iv The Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of investments made or loans or guarantee or security provided to parties covered under Section 186.
v The Company has not accepted deposits from the public in accordance within the provisions of sections 73 to 76 of the Act and the rules framed there under.
vi We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records for the year with a view to determine whether they are accurate and complete.
vii (a) According to the records of the Company, the Company has been generally regular in depositing undisputed statutory dues including provident fund, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues with the appropriate authorities. There were no arrears of undisputed statutory dues as at 31st March, 2016, which were outstanding for a period of more than six months from the date they became payable. We are informed that there is no liability on account of Employees'' state insurance.
(b) There are no disputed dues which have remained unpaid as on 31st March, 2016 in respect of income tax or sale tax or service tax or duty of customs or duty of excise or value added tax except as follows.
Name of the Statute |
Nature of dues |
Forum where Dispute is pending |
Period to which amount relates |
Amount Involved (Rs. in lacs) |
MP VAT Act, 2003 |
Demand of Interest on alleged payment of deferred sales tax loan/liability |
MP Commercial Tax Appellate Board |
FY 2011-12 |
86.86 |
viii On the basis of the verification of records and information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to banks. The Company does not have any loans or borrowings from financial institution, government or debenture holders in the books of accounts at any time during the year.
ix The Company did not raise any money by way of initial / further public offer (including debt instruments) and term loans taken during the year have been applied for the purpose for which they were obtained.
x Based on the audit procedure performed and the representation obtained from the management, no material fraud by the Company or on the Company by its officers and employees has been noticed or reported during the year.
xi According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
xii The Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of the Order are not applicable.
xiii According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures. Therefore, the provisions of clause 3(xiv) of the Order are not applicable.
xv According to the information and explanations given to us and the representation obtained from the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause 3(xv) of the Order are not applicable.
xvi In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
R.Raghuraman
Place: New Delhi Partner
Date: May 18, 2016 Membership No. 081350
Mar 31, 2015
Report on Financial Statements
We have audited the accompanying financial statements of Birla Ericsson
Optical 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 Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
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 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls.
An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made
by the Company''s Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to Note No. 31 to the financial statements regarding
non provision for the shortfall in the market value of a quoted
investment for the stated reason.
Our opinion is not modified in respect of this matter.
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, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in the
paragraphs 3 and 4 of the said 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 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 29 and 30
to the financial statements;
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no amounts, which were required to be transferred
during the year to the Investor Education and Protection Fund by the
Company.
Annexure referred to in the Independent Auditors'' report to the members
of Birla Ericsson Optical Limited on the financial statements for the
year ended 31st March, 2015.
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major items of fixed assets were physically verified during the
year by the management in accordance with a regular program of
verification which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. No material
discrepancies were noticed on such verification.
ii. (a) As explained to us, inventories (excluding stocks lying with
third party and stocks in transit) have been physically verified by
the management at reasonable intervals. In respect stocks lying with
third party, these have been confirmed by them.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. No material discrepancies were noticed on verification,
between physical stocks and book records.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties required to be covered in the
register maintained under section 189 of the Act. Therefore, the
provisions of clause 3(iii)(a) and (b) of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there are reasonably 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 the
sale of goods and services. During the course of our audit, we have
neither come across nor have been informed of any continuing failure to
correct major weaknesses in the internal control system.
v. The Company has not accepted within the provisions of section 73 of
the Act and the Rules framed thereunder.
vi. We have broadly reviewed the books of accounts maintained by the
company, pursuant to rules made by the Central Government for the
maintenance of cost records under sub-section (1) of section 148 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been maintained and the required statement are in the
process of compilation. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii. (a) According to the records of the Company, the Company has been
generally regular in depositing undisputed statutory dues including
Provident Fund, Income-tax, Sales-tax, Wealth tax, Service tax, Duty of
Customs, Duty of Excise, Cess, Value Added tax and any other material
statutory dues with the appropriate authorities. There were no arrears
of undisputed statutory dues as at 31st March, 2015, which were
outstanding for a period of more than six months from the date they
became payable. We are informed that there is no liability on account
of Employees'' State Insurance.
(b) There are no disputed dues which have remained unpaid as on 31st
March, 2015 on account of Income-tax, Value Added tax, Duty of Excise,
Duty of Customs, Sales-tax, Wealth Tax, Service tax, cess except as
follows:
Name of Nature of Amount Period Forum where
the Statute dues (Rs. in to which dispute
lacs) amount pending
relates
MP VAT Act, Interest on 86.86 FY 2011-12 M.P Commercial
2003 deferred Payment Tax Appellate
of Tax Board
(c) Based on the information and explanations obtained, the company has
no liability or requirement to transfer any amount to Investor
Education & Protection Fund in accordance with the relevant provisions
of the Act and the Rules thereunder.
viii. The Company has no accumulated losses at the end of the year and
has not incurred cash losses during the financial year covered by our
audit or in the immediately preceding financial year.
ix. On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks. The Company did not have any outstanding debentures and
loans from financial institutions during the year.
x. According to the information and explanations given to us, the
Company has given a Cross corporate guarantee to a bank for credit
facilities sanctioned to Vindhya Telelinks Limited (joint venturer)
amounting to Rs. 86687.00 lakhs as stated in Note no. 29 (a) (v). In
our opinion, the terms and conditions of the guarantee given by the
Company, for the credit facilities sanctioned to the joint venturer by
the bank, are not prejudicial to the interest of the Company. According
to the information and explanation given to us, the Company has not
given any guarantee for loans taken by others from financial
institutions.
xi. Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
xii. Based on the audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn.No.109208W
V. Rethinam
Place : New Delhi Partner
Date : May 15, 2015 Membership No. 010412
Mar 31, 2014
We have audited the accompanying financial statements of Birla Ericson
Optical Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these fi
nancial statements that give a true and fair view of the financial
position, financial performance and cash fl ows of the Company in
accordance with the Accounting Standards referred to in of section
211(3C) of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
affairs in respect of section 133 of the Companies Act, 2013. The
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the fi
nancial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
of 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, but not for the purpose of expressing an opinion on
the effectiveness of the entity''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
suffi cient 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 31st 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 Cash Flow Statement, of the cash fl ows for the year
ended on that date.
Emphasis of Matter
We draw attention to Note No. 31 to the financial statements regarding
non provision for the shortfall in the market value of a quoted
investment for the stated reason. Our opinion is not qualifi ed in
respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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 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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate affairs in respect of section 133 of the Companies Act, 2013;
(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 disqualifi ed as on 31.03.2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
2. 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 enclose in the annexure,
a statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable, on the basis of such checks of the
books and records of the Company as we considered appropriate and
according to the information and explanations given to us.
Annexure referred to in paragraph 2 of the Auditors'' report to the
shareholders of Birla Ericsson Optical Limited for the year ended 31st
March, 2014
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major items of fixed assets were physically verifi ed during the
year by the management in accordance with a regular programme of verifi
cation which, in our opinion, provides for physical verifi cation of
all the fixed assets at reasonable intervals. No material
discrepancies were noticed on such verifi cation.
(c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
2. (a) As explained to us, inventories except stock in transit, have
been physically verifi ed by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifi cation of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. No material discrepancies were noticed on verifi cation,
between physical stocks and book records.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register required to
be maintained under section 301 of the Companies Act, 1956. Therefore,
the provisions of clause 4 (iii) (b), (c), and (d) of the Order are not
applicable to Company. (b) The Company has not taken any loans,
secured or unsecured from companies, fi rms or other parties covered in
the register required to be maintained under section 301 of the
Companies Act, 1956. Therefore, the provisions of clause 4 (iii) (f)
and (g) of the Order are not applicable to Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the Company.
5. (a) According to the information given to us, the particulars of
contracts or arrangements during the year that need to be entered into
a register in pursuance of section 301 of the Companies Act, 1956 have
been so entered. (b) In our opinion and according to the information
and explanations given to us, the transactions made in pursuance of
such contracts or arrangements exceeding the value of rupees five lacs
during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public in terms
of sections 58A and 58AA or any other relevant provisions of the Act
and the rules made there under.
7. A fi rm of Chartered Accountants has been appointed to carry out
the internal audit. In our opinion, the internal audit system is
commensurate with the size and nature of business of the Company.
8. We have broadly reviewed the books of accounts maintained by the
Company, pursuant to rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained
and the required statements are in the process of compilation. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, employee state insurance, income-tax,
sales-tax, wealth-tax, service-tax, customs duty, excise duty, cess and
other material statutory dues as applicable with the appropriate
authorities, though there has been slight delay in a few cases.
No undisputed amounts payable in respect thereof were outstanding at
the year end for a period of more than six months from the date they
became payable. We are informed that there is no liability towards
Employee State Insurance and Investor education and protection fund for
the year under audit.
(b) There are no amounts in respect of income tax, excise duty, service
tax, customs duty, wealth-tax and cess that have not been deposited
with the appropriate authorities on account of any dispute.
(c) The disputed dues on account of sales tax which have remained
unpaid as on 31.03.2014 are as follows :-
Name of the
Statute Nature of Amount Period to which Forum where
dues ( Rs. in lacs) amount relates dispute pending
M.P.VAT Act,
2002 Interest
on deferred
payment of
tax 86.86 FY 2011-12 M.P. Commercial
Tax Appellate
Board
10. The Company has no accumulated losses at the end of the financial
year. The Company has not incurred cash losses during the current fi
nancial year and in the year immediately preceding the current fi
nancial year.
11. On the basis of the verifi cation of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks. The Company did not have any outstanding debentures and
loans from financial institutions during the year.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
13. The Company does not carry on the business of a chit
fund/Nidhi/Mutual Benefi t Fund. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has given a Cross corporate guarantee to a bank for credit
facilities sanctioned to Vindhya Telelinks Limited (joint venturer)
amounting to Rs. 22,950 lakhs as stated in Note No. 29 (a) (v). In our
opinion, the terms and conditions of the guarantee given by the
Company, for the credit facilities sanctioned to the joint venturer by
the bank, are not prejudicial to the interest of the Company. According
to the information and explanation given to us, the Company has not
given any guarantee for loans taken by others from financial
institutions.
16. Based on information and explanations 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 explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short-term basis have not been used for long term
investment.
18. During the year, 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 neither issued nor had any outstanding debenture
during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. Based on the audit procedure performed and the representation
obtained from the management, we report that no case of material fraud
on or by the Company has been noticed or reported during the year under
audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Registration No.109208W
R.Raghuraman
Place : New Delhi Partner
Date : May 19, 2014 Membership No. 081350
Mar 31, 2013
We have audited the accompanying financial statements of Birla Ericsson
Optical Limited "the Company"), which comprise the Balance Sheet as at
31st March 2013, the Statement of Profit & Loss and the 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"). The responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
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 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 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 31st March 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 Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to Note No. 30 to the financial statements regarding
non provision for the shortfall in the market value of the quoted
investment for the stated reason. Our opinion is not qualified in
respect of this matter.
Report on Other Legal and Regulatory Requirements
1 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 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) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on 31st March 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31.03.2013 from being
appointed as a director in terms of clause (g) of sub- section (a) of
section 274 of the Companies Act, 1956.
2. 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 (4A) of the Act, we enclose in the
annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order to the extent applicable, on the basis of such checks of
the books and records of the Company as we considered appropriate and
according to the information and explanations given to us.
Annexure referred to in paragraph 2 of the Auditors'' report to the
shareholders of Birla Ericsson Optical Limited for the year ended 31st
March 2013
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Major items of fixed assets were physically verified during the
year by the management in accordance with a regular programme of
verification which, in our opinion, provides for physical verification
of all the fixed assets at reasonable intervals. No material
discrepancies were noticed on such verification.
(c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
2. (a) As explained to us, inventories except stock in transit, have
been physically verified by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. No material discrepancies were noticed on verification,
between physical stocks and book records.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register required to
maintained under Section 301 of the Companies Act,1956.Therefore,the
provisions of clause 4
(iii) (b), (c), and (d) of the Order are not applicable to Company.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register required to
be maintained under Section 301 of the Companies Act, 1956. Therefore,
the provisions of clause 4 (iii) (f) and (g) of the Order are not
applicable to Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the company.
5. (a) According to the information given to us, the particulars of
contracts or arrangements during the year that need to be entered into
a register in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lacs during the year
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public in terms
of sections 58A and 58AA or any other relevant provisions of the Act
and the rules made there under.
7. A firm of Chartered Accountants has been appointed to carry out the
internal audit. In our opinion, the internal audit system is
commensurate with the size and nature of business of the Company.
8. We have broadly reviewed the books of accounts maintained by the
Company, pursuant to rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained
and the required statements are in the process of compilation. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities, though there has been slight delay in a few
cases. No undisputed amounts payable in respect thereof were
outstanding at the year end for a period of more than six months from
the date they became payable. We are informed that there is no
liability towards Employee State Insurance for the year under audit.
(b) There are no amounts in respect of income-tax, excise duty, service
tax, customs duty, wealth-tax and cess that have not been deposited
with the appropriate authorities on account of any dispute.
(c) The disputed dues on account of sales tax which have remained
unpaid as on 31.03.2013 are as follows:
Name of
the
Statute Nature of
dues Amount
(in lacs) Period to
which Forum where
amount
relates dispute pending
MP. Vat Interest on
deferment 86.86 2011-12 MP. Commercial Tax
act,
2002 of payment
of tax Appellate Board,
Bhopal
10. The accumulated losses of the Company are not more than fifty
percent of its net worth. The Company has not incurred cash losses
during the financial year covered by our audit. However, the Company
has incurred cash losses in the year immediately preceding the current
financial year.
11. On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks. The Company did not have any outstanding debentures and
loans from financial institutions during the year.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
13. The Company does not carry on the business of a chit
fund/Nidhi/Mutual Benefit Fund. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has given a Cross corporate guarantee to a bank for credit
facilities sanctioned to Vindhya Telelinks Limited (joint venturer)
amounting to Rs. 17,450 lakhs as stated in note no 28(vi). In our
opinion, the terms and conditions of the guarantee given by the
Company, for the credit facilities sanctioned to the joint venturer by
the bank, are not prejudicial to the interest of the Company. According
to the information and explanation given to us, the Company has not
given any guarantee for loans taken by others from financial
institutions.
16. The Company did not have any term loan outstanding during the
year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short-term basis have not been used for long term
investment.
18. During the year, 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 neither issued nor had any outstanding debenture
during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. Based on the audit procedure performed and the representation
obtained from the management, we report that no case of fraud on or by
the Company has been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
ICAI Firm Regn. No. 109208W
Place New Delhi R. Raghuraman
Dated 21 May, 2013 Partner
Membership No. 081350
Mar 31, 2011
1. We have audited the attached Balance Sheet of Birla Ericsson
Optical Limited ('the Company') as at March 31, 2011 and also the
Profit and Loss account and 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 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 of India in terms of
sub-section (4A) of Section 227 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 above, we
report that:
(i) 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;
(ii) 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;
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the balance sheet, profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of the written representations received from the
directors, as on March 31, 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and 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, 2011;
(b) in the case of the profit and loss account, of the Loss for the
year ended on that date; and
(c) in the case of cash flow statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph 3 of the Auditors' report to the
shareholders of Birla Ericsson Optical Limited for the year ended 31st
March, 2011
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The management has physically verified the fixed assets at the year
end, the frequency of which, in our opinion is adequate. No material
discrepancies were noticed on such verification.
(c) Since there is no substantial disposal of fixed assets during the
year, the preparation of financial statements on a going concern basis
is not affected on this account.
(ii) (a) As explained to us, the inventories comprising of raw
material, store & spares, packing materials, traded goods, work in
progress, finished goods and scrap except stock in transit, have been
physically verified by the management at reasonable intervals.
(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 the nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory and no material discrepancies were noticed on physical
verification.
(iii) (a) The Company has not granted any loans, secured or unsecured
to companies, firms or other parties covered in the register required
to be maintained under Section 301 of the Companies
Act,1956.Therefore,the provisions of clause 4 (iii) (b), (c), and (d)
of the Order are not applicable to Company.
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register required to
be maintained under Section 301 of the Companies Act,1956.Therefore,the
provisions of clause 4 (iii) (f) and (g) of the Order are not
applicable to Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system of the Company.
(v) According to the information given to us, there are no contracts or
arrangements during the year that need to be entered into a register in
pursuance of section 301 of the Companies Act, 1956. Therefore, the
provisions of clause 4 (v) of the Order are not applicable to the
Company.
(vi) The Company has not accepted any deposits from the public in terms
of sections 58A and 58AA or any other relevant provisions of the Act
and the rules made there under.
(vii) A firm of Chartered Accountants has carried out internal audit
during the year. In our opinion, the internal audit system of the
Company is commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Companies Act, 1956 and are of opinion that prima
facie, the prescribed accounts and records have been maintained. We
have not, however, made a detailed examination of the records with a
view to determine whether they are accurate and complete.
(ix) (a) The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise
duty, cess and other material statutory dues as applicable with the
appropriate authorities though there has been a slight delay in few
cases. We are informed that there is no liability towards Employee
State Insurance for the year under audit. No undisputed amounts payable
in respect thereof were outstanding at the year end for a period of
more than six months from the date they became payable.
(b) There are no amounts in respect of sales-tax, income-tax, customs
duty, wealth-tax, service-tax, excise duty and cess that have not been
deposited with the appropriate authorities on account of any dispute.
(x) The accumulated losses of the Company are not more than fifty
percent of its net worth. Further, the Company has incurred cash losses
during the financial year covered under audit. However, it has not
incurred cash losses in the year immediately preceding the current
financial year.
(xii) On the basis of the verification of records and information and
explanations given to us, the Company has not defaulted in repayment of
dues to banks. The Company did not have any outstanding debentures and
loans from financial institutions during the year.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
applicable to the Company.
(xiii) The Company does not carry on the business of a chit
fund/Nidhi/Mutual Benefit Fund. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
(xv) According to information and explanations given to us, the Company
has not given guarantees for loans taken by others from banks or
financial institutions.
(xvi) The Company did not have any term loan outstanding during the
year.
(xvii)According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short-term basis have not been used for long term
investment.
(xviii)During the year, 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.
(xix) The Company has neither issued nor had any outstanding debentures
during the year.
(xx) Since there were no public issue of securities during the year,
verification of the end use of money does not arise. (xxi) Based on
the audit procedure performed and the representation obtained from the
management, we report that no case of fraud on or by the Company has
been noticed or reported during the year under audit.
For V. Sankar Aiyar & Co.
Chartered Accountants
Firm Registration No. 109208W
R.Raghuraman
Partner
Membership no. 081350
Place : New Delhi
Dated : July 14, 2011