Mar 31, 2023
Birla Precision Technologies Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone financial statements of Birla Precision Technologies Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and notes to the financial statements including a summary of significant accounting policies and other explanatory information.
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,
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2023
b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) In the case of the Cash Flow Statement, cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (âActâ). Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of Financial Results section of our report. We are independent of the Company, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us in is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters (âKAMâ) are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Branch Office : 701, Lakshchandi Heights, Gokuldham, Goregaon (E), Mumbai - 400 060
Description of Key Audit Matters
The Key Audit Matters |
How our audit addressed the matter |
Capitalisation of property, plant and equipment |
Principal Audit Procedures |
During the year ended 31st March, 2023, the Company has incurred significant capital expenditure. Further the total additions to property, plant and equipment at various locations of the Company was ? 4134.73 Lakhs in the current year as set out in Note No.2. Significant level of judgement is involved to ensure that the aforesaid capital expenditure/additions meet the recognition criteria of Ind AS 1 6 - Property, Plant and Equipment. As a result, the aforesaid matter was determined to be a key audit matter. |
Our audit procedures included the following substantive procedures: ⢠We assessed the capitalisation process and tested the design and operating effectiveness of the controls in the process. ⢠Assessed the nature of the additions made to property, plant and equipment and capital work-in-progress on a test check basis to test that they meet the recognition criteria as set out in para 16 to 22 of Ind AS 16. ⢠Reviewed the project completion details provided by the management to determine whether the asset is in the location and condition necessary for it to be capable of operating in the manner intended by the management. Based on the above procedures, managementâs assessment in respect of Capitalisation of property, plant and equipment in the Standalone Financial Statements are considered to be adequate. |
Lockout of Foundry Division |
Principal Audit Procedures |
During the Year, the Company has Temporarily Locked Out its Foundry Division. Matter - The Company in its email dated 30th January, 2023 had informed the Board of Directors of its decision of Lockout of the Foundry Division of the Company situated atWaluj, Maharashtra, due to continuous losses borne by the Unit over a period of time and ongoing labor issues which were jeopardizing the overall business activity of the Foundry Business.The Company tried all the steps of salvaging the production and its business activities in spite of facing hurdles, but over a period, running business operations from the factory became unsustainable due to continuous losses and recurring issues at Factory.The Company wants to also convey to the board, that they have taken this step after considerable discussion with a view of maximizing shareholders wealth by focusing on profitable units and its subsequent businessâs.The Company informed the Worker Unions of its decision of Lockout which was followed with informing the government bodies and authorities with Company engaging with all the stakeholders and safeguarding their interests. Since, the Total Revenue from Operations of this division was 1 5.74% of total revenue from Operations as on March 3 1,2022, the aforesaid matter was determined to be a key audit matter. |
Our audit procedures included the following substantive procedures: ⢠We assessed the filings done and intimations done by the Management with the Stock Exchanges and the Appropriate Legal Authorities regarding the same. ⢠Based on the clarification received from the Management, the Demerger Application of the said department was already pending with the BSE. ⢠Based on our technical assessment, even though the revenue of the division was 15.74% of total revenue but the Division was loss making since many years (Loss of Rs 6.79 Crores against revenue of ? 38.76 Crores) ⢠Also, the Company is in expansion phase with its new project at Chalisgaon and expansion of existing facilities at Nashik.Therefore the lockout would not have any adverse impact on the Company. On the basis of above Clarifications and assessment, we do not have any adverse comment on the Going Concern of the Company. |
Information other than the Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the preparation of the other information.The other information comprises the information included in the Management Discussion and Analysis, Boardâs report including the Annexures to Board''s Report Corporate Governance and Shareholderâs Information, but does not include the financial statements and our auditorâs report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
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 the 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 the frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section I43(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whetherthe financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), as issued by Central Government of India in terms of Sub Section (I I) of Section 143 of the Act, we hereby give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act, based on our audit 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 accounts 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 accounts;
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards referred to in Section 133 of the Act read with Rule 7 of The Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the Directors and taken on record by the Board of Directors, none of the Directors is disqualified as on 3 Ist March 2023, from being appointed as a Director in terms of Section I 64(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 B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
I n our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule I I of The Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position;
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses;
iii. There were no amounts required to be transferred to the Investor Education and Protection Fund by the Company.
iv. a. The Management has represented that, to
the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested ( either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b. The Management has represented, that to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
c. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule I I (e), as provided under (a) and (b) above, contain any material misstatement.
v. The Company has not declared or paid any dividend during the year.
Chartered Accountants FRN:003623C Jinendra Jain Partner
Membership No. 072995 UDIN: 23072995BGVUDX8748
Place: Mumbai Date: 26th May, 2023
Mar 31, 2018
We have audited the accompanying Ind AS financial statements of BIRLA PRECISION TECHNOLOGIES LIMITED (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as âInd AS financial statementsâ).
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 financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (âInd ASâ) 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 Ins AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
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 auditorâs 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control 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 Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
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.
In our opinion and to the best of our information and according to the explanations given to us, the 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 of the Company as at 31st March, 2018, and its Profit (including other comprehensive income), changes in equity and its Cash Flows for the year ended on that date.
1. As required by the Companies (Auditorâs Report) Order, 2016 (âother Orderâ) issued by the Central Government in terms of section 143 (3) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in Equity and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under section
133 of the Act;
e. On the basis of 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 â Refer Note 30 to the 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.
iv. The disclosures in the Ind AS financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31st March 2018.
For, THAKUR VAIDYANATH AIYAR & CO.
CHARTERED ACCOUNTANTS Firmâs registration number: 000038N
C V PARAMESWAR
PartnerÂ
Membership number: 011541
Place: Mumbai
Date: 28.05.2018Â
The Annexure referred to in Independent Auditorsâ Report to the member of BIRLA PRECISION TECHNOLOGIES LIMITED on the Ind AS financial statements for the year ended 31st March 2018.
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets;
(b) There is a phased programme for verification of fixed assets, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) As per the information and explanations provided to us, title deeds of immovable properties are generally in the name of the Company except in case of 4 leasehold properties acquired by entities valued at ` 356 Lakhs Gross and ` 279
Lakhs net, that have since been amalgamated with the Company.
ii. The inventory (excluding stock with Third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties these have been confirmed by them. In our opinion the frequency of verification is reasonable.The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act. Accordingly, paragraph 3 (iii) of the Order is not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of Loans, investments, guarantees, and security.
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. We have broadly reviewed the books of accounts maintained by the Company as specified under Section 148 (1) of the Act, for maintenance of cost records in respect of products manufactured by the Company, and are of the opinion that prime facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Goods and Service Tax (GST), Duty of Customs, Duty of Excise,Value added Tax, Cess and any other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at 31st March, 2018 for a period of more than six months from the date on which they became payable.
(b) According to the information and explanation given to us and on the basis of our examination of the records of the Company, details of dues of Income Tax, Sales Tax, Service Tax, Goods and Service Tax (GST), Duty of Customs, Duty of Excise and Value added tax which have not been deposited as on 31 March 2018 on account of disputes are given below:
Name of the Statute |
Forum where dispute is pending |
Period to which amount related |
Amount (` in Lakhs) |
Income Tax |
Deputy Commissioner of Income Tax |
1995-96 |
0.75 |
viii. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders.
ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.The Company did not raise money by way of initial public offer or further public offer (including debts instruments) during the year.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
xii. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act,
2013 and the details have been disclosed in the Ind AS Financial Statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
xv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
For, THAKUR VAIDYANATH AIYAR & CO.
CHARTERED ACCOUNTANTS Firmâs registration number: 000038N
C V PARAMESWAR
Partner
Membership number: 011541
Place: Mumbai
Date: 28.05.2018
Mar 31, 2016
To the Members of BIRLA PRECISION TECHNOLOGIES LIMITED
Report on the Financial Statements
We have audited the accompanying (Standalone) financial statements of BIRLA PRECISION TECHNOLOGIES LIMITED (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the (Standalone) Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these (Standalone) financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these (Standalone) financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the (Standalone) financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid (Standalone) financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its Loss and its Cash Flow 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 purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid (Standalone) financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE Aâ To the Independent Auditorâs Report on the Standalone Financial Statements of BIRLA PRECISION TECHNOLOGIES LIMITED
(Referred to in paragraph I(f) under âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 3I, 20I6):
Report on the Internal Financial Controls over financial reporting under Clause (i) of Sub-section 3 of Section I43 of the Companies Act, 20I3 (âthe Actâ)
We have audited the internal financial controls over financial reporting of BIRLA PRECISION TECHNOLOGIES LIMITED (âthe Companyâ) as of March 3I, 20I6 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). 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, 20I3.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section I43(I0) of the Companies Act, 20I3, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (I) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
âANNEXURE Bâ To the Independent Auditorsâ Report on the Standalone Financial Statements of BIRLA PRECISION TECHNOLOGIES LIMITED
(Referred to in paragraph 2 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 3l, 20l6):
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) There is a phased programme for verification of fixed assets, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) As per the information and explanations provided to us, title deeds of immovable properties are generally in the name of the Company except in the case of 4 leasehold properties acquired by entities valued at Rs. 356 lacs Gross and Rs. 290 lacs nett, that have since been amalgamated with the Company.
2) The inventory (excluding stock with Third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties these have been confirmed by them. In our opinion the frequency of verification is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
3) The Company has granted unsecured loans to one Company covered in the register maintained under section 189 of the Companies Act, 2013.
(a) The terms and conditions of such loan are not prejudicial to the companyâs interest.
(b) The schedule of repayment of principal and payment of interest has not been stipulated.
(c) As there is no stipulation about repayment of principal and payment of interest, there is no overdue amount.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of Loans, investments, guarantees, and security.
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under sub section (i) of Section 148 of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the records with a view to determine whether they are accurate or complete.
7) (a) According to the information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they became payable.
(b) According to the information and explanation given to us there are no dues of Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise and Value Added Tax which have not been deposited on account of dispute other than the following:-
Particulars |
Period to which the matter pertains to |
Forum where dispute is pending |
Amount (Rs. in Lacs) |
Central Sales Tax |
2004-05 |
Sales Tax Appellate Tribunal, Mumbai |
15.89 |
Central Sales Tax / Bombay Sales Tax |
2005-06 |
Joint Commissioner, Aurangabad |
105.96 |
Central Sales Tax |
2006-07 |
Joint Commissioner, Aurangabad |
147.23 |
Income Tax |
1994-95 |
Deputy Commissioner of Income Tax |
6.77 |
8) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders.
9) Based upon the audit procedures performed and the information and explanations given by the management, the Company has not raised moneys by way of initial public offer or further public offer including debt instruments and not availed term loans during the year. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company.
For, THAKUR VAIDYANATH AIYAR & CO.
CHARTERED ACCOUNTANTS
Firmâs registration number: 000038N
C V PARAMESWAR
Place: Nashik Partner
Date: 27th May, 2016 Membership number: 011541
Mar 31, 2015
Report on the Financial Statements
1. We have audited the accompanying financial statements of Birla
Precision Technologies Limited ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors are 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; 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
3. 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.
4. 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 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 control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
5. 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
6. 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, its Loss and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
8. 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
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as 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
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors
as on 31st March, 2015, and 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 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) As per the best estimates made by the management on the basis of
opinion taken, the Company is of the view that the ongoing litigations
as at the reporting date would not have a material impact on its
financial position;
ii) Based upon the assessment made by the company, there are no
material foreseeable losses on its long term contracts that may require
any provisioning.
iii) In view of there being no amount(s) required to be transferred to
the Investor Education and Protection Fund for the year under audit the
reporting under this clause is not applicable.
Annexure to Auditors' report
Referred to in our report of even date on the accounts of Birla
Precision Technologies Limited for the year ended on 31st March 2015
(i) a) In our opinion and according to the information and explanations
given to us, the company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) There is a phased programme for verification of fixed assets, which
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(ii) a) The Inventory (excluding stock with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have been confirmed by them.
In our opinion the frequency of verification is reasonable.
b) In our opinion the procedure 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) On the basis of our examination of inventory records in our opinion
the company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification have been
properly dealt with in the books of accounts.
(iii) a) The company has granted unsecured loans to one company covered
in the register maintained under section 189 of the Companies Act,
2013. The maximum amount involved during the year was Rs. 553 lakhs and
year end balance was Rs. 553 lakhs.
b) In respect of the aforesaid loans, the principal amount and interest
are payable on demand and there is no repayment schedule stipulated.
c) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amount does not arise.
(iv) In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business, for
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have neither observed nor
been informed by the management of any continuing failure to correct
major weaknesses in internal controls.
(v) In our opinion, and according to the information and explanations
given to us, the company has not accepted any deposits during the
period under audit. Consequently, the directives issued by Reserve Bank
of India and the provisions of Sections 73 to 76 of the Act and the
rules framed there under are not applicable.
(vi) We have broadly reviewed the books of accounts maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India the maintenance of cost records has been
prescribed under subsection (1) of section 148 of the Companies Act,
2013, and are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have, however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(vii) a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues, including
Provident Fund, Employees' State Insurance, Income-tax, Sales-tax,
Service Tax and other material statutory dues, as applicable, with the
appropriate authorities in India;
b) According to the information and explanations given to us, there are
no dues of sales Tax, Income tax, Service tax, Custom Duty, wealth Tax,
Excise Duty and cess which have not been deposited on account of any
dispute other than the following:
Name of the state Nature of the Amount Period to
which
dues Rs. in
lakhs amount
related
Central Sales Tax Act, 1956 Central Sales Tax 15.89 2004-05
Bombay Sales Tax Act, 1959 Sales Tax 2.84 2005-06
2.73 2006-07
Central Sales Tax Act,1956/ Sales Tax 105.96 2005-06
Bombay Sales Tax Act 1959
Central Sales Tax Act, 1956 Central Sales Tax 147.23 2006-07
Central Sales Tax Act,1956 Central Sales Tax 4.70 2009-10
Income Tax Act, 1961 Income Tax 6.77 1994-95
Name of the State Forum where dispute is pending
Central Sales Tax Act, 1956 Sales Tax Appellate Tribunal Mumbai
Bombay Sales Tax Act, 1959 Sales Tax Appellate Tribunal Mumbai
Central Sales Tax Act, 1956 Joint Commissioner Aurangabad
Central Sales Tax Act, 1956 Joint Commissioner Aurangabad
Central Sales Tax Act, 1956 Joint Commissioner Aurangabad
Income Tax Act 1961 Deputy Commissioner of Income Tax
c) In view of there being no amount(s) required to be transferred to
the Investor Education and Protection Fund for the year under audit the
reporting under this clause is not applicable.
(viii) The Company has no accumulated losses as at 31st March, 2015,
and it has not incurred cash losses during the financial year as well
as in the immediately preceding financial year.
(ix) Based upon the audit procedures carried out by us and on the basis
of the information and explanations provided by the management we are
of the opinion that the company has not defaulted in repayment of dues
to banks or financial institutions.
(x) The company has given a corporate guarantee for a loan taken by an
Associate Company from banks. The terms and condition of the guarantee
are not prejudicial to the interest of the company.
(xi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For Thakur Vaidyanath Aiyar & Co,
Chartered Accountants
Firm's Regn No. 000038N
C.V. Parameswar
Place: Mumbai, Partner
Date: 29.05.2015 M. No. 11541
Mar 31, 2014
We have audited the accompanying financial statements of BIRLA
PRECISION TECHNOLOGIES LIMITED ("the Company), which comprise the
Balance Sheet as at March 31,2014, and the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under 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 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 31 of the
financial statements regarding the payment/provision of remuneration to
the Managing Director which is in excess by Rs.53.54 lakhs over the
maximum remuneration payable as per the provisions of the Companies
Act, 1956, due to inadequacy of profits.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the 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 March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 1
UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS "OF OUR REPORT OF EVEN DATE.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year under a programme of verification laid
down and no material discrepancies between the book records and the
physical inventory have been noticed. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have been confirmed by them.
In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
informed to us no material discrepancies were noticed on physical
verification.
3. (a) The Company has granted unsecured loans to one company covered
in the register maintained under Section 301 of the Act. The maximum
amount involved during the year was Rs. 553 lacs and year-end balance was
Rs. 553 lacs.
(b) In our opinion and according to the information and explanation
given to us , the rate of interest and other terms and conditions of
such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the principal amount and
interest are payable on demand and there is no repayment schedule
stipulated.
(d) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amount does not arise.
(e) The Company has not taken any loan from companies, firms or other
parties covered in the register maintained under Section 301 of
the Act. Consequently the requirements of clauses (iii)(f) and (iii)(g)
of paragraph 4 of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7. The Company has an Internal Audit system. In our opinion, the
Company''s internal audit system is commensurate with its size and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
in respect of products where, pursuant to the Rules made by the Central
Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed cost
records have been maintained. We have, however, not made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
9. (a) According to the records of the company, undisputed dues,
including provident fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess,and other material
statutory dues have generally been regularly deposited, by the company
during the year with appropriate authorities. According to the
information and explanation given to us no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at March 31,2014
for a period of more than six months from the date of becoming payable.
(b) According to the information and explanation given to us, there are
no dues of sales Tax, Income Tax, Service Tax, Custom Duty, Wealth Tax,
Excise duty and Cess which have not been deposited on account of any
dispute other than the following:
Name of Statute Nature of the dues Amount Period to which
(Rs.in lacs) amount relates
Central Sales Tax
Act,1956 Central Sales tax 15.89 2004-05
Bombay Sales Tax
Act,1959 Sales Tax 2.84 2005-06
2.73 2006-07
Income Tax Act,1961 Income Tax 6.77 1994-95
Name of Statue Forum where dispute is pending
Central Sales Tax
Act,1956 Sales Tax Appellate Tribunal, Mumbai
Bombay Sales Tax Act,1959 Sales Tax Appellate Tribunal, Mumbai
Income Tax Act,1961 Deputy Commissioner of Income Tax
10. The Company has no accumulated losses as at March 31,2014 and it
has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. There were no debentures issued during the year or
outstanding at the beginning of the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore clause 4(xiii) of the Companies
(Auditor''s report) Order,2003 is not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given a corporate guarantee for a loan taken by an
Associate Company from banks. The terms and condition of the guarantee
are not prejudicial to the interest of the company.
16. In our opinion the term loans have been applied for the purpose for
which they were raised.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long-term investment during the year.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year, and does
not have any debenture outstanding as at the year end.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For THAKUR, VAIDYANATH AIYAR & CO.
Chartered Accountants
Firm Reg. No. 000038N
C V Parameswar
Partner
Place: Mumbai Mem. No. 11541
Date : 27th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of BIRLA
PRECISION TECHNOLOGIES LIMITED ("the Company"), which comprise the
Balance Sheet as at March 3I, 20I3, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 2II
of the Companies Act, I956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 3I, 20I3;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 2II of the Companies Act, I956;
e) On the basis of written representations received from the directors
as on March 3I, 20I3, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 3I, 20I3, from being
appointed as a director in terms of clause (g) of sub-section (I) of
section 274 of the Companies Act, I956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 44IA of the
Companies Act, I956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER
LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year under a programme of verification laid
down and no material discrepancies between the book records and the
physical inventory have been noticed. In our opinion, the frequency of
verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year.
In respect of inventory lying with third parties, these have been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventory. As
informed to us no material discrepancies were noticed on physical
verification.
3. (a) The Company has granted unsecured loans to three companies
covered in the register maintained under Section 30I of the Act. The
maximum amount involved during the year was Rs. 2678 lacs and year end
balance was Rs. 2044.34 lacs.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of
such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loans, the principal amount and
interest are payable on demand and there is no repayment schedule
stipulated.
(d) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amount does not arise.
(e) The Company has taken unsecured loans from a company covered in the
register maintained under Section 30I of the Act. The maximum amount
involved during the year was Rs. 4I0 lacs and the yearend balance was
Rs. 4I0 lacs.
(f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and condition of the
loan taken by the company are not prima facie prejudicial to the
interest of the company.
(g) The principal amounts and interest are repayable on demand and
there is no repayment schedule stipulated.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 30I of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7. The Company has an in house internal audit system. In our opinion,
the Company''s internal audit system is commensurate with its size and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 20II
prescribed by the Central Government under section 209 (I) (d) of the
Companies Act,I956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, undisputed statutory
dues, including Provident Fund, Employees Statue
Insurance Dues, Investor Education and Protection Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess,and
other material statutory dues have generally been regularly deposited,
by the Company during the year with appropriate authorities in India.
According to the information and explanation given to us no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 3I,20I3 for a period of more than six months from the date of
becoming payable, except for dues in respect of income-tax as mentioned
below:
Name of
the statute Nature of dues Amount Period
to which Due Date Date of
payment
(Rs.
in lacs) amount
relates
Income Tax
Act,I96I Income Tax I55.48 F.Y.
20I0-II - Not paid
till
date.
(b) According to the information and explanation given to us, there are
no dues of Sales Tax, Income Tax, Service Tax, Custom Duty, Wealth Tax,
Excise duty and Cess which have not been deposited on account of any
dispute other than the following:
Name of
the Statute Nature of
the dues Amount Period
to which Forum where
dispute is
pending
(Rs.in lacs) amount
relates
Central
Sales
Tax Act,
I956 Central
Sales tax 57.83 2004-05 Joint
Commissioner
of sales Tax
(Appeal)
Bombay
Sales
Tax Act,
I959 Sales Tax I2.25 2004-05 Joint
Commissioner of
Sales Tax
(Appeals)
Income
Tax Act,
I96I Income Tax 6.77 I994-95 Deputy Commis
sioner of
Income Tax.
10. The Company has no accumulated losses as at March 3I, 20I3 and it
has not incurred any cash loss in the financial year ended on that date
or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore clause 4(xiii) of the Companies
(Auditor''s report) Order,2003 is not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given a corporate guarantee for a loan taken by a
group Company from banks. The terms and condition of the guarantee are
not prejudicial to the interest of the Company.
16. In our opinion the term loans have been applied for the purpose
for which they were raised.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long-term investment during the year.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section
30I of the Act during the year.
19. The Company has not issued any debentures during the year, and
does not have any debenture outstanding as at the year end.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For THAKUR VAIDYANATH AIYAR & CO.
Chartered Accountants
Firm Reg. No. 000038N
C. V. Parameswar
Place: Mumbai Partner
Date: 27th May, 20I3 Mem. No. II54I
Mar 31, 2012
1. We have audited the attached Balance Sheet of Birla Precision
Technologies Limited as at March 31, 2012, the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date both
annexed thereto .These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. Without qualifying our opinion, we invite attention to the note
no."32" regarding delay in project implementation and capital
expenditures (including project advances) amounting to Rs.523.20 lakh.
No provision for impairment is considered necessary based on the
representation given by the management.
4. As required by the Companies (Auditor's Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
5. Further to our comments in the Annexure referred to in paragraph 4
above, we report that :-
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, proper books of 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, Statement of Profit & Loss and
Cash Flow Statement comply with the mandatory Accounting Standards
referred to in sub section (3C) of Section 211 of the Companies Act,
1956 except Accounting Standard - 2 (AS - 2), on "Valuation of
Inventories" Cost of finished goods and goods under process at Tools
Division of the Company is determined using the retail method whereby
the cost is computed by reducing from the sales value of the inventory
the global gross margin. This method is not in accordance with
Accounting Standard 2 (AS 2) on "Valuation of Inventories" referred
to in section 2II(3C) of the Act. The impact of this on the profit for
year is not quantifiable.
e) on the basis of written representations received from the directors
of the Company as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the director of the Company is
disqualified as on March 31, 2012 from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956;
f) Subject to the comments made in Para (d) above in our opinion and to
the best of our information and according to the explanation given to
us, the said accounts give the information required by the Companies
Act, 1956, in the manner so required and give true and fair view in
conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Annexure referred to in paragraph 4 of Auditor's report of even date to
the members of Birla Precision Technologies Limited on the accounts for
the year ended March 3I, 20I2
1) a) The Company has maintained records showing details of fixed
assets, except comprehensive fixed assets register pertaining
to casting division is in the process of being compiled.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification. The
management does not expect material discrepancies on compiliation of
fixed assets register of casting division.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) The inventory has been physically verified during the year by the
Management except inventory lying with third parties. In our opinion,
the frequency of verification is reasonable.
b) In our opinion and based on the information and explanation given to
us, the procedures of physical verification followed by the management
of stock lying with it were reasonable and adequate in relation to the
size of the Company and 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 inventories
and no material discrepancies were noticed on physical verification. In
respect of items lying with other entities we have relied on the
confirmations obtained by the management from such entities.
3) a) The Company has granted unsecured loan to two companies covered
in the register maintained under Section 30I of the
Act. The maximum amount involved during the year Rs 2,080.00 lakh and
year end balance of the aforesaid loan is Rs. I,530.00 lakh.
b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans given by the company are not prima facie prejudicial to the
interest of the Company.
c) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
d) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amounts does not arise.
e) The Company has taken unsecured loan from three Companies covered in
the register maintained under Section 30I of the Act. The maximum
amount involved during the year Rs I035.72 lakh and year end balance
was Rs.9I0.72 lakh.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company are not prima facie prejudicial to the
interest of the Company.
g) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements
referred to in section 30I of the Companies Act, I956 have been entered
in the register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made pursuant of contracts or
arrangements entered in the register maintained under section 30I of
the Companies Act, I956 have been made at a prices which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) The Company has its own internal audit team. In our opinion, the
company's internal audit system is commensurate with its size and
nature of its business.
8) On the basis of records produced to us, we are of the opinion that,
prima facie, the cost records prescribed by the Central Government of
India under section 209(I)(d) of the Act have been maintained. However,
we are not required to and have not carried out any detailed
examination of such accounts and records.
9) a) According to the records of the Company, undisputed statutory
dues, including Provident Fund, Employees Statue
Insurance Dues, Investor Education and Protection Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues have generally been regularly deposited,
by the Company during the year with appropriate authorities in India.
According to the information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 3I,20I2 for a period of more than six months from the date of
becoming payable, except for dues in respect of advance income-tax and
employees provident fund as mentioned below:
Name of
the Nature of
dues Amount Period
to which Due Date Date of
payment
Statute (Rs.in lakh) amount
relates
Income
tax Advance
income
tax I5I.46 Third
Quarter
of F.Y. I5th
December, Not
paid
till
date
Act,
I96I interest
thereon II.76 20I0-II 20I0
Income
tax Advance
income
tax I30.68 Fourth
Quarter
of I5th March,
20II Not
paid
till
date
Act,
I96I interest
thereon 36.59 F.Y.
20I0-II
Income
tax Advance
income
tax 82.88 First
Quarter of
F.Y. I5th June,
20II Not
paid
till
date
Act,
I96I interest
thereon 2.49 20II-I2
Income
tax Advance
income
tax I65.77 Second
Quarter of. I5th
September, Not
paid
till
date
Act,
I96I interest
thereon 7.46 F.Y.
20II-I2 20II
Employees Employees
Provi- 0.38 I977-78
to 2008-09 02 nd July,
20II Not
paid
till
date
Provident
Fund dent
Fund Interest 0.II
and
Miscellan
eous thereon
Provision
Act,
I952
b) According to the information and explanations given to us, there are
no dues of sales tax, Income Tax, Service Tax, Custom Duty, Wealth Tax,
Excise duty and Cess which have not been deposit on account of any
dispute other than the following:
Name of
Statute Nature
of the Amount Period to
which Forum where
dispute is
pend-
dues (Rs. in
Lakh ) amount
relates ing
Central
Sales
Tax Central
Sales tax I.28 2006-07 The West
Bengal sales
Tax Appel-
Act,
I956 lete & Revision
Board
Central
Sales Tax Central
Sales Tax 57.84 2004-05 Joint Commissioner
of Sales Tax
Act,
I956 (Appeals)
Bombay
Sales Tax Sales Tax 17.82 Various
years
from Joint Commissioner
of Sales Tax
Act,
I959 2004-05
to 2006-07 (Appeals)
Central
Excise
Act, Excise Duty
and 13.37 Various
year
from Commissioner
(Appeals) of
Cen-
I944 Service Tax 2005-06
to 2009-I0 tral Excise
Income
Tax Act, Income tax 6.77 I994-95 Deputy
Commissioner
of Income
I96I Tax
10) The Company has no accumulated losses as at March 3I, 20I2, and it
has not incurred any cash loss during the current financial year and in
the immediately preceding financial year.
11) In our opinion and according to information and explanation given
to us, we are of the opinion that the Company has not defaulted in
repayment of dues to any financial institution or bank. There were no
debentures issued during the year or outstanding at the beginning of
the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's report) Order, 2003 is not applicable to the Company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the companies (Auditor's report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term investment during the year.
18) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
30I of the Act during the year.
19) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
20) We have verified the end use of money raised through right - cum -
public issue by the erstwhile Birla Machining & Toolings Limited and
the same has been disclosed in the notes to the financial statements
(Refer note no. 3I).
21) As per the information with us and explanation given to us and on
the basis of examination of records, no material fraud on or by the
Company was noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. I0I720W
Parag. D. Mehta
Place: Mumbai Partner
Dated: May 30, 2012 Membership No. 113904
Mar 31, 2011
1. We have audited the attached Balance Sheet of Birla Precision
Technologies Limited as at March 31, 2011, the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date both
annexed thereto .These financial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that :- a) we have obtained all the information and
explanations, which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) in our opinion, proper books of 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 Profit and Loss Account 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, Profit & Loss Account and Cash
Flow Statement comply with the mandatory Accounting Standards referred
to in sub section (3C) of Section 211 of the Companies Act, 1956 except
Accounting Standard à 2 (AS à 2), on "Valuation of Inventories" Cost of
finished goods and goods under process at Tools Division of the Company
is determined using the retail method whereby the cost is computed by
reducing from the sales value of the inventory, the global gross
margin. This method is not in accordance with Accounting Standard 2 (AS
2) on "Valuation of Inventories" referred to in section 211(3C) of the
Act. The impact of this on the profit for year is not quantifiable.
e) on the basis of written representations received from the directors
of the Company as on March 31, 2011 and taken on record by the Board of
Directors, we report that none of the director of the Company 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;
f) Subject to the comments made in Para (d) above in our opinion and to
the best of our information and according to the explanation given to
us, the said financial statements together with the significant
accounting policies and notes thereon give the information required by
the Act, in the manner so required, and present a true and fair view in
conformity with the accounting principles generally accepted in India:-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2011;
ii) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and iii) in the case of Cash Flow Statement,
of the cash flows for the year ended on that date.
ANNEXURE TO AUDITORÃS REPORT
Annexure referred to in paragraph 3 of AuditorÃs report of even date to
the members of Birla Precision Technologies Limited on the accounts for
the year ended March 31, 2011
1) a) The Company has maintained proper records to show all
particulars, including quantitative details and situations, of its
fixed assets.
b) We have been informed that the fixed assets of the Company are
physically verified by the Management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c) In our opinion, the Company has not disposed off substantial part of
its fixed assets during the year.
2) a) The inventory has been physically verified during the year by the
Management except inventory lying with third parties. In our opinion,
the frequency of verification is reasonable.
b) In our opinion and based on the information and explanation given to
us, the procedures of physical verification followed by the management
of stock lying with it were reasonable and adequate in relation to the
size of the Company and 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 inventories
and no material discrepancies were noticed on physical verification. In
respect of items lying with other entities we have relied on the
confirmations obtained by the management from such entities.
3) a) The Company has granted unsecured loan to one company covered in
the register maintained under Section 301 of the Act.
The maximum amount involved during the year Rs 35 lakh and year end
balance of the aforesaid loan is Rs NIL.
b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans given by the company are not prima facie prejudicial to the
interest of the Company.
c) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
d) In respect of the said loans, the same are repayable on demand and
therefore the question of overdue amounts does not arise.
e) The Company has taken unsecured loan from two Company covered in the
register maintained under Section 301 of the Act. The maximum amount
involved during the year Rs 80 lakh and year end balance was Rs.50
lakh.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loans taken by the company are not prima facie prejudicial to the
interest of the Company.
g) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand.
4) There are adequate internal control systems commensurate with the
size of the Company and the nature of its business with regard to the
purchases of inventories, fixed assets and sale of goods and services
and we have not observed any continuing failure to correct the major
weaknesses in such internal controls.
5) a) In our opinion and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions of purchase of goods and material and
sale of goods, material and services made pursuant of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at a prices which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits under the provisions of
section 58A and 58AA of the Act or any other relevant provisions of the
Act and the rules framed there under.
7) In our opinion, the CompanyÃs internal audit system is commensurate
with its size and nature of its business.
8) The Central Government of India has not prescribed the maintenance
of cost records under section 209(1)(d) of the Act for any products of
the Company.
9) a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, except for dues
in respect of advance income-tax, the Company is generally regular in
depositing undisputed statutory dues including provident Fund,
Employees State Insurance Dues, Investor Education and Protection Fund,
Wealth Tax, Service Tax, Custom Duty, Excise duty, sales tax, Cess and
other material statutory dues as applicable, with appropriate
authorities. The extend of the arrears of statutory dues outstanding
as at March 31, 2011 for a period of more than six months from the date
of becoming payable.
Name of the Nature of dues Amount Period to which
Statute (Rs. in amount relates
lakh)
Income tax Advance income tax 78 First Quarter of.
Act,1961 interest thereon 2 F. Y 15th June, 2010
Income tax Advance income tax 157 Second Quarter of.
Act,1961 interest thereon 7 F.Y 2010-11 2010 date
Name of the Due Date Date of
Statute payment
Income tax 15th June, 2010 Not paid till
Act,1961 date
Income tax 15th September, Not paid till
Act,1961 2010 date
b) According to the information and explanations given to us, there are
no dues of sales tax, Income Tax, Service Tax, Custom Duty, Wealth Tax,
Excise duty and Cess which have not been deposit on account of any
dispute other than the following:
Name of Nature of the Amount Period to which Forum where
Statute dues (Rs.in amount relates dispute is
pending
Central Sales Central Sales 1 2006-07 The West
Tax Act, tax Bengal
1956 sales Tax
Appellete &
Revision
Board
10) The Company has no accumulated losses as at March 31, 2011, and it
has not incurred any cash loss during the current financial year and in
the immediately preceding financial year.
11) In our opinion and according to information and explanation given
to us, we are of the opinion that the Company has not defaulted in
repayment of dues to any financial institution or bank. There were no
debentures issued during the year or outstanding at the beginning of
the year.
12) The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(AuditorÃs report) Order, 2003 is not applicable to the Company.
14) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the companies (AuditorÃs report) Order,
2003 is not applicable to the Company.
15) The Company has not given any guarantees for loans taken by others
from bank or financial institutions.
16) In our opinion, the term loans have been applied for the purpose
for which they were raised.
17) On the basis of review of utilization of funds which is based on
overall examination of the balance sheet of the Company, related
information as made available to us and as represented to us by the
Management, we are of the opinion that no funds raised on short term
basis have been used for long term investment during the year.
18) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures and no debentures were outstanding at the end of the year.
Therefore, the provisions of clause 4(xix) of companies (AuditorÃs
Report) Order, 2003 are not applicable to the Company.
20) The Company has not raised any money by public issue during the
year.
21) As per the information with us and explanation given to us and on
the basis of examination of records, no material fraud on or by the
Company was noticed or reported during the year.
For CHATURVEDI & SHAH
Chartered Accountants
Registration No. 101720W
Parag. D. Mehta
Partner
Membership No. 113904
Place: Mumbai
Dated: 8th September, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Birla Precision
Technologies Limited (the "Company") as at 31st March, 2010, and the
related Profit and Loss Account and Cash Flow Statement for the year
ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act, 1956
of India (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 paragraphs 4 and 5 of the
Order.
4. Further to our comments in paragraph 3 above, we report that cost
of finished goods and goods under process of Tools Division of the
Company is determined by using retail method whereby the cost is
computed by reducing from the sale value of the inventory, the global
gross margin which is not as per Accounting Standard AS - 2 on
"Valuation of Inventories" referred to in sub-section (3Q of Section
211 of the Act. The impact of this on the profit for the year is not
quantifiable.
5. Subject to our comments in Para 4 above, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) 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 Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2010
from being appointed as a director in terms of clause (g) of
sub-section (I) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to Auditors Report
Referred to in paragraph 3 of the Auditors Report of even date to the
members of Birla Precision Technologies Limited on the financial
statements for the year ended 31st March, 2010.
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In our
opinion, the frequency of verification is reasonable. Inventories lying
with outside parties have been confirmed by them at the close of the
year.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3.(a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has taken secured/unsecured loans, from a company
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year and the year-end balance of
such loans aggregate Rs. 3,52,00,000 and Rs. 30,00,000 respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interests of the
Company.
(d) In respect of the aforesaid loans, the Company is regular in
repaying the principal amounts as stipulated and is also regular in
payment of interest, where applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7.In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records under clause (d) of sub-section (I) of Section 209 of
the Act for any of the products of the Company.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion,
except for dues in respect of advance income-tax, the Company is
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, wealth tax, service tax, customs duty, excise duty, sales
tax, cess and other material statutory dues as applicable, with the
appropriate authorities; The extent of the arrears of statutory dues
outstanding as at 31st March, 2010, for a period of more than six
months from the date they became payable are as follows:
Name of the Nature of dues Amount Period to which the
statute (Rs.) amount relates
Income Tax Advance Income Tax 213,090 First Quarter of
Act, 1961 Interest thereon 6,776 F.Y 2009-10
Income Tax Advance Income Tax 746,180 Second Quarter of
Act, 1961 Interest thereon 33,2081 FY 2009-10
Name of the
statute Due date Date of Payment
Income Tax 15th June, 2009 Not paid till date
Act, 1961
Income Tax 15th September, 2009 Not paid till date
Act, 1961
(b) According to the information and explanations given to us and the
records of the Company examined by us, there were no disputed dues in
respect of income tax, wealthhtax, service-tax, customs duty, excise
duty and cess as at 31 * March, 2010. The particulars of sales tax
which have not been deposited on account of a dispute, are as follows:
Name of the statute Nature of dues Amount
(Rs.)
Central Sales Tax Act, 1956 Central Sales Tax 329,212
Central Sales Tax Act, 1956 Central Sales Tax 271,169
Central Sales Tax Act, 1956 Central Sales Tax 169,437
West Bengal Sales Tax, 1994 West Bengal Value
Added Tax 1,798,009
West Bengal Sales Tax, 1994 West Bengal Value
Added Tax 273,169
Name of the statute Period to which Forum where
the dispute
amount relates is pending
Central Sales Tax Act, 1956 2000-01 Tribunal
Central Sales Tax Act, 1956 2001-02 Tribunal
Central Sales Tax Act, 1956 2006-07 Tribunal
West Bengal Sales Tax, 1994 2000-01 Tribunal
West Bengal Sales Tax, 1994 2001-02 Tribunal
10. The Company has no accumulated losses as at 31 st March, 2010 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holder as at the balance sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
14. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
15. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
16. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
17. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
21. The other clauses, (iii)(b), (iii)(c), (iii)(d) and (xiii) of
paragraph 4 of the Order, are not applicable in the case of the Company
for the year, since in our opinion there is no matter which arises to
be reported in the aforesaid Order.
For Dalai & Shah
Firm Registration Number: 102021W
Chartered Accountants
S. Venkatesh
Partner
Place: Mumbai Membership Number 037942
Date :31st August, 2010
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