Mar 31, 2023
BPL Limited
Report on the Audit of the standalone Ind AS Financial Statements
Qualified Opinion
We have audited the accompanying Standalone Ind AS financial statements of M/s BPL Limited ("the Company") which comprises the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of material accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, and subject to the possible impact of matters mentioned in " Basis for Qualified Opinion" paragraph below, the aforesaid standalone Ins AS financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended, ("Ind AS") accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and it''s profit, changes in equity and its cash flows for the year ended on that date.
The company is yet to redeemed preference shares amounting to Rs. 16958.68 lacs, which was due for redemption in August 2019 due to paucity of funds.
The Company is yetto contribute a sum of Rs.216.12 lacs (previous year Rs.250.94 lacs) towards Group gratuity policy maintained with LIC as required under Payment of Gratuity Act due to paucity of funds.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements 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 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 there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisforouropinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial
statements for the financial year ended March 31,2023. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The following key audit matter was identified and communicated to management
Revenue from Brand licensing agreement.
Revenue from Brand licensing is accounted based on minimum guarantee terms of agreement with customer. Reconciliation is in progress to confirm the figures. We have relied on confirmation of balance from party to obtain sufficient assurance that the revenue booked is in agreement with amounts accounted by the party. Management has represented to us the adequacy and accuracy of the amount of revenue accounted.
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the standalone Ind AS financial statements and our auditor''s report thereon.
Our opinion on the standalone Ind AS 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 standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 nothingto report in this regard.
Responsibility of Management for the Standalone Financial Statements.
The Company''s Board of Directors is responsible forthe matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 statement 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 Company''s 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 company''s financial reporting process
Auditor''s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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. Wealso:
⢠Identify and assess the risks of material misstatement of the standalone Ind AS 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whetherthe 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 management.
⢠Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s 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 auditor''s 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 standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work andin evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone 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 standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s 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
As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A", a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act, we reportthat:
we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes ofouraudit.
a. 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
b. The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
c. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
d. On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) ofthe Act.
e. With respect to the adequacy ofthe internal financial controls over financial reporting ofthe Company and the operating effectiveness ofsuch controls, referto ourseparate Reportin "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company''s internal financial controls overfinancial reporting.
f. 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: In 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.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
1. The Company has disclosed the impact of pending litigations, if any, on its financial position in its financial
2. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
3. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
4. (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 ("Intermediaries"), 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 inany manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") 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 orentity, includingforeign entity ("Funding Parties"), 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 ("Ultimate Beneficiaries") 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 11(e), as provided under (a) and (b) above, contain any material misstatement.
5. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31,2023.
for MKUK & Associates Chartered Accountants Firm''s registration number: 050113S
(T
Manoj Kumar UKN Partner
Bangalore M.No: 091730
29th May, 2023 UDIN: 22091730AJVRVE2384
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of BPL Limited (âthe Companyâ), which comprise the balance sheet as at 31st March, 2018, the statement of changes in equity, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) ofthe Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards(Ind AS) 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; makingjudgments 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 Ind AS financial statements based on ouraudit.
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 madethereunder.
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 ofthe Ind AS financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that a true and fair view in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Un-Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2018 and its profit and its cash flows for the year ended on that date.
Other Emphasis Matters
1. Attention is invited to matters specified in Note no:2.7 regarding non redemption of preference shares on due dates and the companyâs plan to set right the same. As the financial impact if any is unascertainable, our report is not qualified thereon.
2. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 prepared in accordance with Ind AS, included in these Ind AS financial statements, have been audited by the predecessor auditor who had audited the financial statements forthe relevant periods. The report ofthe predecessor auditor on the comparative financial information and the opening balance sheet dated 1st April, 2016 expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure-A, a statement on the matters specified in the paragraph 3 and 4 ofthe 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 forthe purposes of ouraudit.
(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 Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as onMarch 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;and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund if any, by the company.
Annexure A to the Auditorâs Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the Ind AS financial statements for the year ended 31st March, 2018, we report that:
1 (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The company has conducted physical verification of any of its fixed assets at itâs factory as part of system of periodic physical verification of assets in a phased manner. No differences were reported on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. (a) Physical verification at reasonable periods in respect of finished goods, stores, spare parts and raw materials are reported to have been made by the management and certified by them accordingly. In our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Companyand the nature of its business.
(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies between physical stock and book stock, which were not material, have been properly dealt with inthe books of account.
3. The company has granted an advance in the nature of loan to 1 party covered in the register maintained under Section 189 of the Companies Act, 2013, based on information and explanation given to us by the management, the terms and conditions where of are not prejudicial to the interests of the company. Schedule of repayment of principal or interest are stipulated. No instalment of principal or interest has fallen due for repayment during the year. No amounts are overdue.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans and investments made by it after the commencement of Companies Act, 2013.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and thereunder framed there under are not applicable to the company.
6. According to the information and explanations provided by the management, in respect of Printed Circuit Boards manufactured by the company, the Central Government has prescribed the maintenance of cost records sub-section (1) of Section 148 of the Companies Act, 2013. We have broadly reviewed the books of account and records maintained by the Company in this connection and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determining whether they are accurate or complete.
7. (a) According to the records of the Company and information and explanation given to us, the Company is generally regular in remittance of undisputed statutory dues including Income Tax Deducted at Source, Provident Fund, Employees State Insurance, Sales Tax, Service Tax, Goods And Service Tax (GST), Excise Duty, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, undisputed amounts payable in respect of Customs Duty amounting to Rs. 116.11 Lakhs were outstanding, as at 31st March 2018, for a period of more than six months from the dates on which they became payable.
(b) The following dues towards Sales Tax, GST, Customs Duty, Excise Duty and Service Tax have not been deposited on account of dispute/appeals:
Name of Dues |
Nature of Dispute |
Amt. (Rs. in Lakhs) |
Forum where pending |
Central Excise |
Demand against Exemption availed from Payment ofduty on DC Defibrillator |
28.71 |
Tribunal |
Central Excise |
Demand of duty at Higher rate for clearance of CENVAT availed inputs |
19.87 |
Commissioner Appeals |
Central Excise |
Demand of duty on clearance of samples |
3.33 |
Tribunal |
Central Excise |
Demand of duty on clearance of spare parts/components/sub-assemblies |
271.48 |
Tribunal |
Central Excise |
Demand due to non-inclusion ofamortised cost in value |
34.73 |
Tribunal |
Central Excise |
Demand for duty on waste of ferric chloride acid sold from the unit |
25.32 |
Commissioner Appeals |
Service Tax |
Demand of Service Tax & Penalty on manpower services provided by BPL to SBPL |
98.48 |
Tribunal |
Customs duty |
Entitlement to exemption of spare parts. |
610.55 |
Tribunal |
Customs duty |
Entitlement to exemption of spare parts. |
17.06 |
Commissioner Appeals |
Customs duty |
Demand of duty on clearance of bonded goods |
33.33 |
Tribunal |
Sales Tax |
Demand due to various disallowances |
305.94 |
DCCT Appeals |
Sales Tax |
Demand due to various disallowances |
939.62 |
Revision Board |
Sales Tax |
Demand due to various disallowances |
379.93 |
Tribunal |
Sales Tax |
Demand due to various disallowances |
1774.10 |
High Court |
FEMA |
Demand u/s. 10(6) & 7 |
140.00 |
Special Director (A), Chennai |
FEMA |
Demand of non submission of Bill of Entry to Banks |
50.00 |
Tribunal |
8. As per information given to us by the management and based on verification of books and records, the Company has not defaulted in repayment of principal and interest to any bank/financial institution or debenture holder, during the year.
9. According to the records ofthe company and the information and explanations provided by the management, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) ofthe Order is not applicable.
10. According to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act to the extent applicable to it.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) ofthe Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
14. According to the information and explanations given to us and based on our examination of the records of the company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during theyear.
15. According to the information and explanations given to us and based on our examination of the records of the company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under Section 45-IA ofthe Reserve Bankoflndia Act, 1934.
for MKUK & Associates
Chartered Accountants
Firmâs Registration No.050113S
Anto Joseph
Bangalore Proprietor
23.05.2018 M. No. 203958
Mar 31, 2016
To the Members ofBPL Limited,
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BPL Limited (''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation 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 ofthe financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation ofthe financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation ofthe 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 31 March 2016 and its loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3)of the Act ,were port that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31March2016frombeingappointedasa director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditors'' Report to the membersâ of the
Company on the standalone financial statements for the year ended 31 March 2016, we report that:
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As informed by the management, the company has conducted physical verification of any of its fixed assets at all locations and the process of reconciliation with books of accounts in progress.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. (a) Physical verification at reasonable periods in respect of finished goods, stores, spare parts and raw materials are reported to have been made by the management and certified by them accordingly. In our opinion, the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies between physical stock and book stock, which were not material, have been properly dealt with in the books of account.
3. The company has granted an advance in the nature ofloanto1 party covered in the register maintained under section 189 of the Companies Act 2013, based on information and explanation given to us by the management, the terms and conditions were of are not prejudicial to the interests of the Company. Schedule of repayment of principal orienteer star stipulated. No installment of principal or interest has fallen due for repayment during the year. No amounts are overdue.
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 186of the Act, with respect to the loans and investments made by it after the commencementofCompaniesAct2013.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable to the company
6. According to the information and explanations provided by the management, in respect of Printed Circuit Boards manufactured by the company, the Central Government has prescribed the maintenance of cost
8. As per information given to us by the management, the company has not defaulted in repayment of principal and interest to any bank/financial institution or debenture holder, during the year.
9. According to the records of the company and the information and explanations provided by the management, the company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
10. According to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act, to the extent applicable to it.
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our records sub-section (1) of section 148 of the Companies Act. We have broadly reviewed the books of account and records maintained by the Company in this connection and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determining whether they are accurate or complete.
7. (a) According to the records of the Company and information and explanation given to us, the Company is generally regular in remittance of undisputed statutory dues including Income Tax Deducted at Source, Provident Fund, Employees State Insurance, Sales Tax, Service Tax, excise Duty, Cess and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, undisputed amounts payable in respect of customs duty amounting to Rs. 116.11 Lakhs were outstanding, as at 31st March 2016, for a period of more than six months from the dates on which they became payable.
Examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBankofIndiaAct1934.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For T Velupillai & Co.,
Chartered Accountants
Firm Registration No. 004592S
M S Ram
Bangalore Partner
26th May, 2016 Membership No.(026687)
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BPL
Limited, ("the Company"), which comprise the Balance Sheet as at 31st
March 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015, issued
by the Central Government, we enclose in the Annexure a statement on
the matters specified in paragraphs 3&4of the said order.
2. Further to our comments in Annexure referred to in paragraph 1above
and as required by Section 143 (3)of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(d) 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.
(e) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7ofthe Companies (Accounts) Rules, 2014.
(g) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2)of the
Act.
(h) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company 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.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of our report, of even date, to the members
of BPL Limited for the year ended 31st March 2015.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed by the management, the company has conducted physical
verification of its fixed assets at all locations and the process of
reconciliation with books of account is in progress.
2. (a) Physical verification at reasonable periods in respect of
finished goods, stores, spare parts and raw materials are reported to
have been made by the management and certified by them accordingly. In
our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies between physical stock and book stock, which were not
material, have been properly dealt with in the books of account.
3. The Company has not granted any loans or advances in the nature of
loans to parties covered in the register maintained under section 189
of the Companies Act, Hence, the question of reporting whether the
terms and conditions of such loans are prejudicial to the interests of
the company and whether reasonable steps for recovery/repayment of over
dues of such loans are taken does not arise.
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 with
regards to the purchase of inventory and fixed assets, and with regard
to the sale of goods and services . During the course of our audit we
have not noticed any continuing failure to correct any major weakness
in internal control systems.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the directives issued by the Reserve Bank of India and the
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under, are not
applicable to the company.
6. According to the information and explanations provided by the
management, in respect of Printed Circuit Boards manufactured by the
company, the Central Government has prescribed the maintenance of cost
records under sub-section (1) of Section 148 of the Companies Act. We
have broadly reviewed the books of account and records maintained by
the Company in this connection and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
7. (a) According to the records of the Company and information and
explanation given to us, there have been instances of delays in
remittance of undisputed statutory dues including Income Tax Deducted
at Source, Provident Fund, Employees State Insurance, Sales Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, undisputed amounts payable in
respect of customs duty amounting to Rs. 307.29 Lakhs were outstanding,
as at 31st March 2015, for a period of more than six months from the
dates on which they became payable.
(b) The following dues towards sales tax, income tax, customs duty,
excise duty, gift tax, cess and service tax have not been deposited on
account of dispute/appeals:
Name of Dues Nature of Dispute (Rs. in Lakhs)
Central Excise Eligibility of Exemption from Payment
of duty on DC Defibrillator, and penalty 56.42
Central Excise Recovery of CENVAT Credit due to price
reduction of inputs 93.82
Central Excise Demand of duty on clearance of sample
Colour TVs 3.33
Central Excise Demand for duty at Higher rate for
clearance of CENVAT availed inputs 19.87
Central Excise Demand of duty on clearance of CTV
Parts/componensts/sub-assemblies on
SKD condition to OEMs. 282.05
Central Excise Penalty for non inclusion of Amortised
Cost in value of Plastic Parts 34.73
Central Excise Demand for duty on waste of ferric
chloride acid sold from the unit 25.32
Customs duty Differential Duty on Imported Cathode
Ray Tube 4.72
Customs duty Entitlement to Exemption for parts of
Defibrillator 627.61
Customs duty Duty on clearance of bonded goods. 33.33
Sales Tax Various disallowances and non-submission
of 'c' forms 3017.22
Service Tax Demand of Service tax on manpower
services deemed to have been provided to
Sanyo BPL Pvt. Ltd. 98.48
Service Tax Reversal of CENVAT credit availed of
service tax on outward freight 3.04
Name of Dues Forum where pending
Central Excise Supreme Court
Central Excise Tribunal
Central Excise Tribunal
Central Excise Comissioner Appeals
Central Excise Tribunal
Central Excise Tribunal
Central Excise Comissioner Appeals
Customs duty Commissioner-Appeals (Mumbai)
Customs duty CESTAT/Commissioner-(Appeals)
Customs duty CESTAT
Sales Tax At various appellate levels ranging from DCCTs
(Appeals) to Appellate Tribunals
Service Tax Tribunal
Service Tax Commissioner Appeals
c) There were no amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under.
8. Company's accumulated losses have not exceeded 50% of it's capital
and free reserves as at 31st March 2015. The Company has not incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
9. As per information given to us by the management, the company has
not defaulted in repayment of principal and interest to any
bank/financial institution or debenture holder, during the year.
10. According to the records of the company and the information and
explanations provided by the management, during the year, the company
has not given any guarantee for loans taken by others from banks or
financial institutions. However, on continuing guarantees we are unable
to express an opinion on whether the terms and conditions are
prejudicial to the interests of the company, considering the status of
the borrower.
11. According to the information and explanation given to us, term
loans if any were applied for the purpose for which the loans were
obtained;
12. According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the year.
For T Velupillai & Co.,
Chartered Accountants
Firm Registration No. 004592S
Bangalore M S Ram (026687)
26th May, 2015 Partner
Mar 31, 2014
We have audited the accompanying financial statements of BPL Limited
("the company"), which comprise of the Balance Sheet as at 31st March,
2014, and the StatementofProfit and Loss and Cash Flow Statement for
the year then ended and a summaryof 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 3(C) of Section
211 of the Companies Act, 1956 ("the Act"). (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs) and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal; control system
relevant tothe preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud orerror.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. Weconducted our audit inaccordance with
the StandardsonAuditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement.
An audit includes 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 the internal controls relevant to the company''s preparation
and fair presentation of the financial statements in order to design
the audit procedures that are appropriate in the circumstances. An
audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates madeby
the management,as well as evaluating the overall presentationof the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provideabasis 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
inIndia:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at
31st March,2014; ii. inthe case ofthe Statement of Profit and
Loss,ofthe Profit for the year ended
on that date; and iii. in the case of the cash flow statement, of the
cash flows for the year ended on that date.
Report on Other Legaland Regulatory Requirements
1. As required bythe Companies (Auditor''s Report) Order, 2003 (the
order), issued by the 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 &5of the order.
2. Asrequired by Section 227(3)of the Act, wereport 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 asrequiredby law have been
kept by the Company sofarasitappears from our examinationofsuch books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt withbythis report areinagreement with the
Booksofaccount;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub section (3C) of Section 211 of the Companies Act,
1956, (which continue to be applicable in respect of Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013 dated 13th
September, 2013 of the MinistryofCorporate Affairs)
e) On the basis ofthe written representations received from the
Directors as on 31st March, 2014 and taken on recordby the Board of
Directors, none of the Directors is disqualified as on 31st March, 2014
from being appointed as Director in terms of Clause (g) of sub-section
(1) of Section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notificationasto the
rate at which the cess is to be paid under Section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cessisto bepaid,nocessisdue and
payable bythe Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in Paragraph1 of our report, of even date, to the members
of BPL Limited for theyear ended31st March,2014
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situationof fixed
assets
(b) As informed by the management, the company has conducted physical
verification of any of its fixed assets at all its locations and the
process of reconciliation with books of account is in progress.
(c) During the year, the company transferred its Health Care Business
as a going concern to M/s BPL Medical Technologies Private Limited. The
transaction does not affect the going concern statusof the Company.
2. (a) Physical verification at reasonable periods in respect of
finished goods,
stores, spare parts and raw materials are reported to have been made by
the management and certified by them accordingly. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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 ofits business.
c) Inour opinion and according tothe information and explanations given
tous and on the basis of our examination of the records of inventory,
the Company is maintaining proper records of inventory. The
discrepancies between physical stock and book stock, which were not
material, have been properly dealt withinthe books ofaccount.
3. The Company has not takenorgiven any loans, securedorunsecuredto
orfrom Companies, firms or other parties covered in the Register
maintained under Section 301ofthe Companies Act, 1956.
4. In respect of transactions entered in the register maintained in
pursuance of Section 301ofthe Companies Act, 1956,
(a) Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into the register maintained under Section 301 have beenso
entered.
(b) According to the information and explanations given to us and
excluding certain transactions of purchase of goods and material of
special nature for which alternate quotations are not available, where
each of such transactions isinexcess ofRs. 5 lakhsin respectofany party,
inour opinion, the transactions have been made at prices which are
prima facie reasonable having regard to the prevailing market
pricesatthe relevant time.
5. 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 with regard
to the purchase of inventory and fixed assets, and with regard to the
sale of goods and services. During the course of our audit, we have not
noticed any continuing failure to correct any major weaknessin internal
control systems.
6. In our opinion and accordingtothe information and explanations
givento us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956, and rules made there under, are not applicabletothe company.
7. During the year, the Company hadaninternal audit system, but the
system needs to be strengthened to be commensurate with its size and
the nature of its business.
8. The Central Government has not prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act,1956, with respect
to the manufacture of Medical Equipments. However, in respect of Printed
Circuit Boards manufactured by the company, the Central Government has
prescribed the maintenance of cost records under Section 209 (1)(d) of
Companies Act, 1956.Wehave broadly reviewed the booksofaccount and
records maintained by the Company in this connection and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. 9. (a) According to the records of the
Company and information and explanation given to us, there have been
instances of delays in remittance of undisputed statutory dues
including Income Tax Deducted at Source, Provident Fund, Employees
State Insurance, Sales Tax, Service Tax, Customs Duty, Excise Duty,
Cess and other statutory dues with the appropriate authorities during
the year. (b) According to the information and explanations given to
us, undisputed amounts payable in respect of customs duty amounting to
Rs. 307.29 Lakhs, Service tax dues amounting to Rs. 7.31 Lakhs , Dividend
Distribution Tax amounting to Rs.2,817/- were outstanding, as at 31st
March 2014, for a period of more than six months from the dates on
which they became payable.
The following dues towards sales tax, income tax, customs duty, excise
duty, gift tax, cess and service tax have not been deposited on account
of dispute/appeals:
Name of Dues Nature of Dispute (tin Lakhs) Forum where
pending
Central Excise Eligibility of Exemption from
Payment of duty on DC
Defibrillator, and penalty 56.42 Supreme Court
Central Excise Recovery of CENVAT Credit due
to price reduction of inputs 93.82 Tribunal
Central Excise Demand of duty on clearance of
sample Colour TVs 3.33 Tribunal
Central Excise Demand for duty at Higher rate
for clearance of CENVAT availed
inputs 19.87 Comissioner
Appeals
Central Excise Demand of duty on clearance of
CTV Parts/componensts/sub-
assemblies on SKD condition
to OEMs. 282.05 Tribunal
Central Excise Penalty for non inclusion of
Amortised Cost in value of
Plastic Parts 34.73 Tribunal
Central Excise Demand for duty on waste of
ferric chloride acid sold from
the unit 25.32 Comissioner
Appeals
Customs duty Differential Duty on Imported
Cathode Ray Tube 4.72 Commissioner
-Appeals
(Mumbai)
Customs duty Entitlement to Exemption for
parts of Defibrillator 627.61 CESTAT
/Commissioner
-(Appeals)
Customs duty Duty on clearance of bonded
goods. 33.33 CESTAT
Sales Tax Various disallowances and
non- submission of c forms 3017.22 At various
appellate
levels ranging
from
DCCTs (Appeals)
to Appellate
Tribunals
ServiceTax Demand of Service tax on
manpower services deemed to
havebeen provided to Sanyo BPL
Pvt. Ltd. 98.48 Tribunal
ServiceTax Reversal of CENVAT credit
availed of service tax on outward
freight 3.04 Commissioner
Appeals
10. The Company''s accumulated losses do not exceed 50% of it''s net
worth as at 31st March 2014. The Company has not incurred cash losses
during the financial year coveredbyour audit and inthe immediately
preceding financial year.
11. The Company has not defaulted in repayment of principal and
interest to any bank/financial institution, during the year.
12. According to the information and explanations givento us, the
Company has not granted any loans and advances onthe basis of security
by wayofpledge ofshares, debentures and other securities.
13. The Company is neither a chit fund nor a nidhi/mutual benefit
society. Hence, in our opinion, the requirements of Clause (xiii) of
Companies (Auditor''s Report)Order,2003,donotapplytothecompany,
14. According to the information and explanation given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Hence, in our opinion the requirements of clause
(xiv) of Companies (Auditor''s Report)Order,2003,donotapplytothecompany.
15. According to the information and explanations givento us, the
Company has not given any guarantee during the year, for loans taken by
others from banks and financial institutions.
16. According to the records of the company, the company has not
obtained any term
loans during the year. In case of continuing guarantees, we are unable
to express an opiniononwhether the terms and conditions are prejudicial
tothe interests of the company, considering the status ofthe borrower.
17. The Company has not utilised funds borrowed on short term basis,
if any, for long term uses, during the year under audit.
18. The Company has not made any preferential allotment of shares to
parties and companies coveredinthe register maintained under Section
301of the Act.
19. The Company has not issued any debentures during the year under
audit.
20. The Company has notraised any money by public issues during
the year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed orreported during the year.
For T Velupillai & Co.,
Chartered Accountants
Firm Registration No. 004592S
Bangalore M S Ram (26687)
30th May, 2014 Partner
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of BPL Limited
("the company"), which comprise of the Balance Sheet as at March 31,
2013, and the statement of Profit and Loss and Cash Flow Statement for
the year then ended and asummary 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 3(C) of Section
211of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control system
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether dueto fraud orerror
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
ofmaterial misstatement.
An audit includes 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 the internal controls relevant to the company''s preparation
and fair presentation of the financial statements in order to design
the audit procedures that are appropriate in the circumstances. An
audit also includes evaluating the appropriatenessof the accounting
policies used and the reasonablenessofthe accounting estimates made by
the management, as well as evaluating the overall presentation ofthe
financial statements.
We believe, that the audit evidence, we have obtained is sufficient and
appropriate toprovideabasis 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
as required by the Act in the manner so required and give a true and
fair view in conformity with the accounting principles generally
acceptedinIndia:
i. in the case of the Balance Sheet, of the state of affairs of the
CompanyasatMarch 31, 2013;
ii. in the case ofthe StatementofProfit and Loss,ofthe Loss for the
year endedonthat date; and
iii. in the case of the cash flow statement, of the cash flows for the
year endedonthat date.
ReportonOther 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 specifiedin paragraphs4& 5ofthe order.
2. As requiredbySection 227(3)of theAct,wereport 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 it appears from our examination of such
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
ofaccount;
d) In our opinion, the Balance Sheet, the statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
CompaniesAct, 1956,
e) On the basis of the written representations received from the
Directors as on 31st March, 2013 and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2013
from being appointed as Director in terms of Clause (g) of sub-section
(1) ofSection 274 ofthe CompaniesAct, 1956;
f) Since the Central Government has not issued any notificationas tothe
rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cessisdue
and payable by the Company.
ANNEXURETOTHEAUDITORS'' REPORT
Referred to in Paragraph 1 of our report, of even date, to the members
of BPLLimited for the year ended 31st March, 2013
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed by the management, the company has conducted physical
verification of its fixed assets at all locations and the process of
reconciliation with books of account is in progress.
(c) During the year, the company has not disposed of any
major/substantial part of it''s fixed assets. However, the Board of
Directors in their meeting dated 6th May, 2013 have resolved to
transfer the Health Care business as a going concern to M/s BPLMedical
Technologies Private Limited, for consideration other than cash,
subject to approval of its members. This does not affect the going
concern statusof the Company.
2. (a) Physical verification at reasonable periods in respect of
finished goods, stores, spare parts and raw materials are reported to
have been made by the management and certified by them accordingly. In
our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followedby the management are reasonable and adequate in relation to
the sizeof the Company and the nature ofits business.
c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies between physical stock and book stock, which were not
material, have been properly dealt with in the books of account.
3) The Company has neither granted nor taken any loans, secured or
unsecured to or from Companies, firms or other parties covered in the
Register maintained under Section 301ofthe CompaniesAct, 1956.
4. In respect of transactions entered in the register maintained in
pursuance of Section 301ofthe CompaniesAct, 1956,
(a) Based on audit procedures applied by us, to the bestof our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into the register maintained under Section 301 have been so
entered.
(b) According to the information and explanations given to us and
excluding certain transactions of purchase of goods and material of
special nature for which alternate quotations are not available, where
each of such transactions is in excess of Rs. 5 lakhs in respect of any
party, in our opinion, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
pricesatthe relevant time.
5. 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 with regard
to the purchase of inventory and fixed assets, and with regard to the
sale of goods and services. During the course of our audit, we have
not noticed any continuing failure to correct any major weakness in
internal control systems.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956, and rules made there under, are not applicabletothe company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. The Central Government has not prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act,1956, with respect
to the manufactureofMedical Equipments. However, in respectofPrinted
Circuit Boards manufactured by the company, the Central Government has
prescribed the maintenance of cost records under Section 209 (1)(d) of
Companies Act, 1956. We have broadly reviewed the books of account and
records maintained by the Company in this connection and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made a detailed
examination of the records with a view to determining whether they are
accurateorcomplete.
9. (a) According to the records of the Company and information and
explanation given to us, there have been instances of delays in
remittance of undisputed statutory dues including Income Tax Deducted
at Source, Provident Fund, Employees State Insurance, Sales Tax,
Service Tax, Customs Duty, with the appropriate authorities during the
year.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect of Customs Duty amounting
toRs.289.87Lakhs,ProvidentfundduesamountingtoRs.0.18 lakhsand gratuity
liability of Rs. 469 lakhs were outstanding, as at 31st March 2013, for a
period of more than six months from the dates on which they became
payable.
Central Excise Demand of duty on clearance of CTV
Parts/componensts/sub-assemblies on SKD condition to OEMs. 282.05
Tribunal Central Excise Penalty for non inclusion of Amortised Cost in
value of Plastic Parts 34.73 Tribunal Customs duty Differential Duty on
Imported Cathode Ray Tube 4.72 Commissioner-Appeals (Mumbai) Customs
duty Entitlement to Exemption for parts of Defibrillator 627.61
CESTAT/Commissioner- (Appeals) Customs duty Special Customs duty on
Capacitors 3.10 Commissioner-Appeals (Chennai) Customs duty Duty on
clearance of bonded goods. 33.33 CESTAT Sales Tax Various
disallowances and non-submission of''c''forms 3017.22 At various
appellate levels ranging from DCCTs (Appeals) to Appellate Tribunals
ServiceTax Demand of Service tax on manpower services deemed to have
been 98.48 Tribunal provided to Sanyo BPL Pvt. Ltd.
10. The Company''s accumulated losses do not exceed 50% of its net
worth. The Company has not incurred cash losses during the financial
year coveredbyour audit andinthe immediately preceding financial year.
11. The company has not defaulted in repayment of principal and
interest to any bank/financial institution, during the year.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledgeofshares, debentures and other securities.
13. The Company is neither a chit fund nor a nidhi/mutual benefit
society. Hence, in our opinion, the requirements of Clause (xiii) of
Companies (Auditor''s Report) Order, 2003donot applytothe company,
14. According to the information and explanation given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Hence, in our opinion, the requirements of clause
(xiv) of Companies (Auditor''s Report) Order, 2003do not applyto the
company.
15. According to the information and explanations given to us, the
Company has not given any guarantee during the year, for loans taken by
others from banks and financial institutions.
16. According to the records of the company, the company has not
obtained any term loans during the year. In case of continuing
guarantees, we are unable to express an opinion on whether the terms
and conditions are prejudicial to the interests of the company,
considering the status of the borrower.
17. The Company has not utilised funds borrowed on short term basis,
if any, for long term uses, during the year under audit.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301oftheAct.
19. The Company has not issued any debentures during the year under
audit.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticedorreported during the year.
For T Velupillai & Co.,
Chartered Accountants
Firm Registration No. 004592S
Bangalore M S Ram (26687)
30th May, 2013 Partner
Mar 31, 2012
We have audited the attached Balance Sheet of BPL Limited as at March 31,
2012, the Statement of Profit and Loss and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report as follows:
1 As required by the Companies (Auditor's Report) Order, 2003, 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&5of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 such
books;
c) The Balance Sheet and Statement of Profit and Loss referred to in
this Report are in agreement with the books of account of the company;
d) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the Accounting Standards referred
to in Sub-section(3C) ofSection211 of the Companies Act, 1956;
e) On the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as Director in terms of Clause
(g) of Sub-section (1)ofSection274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts, read together with the
notes thereto, give the information as required by the Companies Act,
1956, in the manner so required and, give a true and fair view in
conformity with the accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
ii. in the case of the Statement of Profit and Loss, of the Profit of
the Company 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 THE AUDITORS' REPORT
Referred to in Paragraph 1 of our report, of even date, to the members
of BPL Limited for the year ended 31st March, 2012
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed by the management, the Company is in the process of
conducting physical verification of its fixed assets at all major
locations. Final report is awaited.
(c) During the year, on account of past defaults on repayment of
principal and Interest, one of the secured lenders had enforced The
Securitization and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (SARFAESI ACT) and sold a portion of the
land belonging to the company which was offered as security and
realized their dues to the extent of consideration received. However,
this has not affected the going concern status of the company.
2. (a) Physical verification at reasonable periods in respect of
finished goods, stores, spare parts and raw materials are reported to
have been made by the management and certified by them accordingly. In
our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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 obits business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies between physical stock and book stock, which were not
material, have been properly dealt with in the books of account.
3. The Company has neither granted nor taken any loans, secured or
unsecured to or from Companies, firms or other parties covered in the
register maintainedunderSection301 of the Companies Act, 1956.
4. In respect of transactions entered in the register maintained in
pursuance of Section301 of the Companies Act, 1956,
(a) Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are often opinion that the transactions that needed to
be entered into the register maintained under Section 301 have been so
entered.
(b) According to the information and explanations given to us and
excluding certain transactions of purchase of goods and material of
special nature for which alternate quotations are not available, where
each of such transactions is in excess of Rs. 5 lakhs in respect of any
party, in our opinion, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
5. 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 with regard
to the purchase of inventory and fixed assets, and with regard to the
sale of goods and services. During the course of our audit, we have not
noticed any continuing failure to correct any major weakness in
internal control systems.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956, and rules made there under, are not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. The Central Government has not prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act,1956, with respect
to the manufacture of Medical Equipments. However, in respect of
Printed Circuit Boards manufactured by the company, the Central
Government has prescribed the maintenance of cost records under Section
209 (1)(d) of Companies Act, 1956. We have broadly reviewed the books of
account and records maintained by the Company in this connection and
are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9. (a) According to the records of the Company and information and
explanation given to us, there have been instances of delays in
remittance of undisputed statutory dues including Income Tax Deducted at
Source, Provident Fund, Employees State Insurance, Sales Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities during the year.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect of customs duty amounting to Rs.
272 Lakhs and Gratuity payable of Rs.469.14 lacs were outstanding, as
at 31st March 2012, for a period of more than six months from the dates
on which they became payable.
(c) The following dues towards sales tax, income tax, customs duty,
excise duty, gift tax, cess and service tax have notbeen deposited on
account of dispute/appeals:
Name of Dues Nature of Dispute (Rs. in Lakhs) Forum where pending
Central Excise Eligibility of
Exemption from
Payment of duty on
DC Defibrillator, 56.42 Supreme Court
and penalty
Central Excise Recovery of CENVAT
Credit due to price
reduction of
inputs 93.82 Tribunal
Central Excise Demand of duty on
clearance of sample
Colour TVs 3.33 Tribunal
Central Excise Demand for duty at
Higher rate for
clearance of CENVAT
availed inputs 19.87 Commissioner-Appeals
Central Excise Demand for duty on
clearance of CTV
Parts/components/
sub-assemblies 282.05 Tribunal
on SKD condition
to OEMs.
Central Excise Penalty for non
inclusion of
Amortised Cost in
value of Plastic
Parts 34.73 Tribunal
Customs duty Differential Duty
on Imported Cathode
Ray Tube 4.72 Commissioner-Appeals
(Mumbai)
Customs duty Entitlement to
Exemption for parts
of Defibrillator 627.61 CESTAT/Commissioner-
(Appeals)
Customs duty Special Customs duty
on Capacitors 3.10 Commissioner-Appeals
(Chennai)
Customs duty Duty on clearance
of bonded goods. 33.33 CESTAT
Sales Tax Various disallo
wances
and non- submission
of 'c' forms 1708.66 At various appellate
levels ranging from
DCCTs (Appeals) to
Appellate Tribunals
Service Tax Demand of Service
tax on manpower
services deemed
to have been 98.48 Tribunal
provided to Sanyo
BPL.
10. The Company's accumulated losses do not exceed 50% of its net
worth. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
11. During the year, on account of past defaults on repayment of
principal and interest, one of the secured lenders have enforced The
Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (SARFAESI ACT) and sold the assets offered
as security and realized their dues to the extent of consideration
received. As per the settlement agreement with the lenders, all
outstanding secured loans have been fully cleared during the year.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is neither a Chit Fund nor a Nidhi/Mutual Benefit
Society.
Hence, in our opinion, the requirements of Clause (xiii) of Companies
(Auditor's Report) Order, 2003 do not apply to the company,
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Hence, in our opinion the requirements of Clause
(xiv) of Companies (Auditor's Report) Order, 2003 do not apply to the
company.
15. According to the information and explanations given to us, the
Company has not given any guarantee during the year, for loans taken by
others from banks and financial institutions.
16. According to the records of the Company, the company has not
obtained any term loans during the year. In case of continuing
guarantees, we are unable to express an opinion on whether the terms
and conditions are prejudicial to the interests of the company,
considering the status of the borrower.
17. The Company has not utilized funds borrowed on short term basis,
If any, for long term uses, during the year under audit.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
19. The Company has not issued any debentures during the year under
audit.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For T Velupillai & Co.,
Chartered Accountants
Firm Registration No. 004592S
Bangalore M S Ram (26687)
30th May, 2012 Partner
Mar 31, 2010
We have audited the attached Balance Sheet of BPL Limited as at March
31, 2010, the Profit and Loss Account and the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report as follows:
1. As required by the Companies (Auditors Report) Order, 2003, 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 & 5 of the said order.
2. Further to our comments in the Annexure referred to in paragraph 1
above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 such
books;
c) The Balance Sheet and Profit and Loss Account referred to in this
report are in agreement with the Books of account of the company;
d) In our opinion, the Balance Sheet and Profit and Loss account dealt
with by this report comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as Director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
notes thereto, give the information as required by the Companies Act,
1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2010;
ii. in the case of the Profit and Loss Account, of the Profit of the
Company 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 THE AUDITORS REPORT Referred to in Paragraph 1 of our
report, of even date, to the members of BPL Limited for the year ended
31st March, 2010
1. (a) The Company has maintained proper records showing full parti
-culars including quantitative details and situation of fixed
assets.
(b) As informed by management, assets at major locations have been
physically verified by the management during the year and there is a
regular programme verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies have been noticed on such verification.
(c) During the year, the Company has not disposed of and any
substantial/major part of its fixed assets.
2. (a) Physical verification at reasonable periods in respect of
finished goods, stores, spare parts and raw materials are reported to
have been made by the management and certified by them accordingly. In
our opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies between physical stock and book stock, which were not
material, have been properly dealt with in the books of account.
3. The Company has neither granted nor taken any loans secured or
unsecured to or from Companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Act, 1956.
4. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956;
(a) Based on audit procedures applied by us, to the best of our
knowledge and belief and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into the register maintained under Section 301 have been so
entered.
(b) According to the information and explanations given to us and
excluding certain transactions of purchase of goods and material of
special nature for which alternate quotations are not available, where
each of such transactions is in excess of Rs. 5 lakhs in respect of any
party, in our opinion, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
5. 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 with
regards to the purchase of inventory and fixed assets, and with regard
to the sale of goods and services. During the course of our audit, we
have not noticed any continuing failure to correct any major weakness
in internal control systems.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public and
therefore, the provisions of Section 58A and 58AA of the Companies Act,
1956 and rules made there under, are not applicable to the company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. The Central Government has prescribed maintenance of the cost
records under Section 209 (1) (d) of the Companies Act, 1956, with
respect to the manufacture of Medical Equipments. We have broadly
reviewed the books of account and records maintained by the company in
this connection and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not however, made a detailed examination of the records with a view to
determining whether they are accurate or complete.
9. (a) According to the records of the Company and information and
explanation given to us, there have been instances of delays in
remittance of undisputed statutory dues including Income Tax Deducted
at Source, Provident Fund, Employees State Insurance, Sales Tax,
Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year.
(b) According to the information and explanations given to us,
undisputed amounts payable in respect of customs duty amounting to
Rs.499.70 Lakhs, was outstanding, as at 31st March 2010, for a period
of more than six months from the dates on which they became payable.
(c) The following dues towards Sales Tax, Income Tax, Customs Duty,
Excise Duty, Gift Tax, Cess and Service Tax have not been deposited on
account of dispute/appeals:
Nature of Dues Nature of
Dispute Amount
(Rs. in Lakhs) Forum where
pending
Central Excise Eligibility of
exemption from
Payment of duty
on 55.42
Supreme Court
DC Defibrillator
and penalty
Central Excise Recovery of CENVAT
Credit due to price
reduction 93.82
Tribunal
of inputs
Central Excise Demand of duty on
clearance of sample
Colour TVs 3.32
Commissioner-
Appeals
Central Excise Demand for duty at
higher rate for
clearance of 19.87
Commissioner-
Appeals
CENVAT availed inputs
Central Excise Demand for duty on
clearance of CTV Parts/
components/ sub-asse
on SKD condition 282.05 Tribunal
to OEMs.
Central Excise Demand for Penalty
for Non-inclusion of
amortised 34.73
Appeal/Stay
field before
Commissioner
cost in the value of
Plastic Parts (Appeals)
Customs Duty Differential Duty on
imported Cathode
Ray Tube 4.72
Commissioner-
Appeals
(Mumbai)
Customs Duty Entitlement to exe
mption for parts of
Defibrillator 627.61
CESTAT/
Commissioner
(Appeals)
Customs Duty Special Customs Duty
on Capacitors 3.10 Commissione-
Appeals
(Chennai)
Customs Duty Duty on clearance of
bonded goods 33.33 CESTAT
Sales Tax Various disallowances
and non - submission
of 1987.93 At various
Appellate
levels
ranging
C Forms from DCCTs
(Appeals) to
Appellate
Tribunals
10. The Companys accumulated losses do not exceed 50% of its net
worth. The Company has not incurred a cash loss during the current
financial year; a cash loss of Rs. 1256.69 lakhs was incurred during
the immediately preceding financial year.
11. We are informed that as per Scheme of Restructuring sanctioned and
accepted by consortium lenders, eight installments of principal have
fallen due for repayment as at 31st March 2010, in respect of its term
loans. The company has defaulted in repayment of principal amount of
Rs.6578.62 lakhs due to the consortium lenders comprising of Pegasus
Assets, Reconstruction Pvt. Ltd and Central Bank of India, and the
period of default is 24 months. The Company has defaulted in payment of
interest of Rs1475.48 Lakhs to the consortium lenders and the period of
default is 15 months.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is neither a chit fund nor a nidhi/mutual benefit
society. Hence, in our opinion, the requirements of Clause (xiii) of
Companies (Auditors Report) Order, 2003 do not apply to the company,
14. According to the information and explanation given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Hence, in our opinion the requirements of clause
(xiv) of Companies (Auditors Report) Order, 2003 do not apply to the
company,
15. According to the information and explanations given to us,
during the year, the Company has not given any guarantee for loans
taken by others from banks and financial institutions. However,
reference is invited to note 28 (d) of schedule 14 regarding a
pre-existing guarantee to a party, terms and conditions where of are,
in the opinion of the management not prejudicial to the interests of
the company.
16. According to the records of the company, the Company has not
obtained any term loans during the year. Hence, comments under Clause
(xvi) of Companies (Auditors Report) Order, 2003 are not called for.
17. The Company has not utilised funds borrowed on short term basis,
if any, for long term uses, during the year under audit.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act.
19. The Company has not issued any debentures during the year under
audit.
20. The Company has not raised any money by public issues during the
year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For T Velupillai & Co.,
Chartered Accountants
Bangalore M S Ram(26687)
27th May, 2010 Partner