Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of BURNPUR CEMENT LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.
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 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 Companies(Accounts) Rules, 2014 ("the Rules"). 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.
Auditors'' 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s 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 statement that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the 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, 2016 and its profit and its cash flows.
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 paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that :
a. We have sought and obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, 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 March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "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 explanation given to us;
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer note 26 to the financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There is no amount which is required to be transferred to the Investor Education and Protection Fund by the Company.
i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets of the company have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion the frequency of verification is reasonable having regard to the size of the company and nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties as disclosed in Note 9 to the financial statements are held in the name of the Company except for the following:
Particulars |
whether Freehold or Leasehold |
Gross Block (Rs.) |
Net Block (Rs.) |
Remarks, If Any |
Land at Palashdiha, Panchgachia Road, Asansol |
Freehold |
21214331.00 |
21214331.00 |
The title deed is in the erstwhile name of the Company i.e. Ashoka Concrete & Allied Industries (P) Ltd. |
Land at Patratu |
Leasehold |
4941800.00 |
4941800.00 |
Ranchi Industrial Area Development Authority has still not transferred the lease in favour of Burnpur Cement Ltd, though Ministry of Corporate Affairs, Office of the Official Liquidator, High Court, Patna has handed over possession to Burnpur Cement Limited from Progressive Cement Limited. |
ii) The inventory has been physically verified by the Management during the year. In our Opinion, the frequency of verification is reasonable. The discrepancies noticed on physical verification of inventory as compared to book records were not material.
iii) According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013; and therefore paragraph 3(iii) of the Order is not applicable.
iv) According to the information and explanations given to us, the Company has not granted any loans or provided any guarantees or security to the parties and also has not made any investments and therefore paragraph 3(iv) of the Order is not applicable.
v) The Company has not accepted any deposits from the public within the meaning of Section 73 to 76 of the Act or any other relevant provisions of the Companies Act and the rules framed there under.
vi) We have broadly reviewed the books of account maintained by the company in respect of products where, pursuant to the Rules, prescribed by the Central Government of India, the maintenance of cost records has been prescribed under sub section (1) of Section 148 of the Act and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable with the appropriate authorities except the following:
Particulars |
Amount (Rs.) |
Excise Duty |
6972567.00 |
Service Tax |
1743847.00 |
TDS |
1014114.00 |
P. Tax |
16042.00 |
WCT |
189392.00 |
BOC |
63583.00 |
b) According to the information and explanations given to us and the records of the company examined by us, there are no dues of income tax, sales tax , duty of customs, value added tax, service tax, excise duty and cess which have not been deposited with the appropriate authority on account of any dispute, except the following:
Particulars |
Period to which the matter pertains |
Forum where dispute is pending |
Amount (Rs.) |
Value Added Tax Central Sales Tax |
2007-08 2007-08 |
CTO, Asansol Charge CTO, Asansol Charge |
44355.00 421313.00 |
Value Added Tax Central Sales Tax |
2008-09 2008-09 |
CTO, Asansol Charge CTO, Asansol Charge |
1300389.00 55674.00 |
Value Added Tax Central Sales Tax |
2009-10 2009-10 |
West Bengal Appellate & Revisional Board, Kolkata |
783434.00 145087.00 |
Value Added Tax Central Sales Tax |
2010-11 2010-11 |
West Bengal Appellate & Revisional Board, Kolkata |
6667694.00 315464.00 |
Value Added Tax Central Sales Tax |
2011-12 2011-12 |
West Bengal Appellate & Revisional Board, Kolkata |
8108687.00 6291042.00 |
Jharkhand Value Added Tax |
2013-14 |
Commissioner of Commercial Taxes Jharkhand, Ranchi |
1599878.00 |
Central Excise |
2013-14 |
CESTAT |
20730181.00 |
Income Tax
N.B.: According to the information and explanation given to us and the documents and records examined by us, an appeal was preferred before the income tax appellate authorities for the A.Y. 2007-08, 2008-09,which was decided in favour of the assessee and a relief to the tune of Rs. 83,20,932/- and Rs.3,80,46,637/- was given. However the income tax department has preferred an appeal before the income tax appellate Tribunal, which is pending for disposal.
viii) According to the records of the Company examined by us and the information and explanations given to us, the company has defaulted in repayment of dues to banks as at the balance sheet date and the details of defaults are furnished below:-
Particulars |
Amount of default as at the balance sheet date |
Period of default |
Remarks, if any. |
i) Name of the Lenders: Bank a) Central Bank of India |
21476340.00 |
April - August 2015 |
Interest has been rescheduled into new Funded Interest Term loan as per sanction letter reference no. CFBK/CMD/2014-15/03/2050/A dt.28.03.2015 |
|
5528334.00 |
February 2016 |
Interest for the month of February not paid till 31.03.2016 |
Particulars |
Amount of default as at the balance sheet date |
Period of default |
Remarks, if any. |
b) State Bank of Hyderabad |
23133908.00 |
April-August 2015 |
Interest has been rescheduled into new Funded Interest Term Loan as per sanction letter reference no. F/ADV/ Burnpur/2874 dt.26.02.2015 |
5554025.00 |
February 2016 |
Interest for the month of February not paid till 31.03.2016. |
|
c) State Bank of India |
26647972.00 |
April-October 2015 |
Interest has been rescheduled into new Funded Interest Term loan as per sanction letter reference no. RMME/ SME-ASN/14-15/315 dt.28.03.2015. |
23377425.00 |
April- September 2015 |
Interest has been rescheduled into new Funded Interest Term loan as per sanction letter reference no. UBI/CIC/ ADV/15 dt.07.03.2015 |
|
d) United Bank of India |
300000.00 |
January 2016 |
Interest for the month of January not paid till 31.03.2016 |
5579654.00 |
February 2016 |
Interest for the month of February not paid till 31.03.2016 |
ix) The company has not raised any money by way of public issue and follow on issue. However the company has taken new term loans and restructured its old term loans during the year. The term loans have been applied for the purposes for which they have been taken.
x) According to the information and explanations given to us, no material fraud by the company or on the company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) In our opinion and according to the information and explanation given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii) According to the information and explanations given to us and based on our examination of the records of the company, transactions with the related parties are in compliance with Section 188 of the Companies Act, 2013 including the Rule 15 of the Companies (Meeting of Board and its Powers) Rules, 2014 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) According to the information and explanations given to us and based on our examination of the records of the company, the company has converted the share warrants into fully paid equity shares under private placement.
xv) 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) of the Order is not applicable.
xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Registration No.308115E
N. K. Agarwal
Dated : 24.05.2016 (Proprietor)
Place : Asansol Membership No. 14267
Mar 31, 2015
We have audited the accompanying financial statements of BURNPUR CEMENT
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information, which we have signed under reference
to this report.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of 'the Companies Act, 2013 (the "Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with rule 7 of
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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's 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 statement 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 includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act ( hereinafter referred to as
the "Order"), and on the basis of such checks of the books and records
of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the
purpose of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
c. The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the accompanying financial statements dealt with by
this Report 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 March 31, 2015, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164(2) of the
Act;
f. With respect to other matters to be included in the Auditor's
report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us;
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer note 26 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been delay in transferring an amount of Rs.15000, to the
Investor Education and Protection Fund by the Company for which
interest amounting to Rs.7200 has been paid;
Annexure to Independent Auditors' Report
Referred to in Paragraph 1 of the Independent Auditor Report of even
date to the members of Burnpur Cement Limited on the financial
statements for the year ended 31st March,2015
i) (a)The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. .In our opinion, the frequency of
verification is reasonable.
ii) (a) The inventory has been physically verified by the Management
during the year. In our Opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii) According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013; and therefore paragraph 3(iii ) of the Order is not
applicable
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) The Company has not accepted any deposits from the public within the
meaning of Section 73 to 76 of the Act or any other relevant provisions
of the Companies Act and the rules framed there under.
vi) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules, prescribed
by the Central Government of India, the maintenance of cost records has
been prescribed under sub section (1) of section 148 of the Act and are
of the opinion that, prima facie, the prescribed accounts and records
have been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing the undisputed statutory dues, including
provident fund, investor education and protection fund, employees'
state insurance , income tax, sales tax, wealth tax , service tax ,
duty of customs, duty of excise, value added tax, cess and other
material statutory dues, as applicable with the appropriate authorities
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax , wealth tax , duty of customs, value added tax, cess which
have not been deposited on account of any dispute .The particulars of
dues of value added tax and central sales tax as at 31st March, 2015
which have not been deposited on account of a dispute, are as follows:
Particulars Period to which Forum where dispute is pending
the matter
pertains
West Bengal Sales 2004-2005 West Bengal Taxation Tribunal,
Tax Kolkata
Value Added Tax 2009-2010 West Bengal Appellate &
Revisional Board, Kolkata
Value Added Tax 2010-2011 West Bengal Appellate &
Revisional Board, Kolkata
Value Added Tax 2011-2012 Sr.Joint Commissioner,Sales Tax
Asansol
Central Sales Tax 2009-2010 West Bengal Appellate &
Revisional Board, Kolkata
Revisional Board & Asansol
Central Sales Tax 2010-2011 West Bengal Appellate &
Revisional Board, Kolkata
Revisional Board & Asansol
Central Sales Tax 2011-2012 Sr.Joint Commissioner,Sales Tax
Asansol
Particulars Amount (Rs.)
West Bengal Sales Tax 1335407/-
Value Added Tax 783434/-
Value Added Tax 6667694/-
Value Added Tax 8108687/-
Central Sales Tax 145087/-
Central Sales Tax 315464/-
Central Sales Tax 6291042/-
Income Tax
N.B. : According to the information and explanation given to us the
documents and records examined by us an appeal was preferred before the
income tax appellate authorities for the A.Y. 2007-08, 2008-09, which
was decided in favour of the assesse and a relief to the tune of Rs.
83,20,932/- and Rs. 3,80,46,637/- was given. However the income tax
department has preferred an appeal before the Income Tax Appellate
Tribunal, which is pending for disposal.
c) According to the information and explanations given to us and the
records of the company examined by us,the amount required to be
transferred to Investor Education and Protection Fund has been
transferred along with interest in accordance with the relevant
provisions of the Companies Act, 1956 and rules made there under.
viii) The company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix) According to the records of the Company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institution or bank as
at the balance sheet date except in the case of Bridge loan taken from
West Bengal Industrial Development Corporation Ltd against admitted
claim of interest subsidy under West Bengal Incentive Scheme, 2000.
x) The Company has not given any guarantee in respect of loans taken by
others from banks etc,. Accordingly, the provisions of Clause 3(xii) of
the Order are not applicable to the Company.
xi) The company has restructured its term loan during the year. The
term loans outstanding during the year have been applied for the
purposes for which they have been raised.
xii) During the course of our examination of the books and the records
of the company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of any such case by the management.
For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Dated : 27.05.2015 Registration No.308115E
Place : Asansol
N. K. Agarwal
(Proprietor)
Membership No. 14267
Mar 31, 2014
We have audited the accompanying financial statements of BURNPUR CEMENT
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31,2014, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 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 relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs).
e. On the basis of the written representations received from the
directors as on March- 31,2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Referred to in Paragraph 1 under the heading of "Report on other Legal
and Regulatory Requirements" of our report of even date
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. All the
fixed assets have not been verified by the management during the
period. According to the information and explanations given to us,
there is a regular programme of verification which, in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed in respect of the assets
physically verified.
2) None of the Fixed Assets have been re-valued during the period.
3) a) The inventory has been physically verified during the period. In
our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No major discrepancies were noticed.
4) The Company has taken unsecured loan and secured loans from
financial institutions, banks, body corporate and director. However
the terms of loans are not prima facie prejudicial to the interest of
the Company.
5) In respect of contracts or arrangements referred to in Section 301
of the Companies Act,1956:
a) In our opinion and according to the information and explanation
given to us , the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained U/s 301
of the Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanation
given to us , the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained U/s 301
of the Companies Act,1956 and exceeding the value of Rs. 5000/- in
respect of each party during the year have been made at a price which
appear reasonable as per information available with the company.
6) i) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income Tax and
Sales Tax and such other statutory dues with the appropriate
authorities.
ii) The disputed statutory dues that have not been deposited on account
of disputed matters pending before appropriate authorities are as
under:-
Particulars Period to Forum where dispute is Amount (Rs.)
which the pending
matter
pertains
Sales Tax 2004-05 West Bengal Taxation Tribunal, 1335407/-
Kolkata
Sales Tax 2009-2010 Sr. Joint Commissioner,
Sales Tax, Asansol 783434/-
Sales Tax 2010-2011 Sr. Joint Commissioner,
Sales Tax, Asansol 6667694/-
Central
Sales Tax 2009-2010 Sr. Joint Commissioner,
Sales Tax, Asansol 145087/-
Central
Sales Tax 2010-2011 Sr. Joint Commissioner,
Sales Tax, Asansol 315464/-
Income Tax 2008-2009
CIT (Appeal), Asansol 764860/-
Income Tax 2009-2010
CIT (Appeal), Asansol 2260590/-
Income Tax 2010-2011
CIT (Appeal), Asansol 137310/-
7) The Company has not granted any loans, secured or unsecured to the
companies, firms or other partiers in which directors are interested.
8) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
9) According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Accord- ingly,
paragraph 4(vi) of the order is not applicable.
10) The Company has adequate Internal Audit System commensurate with
the size and nature of its business.
11) We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government U/s 209(1)(d) of Companies
Act,1956 and are of the opinion that prima facie the prescribed cost
records have been maintained. We have , however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
12) Based on our Audit procedures and according to information and
explanation given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
13) Based on our examination of documents and records and according to
the information and explanation given to us, we are of the opinion that
the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
14) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003 are not applicable to the
Company.
15) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not
applicable to the Company.
16) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions. Therefore, the provisions
of clause 4(xv) of the Companies (Auditor''s Report) Order 2003 are not
applicable to the Company.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we are of the
opining that there are no funds raised on short term basis that have
been used for long term investment and vice versa.
18) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
19) According to the information and explanations given to us, the
convertible Warrants earlier allotted in F.Y.2012-13 to parties
including those who are covered in the register maintained under
section 301 of the Companies Act, 1956 were converted into Equity
Shares on 09.08.2013.
20) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured deben- tures during
the year, hence paragraph 4(xix) of the Companies (Auditor''s Report)
Order 2003 are not applicable to the Com- pany.
21) During the period covered by our Audit Report, the Company has not
raised any money by way of Public Issues. However, out of the 12550000
Share Warrants issued in the last year, 2135000 share warrants have
been converted into equity shares during the current year and 7000000
fresh Share Warrants were issued during the current year.
22) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/s. N. K. Agarwal & Co.
(Chartered Accountants)
Registration No. 308115E
N. K. Agarwal
Dated : 14.05.2014 (Proprietor)
Place : Asansol Membership No. 014267
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of BURNPUR CEMENT
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditors 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
material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order") issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Account- ing Standards
referred to in section 211 (3C) of the Act
e) On the basis of the written representations received from the
directors as on March 31, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director in terms of Section 274 (1)(g) of
the Act.
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph (1) thereof)
To the Shareholders of
BURNPUR CEMENT LIMITED
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed asset. All the
fixed assets have not been verified by the management during the
period. According to the information and explanations given to us there
is a regular programme of verification which, in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed in respect of the assets
physically verified.
2) None of the Fixed Assets have been re-valued during the period.
3) a) The inventory has been physically verified during the period. In
our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No major discrepancies were noticed.
4) The Company has taken unsecured loan and secured loans from
financial institutions banks, and body corporate, and director.
However the terms of loans are not prima facie prejudicial to the
interest of the Company.
5) In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956:
a) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of con- tracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of con- tracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956 and exceeding the value of Rs.
5000 in respect of each party during the year have been made at a
prices which appear reasonable as per information available with the
company.
6) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees'' State Insurance, Income Tax and
Sales Tax and such other statutory dues with the appropriate
authorities.
a) Demand of Rs.55.06 Lac raised on completion of Sales Tax Assessment
for the years ended on 31-03-1996 and 31-03- 2005 under West Bengal
Sales Tax Act, 1994, have not been provided for in the books. It is
explained by the Management that the whole demand is disputed and
revision/ appeal have been preferred before appropriate Appellate Forum
and the management has bonafide belief that demand will be reduced to
Nil on disposal of revision / appeal proceedings.
b) Demand of Rs. 7,83,434/- raised on completion of sales tax
assessment for the year ended on 31.03.2010 under West Bengal VAT Act,
2003 and Rs. 1,45,087/- under Central Sales Tax Act have not been
provided for in the books. It is explained by the management that the
whole demand is disputed and revision/appeal have been preferred before
appro- priate Appellate Forum and the management has bonafide belief
that demand will be reduced to Nil on disposal of revision/ appeal
proceedings.
c) The demand of Rs. 380.46 Lakhs raised on completion of Income Tax
regular assessment for the asst. year 2008-09 has been reduced to Nil
by CIT(A), Asansol. But the department has gone in second appeal before
the Tribunal and the management firmly believes that there will not be
any demand.
d) Fresh demand of Rs. 1,04,559/- for A.Y 2006-07, Rs. 74,06,921/- for
A.Y 2007-08, Rs. 7,64,860/- for A.Y. 2009-10 and Rs. 22,60,590/- for
A.Y. 2010-11 raised by Income Tax Department on completion of income as
assessment, have not been provided for in the Books of Accounts. The
demands are disputed and appeals have been filed for all the years
before the appropriate appellant authority and the management is
confident that demand will be reduced to Nil on completion of appeal
proceedings.
7) The Company has not granted any loans, secured or unsecured to the
companies, firms or other partiers in which directors are interested.
8) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
9) According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Accord- ingly,
paragraph 4(vi) of the order is not applicable.
10) The Company has adequate internal Audit system commensurate with
the size and nature of its business.
11) We have broadly reviewed the cost records maintained by the Company
pursuant to Companies (Cost Accounting Records) Rules 2011 prescribed
by the Central Government under Section 209(1) (d) of Companies Act,
1956 and are of the opinion that prima facie the prescribed cost
records have been maintained. We have, however not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
12) Based on our Audit procedures and according to information and
explanation given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
13) Based on our examination of documents and records and according to
the information and explanation given to us, we are of the opinion that
the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
14) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order 2003 are not applicable to the
Company.
15) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 are not
applicable to the Company.
16) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions. Therefore, the provisions
of clause 4(xv) of the Companies (Auditor''s Report) Order 2003 are not
applicable to the Company.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we are of the
opining that there are no funds raised on short term basis that have
been used for long term investment and vice versa.
18) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
19) According to the information and explanations given to us, the
Company has made preferential allotment of convertible warrants to
parties including those who are covered in the register maintained
under Section 301 of the Companies Act, 1956.
20) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured deben- tures during
the year, hence paragraph 4(xix) of the Companies (Auditor''s Report)
Order 2003 are not applicable to the Com- pany.
21) During the period covered by our Audit Report, the Company has not
raised any money by way of Public Issues. However the balance share
warrants of 29 lakh have been converted into equity shares during the
year and fresh convertible warrants of 12550000 have been issued during
the year.
22) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/s. N. K. Agarwal & Co.
(Chartered Accountant)
N. K. Agarwal
Dated : 22.05.2013 (Properties)
Place : Asansol Membership No. 14267
Mar 31, 2012
We have audited the attached Balance Sheet of Burnpur Cement Limited as
on 31st March, 2012, the Statement of the Profit & Loss and the Cash
Flow Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with 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 the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides a
reasonable basis of our opinion.
1) As required by Companies (AuditorÃs Report) Order 2003, issued by
the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
2) We further report that: -
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
(b) In our opinion proper books of account, as required by law have
been kept by the Company so far as appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred to in sub sec (3c) of sec 211 of the
Companies Act, 1956.
(e) On the basis of written representations received from the directors
as on 31st March 2012 and taken on record by the Board of directors, we
report that none of the directors of the Company are prima facie
disqualified Under Section 274(1)(g) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and the notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: -
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(ii) in the case of the Statement of Profit & Loss, of the Profit of
the Company for the year ended on that date.
(iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT TO THE SHAREHOLDERS OF BURNPUR CEMENT
LIMITED. (Referred to in Paragraph (1) thereof)
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed asset. All the
fixed assets have not been verified by the management during the
period. According to the information and explanations given to us there
is a regular programme of verification which, in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed in respect of the assets
physically verified.
2) None of the Fixed Assets have been re-valued during the period.
3) a) The inventory has been physically verified during the period. In
our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No major discrepancies were noticed.
4) The Company has taken unsecured loan and secured loans from
financial institutions banks, and body corporate, and director. However
the terms of loans are not prima facie prejudicial to the interest of
the Company.
5) Based on the Audit procedures applied by us and by the management,
we are of the opinion that there are no transactions that need to be
entered into the register maintained under section 301, hence not
applicable.
6) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employeesà State Insurance, Income Tax and
Sales Tax and such other statutory dues with the appropriate
authorities.
a) Demand of Rs.55.06 Lac raised on completion of Sales Tax Assessment
for the years ended on 31-03-1996 and 31-03-2005 under West Bengal
Sales Tax Act, 1994, have not been provided for in the books. It is
explained by the Management that the whole demand is disputed and
revision/ appeal have been preferred before appropriate Appellate Forum
and the management has bonafide belief that demand will be reduced to
Nil on disposal of revision / appeal proceedings.
b) The demand of Rs. 380.46 Lakhs raised on completion of Income Tax
regular assessment for the asst. year 2008-09 has been reduced to Nil
by CIT(A), Asansol. But the department has gone in second appeal before
the Tribunal and the management firmly believes that there will not be
any demand.
7) The Company has not granted any loans, secured or unsecured to the
companies, firms or other partiers in which directors are interested.
8) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
9) According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Accordingly,
paragraph 4(vi) of the order is not applicable.
10) The Company has adequate internal Audit system commensurate with
the size and nature of its business.
11) The maintenance of records as prescribed u/s 209(1) (d) of
Companies Act, 1956 (as amended) for the product manufactured by the
Company have been maintained.
12) Based on our Audit procedures and according to information and
explanation given to us by the management, we are of the opinion that
the Company has not defaulted in repayment of dues to Banks and
Financial Institutions.
13) Based on our examination of documents and records and according to
the information and explanation given to us, we are of the opinion that
the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
14) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (AuditorÃs Report) Order 2003 are not applicable to the
Company.
15) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
of clause 4(xiv) of the Companies (AuditorÃs Report) Order 2003 are not
applicable to the Company.
16) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions. Therefore, the provisions
of clause 4(xv) of the Companies (AuditorÃs Report) Order 2003 are not
applicable to the Company.
17) According to information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we are of the
opining that there are no funds raised on short term basis that have
been used for long term investment and vice versa.
18) The company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
19) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
20) In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the year, hence paragraph 4(xix) of the Companies (AuditorÃs Report)
Order 2003 are not applicable to the Company.
21) During the period covered by our Audit Report, the Company has not
raised any money by way of Public Issues. But out of 2 crores share
warrants issued in last year, 1.71 crores have been converted into
equity shares and balance of 29 lakh warrants will be converted in the
next year.
22) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/s N. K. Agarwal & Co.
(Chartered Accountant)
Dated : 25/05/2012
Place : Kolkata Mr. N. K. Agarwal
(Proprietor)
Membership No 14267
Mar 31, 2010
We have audited the attached Balance Sheet of Burnpur Cement Limited as
on 31st March, 2010 and the Profit & Loss Account and the Cash Flow
statement of the Company 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 the management, as well as evaluating the overall financial
statements presentation. We believe that our audit provides reasonable
basis of our opinion.
1) As required by Companies (Auditors Report) order 2003, issued by
the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclosed in the Annexure a
statement on the matter specified in paragraphs 4 and 5 of the said
order.
2) We further report that: -
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of such
books.
c) The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the books of account.
d) In our opinion, the Balance Sheet and the Profit & Loss Account
referred to in this report comply with the mandatory Accounting
Standards referred to in sub sec 3(c) of sec 211 of the Companies Act,
1956, to the extent applicable.
e) On the basis of written representations received from the directors
as on 31st March 2010 and taken on record by the Board of directors, we
report that none of the directors of the Company are prima facie
disqualified Under Section 274(1)(g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet and the Profit &
Loss Account read together with all the notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: -
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date.
(iii)In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
To the Shareholders of Burnpur Cement Limited.
(Referred to in Paragraph (1) thereof)
1) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed asset. All the
fixed assets have not been verified by the management during the
period. According to the information and explanations given to us there
is a regular programme of verification which, in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies between the book records and the
physical inventory have been noticed in respect of the assets
physically verified.
2) None of the Fixed Assets have been revalued during the period.
3) a) The inventory has been physically verified during the period. In
our opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No major discrepancies were noticed.
4) The Company has taken unsecured loan and secured loans from
financial institutions and banks. However the terms of loans are not
prima facie prejudicial to the interest of the Company.
5) Based on the Audit procedures applied by us and by the management,
we are of the opinion that there are no transactions that need to be
entered into the register maintained under section 301, hence not
applicable.
6) a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax and
Sales Tax and such other statutory dues with the appropriate
authorities.
b) Demand of Rs.55.07 Lac raised on completion of Sales Tax Assessment
for the years ended on 31-03-1996 and 31-03-2005 under West Bengal
Sales Tax Act, 1994, have not been provided for in the books as
explained by the Management that the whole demand is disputed and
revision/ appeal have been preferred before appropriate Appellate Forum
and the management has bonafide belief that demand will be reduced to
Nil on disposal of revision / appeal proceedings.
7) The Company has not granted any loans, secured or unsecured to the
companies, firms or other partiers in which directors are interested.
8) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system.
9) According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Accordingly,
paragraph 4(vi) of the order is not applicable.
10) The Company has adequate internal Audit system commensurate with
the size and nature of its business.
11) The maintenance of records as prescribed u/s 209(1) (d) of
Companies Act, 1956 (as amended) for the product manufactured by the
Company have been maintained.
12) Based on our Audit procedures and on the information and
explanations by the management. We are of the opinion that the Company
has not defaulted in repayment of dues to Bank and Financial
Institution.
13) Based on our examination of documents and records and according to
the information and explanation given to us, we are of the opinion that
the Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
14) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) order 2003 are not applicable to the
Company.
15) In our opinion and according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore, the provisions
for clause 4(xiv) of the Companies (Auditors Report) order 2003 are
not applicable to the Company.
16) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions. Therefore, the provisions
for clause 4(xv) of the Companies (Auditors Report) order 2003 are not
applicable to the Company.
17) In our opinion and according to the information and explanations
given to us and on an over all examination of the Balance Sheet of the
Company. We report that no funds raised on short- term basis have been
used for long term investment and vice-versa.
18) In our opinion, the term loans have been applied for the purpose
for which they were raised.
19) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
20) In our opinion and according to the information and explanations
given to us, the Companies has not issued any secured debentures during
the year, hence paragraph 4(xix) of the companies (Auditors Report)
order 2003 are not applicable to the Company.
21) During the period covered by our Audit Report, the Company has not
raised any money by way of Initial Public Issues.
22) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Dated : 30th April, 2010. N.K.Agarwal
Place : Kolkata (Proprietor)
Membership No. 14267
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