To the Members of B. L. Kashyap and Sons Limited
Report on the Financial Statements
We have audited the accompanying standalone financial statements of B.L. Kashyap andSons Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss of the Company for the year ended on thatdate the Cash Flow Statement of the Company for the year ended on that date and a summaryof significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Companys Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India; (i) in the case of the Balance Sheet of the stateof affairs of the Company as at 31st March 2016; (ii) in the case of the Statement ofProfit and Loss of the profit for the year ended on that date; and (iii) in the case ofthe Cash Flow Statement of the cash flows for the year ended on that date.
Emphasis of Matters:-
We draw attention to the following matters in the notes to the financial statements. a)Note No.3.1.1 to the financial statements regarding claims against the Company notacknowledged as debts amounting ` 17.72 Crore in respect of disputed statutory dues `2.23 Crore in respect of penal and overdue interest on the outstanding loans as on 31stMarch 2016 and ` 28.20 Crore in respect of differential amount of interest sacrificed bybankers pursuant to scheme of Corporate Debt Restructuring as bankers have a right ofrecompose of sacrifices. b) Note No. 3.1.2 to the financial statements regarding CorporateGuarantee given amounting ` 177.52 Crore. c) Note 14 to the financial statements regardingnon provision of losses for diminution in the value of Investments in the SubsidiaryCompanies.
Our opinion is not modified in respect of these matters.
Report on other Legal and Regulatory Requirements
1. (1) As required by the Companies (Auditors Report) Order 2016 issued by theCentral Government of India in terms of subsection (11) of section 143 of the CompaniesAct 2013 we annexed hereto a statement on the matters specified in para 3 and 4 of thesaid 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 bestof 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 theCompany so far as appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch2016 taken on record by the Board of Directors none of the directors is disqualified ason 31stMarch 2016 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to separate reportin Annexure B and g) with respect to the other matters included in theAuditors Report and to the best of our information and according to the explanationsgiven to us:-
(i) The company does not have any pending litigations which would materially impact itsfinancial position.
(ii) The company does not have any term contracts including derivative contracts forwhich there are any material foreseeable losses.
(iii) There has been no delay in transferring amounts to the Investor Education andProtection Fund.
| ||For Sood Brij & Associates |
| ||Chartered Accountants |
| ||Firm Regn. No. 00350N |
| ||A.K. SOOD |
|Place : New Delhi ||Partner |
|Dated : 27th May 2016 ||Membership Number: 014372 |