The Members of
Bala Techno Global Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Bala Techno Global Limited("the Company") which comprise the Balance Sheet as at 31 March 2014 theStatement of Profit and Loss and the 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 atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act 1956("the Act") read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act 2013 and in accordance with the accounting principles generally accepted inIndia. This responsibility includes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
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 state of affairs of the Company as at 31March 2014;
ii. in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
iii. in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the Order")as amended issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 ourknowledge 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 theCompany so far as appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of Section211 of the Act read with the General Circular 15/2013 dated 13th September 2013 of theMinistry of Corporate Affairs in respect of Section 133 of the Companies Act 2013; and
e. on the basis of written representations received from the directors as on 31 March2014 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of Section 274 of the Act.
For U. Narain & Co.
Chartered Accountants FRN: 000935C
(J. P. Agarwal)
Membership No. 54090
Place: Kolkata Date: 30th May 2014
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under the heading "Report on other Legal andRegulatory requirements" of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) All of the fixed assets have been physically verified by the management during theyear. There is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its fixed assets. No materialdiscrepancies were noticed on such verification.
(c) During the year there is no substantial disposal of fixed assets which wouldaffect the going status of the company.
(ii) (a) The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) The company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stock and the book records were not material.
(iii) (a) The Company has not granted any loan to companies / firms / other partiescovered in the register maintained under Section 301 of the Companies Act 1956.
(b) In view of clause (iii) (a) above this Clause is not applicable.
(c) In view of clause (iii) (a) above this Clause is not applicable.
(d) In view of clause (iii) (a) above this Clause is not applicable.
(e) The Company has taken unsecured loans from three parties covered in the registermaintained under section 301 of the Companies Act 1956. The year end balance of the loanstaken from such parties was Rs. 1556000/
(f) In our opinion the rate of interest and other terms and conditions of such loansare not prima-facie prejudicial to the interest of the company.
(g) There are no stipulations as to the payment of principal amount and interestthereon.
(iv) In our opinion and according to the information and explanations given to usthere are adequate internal control procedures commensurate with the size of the Companyand the nature of its business with regard to purchase of inventory and fixed assets andwith regard to sale of goods. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us the transactionsthat need to be entered into the register maintained under Section 301 of the CompaniesAct 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under Section 301 of the Companies Act 1956 and exceeding the value of rupeesfive lakhs in respect of any party during the year have been made at prices which arereasonable having regard to prevailing market prices at the relevant time.
(vi) The Companies has not accepted any deposits from the public.
(vii) In our opinion the Company has an internal audit system commensurate with thesize and nature of its business.
(viii) As explained to us the Company is not required to maintain the cost records asprescribed by the Central Government under Section 209 (1) (d) of the Companies Act 1956.
(ix) (a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including Income Tax Sales Tax Wealth Tax ServiceTax Custom Duty and other material statutory dues applicable to it.
(b) According to information and explanations given to us there are no undisputedamounts payable except in respect of Sales Tax Rs. 187343/- which was outstanding atthe year ended on 31st March 2014 for a period of more than six months from the datethey became payable.
(c) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Wealth Tax Service Tax Custom Duty and Other material statutorydues which have not been deposited on account of any dispute.
(x) In our opinion the company's accumulated losses at the end of the financial yearare less than fifty percent of its net worth. The company has not incurred cash lossesduring the financial year covered by our audit but incurred cash losses in theimmediately preceding financial year.
(xi) According to the information and explanations given to us the company has notdefaulted in repayment of dues to a financial institution or bank or debenture-holders.
(xii) According to the information and explanations given to us the company has notgranted loans and advances on the basis of security by way of pledge of shares debenturesand other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/mutual benefitfund/society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor'sReport) Order 2003 are not applicable to the company.
(xiv) In our opinion the company is not dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of clause 4(xiv) of theCompanies (Auditor's Report) Order 2003 are not applicable to the company.
(xv) According to the information and explanations given to us the company has notgiven any guarantees for loans taken by others from banks or financial institutions.
(xvi) The Company does not have any term loan.
(xvii) According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the company we report that no funds raised onshort-term basis have been used for long-term investment.
(xviii) According to the information and explanations given to us the company has notmade any preferential allotment of equity shares to parties covered in register maintainedunder Section 301 of the Companies Act during the year.
(xix) As explained to us the company does not have any outstanding debentures.
(xx) The company has not raised any money through a public issue during the year.
(xxi) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.
For U. Narain & Co.
(J. P. Agarwal)
Membership No. 54090
Date: 30th May 2014