TO THE MEMBERS OF BALA TECHNO INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Bala Techno Industries Limited("the company")which comprise the Balance Sheet as at 31 March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese 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 maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial control that wereoperating 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 financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 of the state of affairs of the Company as at 31stMarch 2015 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 2015("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 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 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 it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
For U.NARAIN & CO.
M. No - 054090
Date : 14th November 2015
ANNEXURE TO THE 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) The fixed assets have beenphysically verified by the management during the year. No material discrepancies werenoticed on such verification.
(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 noticed onverification between the physical stock and the book records were not material.
(iii) The Company has not granted any loan secured/unsecured to companies/firms/otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Accordingly the provisions of clause 3(iii)(a) and (b) of the Order are not applicable tothe Company and hence not commented upon.
(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 fixed assets and withregard to sale of goods and services. During the course of our audit we have not observedany continuing failure to correct major weaknesses in internal control system.
(v) Company has not accepted any deposits from the public.
(vi)According to information and explanations given to us the Company has notmaintained cost records under sub section (1) of Section 148 of the Companies Act 2013 asper the Companies (Cost Records and Audit) Rules 2014.
(vii) a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Wealth Tax Sales Tax Custom Duty Excise Duty Value Added Tax Cess andother material statutory dues applicable to it excepting service tax on transportpayments. There are no arrears of outstanding statutory dues as at 31st March 2015 fora period of more than six months from the date they become payable.
b) According to information and explanations given to us there are no disputed amountspayable in respect of Provident Fund Employees State Insurance Income Tax Sales TaxService tax Custom Duty Value Added Tax Wealth Tax Excise Duty and Cess at the yearend on 31st March 2015.
c) According to the information and explanations given to us there were no amountswhich required to be transferred to the Investor Education and Protection Fund.
(viii) The company has no accumulated losses. The company has not incurred cash lossesduring the financial year covered by our audit and in the immediately preceding financialyear.
(ix) In our opinion and according to information and explanations given to us thecompany has not defaulted in repayment of dues to financial institution or bank ordebenture holders.
(x) According to the information and explanations given to us the company has notgiven any guarantee for loans taken by others from banks or financial institutions.
(xi) According to the information and explanations given to us the company has notobtained any term loan during the year.
(xii) 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. |
| ||Chartered Accountants |
| ||FRN:- 000935C |
|Place: Kolkata ||(J.P.Agarwal) |
|Date : 14th November 2015 ||Partner |
| ||M. No - 054090 |