The Members of Balaji Amines Limited Soiapur.
Report on the Standalone Financial Statements
We have audited the accompanying standalone Financial Statements of Balaji AminesLimited ("the Company") which comprise of the Balance Sheet as at March31 2016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Management's Responsibility for the Standalone 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 standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 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 stand alone financial statements are free from material misstatement. An auditinvolves performing procedures to obtain audit evidence about the amounts and thedisclosures 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 financial control relevant to the Company's preparation of thestandalone Financial Statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's 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 theFinancial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Financial Statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("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' a statement on the matters specified in paragraphs 4and 5 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 standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e. In the course of the audit we have not come across any financial transactions ormatters that have any adverse effect on the functioning of the company
f. On the basis of the written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312016 from being appointed as a director in terms of Section 164 (2) of theAct.
g. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure 'B'.
h. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long term contracts including derivative contracts.
iii. There are no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the company
For V. Sridhar & Co.
ICAI Membership No: 202337
ANNEXURE B' TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THE STAND ALONEFINANCIAL STATEMENTS OF BALAJI AMINES UMITED [Referred to in para.2 (g) under the heading'Report on Other Legal and Regulatory Requirements']
Year ended March 312016
Report on the Internal Financial Controls under Clause (i) of subsection 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BalajiAmines Limited ("the Company") as of March 312016 in conjunction with our auditof the standalone Financial Statements of the Company forthe year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting. .
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the FinancialStatements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate. Opinion In ouropinion the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For V. Sridhar & Co.
ICAI Membership No. 202337
Secunderabad May 212016.
ANNEXURE B TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THE STAND ALONEFINANCIAL STATEMENTS OF BALAJI AMINES LIMITED [Referred to in para 2 (d) under the heading'Report on Other Legal and Regulatory Requirements']
1. a. The company is maintaining proper records showing full particulars includingquantitative details and details about thesituation of Fixed Assets.
b. These Fixed Assets have been verified by the Management at reasonable intervals.According to information and explanations given to us no material discrepancies have beennoticed on such verification.
c. The title deeds of immovable properties belonging to the company are held in thename of the company.
2. Physical verification of inventory has been conducted by the management during theyear under review at reasonable intervals. According to information and explanation givento us no material discrepancies have been noticed.
3. The company has not granted any loans secured or unsecured to companies firms.Limited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. The company has not granted any loans or provided security or guarantees to whichprovisions of section 185 apply. As regards the investments made by the company theprovisions of section 186 have been complied with.
5. The company has not accepted any Deposits.
6. In respect of the records maintained by the company in accordance with the Rule madeby the Central Government regarding maintenance of Cost Records under the provisions ofsubsection (1) of section 148 of the Companies Act 2013 we have broadly reviewed thesame and we are of the opinion that the prescribed accounts and records have been kept andmaintained. However we have not carried out a detailed audit of the same.
7. a. The company is regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales tax Service Tax Customsand Excise Duty or Value Added Tax Cess and other statutory dues applicable to it withthe appropriate authorities.
b. The company did not incur any dues on account of any dispute in respect of SalesTax Service Tax Customs and Excise Duty or Value Added Tax during the year under review.The company has a disputed demand of Rs.17.60 lacs under the Income Tax Act 1961 inrespect of which the appeal is pending before the Commissioner of Income Tax (Appeals) IIIPune. The company has in the month of April 2016 deposited an amount of Rs.2.64 lacsagainst the above mentioned demand and applied for the stay of collection of the balancedisputed demand till disposal of the appeal. '
8. The company has not defaulted in repayment of loans/borrowings from FinancialInstitutions Banks. The company does not have any borrowings from Government or DebentureHolders.
9. The company has not raised any monies by way of any Public Offer or Term Loansduring the year under review.
10. To the best of our information and according to explanations given to us no fraudby the company or on the company by its officers or employees has been noticed or reportedduring the year under review.
11. The overall remuneration paid to the Managing Director and Whole Time Directors andthe remuneration paid to each of them taken individually is not in excess of the limitsspecified under section 197 of the Companies Act 2013
12. The company is not a Nidhi Company.
13. The transactions with related parties are in compliance with the provisions ofsection 177 and 188 of the Companies Act 2013 and the details have been disclosed in thefinancial statements as required by the applicable Accounting Standards.
14. The company has not made any preferential allotment or private placement of sharesor debentures during the year under review.
15. The company has not entered into any non-cash transactions with its Directors orpersons connected with them.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For V. Sridhar & Co.
ICAI Membership No. 202337
Secunderabad May 21 2016.