TO THE MEMBERS OFBALURGHAT TECHNOLOGIESLIMITED
Report on the Financial Statements
1.We have audited the accompanying financial statements of Balurghat TechnologiesLimited ("the Company") which comprise the Balance Sheet as at March 312016the statement of Profit and Loss the Cash Flow Statement for the year then ended anda summary of the significant accounting policies and other explanatory information.
2.The Companys Board of Directors is responsible for the matters stated inSection 134 (5) of the Companies Act 2013 ( "the Act") with respect to thepreparation of these financial statements to give a true and fair view of the financialposition financial performance and cash flows to the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies making judgements and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
3. Our responsibility is to express an opinion on these financial statements basedon our audit.
4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting standards and matters which are required to be included inthe audit report.
5. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143 (10) of the Act and other applicable authoritative pronouncements issuedby the ICAI. Those standards and pronouncements require that we comply with the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
6. An Audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error .In making those risksassessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view. inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls . An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Companys Directors as well as evaluating the overall presentation of thefinancial statements.
7.We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
8. 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 state of affairs of the Company as at March 312016 and its profit and its Cash Flows for the year ended on that date .
9.As required by the Companies (Auditors Report ) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of Section of Section 143 of theAct ( hereinafter referred to as the Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure a statement on thematters specified in Paragraphs 3 and 4 of the Order .
10. 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 purpose 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 except that the backupof the books of accounts and other books and paper maintained in electronic mode has notbeen maintained on servers physically located in India.
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 u/s133 of the Act and is presented as per the requirements ofRegulation 33 of SEBI(LODR)Regulations 2015.
e. On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board none of the directors is disqualified as on 31stMarch2016 from being appointed as a Director in terms of Section 164 (2) of theAct.
f. With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies ( Audit and Auditors ) Rules 2014 in ouropinion and to the best to our knowledge and according to the information and explanationsgiven to us :
1. The Company has disclosed the impact if any of litigations as at March 31 2016 onits financial statements .
2 The Company has no long term contracts as at 31 March 2016.
3.There is no such requirement of transferring funds to Investor Protection Fund duringthe Year ended March 31 2016.
(Referred to in Para 9 of the Independent Auditors Report of even date to theMembers of Balurghat
Technologies Limited on the financial statements as of and for the year ended March 312016.
i) In respect of its fixed assets :
a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all items over a period of three years which in our opinionis reasonable having regard to the size of the company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.
ii) a)The inventory (excluding stocks with third parties ) has been physically verifiedby the Management during the year . In respect of inventory lying with third partiesthese have substantially been confirmed by them. In our opinion the frequency ofverification is reasonable.
b)In our opinion the procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and natureof its business.
c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventory as compared to book records were notmaterial.
iii) The Company has not granted any loans secured or unsecured to Companies firmsor other parties covered in the register maintained under Section 189 of the Act.Therefore the provisions of Clause 3 (iii) (iii) (a) and (iii) (b) of the said Order arenot applicable to the Company.
iv) In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. Further on the basis of our examination of the books and records ofthe Company and according to the information and explanations given to us we haveneither come across nor have been informed of any continuing failure to correct majorweaknesses in the aforesaid internal control system .
v) In our opinion and information given to us the Company has not accepted anydeposits within the meaning of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rule framed there under. Therefore the provisions of clause (v) of paragraph 3 of the CARO are not applicable to the company.
vi) Since the net worth of the Company and turnover HSD is less than the limitsprescribed by the Central Government under section 148 of the Companies Act 2013 maintenance of Cost records is not considered necessary.
vii) a)According to t h e information and explanations given to us the company has beengenerally regular in depositing undisputed statutory dues including provident fundinvestor education and protection fund employees state insurance income taxwealth tax service tax custom cess and other material statutory dues as applicable toit with the appropriate authorities during the year.
b)As at 31st March2016 according to the record of the company and the information andexplanation given to us there are no disputes in respect of any of the statutory duesExcept an amount of damages imposedbythePFauthoritiesRs.1250404/-(PreviousyearRs.1250404)for a period prior to
Incorporation of the company pending before the Honble Tribunal of PF at NewDelhi for necessary Adjustment.
viii) The company is having accumulated losses as at 31stMarch2016&the company has not incurred cash losses during the financial year ended on that date& the immediately preceding financial year. But the accumulated losses incurred by thecompany has exceeded 50% of its net worth.
ix) Based on our audit procedures and according to the information given to us we areof the opinion that the Company has not defaulted in repayment of dues to financialinstitutions and banks. The Company has not accepted any fund on account of issue ofdebentures.
x) According to the information and explanations given to us The Company has notgranted any loans or any guarantees for loans taken by others from banks or financialinstitutions or any advances on the basis of security by way of pledge of sharesdebentures and other securities.
xi)In my opinion and according to the information and explanations given to us thecompany has maintained proper records of the transactions and contracts and timely entryhave been made therein;& the company is holding the investments in its own name.
xii) According to the information and explanations given to us during the year nofraud on or by the company has been noticed or reported during the year.
| ||In terms of our report of even date attached |
| ||GUHA&SONS |
|Place: Kolkata ||CHARTERED ACCOUNTANTS |
|Dated: 30thDay ofMay2016. ||15/1 ChowringeeSquare |
| ||Kolkata 700069 |
| ||K.GUHA(PROPRIETOR) |
| ||Membership No: 008256 |
| ||Firm Registration No: 302159E |