The Members of
Bang Overseas Limited
REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying standalone financial statements of Bang OverseasLimited (the Company) which comprise the Balance Sheet as at March 31 2015the Statement of Profit & Loss and Cash Flow Statement for the year then ended andsummary of significant accounting policies and other explanatory information.
MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
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 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 includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting 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 based onour audit.
4. We have taken in account the provision of the Act the accounting and auditingstandards and matters which required to be included in the audit report under theprovisions of the Act and Rules made there under.
5. 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 of material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures 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 auditors consider internal financial control relevant to the Companyspreparation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expression an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the financial 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 accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its profit/loss and its cash flow for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
9. As required by the Companies (Auditors Report) Order 2015 (theOrder) issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act 2013 we give in Annexure a statement on mattersspecified in paragraphs 3 and 4 of the said order.
10. As required by Section 143 (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 accounts;
(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 March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 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 our opinionand to the best of our knowledge and belief and according to the information andexplanation given to us:
i. The Company has disclosed the pending litigations in its financial statements whichimpacts its financial position (Refer Note No. 29 (a)).
ii. The Company did not have any long term contracts including derivative contracts forwhich there were material foreseeable losses:
iii. There were no amounts which were required to be transferred to the investorEducation and Protection Fund.
For Rajendra K. Gupta & Associates
Firm Registration No.: 108373W
Rajendra Kumar Gupta
Membership No. 9939
Date: 30 th May 2015
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
Bang Overseas Limited
(Referred to in paragraph 9 of our report of the even date)
(i) In respect of fixed assets:
(a) The Company has maintained records for fixed assets but it is not showing fullparticulars including quantitative details and situation of fixed assets except for themanufacturing unit.
(b) According to the information and explanation given to us the fixed assets of theCompany have not been physically verified by the management at reasonable intervals:
(ii) (a) As explained to us the inventories have been physically verified by themanagement during the year.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification followed by the management are reasonable and adequatein relation to the size of the Company and the nature of its business;
(c) The company has maintained proper records of inventories. As explained to us therewas no material discrepancies noticed on physical verification of inventory as compared tothe book records.
(iii) The company has not granted any loans to the parties covered in the registermaintained under Section 189 of the Companies Act 2013. Hence the question of reportingwhether the receipt of principal and interest are regular and whether reasonable steps ofrecovery of over dues of such loans are taken does not arise.
(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 nature of its business for the purchase of Inventory and Fixed assets and saleof goods. During the course of our audit we have not observed any continuing failure tocorrect measure weaknesses in such internal controls.
(v) Based on our scrutiny of the Companys records and according to theinformation and explanations provided by the management in our opinion the company hasnot accepted any loans or deposits which are deposits within the meaning ofRule 2(b) of the Companies (Acceptance of Deposits) Rules 2014.
(vi) We have been informed by the management no cost records have been prescribedunder Section 148(1) of the Companies Act 2013 in respect of products manufactured by theCompany.
(vii) (a) According to the records of the Company the Company is regular in depositingundisputed statutory dues including provident fund employees state insuranceincome tax sales tax service tax and custom duty have generally been regularly depositedwith the appropriate authorities.
(b) According to the information and explanation given to us there are no dues ofincome tax provident fund service tax and other material statutory dues which have notbeen deposited with appropriate authorities on account of any disputes except dispute inrespect of Income Tax of Rs. 246.74 Lacs under Income Tax Act 1961 pending before TheCommissioner of Income Tax (Appeals).
(c) The Company is not required to transfer any amount to Investor Education andProtection Fund in accordance with the provisions of the Companies Act 2013 and Rulesthere under.
(viii) The Company has accumulated losses at the end of the financial year and hasincurred cash loss during the financial year covered by our audit and also in immediatelypreceding financial year. However accumulated losses at the end of financial year are lessthan fifty percent of its net worth.
(ix) According to records of the Company examined by us and information andexplanation given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank as at the balance sheet date.
(x) According to the records of the Company and the information and explanationprovided by the management the terms and conditions of the guarantees given by theCompany for loans taken by others from bank during the year are not prejudicial to theinterest of the Company.
(xi) According to the records of the Company the Company has not obtained any termloans. Hence comments under the clause are not called for.
(xii) Based on our audit procedures performed and according to the information andexplanation given to us by the management no fraud on or by the Company has been noticedor reported during the course of our audit.
For Rajendra K. Gupta & Associates
Firm Registration No: 108373W
Rajendra Kumar Gupta
Membership No: 9939
Date: 30 May 2015