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Bartronics India Ltd.

BSE: 532694 Sector: IT
NSE: BARTRONICS ISIN Code: INE855F01034
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OPEN 14.00
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VOLUME 3010
52-Week high 24.90
52-Week low 11.31
P/E
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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OPEN 14.00
CLOSE 14.10
VOLUME 3010
52-Week high 24.90
52-Week low 11.31
P/E
Mkt Cap.(Rs cr) 48
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bartronics India Ltd. (BARTRONICS) - Auditors Report

Company auditors report

To

The Members of

BARTRONICS INDIA LIMITED

Report on the Standalone Financial Statements

We have audited the acCompanying Standalone Financial Statements of Bartronics IndiaLimited ("the Company") which comprise the Balance Sheet as at March 312016 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 Standardsprescribed under Section 133 of the Act read with the 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 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

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 and the Order under Section143(11) of the Act. We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Opinion

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 31 2016 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a. Reference is invited to Note 2.8 of the financial statements the Company has notprovided interest on unsecured loans as terms are not clearly available with the Companyand consequently uncertainty arises in Financial Statements as to the exact amount.

b) Reference is invited to Note 2.13 (i)(a) forming part of the Financial Statementregarding Capital advances to the extent of Rs. 9061.49 Lakhs "We are unable toascertain whether such balances are fully recoverable". Accordingly we are unable toascertain the impact if any that may arise in case any of these advances aresubsequently determined to be doubtful of recovery. Had the Company provided for the samethe loss for the period would have been higher by the said amount.

c) Note 2.15 forming part of the Statement regarding Trade Receivables aggregating toRs. 95635.12 Lakhs are more than three years old and in respect of which the Companyprovided only Rs.7035.92 lakhs. We are unable to form an opinion on the extent to whichthe debts may be recoverable.

d) Note 2.29 forming part of the financial statements regarding the non-repayment ofFCCB amounting to Rs. 33088.70 lakhs which has fallen due as of February 2013 and theCompany has defaulted the payments even after the expiry of extended time sought by itfrom the RBI.

e) Without qualifying our opinion we invite attention to Note no 2.44 forming part ofthe financial statements regarding the uncertainties relating to MCD Project-"ApkeDwar Project" the matter is in arbitration.

f) The LIC of India Andhra Bank Bank of India Indian Bank Barclays Bank IDBI Bankfiled cases in DRT. A criminal case was also filed by a creditor at Delhi. There arecertain cases against the Company pending at the Labour Court of India. Accordingly weare unable to ascertain the impact if any that may arise in case any of these matterssettle against the Company.

Our opinion is not modified on respect of these matters

Report on Other Legal and Regulatory Requirements

1. 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 relating to preparationof the standalone financial statements have been kept by the Company so far as it appearsfrom 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 maintained for thepurpose of preparation of these standalone financial statements.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act as applicable.

(e) On the basis of the written representations received from the Directors as on March31 2016 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2016 from being appointed as a Director in terms of Section 164 (2) of theAct.

(f) 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 A'. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.

(g) With respect to the other matters to be included in the Independent Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements-Also Refer Note 2.27 to the financial statements.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses under the applicable law or accountingstandards.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government in terms of Section 143(11) of the Act we give in‘Annexure B' a statement on the matters specified in paragraphs 3 and 4 of the Order.

For T.Raghavendra & Associates
Chartered Accountants
(FRN-003329S)
Place: Hyderabad T. Raghavendra Proprietor
Date: 30-05-2016 (Membership No. 023806)

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-Section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of BartronicsIndia Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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.

Auditors' Responsibility

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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing deemed to be prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

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 our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For T.Raghavendra & Associates
Chartered Accountants
(Firm Regn No:003329S)
T. Raghavendra
Place: Hyderabad Proprietor
Date: 30-05-2016 (Membership No. 023806)

ANNEXURE "B" to the independent auditors' report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' Section of our report of even date)

Report on Companies (Auditor's Report) Order 2016 (‘the Order') issued by theCentral Government in terms of Section 143(11) of the Companies Act 2013 (‘the Act')of Bartronics India Limited (‘the Company')

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.

b. The fixed assets were physically verified during the year by the Management inaccordance with a phased programmed of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals having regard to thesize of the Company nature and value of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company

ii. The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. According to the information and explanations given to us the Company has notgranted unsecured loan to a Company covered in the register maintained under Section 189of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

v. According to information and explanations given to us the Company has not acceptedany deposit during the year. There are no unclaimed deposits to which the provisions ofSection 73 to 76 or any other relevant provisions of the Companies Act 2013 areapplicable.

vi. The Company does not maintain the cost records pursuant to the Companies (CostAccounting Records) Rules 2011 prescribed by the Central Government under Section 148 (1)of the Companies Act 2013.

vii. (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax customs duty excise duty value added taxcess and other material statutory dues have generally been regularly deposited with theappropriate authorities expect the following statutory dues were outstanding as at 31stMarch 2016 for a period of more than six months from the date becoming payable.

Sl.No Particulars Amount
1. Central Sales Tax (2011-12) 855144/-
2. Central Sales Tax (2012-13) 529916/-
3. Dividend Distribution Tax (2010-11) 5655516/-

(b) According to the records of the Company the dues outstanding of income-taxsales-tax service tax duty of custom duty of excise value added tax and cess onaccount of any dispute are as follows:

Natures of dues Disputed Dues Period to which the amount relates Forum where the dispute is pending
Central Sales Tax 60895984/- 2008-09 CTO-Hyderabad (Pending for Re-Assessment)
Income tax-FBT 66765550/- 2008-09 Appellate authority-CIT Appeals
Income tax 85086235/- 2008-09 Appellate authority-Income Tax Appellate Tribunal
Income tax 23857430/- 2009-10 Appellate authority-Income Tax Appellate Tribunal
Income tax 64855030/- 2010-11 Appellate authority-DRP Bangalore
Income tax 169815780/- 2011-12 Appellate authority-Income Tax Appellate Tribunal

viii. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the Management we are of the opinion that the Company has defaulted in repayment ofdues to financial institutions banks or debenture holders details as follows :

Sl. No Name of the Bank / Financial Institutions Installment Type Principal Overdue Interest Overdue Due Since (No. of installments)
1. Andhra Bank Monthly 3657.15 3321.42 24
2. Bank Of Baroda Quarterly 2036.09 1356.00 15
3. Bank of India Quarterly 2791.08 2244.98 8
4. Indian bank Quarterly 1199.41 931.14 13
5. LIC Quarterly 3.000.00 2006.85 21
Totals 12683.72 9860.40

ix. In our opinion and according to the information and explanation given to us termloans have been applied by the Company during the year for the purpose for which they wereraised. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year

x. To the best of our knowledge and belief and according to the information andexplanations given to us and considering the size and nature of the Company's operationsno fraud by the Company and no fraud of material significance on the Company by itsofficers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of Section 192 of theCompanies Act 2013 are not applicable.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934

For T. Raghavendra & Associates
Chartered Accountants
(Firm Regn No:003329S)
T. Raghavendra
Place: Hyderabad Proprietor
Date: 30-05-2016 (Membership No. 023806)