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Batliboi Ltd.

BSE: 522004 Sector: Engineering
NSE: BATLIBOI ISIN Code: INE177C01022
BSE LIVE 15:40 | 02 Dec 21.90 -0.45
(-2.01%)
OPEN

22.30

HIGH

22.30

LOW

21.55

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 22.30
PREVIOUS CLOSE 22.35
VOLUME 6178
52-Week high 32.05
52-Week low 19.00
P/E
Mkt Cap.(Rs cr) 62.90
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 22.30
CLOSE 22.35
VOLUME 6178
52-Week high 32.05
52-Week low 19.00
P/E
Mkt Cap.(Rs cr) 62.90
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Batliboi Ltd. (BATLIBOI) - Auditors Report

Company auditors report

TOTHE MEMBERS OF BATLIBOI LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BATLIBOI LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2016 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 in whichare incorporated the Returns for the year ended on that date audited by the branchauditors of the Company's branch at Udhna plant.

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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Basis for Qualified Opinion

The Company has paid remuneration to the new Managing Director in excess of the ceilingunder Schedule V of the Companies Act 16.79 Lacs. The said Managing Director wasappointed with effect from 1st 2013 by Rs. February 2016 and the terms and conditions ofsuch appointment and the remuneration payable to him have been approved by the Board ofDirectors at its meeting held on 30th January 2016 based on the recommendation of theNomination and Remuneration Committee of the Board on 30th January 2016 but subject toapproval of the shareholders in the next general meeting of the Company and the CentralGovernment as specified in the Schedule V of the Companies Act 2013.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2016 and its loss and its cash flows for theyear ended on that date.

Other Matter

We did not audit the financial statements of Udhna Plant ("the branch")included in the standalone financial statements of the Company whose financial statementsreflect total assets of st Rs. 6455.41 Lacs as at 31 March 2016 and total revenues ofRs. 7065.60 Lacs for the year ended on that date as considered in the standalonefinancial statements. The financial statements of the said branch have been audited by thebranch auditors whose reports have been furnished to us and our opinion in so far as itrelates to the amounts and disclosures included in respect of the branch is based solelyon the report of such branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Government of India in terms of Subsection (11) of Section 143 of the Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the"Annexure I" a statement on the matters specified in the paragraphs 3 and 4 ofthe said 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. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph in our opinion proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branch not visited byus.

c. The reports on the accounts of the branch offices of the Company audited underSection 143 (8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

d. 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 and with the returnsreceived from the branch not visited by us.

e. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph 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.

f. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

g. The qualification relating to payment of remuneration to the Managing Director inexcess of the limits specified in Schedule V of the Companies Act 2013 is as stated inthe Basis for Qualified Opinion paragraph above.

h. 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 II".

i. 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 has disclosed the impact of pending litigations on its financialposition in its financial statements -Refer Note 15-III to the financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses - Refer Note 15-XII-D to the financialstatements;

iii. There has been no delay in transferring the amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For V. SANKAR AIYAR & CO.
Chartered Accountants
Firm's Registration No.109208W
Place: Mumbai ARVIND MOHAN
Date: 6th May 2016 Partner
Membership No. 124082

ANNEXURE I TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF BATLIBOILIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2016

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

b. The fixed assets have been physically verified by the management during the year atreasonable intervals having regard to the size of the Company and the nature of itsassets. The discrepancies noticed on such verification were in our opinion not materialand have been properly dealt with in the books of account.

c. According to the information and explanations given to us and based on verificationof records the title deeds of immovable properties are held in the name of the Company.

(ii) Physical verification of inventory has been conducted by the management atreasonable intervals during the year except in case of inventory lying with third partieswhere confirmations have been obtained. The discrepancies noticed on physical verificationof inventory as compared to book records have been properly dealt with in the books ofaccount.

(iii) Based on audit procedures applied by us and according to the information andexplanations given to us the Company has not granted any loans to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(iv) According to the information and explanations given to us the Company has notgranted any loans investments guarantees and security during the year to whichprovisions of Section 185 and 186 of the Act apply.

The Company has given guarantees to banks for credit facilities/ performance guaranteesextended by them to BEEL a related party. The Company has strategic business relationshipwith the party and the party has extended reciprocal guarantee/ financial assistance onbehalf of / to the Company the terms and conditions of the guarantees are not prima facieprejudicial to the interest of the Company. The said guarantees were approved by theCompany by a resolution passed at the Board Meeting dated 27th January 2012 and inaccordance with provisions of the Section 372 of the Companies Act 1956.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of Section 73 to 76 or any otherrelevant provisions of the Act and rules framed thereunder. No order has been passed bythe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anyCourt or any other Tribunal.

(vi) We have broadly reviewed the cost records maintained by the Company in accordancewith Section 148(1) of the Act and are of the opinion that prima facie the prescribed costrecords have been maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

(vii) a. During the year there have been significant delays in depositing undisputedstatutory dues such as Provident Fund Employees' State Insurance Income Tax Sales TaxService Tax Value Added Tax Cess and Excise Duty with the appropriate authorities. Incase of Wealth Tax Custom Duty and other material statutory dues applicable to it theCompany has been regular in depositing the dues with the appropriate authorities;

According to the information and explanations given to us and the records of theCompany examined by us no undisputed amounts payable in respect of Income Tax WealthTax Service Tax Customs Duty Excise Duty or Cess were in arrears as at 31st March 2016for a period of more than six months from the date they became payable. b. In respect ofSales Tax and Excise Duty dues not deposited on account of disputes the details ofamounts involved and the forum where the disputes are pending are as under:-

Rs. in Lacs

Forum where dispute is pending Amount
Sales Tax Appellate / Revisional Authority-up to Commissioner Level 53.62
Sales Tax Appellate Authority-Tribunal 25.53
Central Excise Appellate Tribunal 1.23

(viii) On the basis of verification of records and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to banks. TheCompany has not taken any loan from any financial institution or government or by way ofissue of debentures.

(ix) The Company has not raised any money from public and also has not taken any termloan during the year.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no fraud by the Company or onthe Company by its officers or employees having a material misstatement on the financialstatements has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based onverification of records the managerial remuneration has been paid in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013 except in case of the remuneration paid to the new Managing Directorwhich is in excess of the ceiling under Schedule V of the Companies Act 2013 (Refer Basisfor Qualified Opinion paragraph in the Auditor's Report). (xii) The Company is not a Nidhicompany and hence reporting under Clause (xii) of the order does not arise.

(xiii) According to the information and explanations given to us and based onverification of records and approvals of the Board of Directors all transactions with therelated parties are in compliance with Sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us the Company is not aNon Banking Finance Company and therefore is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934.

For V. SANKAR AIYAR & CO.
Chartered Accountants
Firm's Registration No.109208W
Place: Mumbai ARVIND MOHAN
Date: 6th May 2016 Partner
Membership No. 124082

ANNEXURE II TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF BATLIBOI LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BatliboiLimited ("the Company") as of 31st March 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the 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 the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 judgement 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V. SANKAR AIYAR & CO.
Chartered Accountants
Firm's Registration No.109208W
Place: Mumbai ARVIND MOHAN
Date: 6th May 2016 Partner
Membership No. 124082

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