INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BCC FUBA INDIA LIMITED Report on theStandalone Financial Statements
We have audited the accompanying standalone financial statements of BCC FUBA INDIALIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
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.
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 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.
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 31st March 2015 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) Note 2.26 to the financial statements which describes the uncertainty related tothe outcome of the appeal
filed by the company against the order passed by Civil judge Senior Division NalagarhDist. Solan in favour of M/s Thakur Associates..
b) Note 2.35 to the financial statements which describes the uncertainty related tothe outcome of the lawsuit filed by the company for recovery of dues from M/s VijayaLakshmi Electronics Delhi.
c) Note 2.36 to the financial statements which describes the uncertainty related tothe outcome of the lawsuit filed by the company for recovery of dues from M/s KortekElectronics India Ltd. Delhi.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
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.
(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.
(e) 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 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
(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 2.26 2.35& 2.36 to the financialstatements;
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
| ||For Jawahar Kalra & Co. |
| ||Chartered Accountants |
| ||FRN:004008N |
| ||Sd/- |
|Place: New Delhi ||Jawahar Kalra |
|Date: 30/5/2015 ||Proprietor |
| ||Membership No.083130 |
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Report of even date to the members of BCCFUBA INDIA LTD. on the Standalone Financial Statements of the company for the year ended31st March 2015.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. (a) The company has maintained proper records showing full particulars includingquantitative
details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
2. (a) As explained to us inventories have been physically verified during the year bythe
management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(c) In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013.
4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed.
5. The Company has not accepted any deposits from the public covered under theprovisions of the Companies Act 2013.
6 As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under clause (d) of sub-section (1)of section 148 of the Act. The company has not prepared and maintained proper cost recordsas required.
7 (a) According to the records of the company undisputed statutory dues includingProvident Fund
Employees' State Insurance Income-tax Sales-tax Wealth Tax Service Tax CustomDuty Excise Duty Value Added Tax and Cess to the extent applicable and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.According to the information and explanations given to us there were no outstandingstatutory dues as on 31st of March 2015 for a period of more than six monthsfrom the date they became payable. except the following:
Nature of Liability: Sales Tax on on sale of DEPB Rs.101758/-
(b According to the information and explanations given to us there are no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
(c) No amount is required to be transferred to Investor education and protection fundin accordance with the relevant provisions of the Companies Act 1956(1 of 1956) and rulesmade thereunder.
8 The accumulated losses of the company exceeded fifty percent of its net worth and ithas incurred cash loss during the financial year covered by our audit and in theimmediately preceding financial year.
9 Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.
10 According to the information and explanations given to us the Company has not givenany guarantees for loan taken by others from a bank or financial institution.
11 Based on our audit procedures and on the information given by the management wereport that the company has not raised any term loans during the year.
12 Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year.
Place : New Delhi
Date : 30/05/2015
For Jawahar Kalra & Co.