TO THE MEMBERS OF
BHARAT IMMUNOLOGICALS & BIOLOGICALS CORPORATION LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of BHARAT IMMUNOLOGICALS &BIOLOGICALS CORP. LIMITED (the company)which comprise the Balance Sheet as at31 March 2015 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (the Act) with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control 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 financial statements based on ouraudit.
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 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 anddisclosures 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 auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and operating effectiveness of such controls . Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Companys Directors as well asevaluating the overall presentation of 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 financial statements.
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 the state of affairs of the Company as at 31stMarch 2015 its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015(theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 (the Act) and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the information and explanations given to us during the course of audit we give in theAnnexure-1 a statement on the matters Specified in paragraphs 3 and 4 of the Order tothe extent to which they are applicable.
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) 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.
c) The Balance Sheet the Statement of Profit and Loss and the Cash How Statement dealtwith by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
g) On the basis of written representations received from the directors as on 31 March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.
h) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note - 27(b) to the financial statements;
ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund.
3. As required by direction under section 143(5) of the Act we report that:
|S.No. ||Directions ||Observations |
|1. ||If the Company has been selected for disinvestment a complete status report in terms of valuation of Assets (including intangible assets and land) and Liabilities (including Committed & General Reserves) may be examined including the mode and present stage of disinvestment process. ||According to the information and explanation given to us the company has not been selected for disinvestment. |
|2. ||Please report whether there are any cases of waiver/write off of debts/ loans/interest etc if yes the reasons there for and the amount involved. ||According to the information and explanation given to us The Ministry of Health & Family Welfare imposed the LD Charges for Rs.311.09 Lacs during the year (L.Y. Rs. 182.62 Lacs) |
|3. ||Whether proper records are maintained for inventories lying with third parties and assets received as gift from Government or other authorities. ||According to the information and explanation given to us there has been no such case during the period of our audit.. |
|4. ||A report on age-wise analysis of pending legal / arbitration cases including the reasons of pendency and existence/effectiveness of monitoring mechanism for expenditure on all legal cases (foreign and local) may be given ||According to the information and explanation given to us please find annexed the Annxure- 2 to this report. |
Annexure-1 to the Auditors Report
[Referred to in paragraph 1 under Report on Other Legal and RegulatoryRequirements of our Report of even date to the members of BHARAT IMMUNOLOGICALS& BIOLOGICALS CORPORATION LIMITED on the accounts of the company for the year ended 31stMarch 2015]
(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) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.
(ii) In respect of its inventory:
a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at regular intervals/ (at the endof the year) by the Management. According to the information and explanation given to usno stock of inventories lying with third parties.
b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification of stocks as compared to book records.
(iii) In respect of loans secured or unsecured granted to the parties covered inregister maintained under section 189 of the Companies Act 2013:
According to the information and explanations given to us the Company has not grantedany loans to companies firms or other parties covered in the Register maintained underSection 189 of the Companies Act 2013. Accordingly paragraph 3 (iii) of the Order is notapplicable to the Company.
(iv) In our opinion and according to the information and explanations given to usinternal control procedures and system are weak commensurate with the size of the companyand the nature of its business with regard to the identification of slow/non movinginventory timely recording of financial transactions and its reconciliation with otherdepartments timely compliance with respect to various statutes and timely execution ofsales contracts which resulted in huge loss to the company in the form of LD charges.
(v) In our opinion and according to the information and explanation given to us thecompany has not received any public deposits during the year. Accordingly paragraph 3(v)of the Order is not applicable to the Company.
(vi) In our opinion and as per the information and explanation given to us maintenanceof cost records has been prescribed in pursuant to the Rules made by the CentralGovernment under Section 148(1) of the Companies Act 2013 but neither the cost recordssince the financial year 2008-09 were maintained nor any cost audit was conducted for thesame period till the date of our audit.
(vii) In respect of statutory dues:
(a) According to information and explanations given to us and on the basis of ourexamination of the records of the company amounts deducted / accrued in the books ofaccount has generally been deposited regularly in respect of undisputed statutory duesincluding Provident Fund employees state insurance (ESI) Income-tax Tax deducted atsources Tax collected at source Professional Tax Sales Tax value added tax (VAT)Wealth Tax Service Tax Custom Duty Excise Duty Cess and other material statutory duesapplicable to it with the appropriate authorities. As explained to us the Company didnot have any dues on account of Investor Education and Protection Fund. According to theinformation and explanations given to us no undisputed amounts payable in respect ofstatutory dues were in arrears as at 31 March 2015 for a period of more than six monthsfrom the date they became payable
(b) . According to the information and explanations given to us there are dues ofincome tax and custom duty at the end of the year under audit which have not beendeposited on account of any dispute. The details are as under:
|Year ||Nature of Statutory Dues ||Amount ||Remark |
|2013-14 ||Custom Duty ||192.81 lacs ||Appeal is pending before appropriate authority |
|2007-08 ||Income Tax ||34.61 Lacs ||Appeal is pending before appropriate authority |
(c) According to the information and explanations given to us there has not been anoccasion in case of the Company during the year under report to transfer any sums to theInvestor Education and Protection Fund. The question of reporting delay in transferringsuch sums does not arise as at 31st March 2015 Order is not applicable to it.
(viii) The accumulated losses of the company are not more than 50% of its Net Worth.The company has not incurred any cash loss during the current financial covered by ourAudit and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to financial institutions banks anddebenture holders.
(x) In our opinion and according to the information and the explanation given to usthe company has not given any guarantee for loans taken by others from banks or financialinstitutions during the year.
(xi) The company has not obtained any term loan during the year. Accordingly paragraph3(xi) of order is not applicable.
(xii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
| ||For Hari & Associates ||CA. Sachin Kumar Jain |
|Place: New Delhi ||Chartered Accountants ||Partner |
|Date: 20/08/2015 ||(Firm Registration No.: 001852C) ||(Membership No.:094187) |
Annexure - 2 to Auditors Report for FY2014-15
Bharat Immunologicals & Biologicals Corporation Limited (BIBCOL)
Status report on court cases pending in the Honeble High Court Allahabad-U.PDelhi and Honble Distt. Court Bulandshshr -U.P. during the period from 2009-102010-11 2012- 13 & 2013-14 up to 31.03.15. Details are as under:
|Description ||Court ||Ad vocates ||Status ||Amount incurred |
|1st Appeal No.20/95(Ref. LAR No.64/94) Land: 6-6-0 ||Honble High Court Allahabad ||Sh. Arun Kumar Pundir ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. ||Total Expenditure on land cases Rs.110000/- (Rs. |
|1st Appeal No.l20/95(Ref. LAR No.153/89) Land: 11 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. Copy enclosed. ||One lacs ten thousand only) |
|1st Appeal No.l21/95(Ref. LAR No.155/89) Land: 5-5 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Appeal No.l27/95(Ref. LAR No.162/92) Land: 0-18 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Appeal No.214/95(Ref. LAR No.156/89) Land: 3-6 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Appeal No.216/95(Ref. LAR No.157/89) Land: 6-2 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Appeal No.207/95(Ref. LAR No.158/89) Land: 0-9-9 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Appeal No.215/95(Ref. LAR No.159/89) Land :5-11 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|1st Acquisition (Ref. case No.154/89 Land: 5-0-0 ||do ||do ||1st Appeal were heard by court on 21st may-15 & Judgment was reserved. Delivery of judgment is awaited. || |
|2 Sh. Bhaskar Gupta Vs Union of India 338125 of 2007 ||Honble High Court .Allahabad ||Sh. Ajay Bhanot ||Last hearing was 10.08.2007 ||Rs.12000/- |
|3 Col. V.K.Sethi Vs. union of India 2628/2008 ||Honble High CourtAllahabad ||Sh Ajay Bhanot ||Last hearing was 27.05.2008 ||Rs.12413/- |
|4 Sh.Ishaq V/s Union of India LAR No.01/2013 ||Honble Court Bulandshahr ||Sh.Ajay Bhanot ||Last hearing was 12.08.2015 ||Rs. 18000/- |
|5 M/s Uppal Engg. Co.Delhi has filed appeal/writ petion against Gangerwa Housing Complex land ||Honble High Court .Delhi ||Sh.RB Singhal ||Argument has been completed & order has been reserved by the court ||Rs.950000/- |