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Bharat Seats Ltd.

BSE: 523229 Sector: Auto
NSE: N.A. ISIN Code: INE415D01024
BSE LIVE 15:44 | 09 Dec 55.00 2.55
(4.86%)
OPEN

52.95

HIGH

57.65

LOW

52.30

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 52.95
PREVIOUS CLOSE 52.45
VOLUME 67300
52-Week high 71.50
52-Week low 31.55
P/E 18.90
Mkt Cap.(Rs cr) 172.70
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 52.95
CLOSE 52.45
VOLUME 67300
52-Week high 71.50
52-Week low 31.55
P/E 18.90
Mkt Cap.(Rs cr) 172.70
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bharat Seats Ltd. (BHARATSEATS) - Auditors Report

Company auditors report

To The Members of Bharat Seats Limited

Report On the Financial Statements

We have audited the accompanying Financial Statements of Bharat Seats Limited(“the Company”) which comprises the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss and 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 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatements whether due to fraudor error.

Auditor's Responsibility

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 the auditor'sjudgment including the assessment of the risks of the material misstatement of thefinancial statements whether due to error or fraud. In making those risk assessments theauditor considers internal control relevant to the Company's preparation of the financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on financial statements.

Opinion

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 2016 and 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 (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of section 143 of the Act we give in theAnnexure - A statement on the matters specified in paragraphs 3 and 4 of the 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 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 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.

e. On the basis of written representations received from the directors as on 31 March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 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 - B “.

g. 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 litigation on its financial positionin its financial statements- Refer Note 20 to the financial statements;

ii) As there is not any material foreseeable losses on long term contracts thereforethe Company has not made any provision required under the applicable law or accountingstandards;

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

For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
(Firm Registration No. 000756 N)
(Neeraj Bansal)
Partner
Membership No. 95960
Place : New Delhi
Date :15th April 2016

ANNEXURE-A

TO THE INDEPENDENT AUDITOR'S REPORT TO THE BHARAT SEATS LIMITED

Referred to in paragraph 1 of report on other legal and regulatory requirement'sparagraph of our report on the financial statement of even date

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

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme the fixed assets has been physically verified by themanagement during the year and no material discrepancies were noticed on suchverification.

(c) The title deed of immovable property is held in the name of the company.

(ii) (a) The inventories of the Company have been physically verified by the managementduring the year.

(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 according to the information and explanations given to us theCompany is maintaining proper records of inventories. As explained to us thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of account.

(iii) As per the information and explanation given to us and on the basis of ourexamination of the records the Company had given interest free unsecured mobilizationadvance against procurement of materials/ tooling over a period of time to a companycovered in the register maintained under section 189 of the Companies Act 2013 whichhave been fully recovered during the year.

(iv) As per the information and explanation given to us and on the basis of ourexamination of the records the company does not have any loans investments guaranteesand security under Section 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed thereunder.

(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company as specified by the Central Government ofIndia under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of provident fund investor education and protectionfund employees' state insurance income tax sales tax wealth tax service tax customsduty excise duty value added tax cess and other material statutory dues as applicablewith the appropriate authorities. Further there were no undisputed amounts outstanding atthe year-end for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax custom dutywealth tax excise duty value added tax service tax and cess which have not beendeposited on account of any dispute are as follows: -

S. No. Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where the dispute is pending
1 Central Excise Act 1944 Demand of Excise Duty on account of difference in reconciliation (Including Penalty) 228.20 1997-99 Hon'ble CESTAT New Delhi
2 Central Excise Act 1944 SCN for excise duty u/s 11A 27.69 2004-06 First Appellate Authority(With Adjudicating authority)

The Central excise liability for Rs. 3195 lacs has not been considered by virtue ofnote no. 20 of financial statements.

(viii) According to the records of the Company examined by us and the information andexplanations given to us in our opinion the Company has not defaulted in repayment ofits dues to banks. The Company has not taken any loans from financial institutions ordebenture holders.

(ix) As per the information and explanation given to us and on the basis of ourexamination of the records the company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) and term loans have beenapplied for the purpose for which they were obtained.

(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 we haveneither come across any instance of fraud by the company or on the Company by its officersor employees noticed or reported during the year nor have we been informed of such caseby the management.

(xi) As per the information and explanation given to us and on the basis of ourexamination of the records the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

(xii) The company is not Nidhi Company therefore this clause is not applicable to thecompany.

(xiii) As per the information and explanation given to us and on the basis of ourexamination of the records the company has transacted with the related parties which arein compliance with sections 177 and 188 of Companies Act 2013 and the details have beendisclosed in the financial statements - Refer Note 43(b) to the financial statements.

(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) As per the information and explanations given to us and on the basis of ourexamination of the records the company has not entered into any non-cash transactionswith directors or persons connected with him.

The company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

Therefore this clause is not applicable to the company.

For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
(Firm Registration No. 000756 N)
(Neeraj Bansal)
Partner
Membership No. 95960
Place : New Delhi
Date :15th April 2016

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF BHARAT SEATS 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 BharatSeats Limited (“the Company”) as at March 31 2016 in conjunction with our auditof the 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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.

Auditor's 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 based on summarised of observations on Internal Financial ControlReport along with annexures the Company has in majority of material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were generally operating effectively as atMarch 31 2016 based on “the internal control over financial reporting system andprocedures established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India”.

For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No. 000756N
Neeraj Bansal
Place : New Delhi Partner
Date : 15th April 2016 Membership No. 95960

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