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Bil Energy System Ltd.

BSE: 533321 Sector: Metals & Mining
NSE: BILENERGY ISIN Code: INE607L01029
BSE LIVE 15:15 | 02 Dec 0.80 -0.05
(-5.88%)
OPEN

0.80

HIGH

0.80

LOW

0.75

NSE LIVE 14:43 | 07 Oct Stock Is Not Traded.
OPEN 0.80
PREVIOUS CLOSE 0.85
VOLUME 8000
52-Week high 1.48
52-Week low 0.58
P/E 8.89
Mkt Cap.(Rs cr) 8.46
Buy Price 0.80
Buy Qty 30.00
Sell Price 0.84
Sell Qty 1500.00
OPEN 0.80
CLOSE 0.85
VOLUME 8000
52-Week high 1.48
52-Week low 0.58
P/E 8.89
Mkt Cap.(Rs cr) 8.46
Buy Price 0.80
Buy Qty 30.00
Sell Price 0.84
Sell Qty 1500.00

Bil Energy System Ltd. (BILENERGY) - Auditors Report

Company auditors report

To the Members of BIL ENERGY SYSTEMS LIMITED.

Report on the Financial Statements : We have audited the accompanying financialstatements of Bil Energy Systems Limited (“the Company”) which comprise theBalance Sheet as at March 31 2015 the Statement of Profit and Loss and Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Financial Statements : Management is responsiblefor the preparation 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 Accounting Standardsreferred to in Section 133 of the Companies Act 2013 read with Rule 7 of the Company(Accounts) Rules 2014. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial 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 thesefinancial statements based on our audit. We conducted our audit in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company’spreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

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

Basis for Qualified opinion :

a) With regard to pending conformation of balances

The company has sent letters to customers in respect of trade receivables forconfirming balances outstanding as at March 312015 but in most of thecases the customershave not sent written confirmation confirming the balance outstanding as at March 312015.In the absence of confirmation any provision to be made for adverse variation in thecarrying amounts of trade receivable is not quantified

b) Regarding non provision of demand of Rs. 215.80 Crores received from State Bank ofIndia in respect of Corporate Guarantee given by the company in respect of Loan Facilitiesavailed by Bil Power Limited

The lender Bank of Bilpower Limited has pursuant to certain corporate guarantees givenby the company demanded from the company their dues from Bilpower Limited amounting to Rs.215.80 crores. No provision has been made in the accounts for the probable loss that mayarise on account of above demand of Rs. 215.80 crores.

c) Regarding non provision of Interest on various loans availed from State Bank ofIndia for the financial year 2014-15

The Company has not provided for interest payable to State Bank of India amounting toRs. 1045.12 Lacs for the year ended 31st March 2015. The Company has not made anyprovision for penal interest claimed by the bank. As a result the loss for the year ended31st March 2015 is understated by Rs. 1045.12 Lacs & current liabilities as at 31stMarch 2015 are also understated by Rs. 1045.12 Lacs and also reserves are overstated byRs. 1045.12 Lacs . The amount of penal interest cannot be quantified as the details havenot been received from the bank.

Qualified Opinion : In our opinion and to the best of our information and according tothe explanations given to us except for the effects of the matters described in the basisfor qualified opinion paragraph the said financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312015; and

b) in the case of the Profit and Loss Account of the Profit for the year ended on thatdate.

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 (“theOrder”) issued by the Central Government of India in terms of Sub-Section (11) ofSection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act we report that:

a) We have obtained all the information and explanations which to the best of ourknowledge 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 the Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;

d) Except for the effects of the matters described in the basis for qualified opinionparagraph in our opinion the Balance Sheet the Statement of Profit and Loss comply withthe Accounting Standards Section 133 of the Companies Act 2013 With Rule 7 of Companies(Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March312015 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312015 from being appointed as a director in terms of clause ofSection 164(2) of the Companies Act 2013;

For Bansal Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
ANAND DROLIA
Partner
Mumbai 30th May 2015 Membership No. 036718

Annexure to Independent Auditor's Report

The annexure referred to in our report to the member of Bil Energy System Limited forthe year ended 31st March 2015 we report that :

1. In respect ofits FixedAssets :

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.

c. In our opinion and according to the information and explanations given to us nofixed asset has been disposed during the year and therefore does not affect the goingconcern assumption.

2. In respect of its inventories:

a. As explained to us that inventory has been physically verified during the year bythe management.

b. In our opinion and according to the information given to us the procedures ofphysical verification of inventories followed by the management were reasonable andadequate in relation to the size of the entity and nature of their business.

c. In our opinion and according to the information given to us proper record ofinventories has been maintained and no material discrepancies were noticed on physicalverification.

3. According to information and explanation given to us the company has grantedunsecured loan to companies firms or other parties covered in the register maintainedunder section 189 of the Companies Act amounting to Rs. 0.75 Lacs Rs. 195.70 Lacs Rs.6 Lacs to Bilpower Limited Tarapur Transformers Limited and K2K Consultancy Services PvtLtd. respectively. Also the company has given loan to Tarapur Transformers Limited of Rs.88.79 Lacs in the FY 13-14.

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 assets andwith regard to the sale of goods and services. 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.

6. As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under sub-section (1) of section 148of the Companies Act 2013 and we 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.

7. a) Undisputed amounts payable in respect of Sales Tax of Rs. 16672253/- (relatingto Financial year 2011-12- Rs. 2901565/- relating to financial year 2012-13 Rs.9378242/- related to financial year 2013-14 Rs. 4392446/- & related to financialyear 2014-15 Rs.. 3546051/- ) Interest on Sales Tax of Rs. 2867080/-(relating toFinancial year 2010-11- Rs. 387364/- relating to financial year 2011-12- Rs.1029906/- relating to financial year 2012-13 Rs. 1261276/- & relating tofinancial year 2013-14 Rs. 188534/-) Profession Tax Rs. 57225/- (relating to financialyear 2013-14) were outstanding for a period of more than six months from the date theybecame payable. The due dates for these amounts are as per the respective statutes.

b) The disputed statutory dues aggregating to Rs. 1545.11 Lacs that have not beendeposited on account of matters pending before appropriate authorities are as under :-

Sr. No. Name of Statute Natures of Dues Period for which the amount relates Forum where dispute is pending Amount in Lacs
1 Central Excise Act Excise Duty F.Y.2010-11 2011-12 2012- 13 & 2013- 14 Office of Commissioner of Central Excise Thane-I 1545.11

c) As Explain to us the company does not have any dues on account of investoreducation and protection fund .

8. The Company have accumulated losses at the end of the financial year. The Companyhas not incurred cash losses in the financial year. However the company incurred cashlosses in the immediately preceding financial year.

9. Based on our audit procedures and according to the information and explanation givento us by the management the company has defaulted in repayment of loans and interest tobank.

The company has defaulted in repayment of dues to State Bank of India on its variousfund facilities availed outstanding at the year end amounting to Rs. 79.69 Crores. Theestimated unpaid interest on the above loans amounts to Rs. 15.77 Crores.

10. According to the information and explanations given to us the Company has givenguarantee for loans taken by one Associate company from Bank. According to the information& explanation given to us we are of the opinion that the terms & conditionsthereof are not prima facie prejudicial to the interest of the company.

11. The company has not raised any term loans.

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 nor have we been informed of such case by the management.

For Bansal Bansal & Co.
Chartered Accountants
Firm Regn. No. 100986W
ANAND DROLIA
Partner
Mumbai 30th May 2015 Membership No. 036718

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