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Bilpower Ltd.

BSE: 531590 Sector: Metals & Mining
NSE: BILPOWER ISIN Code: INE952D01018
BSE LIVE 14:15 | 01 Dec 1.28 0.06
(4.92%)
OPEN

1.28

HIGH

1.28

LOW

1.22

NSE LIVE 13:53 | 08 Apr Stock Is Not Traded.
OPEN 1.28
PREVIOUS CLOSE 1.22
VOLUME 1069
52-Week high 1.97
52-Week low 0.72
P/E
Mkt Cap.(Rs cr) 2.69
Buy Price 1.23
Buy Qty 1200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.28
CLOSE 1.22
VOLUME 1069
52-Week high 1.97
52-Week low 0.72
P/E
Mkt Cap.(Rs cr) 2.69
Buy Price 1.23
Buy Qty 1200.00
Sell Price 0.00
Sell Qty 0.00

Bilpower Ltd. (BILPOWER) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT

Auditor's Report to the Members of Bilpower Limited.

Report on the Financial Statements

We have audited the accompanying financial statements of Bilpower Limited ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Principles generally accepted in India includingAccounting Standards referred to in Section 133 of the Companies Act 2013 read with Rule7 of the Company (Accounts) Rules 2014. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating 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 qualified audit opinion.

Basis for Qualified Opinion

(a) With regard to preparation of financial statements ongoing concern.

The financial statements of the company have been prepared on a going concern basisnotwithstanding the fact that its net worth is fully eroded due to high losses for thefinancial years 2011-2012 2012-2013 2013-2014.and also for the year ended 31st March2015. The appropriateness of the said basis is interalia dependent on the company'sability to infuse requisite funds for meeting its obligations rescheduling of debt andresuming normal operations.

(b) With regard to pending confirmation of balances.

TThe company has sent letters to customers in respect of trade receivables forconfirming balances outstanding as at March 31 2015 but in most of the cases thecustomers have not sent written confirmation confirming the balance outstanding as atMarch 31 2015. In the absence of confirmation any provision to be made for adversevariation in the carrying amounts of trade receivables is not quantified.

(c) Regarding non provision of demand of Rs. 105 Crores received from State Bank ofIndia in respect of Corporate Guarantee given by the company in respect of Loan Facilitiesavailed by Bil Energy Systems Limited

The lender Bank of Bil Energy Systems Limited has pursuant to certain corporateguarantees given by the company demanded from the company their dues from Bil EnergySystems Limited amounting to Rs. 105 crores. No provision has been made in the accountsfor the probable loss that may arise on account of above demand of Rs 105 crores.

(d) Regarding non provision of Interest from financial year 2013-14 on various loansavailed from State Bank of India

The company has not provided for interest payable to State Bank of India amounting toRs. 2652.65 lacs (on various loans from State Bank of India) for the financial year2014-2015. The company has also not made any provision for penal interest claimed by thebank. As a result the loss for the year ended 31st March 2015 is understated by Rs.2652.65 Lacs. Also the company had not provided for interest amounting to Rs.2341.46 lacsfor the financial year 2013-14 as a result the accumulated losses as on 31st March 2015are understated by Rs. 4994.11 lacs and also current liabilities are understated by Rs.4994.11. The amount of penal interest cannot be quantified as the details have not beenreceived from the bank.

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 matters described in the Basis for QualifiedOpinion Paragraph the aforesaid financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;

b) in the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

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 ("the Order")issued by the Central Government of India in terms of Sub-Section (11) of Section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 matter decided in the Basis for Qualified OpinionParagraph In our opinion the Balance Sheet the Statement of Profit and Loss and theCash Flow Statement comply with the Accounting Standards referred to in Section 133 of theCompanies Act 2013 With Rule 7 of Companies (Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of clause of Section164(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 AUDITORS' REPORT

The annexure referred to in our report to the member of Bilpower Limited for the yearended 31st March 2015 we report that:

1. In respect of its Fixed Assets :

(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 informed to us that inventory has been physically verified during the year bythe management.

(b) In our opinion and according to the explanation 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 the nature of their business (c) In ouropinion and on the basis of our examination of the records proper records of inventorieshave been maintained and no material discrepancies were noticed on physical verification.

3. According to information and explanation given to us the company has not grantedsecured or unsecured loan to companies firms or other parties covered in the registermaintained under section 189 of the Companies Act 2013 for current financial year. Howeverthe company has given loan of Rs 10.73 lacs Rs 31.87 lacs and Rs 14.12 lacs to TarapurTransformer Limited Choudhary Stampings and TRC power during the Financial Year 2013-14.

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 beenobserved.

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 prescribedrecords have been maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

7. (a) Undisputed amounts payable in respect of Sales Tax of Rs. 4755155/- (relatingto Financial year 2011-12 - Rs. 2211434/- relating to financial year 2012-13 - Rs.1418379/- & Rs. 1090265/- relating to financial year 2013-14) Interest on SalesTax of Rs. 4205472/- (relating to Financial year 2010-11 - Rs. 1582310/- relating tofinancial year 2011-12 Rs. 2027381/- relating to finance year 2012-13 Rs. 514161/-& relating to financial year 2013-14 Rs. 81620/-) Professional Tax payable Rs.4000/-(relating to finance year 2012-13 Rs. 3000/- & relating to financial year2013-14 Rs. 1000/-) Tax on Proposed Dividend of Rs. 1703492/- (relating to dividendpaid in financial year 2011-12 for dividend declared pertaining to financial year 2010-11)and Labour Welfare Fund payable Rs. 24/- (relating to financial year 2012-13 Rs. 6/- &relating to financial year 2013-14 Rs. 18/-) were outstanding for a period of more thansix months from the date they became payable. The due dates for these amounts are as perthe respective statutes. (b) The disputed statutory dues aggregating to Rs. 13803.94 Lacsthat have not been deposited on account of matters pending before appropriate authoritiesare as under :-

Sr. No. Nature of Statute Natures of Dues Period for which the amount relates Forum where dispute is pending Amount (Rs. in Lacs)
1 Central Excise Act Excise Duty F.Y.2008-09 & F.Y.2009-10 The company's appeal has been dismissed by The Customs Excise & Service Tax appellate tribunal- Ahmedabad. The company has informed us that they have preferred an appeal with Bombay High Court. 4071.80
2 Central Excise Act Excise Duty F.Y.2008-09 & F.Y.2009-10 The Customs Excise & Service Tax appellate tribunal- Ahmedabad. 255.98
3 Sales Tax Maharashtra Value Added Tax and Central Sales Tax F.Y.2006-07 F.Y.2007-08 F.Y.2008-09 F.Y.2009-10 F.Y.2010-11 F.Y.2011-12 The Deputy Comm. of Sales Tax Appeal V Mumbai 9476.16
Total 13803.94

(c) As explain to us the company does not any dues on account of investor educationand protection fund

8. The Company's accumulated losses at the end of the financial year were more thanfifty percent of its net worth. The Company has incurred cash losses in the financial yearand 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 l to State Bank of India on itsvarious fund facilities availed outstanding at the year end amounting to Rs 178.79 CroresThe unpaid interest provided for in the books of accounts on the said loans amounts to Rs.33.38 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 and explanation given to us we are of the opinion thatthe terms & conditions thereof are not prima facie prejudicial to the interest of thecompany.

11. 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 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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