TO THE MEMBERS OF
BINDAL EXPORTS LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of BINDAL EXPORTSLIMITED. which comprise of the Balance Sheet as at 31 March 2017 the Statement ofProfit and Loss and the 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
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules. 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implemen-ation and maintenance of internal financial control thatwere operating 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 misstatement whether due to fraud orerror.
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 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'sjudgment 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 financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 March31 2017 and its profit and cash flows for the year ended as 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 term of sub-section (11) of section 143 of theCompanies Act 2013 we give in the 'Annexure-A' a statement on the matters specified inthe 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 purposes 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 and Cash Flow 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.
e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 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'; and
3. With respect to the other matters included in the Auditor's Report and to our bestof our information and according to the explanations given to us :
a) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 1 to the financial statements.
b) The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses and hence there was no requirement tocreate any provision for the same and
c) There was no amount which was required to be transferred to the Investor Educationand Protection Fund by the Company during the year.
d) The Company has provided requisite disclosures in the financial statements as to theholdings as well as dealings in the Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on the audit procedures and relyingon the management representation we report that the disclosures are in accordance with thebooks of account maintained by the Company and as produced to us by the management- ReferNote 17 to the financial statements.
For and on behalf of SNK & Co.
Samir B. Shah
Place : Surat
Date :May 19 2017
ANNEXURE "A" TO THE AUDITOR'S REPORT
(Referred to in cur Report of even date an annexure on the matters specified inparagraphs 3 and 4 of the CARO on the Statements of Accounts of BINDAL EXPORTS LIMITED asat and for the Year ended March 31 2017) we report that:
i. a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The company has a regular program of physical verification of fixed assets by themanagement during the year. The procedure and periodicity of verification in our opinionis reasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.
c) According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of company.
2. The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable.
The procedures 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.
On the basis of our examination of the records of inventory as maintained by thecompany we are of the opinion that the company is maintaining proper records of theinventory. The discrepancies noticed on verification between the physical stocks and thebook records were not material.
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. Accordingly paragraph 3(iii) of the order is not applicable to the company.
4. In Our opinion and according to the information and explanation given to us thecompany has compiled with the provision of section 185 and 186 of the companies act withrespect to the loans and investment made.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public and consequently the directivesissued by Reserve Bank of India provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under with regard to thedeposits accepted from the public are not applicable. Thus Paragraph 3(v) of the order isnot applicable to the company.
6. According to information and explanations given to us the Central Government has notprescribed for the maintenance of cost records under Section 148(1) of the Companies Act2013.
7. According to information and explanations given to us and on the basis of ourexamination of the books of accounts the company has been regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income tax vat excise duty and other statutory dues.
According to the information and explanation given to us no undisputed amount payablein respect of VAT Customs Duty and Excise Duty were outstanding as at March 31 2017 fora period of more than six months from the date they became payable.
According to the information and explanation given to us disputed amount payable inrespect of VAT Customs Duty and Excise Duty and Income Tax which were outstanding as atMarch 31 2017 for a period of more than six months from the date they became payable isas follows:-
|Name of Statue ||Nature of Dues ||Amount ||Period ||Forum where dispute is Pending |
|Service Tax ||Service Tax Interest and Penalty ||11553954/- ||April 19 2006 to July 192010 ||CESTAT Ahmedabad. |
|Service Tax ||Service Tax Interest and Penalty ||706766/- ||August 01 2010 to 31st March 2011 ||CESTAT Ahmedabad. |
|Service Tax ||Service Tax Interest and Penalty ||1022509/- ||April 01 2011 to September 302011 ||CESTAT Ahmedabad. |
|Service Tax ||Service Tax Interest and Penalty ||621764/- ||October 01 2011 to March 31 2012 ||CESTAT Ahmedabad. |
|Central Sales Tax Act1956 ||Sales Tax ||2826674/- ||April 01 2009 to March 31 2010 ||Joint Commissioner of VAT (Pre-Audit) Surat |
|Central Sales Tax Act1956 ||Sales tax ||14315/- ||April 01 2006 to March 31 2007 ||Joint Commissioner of VAT (Pre-Audit) Surat |
|Central Excise Act1944 ||Excise Duty Interest and Penalty ||1102499/- ||April 01 2006 to March 31 2007 ||CESTAT Ahmedabad. |
|Central Excise Act1944 ||Excise Duty Interest and Penalty ||12660585/- ||April 01 2009 to 31 March 2010 ||Commissioner of Central Excise and Customs Surat-I. |
|Central Excise Act 1944 ||Excise duty and penalty ||21316/- ||20.02.2006 ||Assistant Commissioner Central Excise Division-ll Surat-I |
|Central Excise Act1944 ||Excise Duty Interest and Penalty ||1858016/- ||April 2008 to November 2008 ||CESTAT Ahmedabad. |
|Custom Act1962 ||Custom Duty Interest and Penalty ||2180896/- ||April 01 2010 to March 31 2011 ||Additional Director Customs and Excise Mumbai. |
|Income tax Act1961 ||Penalty ||355090/- ||April 01 2005 to 31 March 2006 ||CIT Appeal Surat. |
|Income tax Act1961 ||Income tax Demand ||51 1750/- ||April 01 2005 to 31 March 2006 ||Assessing Officer Surat. |
The aforesaid legal disputes and resulting liability in some of the cases does notquantify the amount of interest or penalty vide respective show cause notice or order ofthe jurisdictional officer which may increase the liability eventually when therespective cases are finally adjudciated.
8. Bases on our audit procedures and according to the information and explanation givenby the management the company has not defaulted in repayment of loans or borrowing to afinancial institution bank and to the government.
9. Bases on our audit procedures and according to the information and explanation givenby the management the fund raised by way of public issue have been applied for thepurposes for which those were raised. However the Company has not raised any term loanduring the year.
10. According to the information and explanation given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe course of our audit.
11. Bases on our audit procedures and according to the information and explanationgiven by the management the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act.
12. In our opinion and according to the information and explanation given to us thecompany is not a nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
13. According to the information and explanation given to us and based on ourexamination of the records of the company transaction with the related parties are incompliance with sec 177 and 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statement as required by applicableaccounting standards.
14. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not entered into non cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.
16. The company is not required to be registered under sec 45-IA of the Reserve Bank ofIndia Act 1934.
For and on behalf of SNK & Co.
Samir B. Shah
Place : Surat
Date : May 19 2017
ANNEXURE - B TO THE AUDITORS' REPORT
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 BINDALEXPORTS PRIVATE LIMITED. ("The Company") as of 31 March 2017 in conjunctionwith our audit of 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 ('1C A I'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 ethicalrequi-ements 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 judgment 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 1hecompany'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.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For and on behalf of SNK & Co.
F.R.No.1 091 76W
Samir B. Shah
Place : Surat
Date : May 19 2017