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Binny Ltd.

BSE: 514215 Sector: Industrials
NSE: N.A. ISIN Code: INE118K01011
BSE LIVE 15:40 | 23 May 220.90 -8.60
(-3.75%)
OPEN

230.00

HIGH

231.00

LOW

218.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 230.00
PREVIOUS CLOSE 229.50
VOLUME 11888
52-Week high 247.00
52-Week low 72.00
P/E 1.61
Mkt Cap.(Rs cr) 493
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 230.00
CLOSE 229.50
VOLUME 11888
52-Week high 247.00
52-Week low 72.00
P/E 1.61
Mkt Cap.(Rs cr) 493
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Binny Ltd. (BINNY) - Auditors Report

Company auditors report

To

The Shareholders of Binny Limited Chennai

Report on the Financial Statements

We have audited the accompanying financial statements of Binny Limited (herein afterreferred to "the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Financial Statements).

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 asamended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of internalfinancial controls 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.

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 the 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 andthe disclosure in the financial statements. These procedures selected depend on theauditor's judgment including the assessment of the risk of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the 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 their Loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw the attention to (a) the Note No.24.5 with regard to the Income Tax Wealth Taxand Service Tax demands disputed before respective authorities which describes theuncertainty related to the outcome of the Appeals filed against the Orders of theAuthorities; and (b) the Note No.24.14 with regard to the advances to related party forpurchase of land for which the members of the company have not approved the resolution.The company has called back the advances and these advances for purchases land are pendingfor recovery. Our opinion is not modified in respect of these matters.

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 sub-section (11) of Section 143 of the Actwe give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent 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 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 and the Cash Flow Statementdealt with by this Report are in agreement with the relevant 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 as amended.

e. on the basis of written representation received from the Directors as on 31st March2016 taken on record by the Board of Directors none of the directors of the Company isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsection 164(2) of the Act;

f. with respect to the adequacy of the internal financial controls over the financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure-B; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialstatements - Refer Note: 24.5 to the financial statements

ii) The Company did not have long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S / S200036
Place: Chennai
Date : 17th May 2016 R.THIRUMALMARUGAN
Partner
Membership No: 200102

ANNEXURE- A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements in ourIndependent Auditors' Report of even date)

1. In terms of the information and explanations sought by us and given by the Companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that:

a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The company has physically verified the fixed assets at reasonable intervals andthere are no discrepancies noticed on such verification.

c. The title deeds of immovable properties are held in the name of the company.

2. The company holds inventory of Land. The physical verification of the lands wasconducted at reasonable intervals by the management and there is no material discrepanciesnoticed on such verification.

3. During the year the company has not granted secured or unsecured loans to theparties covered in the register maintained under section 189 of the Act. The outstandingloans Rs.31.84 lakhs is due from one party. It is represented that these loans arerepayable on demand. The other clauses regarding repayment of principal interest andoverdue are not applicable.

4. The company has complied with the provisions of section 185 and 186 of the CompaniesAct in respect of securities and guarantees given.

5. The Company has not accepted deposits from public during this year. Therefore theprovision of clause 3 (v) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company for the year under audit.

6. The maintenance of cost records has not been prescribed by the Central Governmentunder sub-section (1) of Section 148 of the Act and hence provision of clause 3 (vi) ofthe Companies (Auditor's Report) Order 2016 are not applicable to the Company for theyear under audit..

7. a. The Company is depositing with delays undisputed statutory dues withappropriate authorities like Provident Fund Employee's State insurance Income-taxSales-tax Wealth- tax Service tax Customs Duty Excise Duty Value Added Tax Cesswherever applicable. The following are the details of arrears of outstanding dues as at31st March 2016 for a period of more than six months from the date they become payable.

Nature of dues Amount (Rs.in lakhs) Period to which the amount relates
Property Tax 0.92 Till September 2015
Water Tax 2.72 Till September 2015
Income Tax TDS 12.69 April 15 to Sep 15
TNVAT 5.35 July 2015

b. The details of disputed Income Tax Wealth Tax Service Tax which have not beendeposited on account of dispute are as under:

Nature of Statue Nature of dues Amount (Rs. In lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act Income Tax 19.21 AY 2008-09 AO and High Court Chennai
Income Tax Act Income Tax 11464.23 AY 2010-11 AO - for giving effect order of CIT-A Chennai
Wealth Tax Act Wealth Tax 574.73 AY 2011-12 to 2014-15 CWT-A Chennai
Service Tax Act Penalty 34.34 FY 2009-10 CCE-A Chennai

8. The company has not defaulted in repayment of loans or borrowings from financialinstitutions bank or government or debenture holders and hence the provision of clause 3(viii) of the Companies (Auditor's Report) Order 2016 are not applicable to the Companyfor the year under audit.

9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). The term loans obtained were applied for the purposefor which those were raised.

10. There are no fraud by the company or any fraud on the company by its officers oremployees and hence the provision of clause 3 (x) of the Companies (Auditor's Report)Order 2016 are not applicable to the Company for the year under audit.

11. The company has provided managerial remuneration in accordance with the provisionsof section 197 read with Schedule V to the Companies Act.

12. The company is not a Nidhi company and hence the provision of clause 3 (xii) of theCompanies (Auditor's Report) Order 2016 are not applicable to the Company for the yearunder audit.

13. The transactions with the related parties are in compliance with section 177 and188 of the

Act wherever applicable and the details have been disclosed in the financial statementsas required by the applicable accounting standards.

14. The company has not made any preferential allotment of shares or private placementof shares or convertible debentures during the year and hence the provision of clause 3(xiv) of the Companies (Auditor's Report) Order 2016 are not applicable to the Companyfor the year under audit.

15. The company is not entered into any non-cash transactions with directors or personsconnected with them and hence the provision of clause 3 (xv) of the Companies (Auditor'sReport) Order 2016 are not applicable to the Company for the year under audit.

16. The company is not required to be registered under section 45-IA of Reserve Bank ofIndia Act 1934 and hence the provision of clause 3 (xvi) of the Companies (Auditor'sReport) Order 2016 are not applicable to the Company for the year under audit.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S / S200036
R.THIRUMALMARUGAN
Place: Chennai Partner
Date : 17th May 2016 Membership No: 200102

ANNEXURE - B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") (Referred to in paragraph 2(f) ofReport on Other Legal and Regulatory Requirements in our Independent Auditors' Report ofeven date)

We have audited the internal financial controls over financial reporting of BinnyLimited ("the Company") as on 31 March 2016 in conjunction with our audit of thefinancial 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 ('ICAI'). 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.

Auditors' 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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Interna! 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.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing weakness has been identified as at 31st March 2016. "The Companiesinternal control system for advance given for purchase of land which could potentiallyresult in existence of uncertainty that may cast significant doubt about therecoverability of these advances"

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual financial statements will not beprevented or detected on a timely basis.

In our opinion except for the possible effects of the material weaknesses describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2016 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 312016financial statements of the Company and the material weaknesses does not affect ouropinion on the financial statements of the Company.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Firm Registration No: 004915S / S200036
R.THIRUMALMARUGAN
Place: Chennai Partner
Date : 17th May 2016 Membership No: 200102