The Members of Binny Limited Chennai.
Report on the Financial Statements
We have audited the accompanying financial statements of Binny Limited("the Company") which comprise the Balance Sheet as at 31st March2015 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("the Financial Statements").
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe 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 the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for 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.
Our responsibility is to express an opinion on these financialstatements based on our audit.
We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditingspecified under Section 143(10) of the Act. Those Standards require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosure in the financial statements. These procedures selecteddepend on the auditors judgment including the assessment of the risk of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Companys Board of Directorsas well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2015 its Profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw the attentions to Note No:25.5 with regard to the Income Taxdemands and Service Tax Demands disputed before the authorities which describes theuncertainty related to the outcome of the Appeals filed against the Orders of theAuthorities. Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 (the Order) 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 to the extent applicable. 2. As required by section143(3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as appears from our examination of those books.
c. the Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the relevant books ofaccount.
d. in our opinion the aforesaid financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014
e. on the basis of written representation received from the Directorsas on 31st March 2015 taken on record by the Board of Directors none of thedirectors of the Company is disqualified as on 31st March 2015 from beingappointed as a director in terms of section 164(2) of the Act;
f. With respect to the other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:
i) The Company has disclosed the impact of pending litigations onits financial statements Refer Note.25.5 to the financial statements.
ii) The Company did not have any long term contracts includingderivative contracts for which there were any material forseeable losses.
iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
For M/s CNGSN & ASSOCIATES LLP
Firm Registration No: 004915S
Partner Membership No: 200102
Date : 27th May 2015
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 of Report on Other Legal and RegulatoryRequirements in our Independent Auditors Report of even date)
1. a. In our opinion and according to the information and explanationsgiven to us the Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b. As per the information and explanations provided to us the Companyhas physically verified the fixed assets during this year and there is no materialdiscrepancies noticed on such verification.
2. a. According to the information and explanations given to us themanagement has conducted physical verification of inventory (Land) at reasonableintervals.
b. According to the information and explanations given to us theprocedures of physical verification of inventory (Land) followed by the management isreasonable and adequate in relation to the size of the Company and nature of its business.
c. According to the information and explanation given to us the Companyis maintaining proper records of inventory (Land) and there are no material discrepanciesnoticed on physical verification.
3. According to the information and explanations given to us theCompany has granted unsecured interest free loans repayable on demand to two companiesthe parties covered in the register maintained under section 189 of the Act. The totaloutstanding at the year-end was Rs.93.04 lakhs. The overdue amount receipt of principalamount and the interest are not applicable.
4. In our opinion and according to the information and explanationsgiven to us there are adequate internal control systems commensurate with the size of theCompany and the nature of its business for purchases of inventory and fixed assets andfor sale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls systems.
5. In our opinion and according to the information and explanationgiven to us the Company has not accepted deposits from public during this year. Thereforethe provisions of section 73 to 76 and relevant rules framed thereunder and anycontravention of these provisions for the year under audit are not applicable.
6. As per the information and explanations given to us and representedby the Company the maintenance of cost records pursuant to the Rules made by the CentralGovernment under sub-section (1) of Section 148 of the Act are not applicable for the yearunder audit.
7. a. According to the information and explanation given to us theCompany is depositing undisputed statutory dues with appropriate authorities likeProvident Fund Employees State insurance Income-tax Sales-tax Wealth-taxService tax Customs Duty Excise Duty Value Added Tax Cess wherever applicable exceptfew delays in depositing Income Tax TDS. There are no undisputed Statutory outstandingdues as at 31st March 2015 for a period of more than six months from the datethey become payable except TDS on Interest amounting to Rs.203.71 lakhs pending forpayment for 15 months.
b. According to the information and explanation given to us there areno dues of Income Tax Sales Tax Wealth Tax Service Tax Customs Duty Excise DutyValue Added Tax Cess which have not been deposited on account of any dispute except ITdemand for AY 2008- 09 Rs.19.21 lakhs for AY 2010-11 Rs.11464.23 lakhs pending beforeCIT(A) Chennai and Service Tax penalty Rs.34.34 lakhs for the period Oct 2009 to Oct 2010pending before CCE(A) Chennai.
c. According to the information and explanation given to us there areno amount required to be transferred to investor education and protection fund inaccordance with the provisions of the Act.
8. In our opinion and according to the information and explanationgiven to us the accumulated losses as at the end of the financial is more than 50% ofnetworth. The Company has not incurred cash losses during the financial year covered byour audit and incurred cash losses during the immediately preceding financial year.
9. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to the financialinstitutions or banks or debenture holders. 10. In our opinion and according to theinformation and explanation given to us the Company has given security of land for loanstaken by others from financial institutions and the terms and condition whereof are notprejudicial to the interest of the company. 11. In our opinion and according to theinformation and explanation given to us the term loans borrowed by the Company wereapplied for the purpose for which the loans were obtained. 12. According to theinformation and explanation given to us no fraud on or by the Company has been noticed orreported during the course of our audit.
For M/s CNGSN & ASSOCIATES LLP
Firm Registration No: 004915S
Partner Membership No: 200102
Date : 27th May 2015