Birla Shloka Edutech Ltd.
|BSE: 511607||Sector: Services|
|NSE: N.A.||ISIN Code: INE814E01018|
|BSE 15:15 | 06 Nov||Birla Shloka Edutech Ltd|
|NSE 05:30 | 01 Jan||Birla Shloka Edutech Ltd|
|BSE: 511607||Sector: Services|
|NSE: N.A.||ISIN Code: INE814E01018|
|BSE 15:15 | 06 Nov||Birla Shloka Edutech Ltd|
|NSE 05:30 | 01 Jan||Birla Shloka Edutech Ltd|
TO THE MEMBERS OF BIRLA SHLOKA EDUTECH LIMITED
Report on the Standalone Financial Statements
We have audited accompanying financial statements of BIRLA SHLOKA EDUTECH LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summaryof the significant accounting policies and other explanatory information.
Management' Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate 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 standalone financial statementsbased on our audit.
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 there under.
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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks 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 Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 31 March 2016 and its loss and its cash flows for the year ended on that date.
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" a statement on the matters specified inparagraphs 3 and 4 of the said 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 purpose of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it 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 Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 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".
g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
(i) The Company does not have any pending litigation which would impact financialposition.
(ii) The Company did not have any long-term contracts including derivative contractsfor which 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.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF BIRLA SHLOKA EDUTECH LIMITED
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of our report of even date on the accounts of BIRLA SHLOKA EDUTECH LIMITED for theyear ended March 31 2016)
(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) As informed and explained to us all Fixed Assets have been physically verified bythe management during the year and no material discrepancies were noticed on suchverification.
(ii) (a) As explained to us inventories were physically verified during the year bythe management at reasonable intervals;
(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management weregenerally reasonable and adequate in relation to the size of the company and the nature ofits business;
(c) In our opinion and according to the information and explanations given to us andrecords produced before us the company is maintaining proper records of its inventoriesand no material discrepancy has been observed by the management during the course ofverification;
(iii) As informed to us the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Act.
(iv) In our opinion and according to the information and explanations given to usthere exists an adequate internal control system commensurate with the size of the Companyand the nature of its business for the purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal control system of the Company.
(v) The company has accepted deposits after duly complied with the provisions of theCompanies Act 1956 and there is no contraventions of the provisions of the Companies Act2013 and erstwhile Companies Act 1956. However as per the provisions of the CompaniesAct 2013 the Company was required to repay all the deposits accepted by it prior to thecommencement of the Companies Act 2013 on or before 31/3/2015. Due to financialconstraints the Company has filed a petition before the Hon'ble Company Law Board underSection 74 (2) of the Companies Act 2013 seeking extension of time to repay deposits andthe matters is pending before the Hon'ble Company Law Board.
The Company has received an Order Dt. 22nd January 2016 passed by Company Law BoardMumbai Bench. Based on the records and information provided the said Order has beencomplied with.
(vi) According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013.
(vii) (a) According to the records of the Company the Company is not regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome- Tax Sales-Tax Wealth Tax Service Tax Customs Duty Excise Duty value addedtax cess and any other statutory dues with the appropriate authorities during the year.The undisputed statutory dues as at 31st March 2016 outstanding for the period of morethan six months from the date they became payable are as follows:
(b) According to the information and explanations given to us details of disputedstatutory dues which have not been deposited on account of matters pending before theconcerned authorities are as under:
(c) According to the records of the Company there are no amounts required to betransfer to education and protection fund in accordance with the relevant provisions ofSection 125 of the Companies Act 2013 and the rules framed there under are notapplicable.
(viii) The Company's accumulated losses at the end of the financial year are not morethan fifty per cent of its net worth. The Company has not incurred cash losses in thecurrent year as well as in the previous year.
(ix) In our opinion and according to the information and explanations given to us theCompany has defaulted in repayment of dues to a bank. Please refer note no. 31 toFinancial Statement.
(x) According to the information and explanations given to us and the record examinedby us the Company has not given any guarantee for loans taken by others from bank orfinancial institutions the terms and conditions whereof are prejudicial to the interestof the company.
(xi) Based on information and explanations given to us by the management the Companyhas not taken any term loan hence clause 3 (xi) of the Order is not applicable to theCompany.
(xii) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such case by the management.
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF BIRLA SHLOKA EDUTECH LIMITED
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 BirlaShloka Edutech Limited ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 ethicalrequirements 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 judgement 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 thecompany'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 March 31 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 Jai Prakash Upadhayay & Co.
Firm Registration No. 125073W
Jai Prakash Upadhayay
Mumbai Dated: May 30 2016