To the Members of
BSEL INFRASTRUCTURE REALTY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of BSEL Infrastructure RealityLimited ("the Company") which comprise the Balance Sheet as at 31st March 2015 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The Companys 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) Rules2014. 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; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating for ensuring accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements that givea 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 conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. 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 misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the Companys internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2015;
(b) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015("theOrder") issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Companies Act 2013 we give inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order tothe extent applicable.
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 purposes 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the Balance Sheet Statement of Profit and Loss and the Cash FlowStatement comply with the Accounting Standards specified under Section 133 of theCompanies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of the written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
For Raju & Prasad Chartered Accountants
FRN.: 003475 S
CA Avinash T. Jain
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
I. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies between the book records and the physicalinventory have been noticed. In our opinion the frequency of verification is reasonable
(c) Fixed assets disposed off during the year were not substantial and therefore do notaffect the going concern assumption.
II. (a) The management has conducted physical verification of inventory at reasonableintervals during the year.
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
III. (a) The Company has not granted secured or unsecured loans to companies firms orother parties covered in the register maintained under section 189 of the Act.
(b) The Company has not granted secured or unsecured loans to companies firms or otherparties covered in the register maintained under section 189 of the Act and there is norepayment schedule prescribed hence the comment on the receipt of the principal andinterest thereon is not required.
(c) The Company has not granted secured or unsecured loans to Companies Firms or otherparties covered in the register maintained under section 189 of the Act and there is nooverdue amount which is more than rupees one lakh hence the comment on the overdue amountis not required.
IV. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit no major weakness has been noticed inthe internal controls in respect of these areas.
V. According to the given information and explanation given to us the Company has notaccepted any deposits from the public in terms of section 73 to 76 or any other relevantprovision of the Act and the rules framed there under.
VI. The Central Government has not prescribed maintenance of cost records by theCompany under section 148 (1) (d) of the Act.
VII. According to the information and explanations given to us and records of theCompany examined by us the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education Protection FundEmployees State Insurance Income Tax Sales Tax Wealth Tax Service Tax Custom DutyExcise Duty Cess and other material statutory dues applicable to it. According to theinformation and explanations given to us no undisputed amounts payable in respect ofIncome Tax Wealth Tax Sales Tax Service Tax Customs Duty Excise Duty and Cess isoutstanding at the yearend for a year of more than six months from the date they becamepayable.
(a) According to the information and explanations given to us there are no dues ofSales Tax Customs Duty Wealth Tax Excise Duty Service Tax and Cess which have not beendeposited on account of any dispute. However the demands of Income Tax are as under:
|Name of the statute ||Nature of Dues ||Amount ||Period to which the amount relates ||Forum where dispute is pending |
|The Income Tax Act 1961 ||Demand for Tax ||Rs. 26424532/- ||AY 2001-02 ||CIT (Appeal) |
|The Income Tax Act 1961 ||Demand for Tax ||Rs. 6070321/- ||AY 2006-07 ||Rectification under Sec 154 Pending. |
|The Income Tax Act 1961 ||Demand for Tax ||Rs. 7061210/- Fully paid during the year ||AY 2010-11 ||CIT (Appeals) |
VIII. The Company has no accumulated losses at the end of the financial year. TheCompany has not incurred any cash losses in the current financial year and the company hadincurred cash losses Rs. 4865178/ - in the immediately preceding financial year.
IX. Based on our audit procedures and on the information and explanation given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto financial institution bank or debenture holders.
X. To best of our knowledge and belief and according to the information and explanationgiven to us in our opinion the terms and conditions on which the Company has givenguarantee for loans taken by others from banks or financial institutions are notprejudicial to the interest of the Company.
XI. There are no term loans outstanding from any Financial Institution from thebeginning of the financial year.
XII. According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
For Raju & Prasad Chartered Accountants
FRN.: 003475 S
CA Avinash T Jain
Membership No. 41689