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Burnpur Cement Ltd.

BSE: 532931 Sector: Industrials
NSE: BURNPUR ISIN Code: INE817H01014
BSE LIVE 15:42 | 22 Aug 7.42 -0.15
(-1.98%)
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HIGH

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NSE 15:54 | 22 Aug 7.40 -0.10
(-1.33%)
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HIGH

7.80

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OPEN 7.50
PREVIOUS CLOSE 7.57
VOLUME 73228
52-Week high 17.50
52-Week low 7.39
P/E
Mkt Cap.(Rs cr) 64
Buy Price 7.42
Buy Qty 229.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.50
CLOSE 7.57
VOLUME 73228
52-Week high 17.50
52-Week low 7.39
P/E
Mkt Cap.(Rs cr) 64
Buy Price 7.42
Buy Qty 229.00
Sell Price 0.00
Sell Qty 0.00

Burnpur Cement Ltd. (BURNPUR) - Auditors Report

Company auditors report

To the Members of

BURNPUR CEMENT LIMITED

Report on the Standalone F inancial Statements

We have audited the accompanying standalone financial statements of BURNPUR CEMENTLIMITED ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and the Cash Flow Statement for the year ended onthat date and a summary of significant accounting policies and other explanatoryinformation which we have signed under reference to this report.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Sec on134(5) of ‘the Companies Act 2013 (the "Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Sec on 133 of the Act read with rule 7 ofCompanies(Accounts) Rules 2014 ("the Rules"). This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors’ Responsibility

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Secon 143(10) of the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements 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 theauditor’s 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 financial control relevant to the Company’spreparation of the financial statement that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of 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.

Opinion

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 a airs of the Companyas at 31st March 2016 and its profit and its cash flows.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-sec on (11) of secon 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by Sec on 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 the Cash Flow Statementdealt with 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 sec on 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 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2016 from being appointed as a director in terms of Sec on164(2) of the Act;

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

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 explanation given to us;

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer note 26 to the financial statements.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There is no amount which is required to be transferred to the Investor Educa onand Protec on Fund by the Company.

For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Registration No.308115E
N. K. Agarwal
Dated : 24.05.2016 (Proprietor)
Place : Asansol Membership No. 14267

"ANNEXURE A" TO THE INDEPENDENT AUDITORS’ REPORT

i) (a) The Company is maintaining 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 have been noticed on such verification. Inour opinion the frequency of verification is reasonable having regard to the size of thecompany and nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the tle deeds of immovable properties asdisclosed in Note 9 to the financial statements are held in the name of the Company exceptfor the following:

Particulars whether Freehold or Leasehold Gross Block (Rs.) Net Block (Rs.) Remarks If Any
Land at Palashdiha Panchgachia Road Asansol Freehold 21214331.00 21214331.00 The tle deed is in the erstwhile name of the Company i.e. Ashoka Concrete & Allied Industries (P) Ltd.
Land at Patratu Leasehold 4941800.00 4941800.00 Ranchi Industrial Area Development Authority has still not transferred the lease in favour of Burnpur Cement Ltd though Ministry of Corporate Affairs Office of the Official Liquidator High Court Patna has handed over possession to Burnpur Cement Limited from Progressive Cement Limited.

ii) The inventory has been physically verified by the Management during the year. Inour Opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventory as compared to book records were not material.

iii) According to the information and explanations given to us the Company has notgranted any loans to companies firms or other parties covered in the Register maintainedunder Sec on 189 of the Companies Act 2013; and therefore paragraph 3(iii) of the Orderis not applicable.

iv) According to the information and explanations given to us the Company has notgranted any loans or provided any guarantees or security to the parties and also has notmade any investments and therefore paragraph 3(iv) of the Order is not applicable.

v) The Company has not accepted any deposits from the public within the meaning of Secon 73 to 76 of the Act or any other relevant provisions of the Companies Act and the rulesframed there under.

vi) We have broadly reviewed the books of account maintained by the company in respectof products where pursuant to the Rules prescribed by the Central Government of Indiathe maintenance of cost records has been prescribed under sub sec on (1) of Sec on 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have not however made a detailed examination of the recordswith a view to determine whether they are accurate or complete.

vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including provident fund employees state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable with the appropriate authorities except thefollowing:

Particulars Amount (Rs.)
Excise Duty 6972567.00
Service Tax 1743847.00
TDS 1014114.00
P.Tax 16042.00
WCT 189392.00
BOC 63583.00

b) According to the information and explanations given to us and the records of thecompany examined by us there are no dues of income tax sales tax duty of customsvalue added tax service tax excise duty and cess which have not been deposited with theappropriate authority on account of any dispute except the following:

Particulars Period to which the matter pertains Forum where dispute is pending Amount (Rs.)
Value Added Tax 2007-08 CTO Asansol Charge 44355.00
Central Sales Tax 2007-08 CTO Asansol Charge 421313.00
Value Added Tax 2008-09 CTO Asansol Charge 1300389.00
Central Sales Tax 2008-09 CTO Asansol Charge 55674.00
Value Added Tax 2009-10 West Bengal Appellate & Revisional 783434.00
Central Sales Tax 2009-10 Board Kolkata 145087.00
Value Added Tax 2010-11 West Bengal Appellate & Revisional 6667694.00
Central Sales Tax 2010-11 Board Kolkata 315464.00
Value Added Tax 2011-12 West Bengal Appellate & Revisional 8108687.00
Central Sales Tax 2011-12 Board Kolkata 6291042.00
Jharkhand Value Added Tax 2013-14 Commissioner of Commercial Taxes Jharkhand Ranchi 1599878.00
Central Excise 2013-14 CESTAT 20730181.00

Income Tax

N.B.: According to the information and explanation given to us and the documentsand records examined by us an appeal was preferred before the income tax appellateauthorities for the A.Y. 2007-08 2008-09which was decided in favour of the assessee anda relief to the tune of Rs. 8320932/- and Rs.38046637/- was given. However the incometax department has preferred an appeal before the income tax appellate Tribunal which ispending for disposal.

viii) According to the records of the Company examined by us and the information andexplanations given to us the company has defaulted in repayment of dues to banks as atthe balance sheet date and the details of defaults are furnished below:-

Particulars Amount of default as at the balance sheet date Period of default Remarks if any.
i) Name of the Lenders: Bank 21476340.00 April - August 2015 Interest has been rescheduled into new Funded Interest Term loan as per sanction
a) Central Bank of India Letter reference no. CFBK/CMD/2014- 15/03/2050/A dt.28.03.2015
5528334.00 February 2016 Interest for the month of February not paid till 31.03.2016
b) State Bank of Hyderabad 23133908.00 April-August 2015 Interest has been rescheduled into new Funded Interest Term Loan as per sanction letter reference no. F/ADV/ Burnpur/2874 dt.26.02.2015
5554025.00 February 2016 Interest for the month of February not paid till 31.03.2016.
c) State Bank of India 26647972.00 April-October 2015 Interest has been rescheduled into new Funded Interest Term loan as per sanction letter reference no. RMME/ SME-ASN/14-15/315 dt.28.03.2015.
23377425.00 April- September 2015 Interest has been rescheduled into new Funded Interest Term loan as per sanction letter reference no. UBI/CIC/ ADV/15 dt.07.03.2015
d) United Bank of India 300000.00 January 2016 Interest for the month of January not paid till 31.03.2016
5579654.00 February 2016 Interest for the month of February not paid till 31.03.2016

ix) The company has not raised any money by way of public issue and follow on issue.However the company has taken new term loans and restructured its old term loans duringthe year. The term loans have been applied for the purposes for which they have beentaken.

x) According to the information and explanations 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.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions of Secon 197 read with Schedule V to the Act.

xii) 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.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with Sec on 188 of the Companies Act 2013 including the Rule 15 of theCompanies (Meeting of Board and its Powers) Rules 2014 where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has converted the share warrantsinto fully paid equity shares under private placement.

xv) According to the information and explanations 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.

xvi) The company is not required to be registered under sec on 45-IA of the ReserveBank of India Act 1934.

For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Registration No.308115E
N. K. Agarwal
Dated : 24.05.2016 (Proprietor)
Place : Asansol Membership No. 14267

"ANNEXURE B" TO THE INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-sec on 3 of Sec on143 of the Companies Act 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of BurnpurCement Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013 ("the Act").

Auditor's 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 deemed tobe prescribed under sec on 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wereestablished and maintained and if such controls operated effectively in all materialrespects.

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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of the risksof material 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 controls 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by Institute of CharteredAccountants of India.

For M/s N.K.Agarwal & Co.
(Chartered Accountants)
Registration No.308115E
N. K. Agarwal
Dated : 24.05.2016 (Proprietor)
Place : Asansol Membership No. 14267