You are here » Home » Companies » Company Overview » BWL Ltd

BWL Ltd.

BSE: 504643 Sector: Engineering
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr)
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr)
Buy Price
Buy Qty
Sell Price
Sell Qty

BWL Ltd. (BWL) - Auditors Report

Company auditors report

To

The Members of BWL Limited

1. Report on the Financial Statements

We have audited the accompanying Financial Statements of BWL Limited("TheCompany") which comprise the Balance Sheet as at 31st March 2016 and the Statementof Profit & Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

2 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

3. 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 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 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 statements 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 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 financial statements.

4) Focus of emphasis:

Without qualifying we refer to accounts of the company been compiled on the basis ofgoing concern concept notwithstanding negative net worth years of suspension ofproduction in factory and reference of the company to BIFR with our consequent inabilityto comment on extent of adjustments that may be necessitated against assets andliabilities of the company if company ceases to continue as a going concern followingadverse predicament.

5) Basis of Qualified Opinion

Attention is invited to the followings:-

a) Treatment of gratuity and leave salary are not inconformity with AS – 15(Revised) impact there in is not readily ascertainable.

b) Depreciation on components as laid down in footnote-4 of schedule-ii of companiesact 2013 for implementation from current financial year has not been accounted for.

6. Qualified Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters qualified in 5 above impact where ofare not readily quantifiable the financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in case of the Balance Sheet of the State of affairs of the company as at 31stMarch 2016 ;

b) in the case of Statement of Profit & Loss of the Loss of the company for theyear ended on that date.

c) in the case of Cash Flow Statement cash flow for the year ended on that date.

7. 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-section (11) ofSection 143 of the Act we give in the Annexure-2 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 explanations which to the best ofour 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d. Except for the unascertainable effect of the matters described in para 5 of thebasis for Qualified Opinion paragraph in our opinion the Balance Sheet Statement ofProfit & Loss and Cash Flow Statement comply with the accounting standards referred toin section 133 of the Act 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 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a Director in terms of Section164(2) of the Act.

f Our separate report on adequacy of internal financial control system and operatingeffectiveness of such control is enclosed in Annexure-1.

(3) 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 our information and according to the explanations given to us:

I. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 18 and 28 to the financialstatements.

II. The Company does not have any long-term contract including derivative contractwhich may lead to any foreseeable loss.

III. The Company does not have any amount outstanding required to be transferred toinvestor education and protection fund.

(4) Reason of qualificatoring observations

Observation No. Self Explanatory vide
5(a) Note No.24 of Financial Statement
5(b) Note No.30 of Financial Statement
12 of CARO2016 Note No.31 of Financial Statement

 

For G. Basu & Co.
Chartered Accountants
RN - 301174E
(Gautam Guha)
Place : Kolkata Partner
Date: 30th May2016 M. No. 054702

Annexure-1

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 BWL Limited("the Company") as of 31st March 2016 in conjunction with our auditof the standalone financial 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. 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 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 Institute of Chartered Accountants ofIndia. Those Standards and the GuidanceNote 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Besides since the productive activities are under suspension application of IFC forfinancial reporting applied in limited context for the company.

Opinion

In our opinion the Company has an adequate internal financial controls system overfinancial reporting in limited context of its functionary and such internal financialcontrols over financial reporting were operating effectively as at 31st March2016 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For G. Basu & Co.
Chartered Accountants
RN - 301174E
(Gautam Guha)
Place : Kolkata Partner
Date: 30th May 2016 M. No. 054702

Annexure-2

Annexure to the Auditor’s Report as per Companies (Auditor’s Report) Order2016

1. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the management at reasonableintervals.

As informed no material discrepancies between book records and the physical inventorieshave been noticed on such verification.

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

2. The inventories have been physically verified at reasonable intervals during theyear by management and as reported no material discrepancies were noticed.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liabilities partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

4. The company has not given any loans guarantees securities or make investmentsunder section 185 and 186 of the companies Act 2013.

5. The Company has not accepted any deposits from public.

6. Maintenance of cost records and accounts has not been prescribed by the CentralGovernment under sub section (1) of Section148 of the Companies Act 2013.

7. a. According to information and explanations given to us ‘the company’ isregular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Sales Tax Service Tax CustomDuty Excise Duty Value Added Tax Cess and other statutory dues to the extent applicableto it. According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March 2016 for aperiod of more than six months from the date of becoming payable.

b The dues on account on sales tax Excise Duty and Customs duty disputed by thecompany and not being paid vis--vis forums where such disputes are pending arementioned below:-

Particulars Forum where Dispute is pending Amount Year of demand Nature of Dues
(Rs.)
Sales Tax High Court Chhattisgarh 17301956/- 1996-971998-99 & 2000-01 Levy of Sales Tax on sales of wires manufacture out of tax paid wire rod
Board of Revenue 4 4780231/- 1981-82 1982-83 1997-98 1999-2000 &2001-02 -do-
Addl. Commissioner 6245423/- 1983-84 1986-87 1987-88
1995-96 2002-03to 2004-05 -do-
Deputy Commissioner 116320/- 2005-06 -do-
Excise Duty High Court Chhattisgarh 873013/- 1987-88 Levy of Excise duty on sales of zinc ash & dross
Customs Duty Commissioner 246756/- 1980-81 Levy of additional custom duty on import of wire rod
Appellate Tribunal 333963/- 1980-81 -do-
BSE Same Directorate 85500/- 2015-16 Late filling of financial statement for F.Y.2014-15 with the Directorate

8. There are no dues towards any financial institution bank or debenture holder.

9. The Company’ has not given any guarantee for loans taken by others from banksor financial institutions

10. Company has raised no money by way of Public offer . The company has obtained noninterest bearing long term loan from Promoter sources payable / useable in terms ofRehabilitation package after same been approved by BIFR. The proceeds of relevant loanwere used for the purpose they were obtained.

11. No fraud has been noticed or reported on or by ‘the company’ during theyear.

12. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provision of section 197 read with schedule V of the companiesAct2013. How ever said remuneration was approved by Remuneration committee not beingconstituted of three Independent Directors.

13. The Company is not a Nidhi Company accordingly paragraph 3(xxii) of the order isnot applicable.

14. All transactions with the related parties are in compliance with section 177 and188 of the companies Act2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

15. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

16. The Company has not entered in to any non-cash transactions with directors.

17. The Company is not required to be registered under section 45-I A of the ReserveBank Of India Act.

For G. Basu & Co.
Chartered Accountants
RN - 301174E
Place : Kolkata (Gautam Guha)
Date: 30th May2016 Partner
M. No. 054702

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard