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B.L.Kashyap & Sons Ltd.

BSE: 532719 Sector: Infrastructure
NSE: BLKASHYAP ISIN Code: INE350H01032
BSE 00:00 | 18 Jul 32.70 -1.55
(-4.53%)
OPEN

34.55

HIGH

34.55

LOW

32.10

NSE 00:00 | 18 Jul 32.45 -1.95
(-5.67%)
OPEN

34.50

HIGH

34.70

LOW

32.00

OPEN 34.55
PREVIOUS CLOSE 34.25
VOLUME 33548
52-Week high 71.95
52-Week low 32.10
P/E 14.41
Mkt Cap.(Rs cr) 704
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 34.55
CLOSE 34.25
VOLUME 33548
52-Week high 71.95
52-Week low 32.10
P/E 14.41
Mkt Cap.(Rs cr) 704
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

B.L.Kashyap & Sons Ltd. (BLKASHYAP) - Auditors Report

Company auditors report

TO THE MEMBERS OF B.L. KASHYAP AND SONS LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of B.L. Kashyap AndSons Limited ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss of the Company for the year ended on that date theCash Flow Statement of the Company for the year ended on that date and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India;

(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

(ii) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(iii) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Emphasis of Matters:-

We draw attention to the following matters in the notes to the financial statements.

(a) Note No. 3.1.1 to the financial statements regarding claims against the Company notacknowledged as debts amounting ' 17.85 Crores in respect of disputed statutory dues '13.73 Crores in respect of penal and overdue interest on the outstanding loans as on 31stMarch 2017 and ' 33.61 Crores in respect of differential amount of interest sacrificed bybankers pursuant to scheme of Corporate Debt Restructuring as bankers have a right ofrecompose of sacrifices.

(b) Note No. 3.1.2 to the financial statements regarding Corporate Guarantee givenamounting ' 175.23 Crores.

(c) Note 14 to the financial statements regarding non provision of losses fordiminution in the value of Investments in the Subsidiary Companies.

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 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act 2013we annexed Annexure 'A' hereto a statement on the matters specified in para 3 and 4 of thesaid 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 purposes 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 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 written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164(2) of the Act.

f) With respect to the adequacy of internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to separate reportin Annexure 'B' and

g) with respect to the other matters included in the Auditor's Report and to the bestof our information and according to the explanations given to us:-

(i) The company does not have any pending litigations which would materially impact itsfinancial position.

(ii) The company does not have any term contracts including derivative contracts forwhich there are any material foreseeable losses.

(iii) There has been no delay in transferring amounts to the Investor Education andProtection Fund.

(iv) The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company. Refer Note 3.16 to the standalone financialstatements.

For Sood Brij & Associates
Chartered Accountants
Firm Regn. No. 00350N
A.K. SOOD
Place : New Delhi Partner
Dated: 27th May 2017 Membership Number: 014372

Annexure- A to the Auditors' Report

The Annexure referred to in our Auditors'Report of even date on the accounts for theyear ended 31st March 2017 ofB.L. Kashyap & Sons Limited New Delhi in pursuance tothe Companies (Auditor's Report) order 2016 on the matters specified in paragraphs 3 and4 of the said order.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed

assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets once in ayearwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with such practice the management has physicallyverified fixed assets at the year end and no material discrepancies were noticed on suchverification.

(c) Title of the building of the Company amounting to ' 79917(W.D.V.) as on 31stMarch 2017 is not in name of the Company.

(ii) (a) As explained to us the stores and material at different sites have beenphysically verified by the management at the year-

end.

(b) In our opinion and according to information and explanations given to us theProcedures of physical verification of stores and material followed by the Management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to information and explanations given to us theCompany has maintained proper records of its inventories. Discrepancies noticed onphysical verification of inventories were not material and have been properly dealt within the books of accounts.

(iii) The Company has granted unsecured loans to the companies covered in theregister maintained under section 189 of the Companies Act.

(a) The terms and conditions of the grant of loan are not prejudicial to the company'sinterest.

(b) The receipt of principal amount and interest are as per agreed terms andconditions.

(c) As per agreed terms and conditions there are no overdue amounts.

(iv) The Company has complied with provisions of section 185 and 186 of the CompaniesAct in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India the provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act and the rules framed there under are notapplicable.

(vi) The Central Government has specified maintenance of cost record u/s. 148(1) of theCompanies Act 2013.As per records produced and explanations given to us the company hasmade and maintained cost records and accounts.

(vii) (a) According to the information and explanations given to us and on the basisof our examination of the books of account the

Company has following undisputed statutory dues outstanding for more than six months.

Nature of dues Undisputed Amount Arrear More Six Month (Rs)
EPF 40965261
E.S.I.C. 5539840
Labour Cess 995182
Service Tax 58367480
Works Tax 1156390

(b) According to the information and explanations given to us there are disputedamountpayable towards Income Tax Service Tax Central Excise and Valued added tax as on thedate of Balance Sheet in the following cases:-

Name of the Statute Nature of Dues Period to which the amount relates Disputed Amount Not Deposited (' in lac) Forum where Dispute is Pending
Service Tax Act Delhi Service Tax Demand F.Y. 2006-07 to F.Y. 2009-10 1384.83 Tribunal CESTAT New Delhi
Central Excise Act Noida Excise Demand F.Y. 2012-13 3.5 Jt. Comm Central Excise Gr. Noida
Value Added Tax West Bengal Vat Demand F.Y. 2009-10 37.37 Tribunal VAT Kolkata
Value Added Tax Haryana Vat Demand F.Y. 2011-12 44.78 Appeal VAT Haryana
Value Added Tax Haryana Vat Demand F.Y. 2012-13 19.11 Appeal VAT Haryana
Value Added Tax Haryana Vat Demand F.Y. 2013-14 16.25 Appeal VAT Haryana
Value Added Tax Punjab Vat Demand F.Y. 2009-10 126.48 Appeal VAT Punjab
Value Added Tax Bihar Vat Demand F.Y. 2014-15 152.86 Appeal VAT Bihar
Total 1785.18

(viii) The Company has defaulted in repayment ofits dues to the Bank and FinancialInstitution as under:-

Name of Bank Principal Amount (Rs) Period of Default (days)
Standard Chartered Bank 104300000 1096 Days
Syndicate Bank 83231999 274 Days

 

Name of Bank Interest Amount (Rs) Period of Default (days)
Yes Bank (Cash Credit) 7191963 59 Days
Oriental Bank of Commerce (Cash Credit) 14050175 59 Days
IndusInd Bank(Cash Credit) 9602465 59 Days
Standard Chartered Bank (Cash Credit) 128658780 1106 Days
Syndicate Bank (Term Loan) 148920126 397 Days
Syndicate Bank-(Funded Interest Term Loan) 33620276 425 Days
ICICI Bank ( Corporate Loan) 507278 59 Days
ICICI Bank -(Funded Interest Term Loan) 412577 59 Days
ICICI Bank -(Working Capital Term Loan) 3320613 59 Days
IndusInd Bank (Corporate Loan ) 795836 59 Days
IndusInd Bank -(Funded Interest Term Loan) 1117882 59 Days
IndusInd Bank -(Working Capital Term Loan) 4326535 59 Days
Oriental Bank of Commerce - (Working Capital Term loan ) 1212618 59 Days
Oriental Bank of Commerce - (Funded Interest Term Loan) 863262 59 Days
Oriental Bank of Commerce - (Corporate Loan) 965565 59 Days
Yes Bank (Corporate Loan) 568599 59 days
Yes Bank - (Term Loan) 417570 31 Days

(ix) According to the information and explanation given to us the money raised by wayof initial public offer and Term Loans availed by the Company were applied for the purposefor which those were raised.

(x) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.

(xi) The managerial remuneration provided is in accordance with the requisite approvalas mandated by the provisions of section 197 read with Schedule V to the Companies Act2013.

(xii) The Company is not the Nidhi Company and as such this clause is not applicable.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and are disclosed in the financial statements.

(xiv) The Company during the year has not made any preferential private placement ofshares or fully or partly convertible debentures during the year.

(xv) The Company has not entered with any non-cash transaction with Directors orpersons connected with them during the year within the meaning of section 192 of theCompanies Act 2013.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Sood Brij & Associates
Chartered Accountants
Firm Regn. No. 00350N
A.K. SOOD
Place : New Delhi Partner
Dated: 27th May 2017 Membership Number: 014372

Annexure-B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of B.L.KashyapAnd Sons Limited ("the Company") as of 31stMarch 2017 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 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 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 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 proceduresselecteddepend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 thepossibility 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.

Opinion

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 at31stMarch 2017 based on theinternal control over financial reporting criteria established by the Companyconsideringthe essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Sood Brij & Associates
Chartered Accountants
Firm Regn. No. 00350N
A.K. SOOD
Place : New Delhi Partner
Dated: 27th May 2017 Membership Number: 014372