The Members of BARTRONICS INDIA LIMITED Report on the Standalone FinancialStatements
We have audited the accompanying Standalone Ind AS financial statements of BartronicsIndia Limited (the Company') which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss including Other Comprehensive Income The Cash FlowStatement and Statement of Changes in Equity for the Year then ended and a summary of thesignificant accounting policies and other explanatory information.
Management's 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 oftheseStandalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act as applicable. 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 these Standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderunder Section 143(11) of the Act. We conducted our audit in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Standalone Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the Standalone Ind AS financial statements. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the Standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of theStandaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the Standalone IndAS financial statements.
Emphasis of Matters
We draw attention to the following matters in the Notes to theStandalone Ind ASfinancial statements:
a) Reference is invited to Note 2.6 (a) forming part of the Financial Statementregarding Capital advances to the extent of Rs. 9061.49 Lakhs We are unable toascertain whether such balances are fully recoverable which is outstanding for along time. Accordingly we are unable to ascertain the impact if any that may arise incase any of these advances are subsequently determined to be doubtful of recovery. Had theCompany provided for the same the loss for the period would have been higher by the saidamount.
b) Note 2.8 forming part of the Statement regarding Trade Receivables aggregating toRs.68010.22 Lakhs are more than three years old and in respect of which the companyprovided only Rs.7033.13 lakhs. We are unable to form an opinion on the extent to whichthe debts may be recoverable.
c) Note 2.29 forming part of the financial statements regarding the non-repayment ofFCCB amounting to Rs. 32410.00 lakhs which has fallen due as of February 2013 and thecompany has defaulted the payments even after the expiry of extended time sought by itfrom the RBI.
d) Without qualifying our opinion we invite attention to Note no 2.44 forming part ofthe financial statements regarding the uncertainties relating to MCD Project ApkeDwar Project the matter is in arbitration.
e) The LIC of India Andhra Bank Bank of India Indian Bank Barclays Bank IDBI Bankfiled cases in DRT. A criminal case was also filed by a creditor at Delhi. There arecertain cases against the Company pending at the Labour Court of India. Accordingly weare unable to ascertain the impact if any that may arise in case any of these mattersare settled against the
f) The Company adjusted Unsecured loan from Bartronics Asia Pte Ltd and trade Payableamount with Trade Receivables of Rs.25749.56 Lakhs equivalent $ 397.25 Lakhs during theyear with the consent of both the parties Refer Note No 2.45 for details
g) The Company has provided interest on the Secured Bank Loans at the rates prevailingas on 2013 when the Company defaulted in repayments to Banks as the Banks are notproviding any statement of accounts to the Company- Refer Note No 2.24 for details.
Our opinion is not modified on respect of these matters
Basis for Qualified Opinion
Reference is invited to Note 2.17 of the financial statements the company has notprovided interest on unsecured loans as terms are not clearly available with the CompanyThis constitutes a departure from the Accounting Standards notified under the CompaniesAct 2013. The loss stated by the Company would be higher by the amount of interest hadthe same been debited to the statement of profit and loss.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 and its loss for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 relating to preparationof the financial statements have been kept by the Company so far as it appears from ourexamination of those books.
(c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the books of account maintained for the purpose of preparation ofthese financial statements.
(d) In our opinion the aforesaid Standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act as applicable.
(e) On the basis of the written representations received from the Directors as on March31 2018 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 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 A'. Our report expresses an unmodified opinion on the adequacyand operating effectiveness of the Company's internal financial controls over financialreporting.
g) With respect to the other matters to be included in the Independent Auditors' Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us::
i) i.The Financial Statements has disclosed the impact of pending litigations on thefinancial Position of the company in its Standalone Ind AS Financials as of March 312018 Also refer Note 2.27 to the Financial Statements
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There have been no amounts required to be transferred to the Investor Educationand Protection Fund by the Company
2. As required by the Companies (Auditor's Report) Order 2016 (the Order')issued by the Central Government in terms of Section 143(11) of the Act we give inAnnexure B' a statement on the matters specified in paragraphs 3 and 4 of the Order.
| ||For T. Raghavendra & Associates |
| ||Chartered Accountants |
| ||(FRN - 003329S) |
|Place: Hyderabad ||T. Raghavendra Proprietor |
|Date: 30-05-2017 ||(Membership No. 023806) |