Report on the Financial Statements
We have audited the accompanying financial statements of BCC FUBA INDIALIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.
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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards(Ind AS) specified underSection 133 of the Act read with relevant rules issued there under. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.
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 of the state of affairs of the Company as at 31stMarch 2018 and its loss total comprehensive income its cash flows and the changes inequity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies(Auditor's Report) Order 2016(" the order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Act we give in the Annexure-A a statement on the matters specified in paragraphs 3and 4 of the 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 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 including other comprehensiveincome the Cash Flow Statement and statement of changes in equity dealt with by thisReport are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued there under.
(e) On the basis of the written representations received from the directors as at 31stMarch 2018 and then taken on record by the Board of Directors none of the directors isdisqualified as at 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure-B"
(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 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 2.7 to 2.11 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 were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company
For Jawahar Kalra & Co. Chartered Accountants FRN:004008N
Place: New Delhi Jawahar Kalra
Date: 28/05/2018 Proprietor
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OFBCC FUBA
Referred to in paragraph 1 under the heading "Report on other Legal and RegulatoryRequirements" of our report of
1. (a) The company has maintained proper records showing full particulars includingquantitative details and
situation of fixed assets.
(b) As explained to us the fixed assets were physically verified during the year by themanagement in accordance with a program of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According toinformation and explanations given to us no material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties are held in the names of Company.
2. The inventory has been physically verified during the year by the management. In ouropinion the frequency of verification is reasonable. We are informed that thediscrepancies identified on physical verification of inventories as compared to bookrecords were not material and have been properly dealt with in the books of accounts.
3. As informed to us the Company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Act Consequently the requirements of clauses (iii)(a) and (b) of paragraph 3 of theorder are not applicable for the current year.
4. As informed to us the company has not given any loans made investments givenguarantees and security to any person or party covered under section 185 and 186 of theCompanies Act2013.
5. The Company has not accepted any deposit from the public within the meaning ofsection 23 or any other provisions of the Act and the rules framed under to the extentnotified.
6. Pursuant to the rules made by the Central government of India the Company is notrequired to maintain Cost records as specified under section 148(1) of the CompaniesAct2013 in respect of the products of the company.
7. (a) According to the information and explanations given to us and records of thecompany examined by us
undisputed statutory dues including provident fund employees state insurance IncomeTax sales tax Service TaxGoods and service tax duty of customs duty of excise valueadded tax cess and any other statutory dues have generally been regularly deposited withthe appropriate authorities and there were no undisputed amounts payable in respect of theaforesaid dues as at 31st March 2018 for a period of more than 6 months fromthe date they become payable.
(b) According to the information and explanations given to us and records of thecompany there are no dues outstanding in respect of income tax service tax Goods andservice Taxsales tax duty of customs duty of excise and Value added tax on account ofany dispute.
8. According to information and explanations given to us the company has not defaultedin repayment of loans or borrowings to any financial institutions banks Government ordues to debenture holders.
9. The Company has not raised money by way of initial public offer or further publicoffer(including debt instruments) but has taken a term loan from a financial institutionand the same has been utilized for the purpose for which it was taken.
10. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.
11. According to the information and explanations given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Act.
12. The Company is not Nidhi Company Accordingly the clause 3 (xii) of the Companies(Auditor's Report) Order 2016 is not applicable.
13. According to the information and explanations given to us all transactions withrelated parties are in compliance with Section 177 and 188 of the Companies Act2013 anddetails have been disclosed in the Financial Statements
as required by the applicable accounting standards.
14. According to the information and explanations given to us the company has made apreferential allotment during the year and it has complied with the requirements ofsection 42 of the Companies Act 2013further it has been used for the purpose for whichthe same was raised.
15. According to the information and explanations given to us the company has notentered into any non cash transactions with directors or persons connected with themduring the year.
16. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act1934.
For Jawahar Kalra & Co.
Chartered Accountants FRN-004008N
Place : New Delhi (proprietor)
Date : 28/05/2018 M.No.083130
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON FINANCIAL STATEMENTS OFBCC FUBA
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act2013 ('the Act")
We have audited the internal financial controls over financial reporting of BCC FUBAINDIA LTD ('the company) as at 31st March2018 in conjunction with our audit of the Ind ASfinancial 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 (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 the company's policies the safeguarding of its assetsthe prevention 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 Act2013.
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 Section 143(10) of the Companies Act2013 to the extent applicable toan audit of internal financial controls both applicable to an audit Internal FinancialControls and both issued by The Institute of Chartered Accountants of India. ThoseStandards and Guidance notes require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated effectively in all material respects. Our Audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of the internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system over financial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance that thetransactions are recorded as necessary to permit the preparation of financial statementsin accordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorization ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisitions 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 internal financial controls over financialreporting to future periods are subject to the risk that internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of the compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects and adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as 31st March2018 based on internalcontrol over financial reporting criteria established by the company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Reporting issued by the Institute of Chartered accountants of India.
Place : New Delhi Date : 28/05/2018
For Jawahar Kalra & Co. Chartered Accountants FRN-004008N
Jawahar Kalra (proprietor) M.No.083130