THE MEMBERS OF
BEE ELECTRONIC MACHINES LIMITED
Report on the Financial Statements:
We have audited the accompanying standalone financial statements of BEE ELECTRONICMACHINES LIMITED ("the Company") which comprise the Balance Sheet as at March312018 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation as required for fair present of financial statements.
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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the afore said 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 affairs of the Companyas at 31st March 2018 and its profit and its cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
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 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 financial statements comply with the Indian AccountingStandards specified under 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 2018 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2018 from being appointed as a director in termsof Section 164 (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 to Auditors' Report.
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 explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For BHATTER & PALIWAL
Firm's Registration No. 131411W
Membership No. 411226
ANNEXURE TO AUDITORS REPORT
1.1. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
1.2. According to the information and explanations furnished to us the Company hasphysically verified all the fixed assets during the year.
1.3 According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deed of immovable of property areheld in the name of the company.
2.1. According to the information and explanations furnished to us the Company hasphysically verified its inventories during the year. In our opinion and the frequency ofverification is reasonable.
2.2. In your opinion the procedures of physically verification of inventoriesfollowing by the management are reasonable and adequate In relation to the size of theCompany and the nature of its business.
2.3 According to information furnished to us the company is maintaining proper recordsof inventory and the discrepancies; if any noticed on verification between the physicalstock and book records were not material and have been properly dealt with in the books ofaccount.
3 The company has not given any loans to companies parties and director listed in theregister maintained under section 189 of the Companies Act 2013. Hence relevant clause isnot applicable.
4. According to the information and explanation given to us the company has not givenloans & advances or provided any guarantees / securities to its directors and otherentities in which directors are interested. Hence the provision of section 185 and 186 ofthe Act with respect to the loan and investments made are not applicable.
5. The Company has not accepted any deposits from public therefore the provisions ofsections 73 to 76 of the Companies Act 2013 and the rules framed there under are notapplicable.
6. We are informed that the Central Government has not prescribed the maintenance ofcost records under section 148(1) of the Companies Act 2013 for any of the product of thecompany.
7a. . According to information furnished to us the company is regular in depositingwith appropriate authorities the undisputed statutory dues including Provident FundInvestor Education Protection Fund and Employees State Insurance Income Tax Sales TaxService tax Value added tax Wealth Tax Custom Duty Excise Duty Cess and othermaterial statutory dues applicable to it and there were no undisputed statutory dues inarrears as at the date of the Balance Sheet under report for a period of more than sixmonths from the date they became payable except Excise duty Rs 1615396/-
7b. According to the information furnished to us the following amounts of Excise Dutyand Sales Tax have been disputed by the Company and hence were not deposited to theconcerned authorities at date of the Balance Sheet under report.
|Name of Statute ||Nature of dues ||Amount ||Period to which the amount relates ||Forum where the dispute is pending |
|Central Excise Act 1944 ||Excise duty ||43416614 ||1991 to 1994 ||CESTAT |
|Sales Tax Act ||Sales tax ||1349432 ||1997-98 ||Gujarat Sales Tax T ribunal Ahmedabad |
|Sales Tax Act ||Sales tax ||1303600 ||1998-99 ||Gujarat Sales Tax T ribunal Ahmedabad |
|Sales Tax Act ||Sales tax ||923772 ||1999-00 ||Gujarat Sales Tax T ribunal Ahmedabad |
|Sales Tax Act ||CST ||31115 ||1999-00 ||Asst Commissioner of sales Tax (Appeal 1) Ahmedabad |
8. The Company does not have any loans or borrowings from any financial institutionbanks governments and debenture holders during the year Accordingly this para is notapplicable.
9. The Company did not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loan during the year Accordingly thispara is not applicable.
10. According to the information and explanation given to us no fraud on or by thecompany has been noticed or reported during the year.
11. As per the information and explanations given to us and based our examination ofthe record of the company the company has paid/provide for managerial remuneration inaccordance with the provision of section 197 read with schedule V to the Act
12. In our opinion and according to the information and explanation given to us theCompany is not a nidhi company. Accordingly this para is not applicable.
13. According to the information and explanation given to us and based on ourexamination of the record of the company transaction with the related parties are inaccordance with the section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statement as required by the applicableIndian accounting standards.
14. According to the information and explanation given to us and based on ourexamination of the record of the company the Company has not made any preferentialallotment or private placement of share or fully or partly convertible during the year.
15. According to the information and explanation given to us and based on ourexamination of the record of the company the company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly this para is notapplicable.
16. The Company is not required to be registered under section 45-IA of Reserve Bank ofIndia Act 1934.
For BHATTER & PALIWAL
Firm's Registration No. 131411W
Membership No. 411226
Annexure B:- To The Independent Auditor's Report Of Even Date On The FinancialStatements of.
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 BeeElectronic Machines Limited ("the Company") as of March 312018 in conjunctionwith our audit of the 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 criteria established by the Company considering the sizeof company and 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 ("the Guidance Note"). 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.
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 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 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 judgment including the assessment of the risks of materialmisstatement 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 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 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlswere operating effectively as at March 312018 based on the assessment of essentialcomponents of internal controls over financial reporting stated in the Guidance Notecarried out by the Company and representation to that effect is made available to us bythe Company.
For BHATTER & PALIWAL
Firm's Registration No. 131411W
Membership No. 411226