We are issuing this revised report to comply with the observations made by theComptroller and Auditor General of India with regard to Paragraph 1 (c) and Paragraph 7(b) of Annexure A to the Independent Auditors' Report i.e. Report under CARO 2016. ThisIndependent Auditors' Report supersedes our report issued on 03/08/2017.
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone lnd AS financial statements of BharatDynamics Limited (the Company') which comprise the Balance Sheet as at March 312017 and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Cash Flow Statement for the year then ended andother explanatory information and a summary of the significant accounting policies (hereinafter referred to as "Standalone lnd AS financial statements").
2. 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 ofthese Standalone lnd AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (lnd AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and the estimates thatarc reasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone lnd AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
3. Auditors' Responsibility
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 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 thereunder.
We conducted our audit of the Standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS financial statements are freefrom material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS financial statements.
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 including the Ind AS of thefinancial position of the Company as at 31 March 2017 and its financial performanceincluding other comprehensive income changes in equity and its cash flows for the yearended on that date.
5. Emphasis of Matters:
We draw the attention to:
(i) Note number 27 of the standalone Ind AS financial statements which accounting ofcertain sales based on acceptance of quality by the Customer and prices by therepresentative of the customer awaiting the amendments to the contract.
(ii) Note number 35(19) of the standalone Ind AS financial statements regardingdisclosure of segment information as required under Ind AS 108.
Our opinion is not modified in respect of the above matters.
6. Other Matter
The comparative financial information of the Company for the transition date openingBalance Sheet as at April 1 2015 included in these Standalone Ind AS financialstatements are based on the previously issued statutory Standalone financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited byGarre & Co. Chartered Accountants for the year ended March 31 2015 whose reportsdated July 25 2015 expressed an unmodified opinion on those Standalone financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us. Our opinion is notmodified in respect of this matter.
7. 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 the Paragraph3 and 4 of the Order.
(2) As required under 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 the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.
(d) In our opinion the aforesaid Standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 312017 from being appointed as a director in terms of Section 164 (2) of the Act
(f) With respect to adequacy of the 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 Directions issued by the Comptroller and Auditor General of Indiaunder Section 143 (5) we give our report in Annexure C: and
(h) With respect to other matters to be included in the Auditors' Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 Ind AS financial statements vide Note No. 35(6) of Notes to the Ind ASFinancial 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) No amounts are required to be transferred to the Investor Education andProtection Fund by the Company.
(iv) The Company has provided requisite disclosures in the Standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management- Refer Note35(9) to the Standalone Ind AS financial statements.