You are here » Home » Companies » Company Overview » Bharat Seats Ltd

Bharat Seats Ltd.

BSE: 523229 Sector: Auto
NSE: N.A. ISIN Code: INE415D01024
BSE 09:52 | 25 Jun 174.30 0.40
(0.23%)
OPEN

173.05

HIGH

174.30

LOW

173.05

NSE 05:30 | 01 Jan Bharat Seats Ltd
OPEN 173.05
PREVIOUS CLOSE 173.90
VOLUME 245
52-Week high 273.90
52-Week low 81.90
P/E 19.39
Mkt Cap.(Rs cr) 547
Buy Price 174.30
Buy Qty 148.00
Sell Price 176.50
Sell Qty 20.00
OPEN 173.05
CLOSE 173.90
VOLUME 245
52-Week high 273.90
52-Week low 81.90
P/E 19.39
Mkt Cap.(Rs cr) 547
Buy Price 174.30
Buy Qty 148.00
Sell Price 176.50
Sell Qty 20.00

Bharat Seats Ltd. (BHARATSEATS) - Auditors Report

Company auditors report

To The Members of Bharat Seats Limited Report On the Financial Statements

We have audited the accompanying Ind AS financial statements of Bharat Seats Limited(‘the Company') which comprises the balance sheet as at 31st March 2017 thestatement of profit and loss (including other comprehensive income) the statement of cashflows and the statement of changes in equity for the year then ended and and a summary ofthe significant other explanatory information (herein after referred to as "Ind ASfinancial 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows equity ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Actread with relevant rules issued thereunder. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of 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 the Ind AS financial statements that give a true and fairview and are free from material misstatements whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 Ind AS financialstatements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of the material misstatement ofthe Ind AS financial statements whether due to error or fraud. In making those riskassessments the auditor considers internal control relevant to the Company's preparationof the Ind

AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of accounting policies used and reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and andchangesinopinion on Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the financialposition of the Company as at 31st March 2017 and its financial performance includingother comprehensive income its cash flows and the changes in equity for the year ended onthat 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 section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

2. As required by section 143(3)of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c. The Balance Sheet Statement of Profit and Loss Cash FlowStatement and Statement of Changes in Equity dealt with by this Report are in agreementwith the books of account; d. In our opinion the aforesaid Ind AS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withrelevant rules issued thereunder; e. On the basis of written representations received fromthe directors as on 31 March 2017 and taken on record by the Board of Directors none ofthe directors is disqualified as on 31 March 2017 from being appointed as a director interms of Section 164(2) of the Act; f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in "Annexure - B"; and g. Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us: i) the Company hasdisclosed the impact of pending litigation on its financial position in its Ind ASfinancial statements- Refer Note 26 to the Ind AS financial statements; ii) as there isnot any material foreseeable losses on long term contracts therefore the Company has notmade any provision required under the applicable law or indian accounting standards; iii)there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; and iv) the Company has providedrequisite disclosure in its Ind AS financial statements as to holdings as well as dealingsin Specified Bank Notes during the period from8th November 2016 to 30th December 2016.And on the basis of information & explanation provided these are in accordance withthe books of accounts maintained by the Company. Refer Note 54(v) to the Ind AS financialstatements.

For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
(Firm Registration No. 000756 N)
(Neeraj Bansal)
Partner
Place : New Delhi Membership No. 95960
Date : 20th April 2017

ANNEXURE - A

TO THE INDEPENDENT AUDITOR'S REPORT TO THE BHARAT SEATS LIMITED

Referred to in paragraph 1 of report on other legal and regulatory requirement'sparagraph of our report on the financial statement of even date

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

(b) The fixed assets are physically verified the management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. (c) The title deed of immovable property is held in the name of the company.

(ii) (a) The inventories of the Company have been physically verified by the managementduring the year. (b) In our opinion and according to the information and explanationsgiven to us the procedures of physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventories. As explained to us thediscrepancies noticed on verification between the physical stocks and the book recordswere not material and have been properly dealt with in the books of account.

(iii) As per the information and explanation given to us and on the basis of ourexamination of the records the Company has not given interest free unsecured mobilizationadvance against procurement of materials/ tooling during the year to a Company covered inthe register maintained under section 189 of the Companies Act 2013.

(iv) As per the information and explanation given to us and on the basis of ourexamination of the records the Company does not have any loans investments guaranteesand security under Section 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed thereunder.

(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the Company as specified by the Central Government ofIndia under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate and complete. (vii) (a) According to the information and explanations givento us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues in respect of provident fundinvestor education and protection fund employees' state insurance income tax sales taxwealth tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues as applicable with the appropriate authorities. Further therewere no undisputed amounts outstanding at the year-end for a period of more than sixmonths from the date they became payable. (b) According to the information andexplanations given to us and the records of the Company examined by us the particulars ofdues of income tax sales tax custom duty wealth tax excise duty value added taxservice tax and cess which have not been deposited on account of any dispute are asfollows: -

S. No. Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where the dispute is pending
1 Central Excise Act 1944 Demand of Excise Duty on account of difference in reconciliation (Including Penalty) 228.20 1997-99 Hon'ble CESTAT New Delhi
2 Central Excise Act 1944 SCN for excise duty u/s 11A 27.69 2004-06 First Appellate Authority(With Adjudicating authority)

(viii) According to the records of the Company examined by us and the information andexplanations given to us in our opinion the Company has not defaulted in repayment ofits dues to banks. The Company has not taken any loans from financial institutions ordebenture holders.

(ix) As per the information and explanation given to us and on the basis of ourexamination of the records the Company has not raised moneys by way of initial publicoffer or further public offer(including debt instruments) and term loans have been appliedfor the purpose for which they were obtained.

(x) 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 we haveneither come across any instance of fraud by the Company or on the Company by its officersor employees noticed or reported during the year nor have we been informed of such caseby the management.

(xi) As per the information and explanation given to us and on the basis of ourexamination of the records the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

(xii) The Company is not Nidhi Company therefore this clause is not applicable to theCompany.

(xiii) As per the information and explanation given to us and on the basis of ourexamination of the records the Company has transacted with the related parties which arein compliance with sections 177 and 188 of Companies Act 2013 and the details have beendisclosed in the financial statements Refer Note 41(b) to the financial statements. (xiv)The Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.

(xv) As per the information and explanations given to us and on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith directors or persons connected with him.

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

For S.S. KOTHARI MEHTA & CO.
Chartered Accountants
(Firm Registration No. 000756 N)
(Neeraj Bansal)
Partner
Place : New Delhi Membership No. 95960
Date : 20th April 2017

ANNEXURE – B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF BHARAT SEATS LIMITED

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 BharatSeats Company Limited ("the Company") as of March 31 2017 in conjunction withour audit of the Ind AS 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". 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 act.

Auditor's 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 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 financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Opinion

In our opinion based on summarised observations on Internal Financial Control Reportalong with annexures the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were generally in all operating effectively internal control overfinancial reporting system & procedures established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Registration No. 000756N
Neeraj Bansal
Place : New Delhi Partner
Date : 20th April 2017 Membership No. 95960