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Binny Ltd.

BSE: 514215 Sector: Industrials
NSE: N.A. ISIN Code: INE118K01011
BSE 00:00 | 19 Jun 192.00 6.85
(3.70%)
OPEN

197.50

HIGH

197.50

LOW

185.00

NSE 05:30 | 01 Jan Binny Ltd
OPEN 197.50
PREVIOUS CLOSE 185.15
VOLUME 802
52-Week high 333.85
52-Week low 183.15
P/E 65.53
Mkt Cap.(Rs cr) 429
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 197.50
CLOSE 185.15
VOLUME 802
52-Week high 333.85
52-Week low 183.15
P/E 65.53
Mkt Cap.(Rs cr) 429
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Binny Ltd. (BINNY) - Auditors Report

Company auditors report

To

The Members of Binny Limited

Report on the Financial Statements

We have audited the accompanying financial statements of BINNY LIMITED("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information("the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

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 thereunder.

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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner 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 2017and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) Note No. 24.5 to the financial statements with regard to the Income Tax Wealth Taxand Service Tax demands disputed before respective authorities which describes theuncertainty related to the outcome of the appeals filed against the Orders of theAuthorities

b) Note No. 24.14 to the financial statements with regard to the advances to relatedparty for purchase of land for which the members of the Company have not approved theresolution. The Company has called back the advances and these advances for purchase ofland are pending for recovery

c) Note No.24.15 to the financial statements with regard to the advance to relatedparty for purchase of Wind Mill. The company has cancelled the contract and recalled theadvance paid and this amount is pending for recovery.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Actwe give in Annexure-A statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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 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 AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a directorin terms of 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 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 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 the financial statements in the Note No: 24.5

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

iv) The Company has provided requisite disclosures in Note No. 24.16 of its financialstatements as to holdings as well as dealings in Specified Bank Notes (SBN) during theperiod from 8 November 2016 to 30 December 2016. Based on the audit procedures and relyingon the management representation we report that the disclosures are in accordance withthe books of accounts and records maintained by the Company.

For Sagar & Associates
Chartered Accountants
Firm Regn. No. 003510S
V. VIDYASAGAR BABU
Place: Chennai Partner
Date: 23-Oct-2017 Membership No.: 027357

ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in our report of even date to the members of BINNY LIMITED on the accountsfor the year ended 31 March 2017)

(i) In terms of the information and explanations sought by us and given by the Companyand the books and records examined by us in the normal course of audit and to the best ofour knowledge and belief we state that

(a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The company has physically verified the fixed assets at reasonable intervals andthere are no material discrepancies noticed on such verification.

(c) The title deeds of all the immovable properties are held in the name of theCompany.

(ii) The company holds inventory of Lands as "Stock in trade". This inventoryhas been physically verified by the management at reasonable intervals. No materialdiscrepancies were noticed on such physical verification.

(iii) During the year Company has not granted any loans secured or unsecured to anycompanies firms limited liability partnership or other parties covered in the registermaintained under Section 189 of the Act

Previous year outstanding loan amount of Rs 31.33 Lakhs due from one of the partycovered in the register maintained under Section 189 of the Act. As there are no loanagreements or mutually agreed letter of arrangement we have been informed that the loanis repayable on demand and there is no stipulation on payment of interest. (iv) TheCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofloans advanced securities and guarantees given.

(v) The Company has not accepted deposits from the public during this year. As suchthe directives issued by the Reserve Bank of India the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the rules framed there under are notapplicable to the Company.

(vi) The maintenance of cost records has not been prescribed by the Central Governmentunder sub section (1) of Section 148 of the Act and hence the provision of clause 3 (vi)of the Companies (Auditors' Report) Order 2016 are not applicable to the Company for theyear under audit.

(vii) (a) The Company is depositing with delays undisputed statutory dues includingprovident fund Employee state insuranceincome tax sales-tax wealth tax service taxduty of customs duty of excise value added tax cess wherever applicable. The statutorydues outstanding as on 31st March 2017 for a period of more than six monthsfrom the date they become payable is given below:

Nature of Dues Amount (Rs in Lakhs) Period to which the amount relates
Property tax 0.70 Till September 2016
Water tax 3.20 September 2013
TN VAT 5.35 July 2015

(b) According to information and explanations given to us the gross disputed statutorydues of income tax sales tax service tax duty of customs duty of excise value addedtax which have not been deposited on account of dispute are as under:

Nature of Statute Nature of Dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Income tax act Income tax 19.21 AY-2008-09 AO & High court Chennai
Income tax Act Income Tax 0.59 AY 2010-11 ITAT Chennai
Wealth tax act Wealth Tax 574.73 AY-2011-12 to 2014-15 CWT-A Chennai
Service Tax Act Penalty 34.34 FY 2009-10 CESTAT Chennai
Income Tax Act Income Tax 82.53 AY- 2014-2015 CIT (A) Chennai

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions banks ordebenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). According to the information and explanationsgiven to us the money raised by the Company by way of term loans have been applied forthe purpose for which they were obtained.

(x) According to the information and explanations given to us and as represented by theManagement and based on our examination of the books and records of the Company and inaccordance with generally accepted auditing practices in India no case of frauds by theCompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.

(xi) The company has provided managerial remuneration in accordance with the provisionsof Section 197 read with Schedule V to the Companies Act 2013.

(xii) The provisions of clause 3 (xii) of the Order for Nidhi Company are notapplicable to the Company.

(xiii) The Company has complied with the provisions of Section 177 and 188 of the Actfor transactions with the related parties wherever applicable. Details of thetransactions with the related parties have been disclosed in the financial statements asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly provisions of clause 3 (xiv) of the Order are not applicable to the Company.

(xv) The Company has not entered into any non-cash transactions with the directors orpersons connected with them as covered under Section 192 of the Act.

(xvi) According to information and explanation given to us the Company is not requiredto be registered u/s 45-IA of Reserve Bank of India Act 1934. Accordingly provision ofclause 3(xvi) of the Order is not applicable to the Company.

For Sagar & Associates
Chartered Accountants
Firm Regn. No. 003510S
V. VIDYASAGAR BABU
Place: Chennai Partner
Date: 23-Oct-2017 Membership No.: 027357

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in our report of even date to the members of BINNY LIMITED on the accountsfor the year ended 31 March 2017)

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 internalfinancial controls over financial reporting of Binny Limited ("the Company") asof 31 March 2017 in conjunction with our audit of the financial statements of the Companyfor 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 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.

Auditors' 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial control system over financial reporting and theiroperating effectiveness.

Our audit of internal financial control over financial reporting included obtaining anunderstanding of internal financial control 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 financial reporting includes those policiesand procedures that

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 controlsover 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe components of internal controls stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the ICAI.

For Sagar & Associates
Chartered Accountants
Firm Regn. No. 003510S
V. VIDYASAGAR BABU
Place: Chennai Partner
Date: 23-Oct-2017 Membership No.: 027357