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Birla Precision Technologies Ltd.

BSE: 522105 Sector: Engineering
NSE: N.A. ISIN Code: INE372E01025
BSE 00:00 | 15 Jun 14.65 0.50
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NSE 05:30 | 01 Jan Birla Precision Technologies Ltd
OPEN 14.15
PREVIOUS CLOSE 14.15
VOLUME 48920
52-Week high 15.68
52-Week low 4.92
P/E
Mkt Cap.(Rs cr) 96
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.15
CLOSE 14.15
VOLUME 48920
52-Week high 15.68
52-Week low 4.92
P/E
Mkt Cap.(Rs cr) 96
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Birla Precision Technologies Ltd. (BIRLAPRECISION) - Auditors Report

Company auditors report

Opinion

We have audited the Ind AS financial statements of BIRLA PRECISION TECHNOLOGIESLIMITED (‘the Company') which comprise the balance sheet as at 31st March 2019and the statement of profit and loss (including other comprehensive income) the statementof changes in equity and the cash flow statement for the year then ended and notes to theInd AS financial accounting policies and otherstatementsincluding explanatory summaryofthesignificant information (herein after referred to as ‘Ind AS financial statements').

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 Companies Act 2013 (‘the Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st

March 2019 its profit (including other comprehensive income) changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Ind AS financial

Statements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the Ind AS financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Emphasis of Matter

We draw attention to the following: a) Note 33 of the Ind AS financial statementsindicating that balances of Sundry Creditors Debtors Loans and Advances and otherCurrent Assets are subject to confirmation. b) Advances have been given by the company tosome parties in the current and/or previous year. The purpose terms of advances etc areyet to be formalised. c) The Company had given Inter Corporate Deposits and CapitalAdvances to certain parties in the earlier years. Recovery of these Deposits/Advances arepending and although follow up from the company is continuing in this regard the issuehas still not been settled as yet.

Our opinion is not modified in respect to the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current year. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Description of Key Audit Matters:

Key Audit Matters Auditors Response
1. The Company has given a Corporate Guarantee of र 25030 lakhs to banks for a loan taken by a Group Company Our procedures included:
Review of the outstanding dues of the borrower to the banks as communicated to the Company by the borrower.
2. This Group Company has defaulted on the said loan and banks have filed a case in the DRT under SARAFESI against the borrower. the Perusing the latest correspondence between the borrower and the lending banks as available with the Company to ascertain the current status.
3. If and when the banks make a claim against the company on this account it would have a significant impact on the operations of. the Company. Discussing the status with the Company's management and their legal advisors and assessing their response
Considering the adequacy and completeness of the Company's disclosure in the matter based on the above

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is no material misstatement of this other informationwe are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Ind ASfinancialstatements that give a true and fair view of the state of affairs profit andother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act. 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 were operatingeffectively for ensuring the accuracy and completeness of the accounting recordsrelevanttothepreparationandpresentationoftheIndASfinancialstatements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS financial statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: l Identify andassess the risks of material misstatement of the Ind AS financial statements whether dueto fraud or error design and perform audit procedures responsive to those risks andobtain audit evidence that is sufficient and a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. l Obtain an understandingof internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3) (i) of the Act we are alsoresponsible for expressing our opinion on whether the company has adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls. l Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. l Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS financial statements or if such inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. l Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings includinganysignificant audit . deficienciesin internalcontrolthatwe identifyduringour

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors' Report) Order 2016 (‘the Order')issued by the Central Government in terms of Section 143 (11) of the Act we give in the ‘AnnexureA' a statement on the matters specified in paragraphs 3 and 4 of the

Order to the extent applicable.

A) 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 purposes of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; and loss (including other comprehensive income) the statementof c) Thebalancesheetthestatementofprofit changes in equity and the cash flow statementdealt with by this report are in agreement with the books of account; d) In our opinionthe aforesaid Ind AS financial statements comply with the Ind AS specified under Section133 of the

Act; e) On the basis of the written representations received from the directors as on31st March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms ofSection164(2) of the Act; and f) With respect to the adequacy of the internal financialcontrols with reference to financial statements of the Company and the operatingeffectiveness of such controls refer to our separate Report in ‘Annexure B'.

B) With respect to the other matters to be included in the Auditors' 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). TheCompany has disclosed the impact of pending litigations as at 31st March 2019 on itsfinancial position in its Ind AS financial statements - Refer Note 30 to the Ind ASfinancial statements; ii). The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses. iii). There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company; and C) With respect to the matter to beincluded in the Auditors' Report under Section197(16) of the Act in our opinion andaccording to the information and explanations given to us the remuneration paid by theCompany to its directors during the current year is in accordance with the provisions ofSection 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

For Thakur Vaidyanath Aiyar & Co.
Chartered Accountants
Firms Registration No. 000038N
C. V. Parameswar
Place: Mumbai Partner
Date: 28th May 2019 Membership No. 11541

Annexure A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of BIRLAPRECISION TECHNOLOGIES LIMITED on the Ind AS financial statements for the year ended31st March 2019. i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets;

(b) There is a phased programme for verification of fixed assets which in our opinionis reasonable having regard to the size of the Company and nature of its assets. Accordingto the information and explanation given to us no material discrepancies were noticed onsuch verification.

(c) As per the information and explanations provided to us and on the basis of ourexamination of the records of the company title deeds of immovable properties aregenerally in the name of the Company except in case of 4 leasehold properties acquired byentities valued at र356 Lakhs Gross and र 273 Lakhs net that have since been amalgamatedwith the Company. ii. The inventory (excluding stock with Third parties) has beenphysically verified by the management during the year. In respect of inventory lying withthird parties these have been confirmed by them. In our opinion the frequency ofverification is reasonable. The discrepancies noticed on physical verification ofinventory as compared to book records were not material. iii. In our opinion and accordingto the information and explanations given to us the Company has not granted any loanssecured or unsecured to companies firms Limited Liability Partnerships or other partiescovered in the register maintained under

Section 189 of the Companies Act. Accordingly paragraph 3 (iii) of the Order is notapplicable to the Company.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013in respect of Loans given investments made guarantees given and security provided. v.The Company has not accepted any deposits from the public and hence the directives issuedby the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard tothe deposits accepted from the public are not applicable. vi. We have broadly reviewed thebooks of accounts maintained by the Company as specifiedunder Section 148 (1) of the Actfor maintenance of cost records in respect of products manufactured by the Company andare of the opinion that prime facie the prescribed accounts and records have been madeand maintained. However we have not made a detailed examination of the cost records witha view to determine whether they are accurate or complete. vii. (a) According to theinformation and explanations given to us and on the basis of our examination of theCompany amounts deducted / accrued in the books of account in respect of undisputedstatutory dues including Provident Fund Employees State Insurance Income-Tax Sales taxService Tax Goods and Service Tax (GST) Duty of Customs Duty of Excise Value addedTax Cess and any other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities.

According to the information and explanations given to us the following are cases ofundisputed statutory dues remaining in arrears as at the last day of the financial yearfor a period exceeding six month from the date they become payable:

Nature of Dues Amount outstanding (र in Lakhs)
Income Tax 18.58

(b) According to the information and explanation given to us and on the basis of ourexamination of the records of the

Company details of dues of Income Tax Sales Tax Service Tax Goods and Service Tax(GST) Duty of Customs Duty of Excise and Value added tax which have not been depositedas on 31 March 2019 on account of disputes are given below:

Name of the Statute Forum where dispute is pending Period to which amount related Amount ( in Lakhs)
Income Tax Deputy Commissioner of Income Tax 1995-96 0.75
Central Sales Tax Jt. Commissioner of Sales Tax 2013-14 76.25

viii. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in the repayment of loans orborrowings to any financial institution or bank or Government or dues to debentureholders. ix. According to the information and explanations given to us the term loanshave been applied by the Company during the year for the purposes for which they wereobtained. The Company did not raise money by way of initial public offer or further publicoffer (including debt instruments) during the year. x. Based upon the audit proceduresperformed and the information and explanations given by the management we report that nofraud by the Company or on the Company by its officers or employees has been noticed orreported during the year. xi. In our opinion and according to the information andexplanations given to us the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V of the Companies Act 2013. xii. In our opinion the Company is not aNidhi Company. Therefore the provisions of clause 4 (xii) of the Order are not applicableto the Company. xiii. In our opinion all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Ind AS Financial Statements as required by the applicable accountingstandards. xiv. The Company has during the year issued 18 65671 shares to a party byconversion of the Loan from the party into equity. The requirement of Section 42 of thecompany's Act 2013 have been complied with and the amount raised has been used for thepurpose for which the funds were raised. xv. Based upon the audit procedures performed andthe information and explanations given by the management the company has not entered intoany non-cash transactions with directors or persons connected with him. Accordingly theprovisions of clause 3 (xv) of the Order are not applicable to the Company. xvi. In ouropinion the company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order arenot applicable to the Company.

For Thakur Vaidyanath Aiyar & Co.
Chartered Accountants
Firms Registration No. 000038N
C. V. Parameswar
Place: Mumbai Partner
Date: 28th May 2019 Membership No. 11541

Annexure B to the Independent Auditor's Report of even date on the Ind AS FinancialStatements of BIRLA PRECISION TECHNOLOGIES LIMITED for the year ended 31st March 2019

Report on the Internal Financial Controls over financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies

Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting ofBIRLAPRECISION TECHNOLOGIES LIMITED ("the Company") as of 31st March2019 in conjunction with our audit of the Ind AS financial statements of the Company forthe 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 Reporting issuedby 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 ofreliablefinancialinformationasrequired .underthe Companies Act 2013

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 Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 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 judgement including the assessment of the risks ofmaterial misstatement of the Ind AS 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial stMarch 2019 based on internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Thakur Vaidyanath Aiyar & Co.
Chartered Accountants
Firms Registration No. 000038N
C. V. Parameswar
Place: Mumbai Partner
Date: 28th May 2019 Membership No. 11541