We have audited the accompanying financial statements of BCC FUBA INDIA
LTD. ("the Company"), which comprise the Balance Sheet as at March
31,2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act 1956 ("the Act") read with the general circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act 2013 and in accordance with the
Accounting principles generally accepted in India. The responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
Opinion
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. In our opinion
and to the best of our information and according to the explanations
given to us, the said financial statements together with Significant
Accounting Policies and Notes thereon, give in the Prescribed manner,
the information required by the Act, and give a true and fair view in
conformity with the accounting principles generally accepted in India,
subject to
a) Non amortization of miscellaneous expenditure up to 31 st March 2014
to the extent Rs.51.23 lacs (previous year 51.23 lacs)
b) The company has failed to appoint a whole time secretary as required
by section 383Aof the Companies Act 1956.
c) The company has not complied with Companies (cost Accounting
RecordsJRules 2011 Prescribed vide notification dated 3rd June 2011
which requires to keep and maintain Cost records and to submit
compliance report duly certified by cost accountant for the Financial
Year 2013-14.
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act 1956 read with the general circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act 2013.
e) on the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of BCC FUBA INDIA LTD., on the accounts of the company
for the year ended 31 st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) The company has taken loan from the following parties covered
in the register maintained under section 301 of the companies act 1956
i) Three companies in which directors are interested
ii) One director
The maximum amount outstanding during the year in the above accounts
was aggregating to RS 78307827/-.and the year end balance of the loan
taken from such parties was RS 75700516/-, As explained to us the
company has not granted loan to any firm covered in the register
maintained under section 301 of the companies act, 1956.
(b) In our opinion the rate of interest and other terms and conditions
on which the loan has been taken from companies,firm and other parties
listed in the register maintained under section 301 are not, prima
facie, prejudicial to the interest of the company.
(c) As explained to us, there is no stipulated time frame for the
repayment of the above loan hence we are unable to comment on the
regularity of the repayment of principal and interest on above loan
taken or granted to the parties covered under section 301 of the
companies act, 1956.
(d) In the view of the above we are unable to comment whether there is
any overdue amounts of loan taken from or granted to the companies,
firms or other parties listed in the register maintained under section
301 of the companies act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. In our opinion and according to the information and explanations
given to us, there were no transaction during the year that need to be
entered in the register maintained under section 301.
6. The Company has not accepted any deposits from the public covered
under section 58Aand 58AAof the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act. The company has not prepared and maintained proper cost records as
required.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31 st of
March, 2014 for a period of more than six months from the date they
became payable, except the following:
Nature of Liability: Sales Tax on on sale of DEPB Rs.101758/- (b)
According to the information and explanations given to us, there are no
amounts payable in respect of income tax, wealth tax, service tax,
sales tax, customs duty and excise duty which have not been deposited
on account of any disputes.
10. The accumulated losses of the company exceeded hundred percent of
its net worth and it has incurred cash loss during the financial year
covered by our audit and in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security
byway of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank orfinancial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31 st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Jawahar Kalra &Co.
Chartered Accountants
FRN-004008N
Place: New Delhi Jawahar Kalra
Date: 30/05/2014 (proprietor)
M.No.083130 |