| We have audited the accompanying standalone financial statements of
Brady & Morris Engineering Company Limited ('the Company') which
comprise the Balance Sheet as at 31 st March 2015, the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible forthe matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whetherdue to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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, whetherdue to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not forthe purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, ofthe state ofaffairs of the Company as at
31st March, 2015, and its loss and its cash flows for the year ended on
that date.
1. As required by 'the Companies (Auditor's Report) Order, 2015',
issued by the Central Government of India in terms of sub- section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
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 best of our knowledge and belief were necessary for the
purpose of ouraudit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from ourexamination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on 31 st March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements Refer Note 29 to the
financial statements.
ii. The company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our report of even date to the members of
BRADY & MORRIS ENGG CO. LTD. for the year ended 31 st March, 2015. We
report that:
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals. In our opinion, the programme
of verification is reasonable having regard to the size of the company
and the nature of its assets. We have been informed that no material
discrepancies were noticed on such verification.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management except inventories lying with
third parties which has been confirmed and stock in transit which have
been subsequently received. In ouropinion, the frequency of verification
is reasonable.
(b) As explained 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) On the basis of our examination of the inventory records, we are of
the opinion that, the company is maintaining proper records of
inventory. Discrepancies noticed on physical verification of inventory
as compared to book records were not material.
(iii) The Company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, and therefore, the provisions
of clauses (iii)(a) & (iii)(b) of the Order are not applicable to the
Company.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal controls.
(v) According to the information and explanation given to us, the
Company has accepted deposits from one of the directors during the
financial year under audit and have complied with all the requirements
within the meaning of directives issued by Reserve Bank of India and
provisions of section 73 to 76 or any other relevant provisions of the
Companies Act and the rules framed there under.
(vi) Company is not required to maintain cost records as per the
Companies (Cost Records and Audit) Rules, 2014 prescribed by Central
Government under subsection (1) of section 148 of the Companies Act;
hence this clause stands not applicable to the company.
(vii) (a) The Company is regular in depositing undisputed statutory dues
including provident fund, employees' state insurance, income tax, sales
tax, service tax, duty of customs, duty of excise, value added tax, cess
and any other statutory dues with the appropriate authorities and does
not have any statutory liabilities outstanding for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no cases of non-deposit with appropriate authorities of disputed
dues of income-tax, sales-tax, wealth tax, service tax, customs duty,
excise duty, value added tax or cess except the following:
Name of the Nature of dues Amount
statute ( Rs. in lacs)
Central Sales Tax Central Sales Tax 4.50
Act, 1956
Central Sales Tax Central Sales Tax 9.34
Act, 1956
Income-tax Act, Income-taxon 7.23
1961 completion of
regular assessment
Income-tax Act, Income-taxon 6.13
1961 completion of
regular assessment
Income-tax Act, Income-taxon 3.64
1961 completion of
regular assessment
Name of the Period to Forum where the
statute which the dispute is
amount relates pending
Central Sales Tax F.Y. 2004-05 Tribunal
Act, 1956 Ahmadabad
Central Sales Tax F.Y. 2010-11 Commissioner of
Act, 1956 Sales Tax
Ahmadabad
Income-tax Act, Asst Yr 2010-11 Rectification
1961 pending before
Assessing Officer
Income-tax Act, Asst Yr 2011 Rectification
1961 -12 pending before
Assessing Officer
Income-tax Act, Asst Yr 2012 Rectification
1961 -13 pending before
Assessing Officer
(c) In our opinion, company has transferred requisite amount of
unclaimed dividend amount to Investor Education and Protection Fund
within specified timelines in accordance with the relevant provisions
of the Companies Act, 1956 (1 of 1956) and rules made there under.
(viii) In our opinion the company has accumulated losses at the end of
the financial year which is not more than 50% of its net worth and the
company has not incurred cash losses during the financial year and
immediately preceding the financial year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture holders.
(x) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) In our opinion and according to the information and explanation
furnished to us, no term loan has been raised during the year.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under review.
FOR AND ON BEHALF OF
C. L. DALAL & CO.,
Chartered Accountants
Firm Regn. No.: 102026W
R. C. JAIN
PARTNER
Membership No.5180
Date : 9th May, 2015
Place : Mumbai
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