| We have audited the accompanying financial statements of Baroda
Extrusions Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Profit and Loss Statement, the Cash Flow
Statement for the year then ended and summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible
for the matters stated in the section 134(5) of the Companies Act, 2013
('the Act') with respect to 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 principles generally accepted in India including the
Accounting Standards specified. 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 are 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, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these 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 misstatements.
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 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 for the 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 control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
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 financial
statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended
on that date;
(c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matter
We draw your attention to the following
The accounts of the Company are drawn up on "Going Concern" basis even
though the accumulated losses of the Company exceed its paid up capital
and reserve. The Company is "Sick Industrial Company" under the
provisions of Sick Industrial Companies Act, 1985.
Issue of Takeover Notice by SICOM LIMITED under section 29 of State
Financial Corporation Act,1951 to the company for recovery of its dues
The "Going Concern" status of the Company is not affected as physical
possession of the assets have not been taken. (Refer Note No 25).
Filing of winding up petition by SICOM LIMITED in The High Court of
Gujarat on 28.07.2014 u/s 433 and 434 under The Companies Act 1956
(Refer Note No. 25)
Balances of Secured Loans as at 31.03.2015 are subject to their
confirmation and reconciliation.
Non-provision of doubtful debts amounting to Rs. 22,24,25,661/- and to
that extent the loss for the year is understated.
Balances of sundry debtors and advances as at 31.03.2015 are subject to
their confirmation and reconciliation.
Non-compliance of AS-15 with regard to Accounting of Retirement
Benefits, except Provident Fund. The exact amount in respect of these
benefits is not provided in the accounts as no actuarial valuation in
respect of these benefits is made by the Company.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section143 of the Act, we give in the Annexure A, a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid 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 the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015,
from being appointed as a director in terms of Section 164(2) of the
Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
No. 24 & 25.
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
Annexure referred to in our Report of even date to the members of
Baroda Extrusions Limited on the Financial Statement of the Company for
the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
1. In respect of Fixed Assets:
(a) The Company has generally maintained records showing broadly
particulars of fixed assets. The fixed assets register is not updated.
(b) The management during the year have not physically verified the
fixed assets. Under the circumstances material discrepancies, if any,
in the fixed assets have not been ascertained.
2. In respect of its' inventories:
(a) As explained to us, inventories have been physically verified by
the management at the year end. In our opinion, the frequency of such
verification needs to be improved.
(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 inadequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has generally maintained records of
Inventories. As explained to us, there was no material discrepancy
noticed on physical verification of Inventory as compared to the book
records.
3. According to information and explanations given to us, the Company
has not granted Unsecured Loans to parties covered in the register
maintained under section 189 of the Companies Act, 2013 during the
year.
4. In our opinion, and according to the information and explanations
given to us, the existing internal control procedures are inadequate
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and with regard to the
sale of the goods and services. In view of this, we are unable to
express our opinion with regard to existence of any major weakness in
the internal control procedures.
5. As informed to us Company has not accepted any deposits from public
during the year. So far as we are informed, no order has been passed by
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any other tribunal.
6. The company has appointed cost auditors u/s 148 of The Companies
Act, 2013.
7. According to the records of the Company, undisputed Statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value
added tax, Cess and other statutory dues have been generally deposited
with the appropriate authorities.
8. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31, 2015 for a period of more than six months
from the date of becoming payable.
9. According to the best of our knowledge, all the relevant provisions
of the companies Act, 2013 and rules made there under with respect to
the Investor Education and Protection Fund, there has not been an
occasion in case the Company during the year under report to transfer
any sums to the Investor Education and Protection Fund. The question of
delay in transferring such sums does not arise and hence have been
complied by the company.
10. The Company has incurred Cash losses for the year ended March 31,
2015 and has incurred cash loss in the immediately preceding financial
year. The accumulated loss at the end of the financial year was more
than fifty percent of the net worth of the company as at March 31,
2015.
11. The company has defaulted in repayment of its dues to SICOM LTD as
at Balance Sheet date to the extent of 45, 87, 05,234/-(exclusive of
non provision of interest for the year 2013-14 and 2014-15) against
factoring of receivable and purchase bills discounting sanctioned to
the company by SICOM LTD. The company has defaulted in repayment of its
dues to SICOM LTD since last three years.
12. According to the information and explanation given to us, there
are no guarantees given by the company for loans taken by others either
from Banks or Financial Institutions.
13. The Company has not obtained any term loans from any bank or
financial institutions during the year under review.
14. As per the books examined by us and based on the explanations
given to us, no fraud on or by the Company has been noticed or reported
for the year ended March 31, 2015.
Place: Vadodara For Parikh Shah Chotalia& Associates
Chartered Accountants
SD/-
CA Vijay Parikh
(Partner)
Membership No: 031773
Date: 30th May, 2015 F.R.N: 118493W
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