TO THE MEMBERS OF BHARAT ELECTRONICS LIMITED,
Report on the Standalone financial statements
We have audited the accompanying standalone financial statements of BHARAT ELECTRONICSLIMITED ("the Company"), which comprise the Balance Sheet as at
31 March 2015, the Statement of Profit and Loss for the year then ended, the Cash FlowStatement for the year then ended, and a summary of the significant policies and otherexplanatory information, in which are incorporated the Returns for the year ended on thatdate audited by the branch auditors of the Companys branches at Ghaziabad,Panchkula, Kotdwara, Pune, Navi Mumbai and Machilipatnam.
Managements Responsibility for the Standalone financial statements
The Companys Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition, financial performance and cash flowsof the Company in accordance with theaccounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act, the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. accounting We conducted ouraudit in accordance with the Standards on Auditing specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the standalone financial statementsare free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditors judgement, including the assessment of the risks of materialmisstatement of the standalone financial statements, whether due to fraud or error. Inmaking those risk assessments, the auditor considers internal financial control relevantto the Companys preparation of the standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entitys internal control. An audit also includes evaluating the appropriatenessof the accounting policies used and the reasonableness of the accounting estimates made bythe Companys Directors, as well as evaluating the overall presentation of thestandalone financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in sub-paragraph (a) of the OtherMatters paragraph below, is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us, the standalone financial statements of the company for the year ended 31March 2015 give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia : a) in the case of the balance sheet, of the state of affairs of the Company as at31 March 2015. b) in the case of the statement of profit and loss, of the profit for theyear ended on that date; and c) in the case of the cash flow statement, of the cash flowsfor the year ended on that date.
a) We did not audit the financial statements of six branches included in the standalonefinancial the Company whose financial assets of Rs 280,137.10 lakhs as at 31 March 2015and total revenues of Rs 209,021.17 lakhs for the year ended on that date, as consideredin the standalone financial statements. The financial statements of these branches havebeen audited by the branch auditors whose reports have been furnished to us, and ouropinion in so far as it relates to the amounts and disclosures included in respect ofthese branches, is based solely on the report of such branch auditors.
b) We draw attention to Note No. 30(6) regarding disclosures required under Para 5 ofPart II to Schedule III of the Companies Act, 2013(under General Instructions forpreparation of Statement of Profit and Loss) [erstwhile Para 5 of Part II to Schedule VIof the Companies Act, 1956(under General Instructions for preparation of Statement ofProfit and Loss)].
c) We draw attention to Note No. 30(13) regarding disclosure of segment information asrequired under AS-17.
Our opinion is not modified in respe ct of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Companies (Auditors Report) Order, 2015, issued by the CentralGovernment in terms of sub-section 11 of section 143 of the Act and based on the commentsin the auditors report of the respective branches, we give in the annexure astatement on the matters specified in paragraph 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 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. The audit of theaccounts of Bengaluru, Hyderabad and Chennai branches Officehas and Corporate been carriedout by us. In the case of New York and Singapore Offices and other offices not visited byus, and in respect of which the accounts are maintained at Corporate Office, the returns /records received from the said offices have been verified and found to be adequate for thepurpose of our audit.
(c) The reports on the accounts of the branch offices of the Company audited underSection 143 (8) of the Act by branch auditors in respect of Ghaziabad, Panchkula,Kotdwara, Pune, Navi Mumbai and Machilipatnam branches have been sent to us and have beenproperly dealt with, by us in preparing this report.
d) 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 and with the returnsreceived from the branches not visited by us.
e) In our opinion, the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014.
f) On the basis of the written representations received from the directors as at 31March 2015, taken on record by the Board of Directors, none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
g) 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. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements Refer Note 30(8).
ii. We are given to understand that the Company does not have any long-term contractsincluding derivatives contracts for which there are any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, tothe Investor Education and Protection Fund by the Company.
|For Badari, Madhusudhan & Srinivasan|
|Firm Registration Number : 005389S|
|29May 2015||Membership No. 027887|
ANNEXURE REFERRED TO THE INDEPENDENT AUDITORS REPORT
(Referred to in Report on Other Legal & Regulatory Requirement)
(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.
(b) As explained to us and based on our examination of records, the Management hasgenerally carried out the physical verification
Assets in accordance with their phased programme of physical verification, which isconsidered reasonable having regard to the size of the Company and nature of its businessand discrepancies, ed assets and if any, were properly dealt with on such verificationduring the year.
(ii) (a) The raw materials, stores and spare parts, tools, work-in-progress,semi-finished goods and finished goods inventory(excluding stock with third parties andmaterial in transit) have been physically verified by the management. In our opinion, thefrequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and on the basis of our examination of the records, the Company ismaintaining proper records of its inventories. The discrepancies noticed on verificationbetween the physical stocks and the book records were not material, and has been dealtwith properly in the books of account.
In respect of materials with sub-contractors, confirmations have been receivedgenerally and reconciled with the book records. However, in case of such items for whichno confirmations have been ant, the company signific received, which are not has dealtwith the same by making adequate provision in the books of account.
(iii) According to the information and explanations given to us, the Company has notgranted any loans, secured or unsecured to companies, firms or other parties covered inthe register maintained under section 189 of the Companies Act. Hence, clause (iii)(a)& (b) are not applicable.
(iv) In our opinion and accordingof a portion of the Fixed to the information andexplanations given to us, there is an adequate internal control procedure commensuratewithin the Company and the nature of its business, for the purchase of payment forexpenses inventories & & for sale of goods and services. During the course of ouraudit, no major weaknesses in the internal controls have been noticed.
(v) According to the information and explanations given to us, the Company has notaccepted any deposit from public in the current year as per the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act and the rules framed there under. All deposits havematured and settled except for Rs 36.95 lakhs, out of which Rs 36.50 lakhs is retained asper Garnishee Order of Lokayukta, Bengaluru and the balance of Rs 0.45 lakhs thoughmatured is unpaid due to legal issues.
In our opinion and according to the information and explanations given to us and basedon our examination of records, the Company has complied with the provisions of Section 73and other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules,2014.
(vi) The Company pursuant to sub-section (1) of section 148 of the Companies Act forthe maintenance and audit of cost records prescribed by the Central Government hasmaintained cost records. We are of the opinion that prima facie the prescribed costaccounts and cost records have been made and maintained. We have not however made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
(vii) (a) The Company is regular in remittance of undisputed statutory dues includingProvident Fund, Employees State Insurance, Income-tax, Sales-tax, Service-tax,Custom Duty, Excise Duty, Cess and other applicable statutory dues. According to theinformation and explanation given to us, no undisputed statutory dues are outstanding asat 31 March 2015, 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 disputedamounts that remain unpaid as at 31 March 2015 for a period of more than six months fromthe date they became payable in respect of Provident Fund, Employees StateInsurance, Income-tax, Sales-tax, Service-tax, Custom Duty, Excise Duty, Cess and otherapplicable statutory dues with the exception of the following :
|Name of Statute||Nature of Dues||Financial year to which amount relates||Amount ( Rs in Lakhs )||Forum where dispute is pending|
|Sales Tax Act, Bihar||Sales Tax||1995-97||66.44||Commissioner of|
|Central Sales||Sales Tax||2005-06 to 2012-13||1,683.63||JC(Appeals)|
|Karnataka VAT Act,||Sales Tax||2006-07 to 2011-12||554.11||JC(Appeals)|
|Finance Act 1994||Service Tax||2009-10||103.38||CESTAT|
|Finance Act 1994||Revisionary Show cause||2008-09||34.01||Commissioner|
|Central Excise Act||Modvat credit||1991-92||23.65||Dy. Commissioner|
|Central Excise Act||Excise Duty||1991-92||6.04||Commissioner (Appeals)|
|Central Excise Tax||Excise duty||1991-92||8.67||Commissioner|
|Central Excise Tax||Excise duty||1991-92||0.20||Commissioner|
|Customs Act||Custom Duty||2012-13||103.52||CESTAT|
|VAT Act||APVAT||2005-06 to||46.58||Sales Tax Appellate|
|VAT Act||APVAT||2013-14||134.10||ADC (Appeals)|
|CST||CST||2005-06 to 2007-08||1,346.14||Sales Tax Appellate|
|Finance Act||Service Tax||2007-08||10.58||CESTAT|
|1994- Service Tax|
|Sales Tax Act||Sales Tax||2007-08 to 2009-10||48.00||Appellate Authority Director, Directorate|
|Vacant Land Tax||Vacant Land Tax||1998-99 to2003-04||10.35||of Town Panchayat, Chennai Principal Commissioner|
|Urban Land Tax||Urban Land Tax||1984-85 to 2002-03||41.44||and Commissioner of Land Reforms, Chennai. Case remanded to|
|Sales Tax||Sales Tax dues & benefit of Concessional Form C||1980-81||8.63||Deputy Commissioner (Appeal)|
|Sales Tax||Benefit of concessional Form D not allowed||1989-90||2.47||Case remanded to AC(Appeal)|
|Sales Tax||Acceptance of Duplicate Copy of 3D(1)||1991-92||1.32||Appeal Filed with DC (Appeal) for acceptances of duplicate copy of 3D(1)|
|ESI ACT,1984||Interest and damage to late deposit||1996-97||3.52||Punjab & Haryana High Court Chandigarh|
|Sales Tax Act||Sales Tax Act||2008-09||260.48||Joint commissioner (Appeals)|
|2009-10||242.89||Joint commissioner (Appeals)|
|2008-09||112.93||Dy. Commissioner (Appeals)|
|Sales Tax||Trade Tax dues||2001-02||220.08||Uttrakhand high court Nainital|
|Sales Tax||Trade Tax dues||2000-01||141.08||Uttrakhand high court Nainital|
|Total disputed amount||6048.99|
|Total amount paid under protest pending final order||1068.25|
(c) The requirement of transfer to investor education and protection fund is inaccordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rulesmade thereunder.
(viii) The Company does not have any accumulated losses as at the end of the financialyear and has not incurred cash losses during the financial year and in the immediatelypreceding financial year.
(ix) On the basis of examination of records of the Company and information andexplanations given to us, the Company has not defaulted in repayment of dues to a bank,financial institution or others
(x) According to the information and explanations given to us, the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.
(xi) The Company has not availed any term loan and hence, this clause is notapplicable.
(xii) During the course of our examination of the books of account and records of theCompany, carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us, we have neither come acrossany instance of fraud on or by the Company, noticed or reported, during the year nor havewe been informed of any such case by the Management, that causes the standalone financialstatements to be materially misstated.
|For Badari, Madhusudhan & Srinivasan|
|Firm Registration Number : 005389S|
|29 May 2015||Membership No. 027887|
M L Shanmukh , Director (Human Resources)
Sunil Kumar Sharma , Chairman & Managing Director
Amol Newaskar , Director
Ajit T Kalghatgi , Director (Research & Devplmnt)
Company Head Office / Quarters:
Outer Ring Road,
Phone : Karnataka-91-80-25039300 / Karnataka-
Fax : Karnataka-91-80-25039233 / Karnataka-
E-mail : firstname.lastname@example.org
Web : http://www.bel-india.com
Integrated Enterprises (I) Ltd
No. 30 Ramana Resid.,4th Cross Sampige Rd,Malleswaram,Bangalore - 560003
|Scheme Name||No. of Shares|
|Reliance Equity Opportunities Fund (G)||25,00,469|
|HDFC Mid-Cap Opportunities Fund (G)||15,32,550|
|ICICI Pru Value Discovery Fund (G)||12,00,000|
|HDFC Tax Saver Fund (G)||11,40,000|