To the Members of Bharat Electronics Limited,
Report on the Financial Statements
We have audited the accompanying financial statements of Bharat Electronics Limited("Company") which comprise the balance sheet as at 31 March 2014, the statementof profit and loss for the year then ended and cash flow statement for the year then endedand a summary of significant policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act") read with General Circular15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section133 of the Companies Act, 2013. This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgement, including the assessment of the risks of material misstatementof the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the Companyspreparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entitys internal control. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the management, as well as evaluatingthe overall presentation of the financial statements. accounting
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements of the Company for the year ended 31 March 2014 givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India : a) in thecase of the balance sheet, of the state of affairs of the Company as at 31 March 2014. b)in the case of the statement of profit and loss, of the profit for the year ended on thatdate; and c) in the case of the cash flow statement, of the cash flows for the year endedon that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("theOrder"), as amended, issued by the Central Government of India in terms ofsub-section (4A) of section 227 of the Act, we give in the Annexure, a statement on thematters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to in paragraph above and asrequired by Section 227 (3) of the Act, we report that :
(a) we have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as it appears from our examination of those books. The audit of theaccounts of Bangalore, Hyderabad and Chennai units and Corporate Office were carried outby us. In the case of New York and Singapore Offices, not visited by us, and in respect ofwhich the accounts are maintained at Corporate Office, the returns / records received fromthe said offices have been verified and found to be adequate for the purpose of our audit.
(bb) the report on the audit of branch offices audited under section 228 of the Act, inrespect of Ghaziabad, Panchkula, Kotdwara, Pune, Navi Mumbai and Machilipatnam units, byrespective branch auditors has been forwarded to us under section 228 (3) (c) of the Actand have been dealt with in preparing our Report in the manner considered necessary by us.
(c) the balance sheet, statement of profit and loss and cash flow statement dealt withby this report are in agreement with the books of account.
(d) in our opinion, the balance sheet, statement of profit and loss and cash flowstatement dealt with by this Report comply with the accounting standards referred to inSection 211 (3C) of the Act, read with General Circular 15/2013 dated 13 September 2013 ofthe Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013,and clause 13 of Note 30 regarding Segment Reporting.
(e) as the Company is a Government Company, it is exempted from the provisions ofSection 274(1)(g) of the Act regarding disqualification of Directors vide Notification GSR829(E) dated 21 October 2003 issued by the Ministry of Finance, Department of CompanyAffairs.
|For Badari, Madhusudhan & Srinivasan|
|Firm Registration Number: 005389S|
|30 May 2014||Membership No. 020378|
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
[Referred to in Report on Other Legal and Regulatory Requirements]
(i) (a) The Company has generally maintained proper records showing full Particularsincluding quantitative details and situation of Fixed Assets.
(b) As explained to us and based on our examination of records, the Management hasgenerally carried out the physical verification of the Fixed Assets in accordance withtheir phased programme of physical verification, which is considered reasonable havingregard to the size of the Company and nature of its business and discrepancies, if any,were properly dealt with on such verification during the year. c) Fixed assetssold/disposed off during the year were not substantial and therefore do not affect thegoing concern assumption.
(ii) (a) The raw materials, stores and spare parts, tools, work-in-progress,semi-finished goods and finished goods inventory, excluding stocks with third parties andmaterials in transit, have been physically verified by the Management. In our opinion, thefrequency of verification is reasonable. (b) The procedures for physical verification ofinventory followed by the management are generally reasonable and adequate in relation tothe size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies noticedon verification between the physical stocks and the book records were not material and hasbeen dealt with properly in the books of account. In respect of materials withsub-contractors, confirmations have been received generally and reconciled with the bookrecords. However, in case of such items for which no confirmations have been received,which are not significant, the company has dealt with the same by making adequateprovision in the books of account.
(iii) The Company has not granted / taken any loans secured or unsecured to / fromparties covered in the register maintained under Section 301 of the Act and hence, ClauseNo. 4 (iii) of the Order, as amended, is not applicable.
(iv) In our opinion and according to the information and explanations given to us andbased on our examination of records, there are adequate internal control systemscommensurate with the size of the Company and nature of its business with regard topurchase of Inventory and Fixed Assets and with regard to the Sale of Goods and Services.During the course of audit, we have not observed any continuing failure to correct majorweakness in the internal control systems.
(v) In our opinion and according to the information and explanations given to us, thereare no contracts or arrangements referred to in section 301 of the Act, that need to beentered in the register required to be maintained under that section.
(vi) The Company has not accepted any deposit from public in the current year and alldeposits had matured and settled except for Rs. 36.95 lakhs, out of which Rs. 36.50 lakhsare being retained as per Garnishee Order of Lok Ayukta, Bangalore and the balance of Rs.0.45 lakhs though matured is unpaid due to other legal issues. In our opinion andaccording to the information and explanations given to us and based on our examination ofrecords, the Company has complied with the provisions of Section 58A and Section 58AA andother relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules,1975.
(vii) In our opinion, the Company has an internal audit system commensurate with itssize and nature of its business.
(viii) The Company pursuant to the Companies (Cost Accounting) Rules, 2011 made by theCentral Government for the maintenance and audit of cost records under section 209 (1) (d)of the Act, has maintained cost records. We are of the opinion that prima facie theprescribed cost accounts and cost records have been made and maintained. We have nothowever made a detailed examination of the cost records with a view to determine whetherthey are accurate or complete.
(ix) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund, Investor Education and ProtectionFund, Employees State Insurance, Income Tax, Sales Tax (VAT), Service Tax, CustomsDuty, Excise Duty and other applicable material statutory dues.
(b) According to the information and explanations given to us, no undisputed amountspayable in respect of Income Tax, Sales Tax (VAT), Service Tax, Customs Duty, Excise Dutywere in arrears, as at 31 March 2014 for a period of more than six months from the datethey became payable.
(c) According to the information and explanations given to us and based on ourexamination of records, there were no dues in respect of Income Tax, Sales Tax (VAT),Wealth Tax, Service Tax, Customs Duty and Excise Duty which have not been deposited withthe appropriate authorities on account of any dispute except as follows :
|Nature of Statute||Nature of Dues||Forum where dispute is pending||Amount ( Rs. in Lakhs)|
|Sales Tax Act, Bihar||Sales Tax||Commissioner of Commercial Tax (Appeals), Chirkunda, Bihar||66.44|
|Central Sales Act||Sales Tax||Joint Commissioner (Appeals)||1,970.85|
|Karnataka VAT Act||Sales Tax||Joint Commissioner (Appeals)||501.02|
|Karnataka VAT Act||Sales Tax||Dy. Commissioner of Commercial Tax||156.01|
|Finance Act||Service Tax||CESTAT||103.38|
|Finance Act||Service Tax- Revisionary Show Cause Notice||Commissioner||34.01|
|Central Excise Act||Modvat Credit||Dy. Commissioner||23.65|
|Central Excise Act||Excise Duty||Commissioner (Appeals)||6.04|
|Central Excise Act||Excise Duty||Commissioner||8.67|
|Customs Act||Custom Duty||CESTAT||103.52|
|Trade Tax||Benefit of Concessional Form not allowed||Uttarakhand High Court, Nainital||220.07|
|Trade Tax||Benefit of Concessional form not allowed||Uttarakhand High Court, Nainital||141.09|
|Income Tax Act||TDS u/s 194 I against deduction made u/s 194C||High court of Allahabad||73.32|
|Income Tax Act||Penalty u/s 201 A passed by DCIT||High court of Allahabad||63.21|
|Central Sales Tax Act||Sales Tax dues & benefit of Concessional Form C||Deputy Commissioner (Appeals)||8.63|
|Central Sales Tax Act||Benefit of Concessional Form D not allowed (1989-90)||Assistant Commissioner (Appeals)||2.47|
|U.P. Trade Tax Act||Acceptance of duplicate copy of 3D(1)||DC (Appeals)||1.32|
|ESI Act||Interest & Damages towards late deposit||Punjab & Haryana High Court, Chandigarh||3.52|
|Central Sales Tax Act||Central Sales Tax||Sales Tax Appellate Tribunal||1,346.14|
|The Andhra Pradesh Value Added Tax Act||AP VAT||Sales Tax Appellate Tribunal||46.58|
|Finance act||Service Tax Land Tax||CESTAT-Bangalore||10.58|
|Urban land Tax||Principal Commissioner and commissioner Land Reform Chennai||41.44|
|Vacant Land Tax||Land Tax||Director, Directorate of Town Panchayath, Chennai||10.35|
|Tamil Nadu Sales Tax||Sales Tax||Sales Tax Appellate Authorities||48.00|
|Income Tax Act||Income Tax||Income Tax Appellate Tribunal||264.50|
|Income Tax Act||Income Tax||Commissioner of Income Tax (Appeals)||6,956.44|
(x) 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.
(xi) In our opinion and based on our examination of records, the Company has notdefaulted in repayment of dues to banks.
(xii) In our opinion and based on our examination of records, the Company has notgranted any loans and advances on the basis of security by way of pledge of shares,debentures and others securities.
(xiii) The Company is not a chit fund / nidhi /mutual benefit fund/ society. Therefore,the provisions of clause (xiii) of paragraph 4 of the Order, as amended, are notapplicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities, debentures andother investments. Accordingly, the provisions of clause (xiv) of the Order, as amended,are not applicable to the Company.
(xv) According to the information and explanations given to us and the representationsmade by the Management, the Company has not given any guarantee for loans taken by othersfrom banks or financial institutions.
(xvi) The Company has not availed any term loan and hence, clause 4 (xvi) of the Order,as amended, is not applicable.
(xvii) According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the Company, we report that no funds raised on shortterm basis have been used for long term investment.
(xviii) The Company has not made preferential allotment of shares to parties covered inthe register maintained under section 301 of the Act.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by Public Issues and hence clause (xx) of theOrder, as amended, is not applicable to the Company.
(xxi) 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 have webeen informed of any such case by the Management, that causes the financial statements tobe materially misstated.
|For Badari, Madhusudhan & Srinivasan|
|Firm Registration Number: 005389S|
|30 May 2014||Membership No. 020378|
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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)||8,50,720|
|HDFC Mid-Cap Opportunities Fund (G)||4,85,000|
|ICICI Pru Value Discovery Fund (G)||4,00,000|
|HDFC Tax Saver Fund (G)||3,80,000|