BSE: 2298 | NSE: 500049 | ISIN: INE263A01016
Market Cap: [Rs.Cr.] 16,566.40 | Face Value: [Rs.] 10
Industry: Electronics - Components
Bharat Electronics Limited,
Nagavara, Outer Ring Road,
Report on the Financial Statements
We have audited the accompanying financial statements of Bharat Electronics Limited(Company), which comprise the Balance Sheet as at March 31, 2013, theStatement of Profit and Loss for the year then ended and Cash Flow Statement for the yearthen ended and a summary of significant 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 subsection (3C) ofSection 211 of the Companies Act, 1956 (the Act). This responsibility includesthe design, implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement, 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. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Management, as well as evaluating the overall presentation of thefinancial statements.
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 March 31, 2013give the information required by the Act in the manner so required and give a true andfair 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 March31, 2013.
b) In the case of the Statement of Profit and Loss, of the Profit for the year ended onthat date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003, as amended by theCompanies (Auditors Report) Order, 2004 (hereinafter referred to as theOrder) issued by the Central Government of India in terms of section 227(4A) of theCompanies Act,1956, we give in the Annexure, a statement on the matters specified inparagraphs 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 in so far as it appears from our examination of those books. The audit of theaccounts of Bangalore, Hyderabad and Chennai Unit and Corporate Office were carried out byus, whilst the audit of Ghaziabad, Panchkula, Kotdwara, Pune, Navi Mumbai andMachilipatnam units were audited by respective branch auditors. The reports of branchauditors have been considered by us while preparing our report. In the case of New Yorkand Singapore Offices, not visited by us, in respect of which the accounts are maintainedat Corporate Office, the returns / records received from the said offices have beenverified and found to be adequate for the purpose of our audit. We further state that thedisclosure in Clause 15 of Note 31 of Companys share of Assets, Liabilities, Incomeand Expenses in the joint ventures is based on audited financial statements of GE BEPrivate Limited and audited financial statements of BEL Multitone Private Limited asprovided by the respective operators of Joint Ventures.
(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 of this Company.
(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 Companies Act, 1956 read with Section 211 (3B) of the CompaniesAct, 1956 and Clause 12 of Note 31 regarding Segment Reporting.
(e) As the Company is a Government Company, it is exempted from the provisions ofSection 274(1)(g) of the Companies Act, 1956 regarding disqualification of Directors videNotification 21st October 2003 issued by the Ministry of Finance, Department of CompanyAffairs.
|For R G N Price & Co|
|Firm Regn. No. 002785S|
|R M Kamath|
|30 May 2013||Membership No. 022907|
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 a portion of the Fixed Assets inaccordance with their phased programme of physical verification, which is consideredreasonable having regard to the size of the Company and nature of its business anddiscrepancies, if any, were properly dealt with on such verification during the year. (c)During the year, the Company has not disposed off substantial portion of the Fixed Assets.
(ii) (a) The Raw Materials, Stores and Spare Parts, Tools, Work in Progress and Semi -Finished Goods inventory (excluding stocks with third parties and materials in transit)have been physically verified by the Management. In our opinion, the frequency ofverification is reasonable. In case of finished goods, stock verification was done at yearend. We draw attention towards non - adjustment of the discrepancies noticed on physicalinventory as compared to the book records as given in Note No. 18(ii).
(b) The procedures for physical verification of inventory followed by the managementare generally reasonable and adequate in relation to the size of the Company and thenature 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, andthe differences are under reconciliation. In the case of materials with sub - contractorsconfirmation from certain sub - contractors were not obtained and in this regard we drawattention to Note No. 18(i).
(iii) The Company has not granted / taken any loans secured or unsecured to / fromparties covered in the register maintained under Section 301 of the Companies Act,1956 andhence, Clause No. 4 (iii) of Companies Audit Report Order, 2003 as amended in 2004, is notapplicable.
(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 these 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 Companies Act, 1956that need to be entered 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 Lokayukta, Bangalore and the balance of Rs.0.45 lakhs though matured of have not been claimed by depositors. 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 Companies Act, 1956 and the Companies (Acceptance ofDeposits) 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 given to understand that the Cost Audithas been ordered with effect from financial year 2012 - 13 and the audit is scheduled inJune 2013. We are of the opinion that prima facie the prescribed cost accounts and costrecords have been made and maintained. We have not, however, made a detailed examinationof the cost records with a view to determine whether they 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 material statutory dues applicable to it.
(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 March 31, 2013 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 Taxes (Appeals), Chirkunda, Bihar||66.44|
|Karnataka Sales Tax Act||Sales Tax||JC (Appeals) Bangalore||3,287.39|
|Andhra Pradesh Sales Tax Act||VAT||Commissioner (CT)||10.83|
|Finance Act||Service Tax||Commissioner (Appeals) Bangalore|| |
|Service Tax||CESTAT Bangalore||10.58|
|Central Excise Act||Excise Duty||Commissioner (Appeals), Bangalore||32.07|
|Excise Duty||Customs, Excise and Service Tax Appellate Tribunal, New Delhi||64.90|
|Trade Tax||Benefit of Concessional Form not Allowed||Uttarakhand High Court, Nainital||220.08|
|Benefit of Concessional Form not Allowed||Uttarakhand High Court, Nainital||141.08|
|ESI Act, 1948||Interest and Damages towards late deposit||Punjab and Haryana High Court, Chandigarh||3.52|
|Urban Land Tax||Land Tax||Principal Commissioner and Commissioner Land Reforms, Chennai||41.44|
|Vacant Land Tax||Land Tax||Director, Directorate of Town Panchayath||10.35|
|Employees Provident Fund and Miscellaneous Provision Act, 1952||Provident Fund||Regional Provident Fund Commissioner and Recovery Officer||17.58|
|Central Sales Tax Act||Central Sales Tax||Sales Tax Appellate Tribunal||479.26|
|Sales Tax dues and benefit of concessional Form C||Deputy Commissioner (Appeal)||8.40|
|Benefit of Concessional Form D not allowed||AC (Appeal).||2.39|
|Andhra Pradesh Value Added Tax Act||AP VAT||Sales Tax Appellate Tribunal||20.50|
|Income Tax Act 1961||TDS u/s 194I against deduction made u/s 194C||High Court of Allahabad||73.32|
|UP Trade Tax Act, 1948||Acceptance of duplication copy of 3D(1)||DC (Appeals)||1.27|
(x) The Company does not have accumulated losses as at the end of the financial yearand 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 or a nidhi /mutual benefit fund/ society.Therefore, the provisions of clause (xiii) of paragraph 4 of the Companies (AuditorsReport) Order, 2003 is not applicable 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 Companies(Auditors Report) Order, 2003 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 Companies(Auditors Report) Order, 2003 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 Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by Public Issues and hence clause (xx)ofCompanies (Auditors Report) Order, 2003, 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 R G N Price & Co|
|Firm Regn. No. 002785S|
|R M Kamath|
|30 May 2013||Membership No. 022907|
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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-91-80-25039300/25039266 / 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)||6,86,800|
|HDFC Tax Saver Fund (G)||5,88,951|
|HDFC Top 200 Fund (G)||5,21,690|
|HDFC Mid-Cap Opportunities Fund (G)||4,74,000|
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