Independent Auditors
To
The Members of
Bala Techno Global Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Bala Techno Global Limited
("the Company") which comprise the Balance Sheet as at 31 March 2014, the
Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the 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 Standards notified under the Companies Act, 1956
("the Act") read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and maintenance of internal
control 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 conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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
disclosures in the financial statements. The procedures selected depend on the auditors
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 control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the companys internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, 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.
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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31
March 2014;
ii. in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order"),
as amended, issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have 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 appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with
by this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in sub-section (3C) of Section
211 of the Act read with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors as on 31 March
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
For U. Narain & Co.
Chartered Accountants FRN: 000935C
(J. P. Agarwal)
Partner
Membership No. 54090
Place: Kolkata Date: 30th May 2014
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under the heading "Report on other Legal and
Regulatory requirements" of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) All of the fixed assets have been physically verified by the management during the
year. There is a regular programme of verification which, in our opinion, is reasonable
having regard to the size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
(c) During the year, there is no substantial disposal of fixed assets which would
affect the going status of the company.
(ii) (a) The inventory has been physically verified during the year by the management.
In our opinion, the frequency of verification is reasonable.
(b) 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) The company is maintaining proper records of inventory. The discrepancies noticed
on verification between the physical stock and the book records were not material.
(iii) (a) The Company has not granted any loan to companies / firms / other parties
covered in the register maintained under Section 301 of the Companies Act, 1956.
(b) In view of clause (iii) (a) above, this Clause is not applicable.
(c) In view of clause (iii) (a) above, this Clause is not applicable.
(d) In view of clause (iii) (a) above, this Clause is not applicable.
(e) The Company has taken unsecured loans from three parties covered in the register
maintained under section 301 of the Companies Act, 1956. The year end balance of the loans
taken from such parties was Rs. 15,56,000/
(f) In our opinion, the rate of interest and other terms and conditions of such loans
are not prima-facie, prejudicial to the interest of the company.
(g) There are no stipulations as to the payment of principal amount and interest
thereon.
(iv) In our opinion and according to the information and explanations 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 purchase of inventory and fixed assets and
with regard to sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, the transactions
that need to be entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees
five lakhs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant time.
(vi) The Companies has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
(viii) As explained to us, the Company is not required to maintain the cost records as
prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) The Company has been generally regular in depositing with appropriate
authorities undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty and other material statutory dues applicable to it.
(b) According to information and explanations given to us, there are no undisputed
amounts payable except in respect of Sales Tax Rs. 1,87,343/- which was outstanding, at
the year ended on 31st March, 2014, for a period of more than six months from the date
they became payable.
(c) According to the information and explanations given to us, there are no dues of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Other material statutory
dues which have not been deposited on account of any dispute.
(x) In our opinion, the companys accumulated losses at the end of the financial year
are less than fifty percent of its net worth. The company has not incurred cash losses
during the financial year covered by our audit, but incurred cash losses in the
immediately preceding financial year.
(xi) According to the information and explanations given to us, the company has not
defaulted in repayment of dues to a financial institution or bank or debenture-holders.
(xii) According to the information and explanations given to us, the company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures
and other securities.
(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the company has not
given any guarantees for loans taken by others from banks or financial institutions.
(xvi) The Company does not have any term loan.
(xvii) According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the company, we report that no funds raised on
short-term basis have been used for long-term investment.
(xviii) According to the information and explanations given to us, the company has not
made any preferential allotment of equity shares to parties covered in register maintained
under Section 301 of the Companies Act during the year.
(xix) As explained to us, the company does not have any outstanding debentures.
(xx) The company has not raised any money through a public issue during the year.
(xxi) According to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
For U. Narain & Co.
Chartered Accountants
FRN: 000935C
(J. P. Agarwal)
Partner
Membership No. 54090
Place: Kolkata
Date: 30th May 2014
+91-9892691696
