| 1. We have audited the accompanying financial statements of M/s. Basil
Infrastructure Projects Limited, ("the Company"), which comprise the
Balance Sheet as at March 31, 2015 the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explantory information.
Management's Responsibility for the Financial Statements:
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("The Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flow of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 judgements
and estimates that are responsible and prudent, and design,
implementation and maintenance of adequate internal financial controls,
that were 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.
Auditor's Responsibility:
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. 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 thereunder.
5. 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 misstatement.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, 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 control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. Incur opinion and to the best of our information and according to
the explanations given to us, the 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, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Emphasis of Matters
9. We draw attention to the following matters in the Notes to the
financial statements :
a. Note No. 2.26 that in the opinion of the board of directors of the
company the diminution in the value of certain investments is temporary
in nature and hence no provision towards diminution in the value of
investments is considered necessary.
b. Note No. 2.27 that balances lying in some of the receivables',
payables' accounts are subject to confirmation
Our opinion is not modified in respect of these matters.
Report other Legal and Regulatory Requirements:
10. 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 section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
11. 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
purposes of our audit.
b. In our opinion, proper books of accounts 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 Statement of Profit an Loss, and the Cash
Flow Statement specified delat with by this Report are in agreement
with the books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standars specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. The matter described in paragraph 9(a) and (b) under the Emphasis
of Matters paragraph above, in our opinion, may not have an adverse
effect on the functioning of the Company.
f. On the basis of the written representations received from the
directors as on 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
g. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations that would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Found by the Company.
Annexure to the Independent Auditor's Report:
The Annexure referred in paragraph (10) of our Independent Auditor's
Report of even date to ht emembers of the Company on the financial
statements for the year ended 31 March 2015, we report that:
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b) The Company has a regular programme of physical verification of its
fixed asets by which all the fixed assets are physically verified by
the manegement over a period of three yers. In our opinion the the
periodicity of the physical verification is reasonable having regard to
the size of the Company and the nature of its assets. In accordance
with this programme, certain fixed assets were verified during the year
and no material discrepancies have been noticed on such verification.
ii) The Company does not hold any inventory. Accordingly clause 3(ii)
of the order is not applicable to the Company.
iii) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 ("the Act"). Consequently,
clauses 3 (iii) (a) and 3 (iii) (b) of the Order are not applicable to
the company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories fixed assets and sale of goods. The
activities of the Company do not include sale of services. We have not
observed any major weakness in the internal control system during the
course of the audit.
v) The Company has not accepted any deposits. Consquently, the clause
3(v) of the order is not applicable to the Company.
vi) According to the information and explanations given to us,
maintenance of cost records by the company is not required pursuant to
the Rules made by the Central Government for the maintenance of cost
records under sub-section (1) of section 148 of the Companies Act, 2013
("the Act"), in respect of the business activities carriedout by the
company.
vii) a) According to the information and explanations given to us and on
the bais of examination of the records of the Company, amounts deducted
/ accrued in the books of account in respect of undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
cess and other material statutory tax, duty of customs, duty of excise,
value added tax, cess and other material statutory dues have been
regularly deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no undisputed
amounts are payable in respect of income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax or cess
and other material statutory dues which were in arrears as at 31 st
March 2015 for a period of more than six months from the date they
became payable.
b) As at 31 st March 2015, there have been no disputed dues, which have
not been deposited with the respective authorities in respect of Income
tax, Sales tax, Wealth tax, Service tas, duty of customs, duty of
excise, value added tax and cess.
c) According to the information and explanations given to us there are
no amounts which were required to be transferred to the investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
viii) The Company has no accumulated losses as at the end of the
financial year. However it has incurred cash losses in the financial
year covered by our audit and the immediately preceding financial year.
ix) The Company has neither taken any term loan from financial
institutions or a bank nor issued any debentures. Consequently, the
clause 3 (ix) of the Order is not applicable to Company.
x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Consequently the clause 3 (x) of the
order is not applicable to the Company.
xi) According to the information and explanations given to us, the
Company has not obtained any term loans. Consequently; the clause 3
(xi) of the order is not applicable to Company.
xii) During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company nor the Company has been noticed
or reported during the course of our audit.
For BRAHMAYYA & CO.,
Place: Hyderabad Chartered Accountants
Date : 2.05.2015 Firm Regn No.000513S
Sd/-
(C.V. Rmana Rao)
Partner
Membership No. 018545
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