| We have audited the accompanying financial statements of Bhagyodaya
Infrastructure Development Limited (the 'Company'), which comprise the
Balance Sheet as at 31st 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.
Management's 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 referred to in Section 211(3C) of the
Companies Act, 1956, read with the General Circular No.15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. 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.
Auditor's 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 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 control relevant to the Company's 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 Company's
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 financial statements give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair 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 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 and
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order') issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956, 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 Companies Act, 1956, we report
that:
(a) we have obtained all 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 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, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the Statement of Profit and Loss, the Balance Sheet
and the Cash Flow Statement comply with the accounting standards
referred to in Section 211 (3C) of the Companies Act, 1956, read with
the General Circular No.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 the written representations received from directors
of the Company as on 31st March, 2014 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31st March, 2014, from being appointed as a director in terms of
Section 274 (1)(g) of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 of our report of even date)
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of all fixed
assets.
(b) As explained to us, these fixed assets have been physically
verified by the management, in accordance with a phased programme of
verification, which in our opinion, is reasonable, considering the size
of the Company and nature of its assets. The frequency of physical
verification is reasonable and no material discrepancies were noticed
on such verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
(ii) (a) As explained to us, inventories have been physically verified
by the management during the year. In our opinion, the frequency of
such verification is reasonable.
(b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, 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 stocks and
the book records, which were not material, have been properly dealt
with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the
Paragraphs 4(iii) (b), (c) and (d) of the Order are not applicable to
the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
Section 301 of the Companies Act, 1956. Accordingly, the Paragraphs
4(iii) (f) and (g) 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 adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of audit, we have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(v) According to the information and explanations given to us, there
are no contracts or arrangements that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956.
(vi) The Company has not accepted any deposits from the public.
Accordingly, the Paragraph 4(vi) of the Order is not applicable to the
Company.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
(viii) According to the information and explanations given to us, The
Central Government has not prescribed the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us, in
our opinion, the Company has been regular in depositing undisputed
statutory dues including provident fund, employees state insurance,
income-tax, sales tax, wealth tax, custom duty, excise duty, cess and
other statutory dues, as applicable, with the appropriate authorities
except for service tax amounting to Rs.9,422,393 which were in arrears
as at 31st March, 2014, for a period of more than six months from the
date it become payable.
(b) According to the information and explanations given to us, there
are no dues in respect of, income tax, VAT, wealth tax, service tax and
cess as at 31 March 2014, which have not been deposited on account of
any dispute.
(x) The Company has accumulated losses as at 31st March, 2014 and it
has incurred cash losses in the financial year ended on that date and
has not incurred cash losses in the immediately preceding financial
year.
(xi) According to the information and explanations given to us and as
per the records of the Company examined by us, the Company has not
defaulted in the repayment of dues to any financial institutions or
bank as at the balance sheet date. The Company has not issued any
debentures.
(xii) According to the information and explanations given to us and as
per the records of the Company examined by us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Accordingly, reporting on the
Paragraph 4 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and as
per the records of the Company examined by us The provisions of any
special statute applicable to chit fund/nidhi/mutual benefit
fund/societies are not applicable to the Company. Accordingly, the
Paragraph 4 (xiii) of the Order is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities debentures
and other investments. Accordingly, the Paragraph 4(xiv) of the Order
is not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purposes for which they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956, during the year. Accordingly,
the Paragraph 4(xviii) of the Order is not applicable to the Company.
(xix) The Company has not issued any debentures during the year.
Accordingly, the Paragraph 4 (xix) of the Order is not applicable to
the Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the Paragraph 4 (xx) of the Order is not applicable
to the Company.
(xxi) During the course of our examination of books 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 instances of material
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
SHARP & TANNAN
Chartered Accountants
Registration No. 109982W
by the hand of
MILIND P. PHADKE
Place: Mumbai Partner
Date: 27th May, 2014 Membership No. 033013 | 