| We have audited the accompanying financial statements of Bombay Wire
Ropes Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, the Statement of Profit and Loss and 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
The 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 sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the general circular
15/2013 dated September 13, 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.
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 auditor's 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 Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the 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 Act 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 March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) 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 (Auditor's Report) Order, 2003 as
amended by the Company's (Auditors Report) (Amendment) Order, 2004,
("the Order") 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 explanation 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 these
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 notified under
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;
e) on the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in our Report of even date to the members of
Bombay Wire Ropes Limited on the financial statements for the year
ended 31st March, 2014.
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a policy of verifying its fixed assets every year
which is reasonable having regard to the size of the Company. As
explained to us, physical verification has been carried out and no
discrepancies were observed between the book records and the
verification at the end of the year.
ii) (a) The Company does not hold any inventory at the end of the year
and therefore provisions of Clause
(ii) of paragraph 4 of the Order are not applicable to the Company.
iii) (a) (i) The Company has not given unsecured loans during the year
to a company covered in the register maintained under section 301 of
the Act.
(ii) In our opinion, the rate of interest and other terms and
conditions of loans given by the Company are not prejudicial to the
interest of the Company.
(iii) In respect of the said loans, terms of repayment is on demand
including interest. The Company has not exercised the option.
(b) (i) The Company has not taken any unsecured loans during the year
from a company covered in the register maintained under section 301 of
the Act and therefore provisions of Clause (iii) of paragraph 4 of the
Order are not applicable to the Company.
(iv) In our opinion, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanation given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
v) (a) In our opinion, and according to the information and explanation
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under the said section.
(b) In our opinion, and according to the information and explanation
given to us, there are no transactions made in pursuance of contracts
or arrangements entered into the register as per section 301 of the Act
and exceeding the value of rupees five lakhs in respect of any party
during the year, which have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit within the meaning of
section 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under.
vii) In our opinion, the internal control system of the Company is
commensurate with the size of the Company and nature of its business
and there is no internal audit system.
viii) (a) According to the information and explanation given to us and
according to books and records of the Company examined by us, in our
opinion, the Company is generally regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, employees' state insurance, income-tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
There were no outstanding statutory dues as on 31st of March, 2014 for
a period of more than six months from the date they became payable.
(b) Details of dues of Income tax, property tax, Municipal Corporation
of Greater Mumbai, which have not been deposited on account of matters
pending before appropriate authorities is as under:
Name of the statute Nature of Period to which Amount in
Dues pertain Rs.
Income Tax Act, 1961 Property Tax Assessment 32,64,089
Year 1988-89 (Deposited
Rs.21,59,608)
Municipal Corporation Property Tax 1.4.2004 to 13,15,419
of Greater Mumbai 31.3.2012 (Deposited
13,15,419
Lease Rent 14.12.2000 Not
payable under onwards Ascertainable
Undertaking/
Indemnity Bond
Name of the statute Forum(Where
the dispute
is pending)
Income Tax Act, 1961 Hon'ble
Bombay
High Court.
Municipal Corporation MCGM
of Greater Mumbai
MCGM
ix) The Company does not have accumulated losses but has incurred cash
loss during the year.
x) The Company has not borrowed any funds from banks and/or financial
-institution and has not issued any debentures.
xi) The provisions of any special statute applicable to Chit Fund,
Nidhi or Mutual Benefit Society are not applicable to the Company.
xii) In our opinion, and according to the information and explanations
given to us, the Company has invested during the year in mutual funds.
The Company has maintained proper records of transactions and contracts
in respect of investments in shares and securities and timely entries
have been made therein. All shares, securities and other investment are
held by the Company in its own name.
xiii) The Company has not given any guarantee for any loan taken by
others from banks or financial institutions.
xiv) The Company has not obtained any term loan during the year. On the
basis of our examination and according to the information and
explanations given to us, the term loans have been applied for the
purpose for which the loans were obtained.
xv) On the basis of our examination, and according to the information
and explanation given to us, the Company has not raised any short-term
or long-term funds.
xvi) The Company has not made any preferential issue of shares.
xvii) The Company has not issued any debentures and therefore, the
provisions of Clause (xix) of paragraph 4 of the Order are not
applicable to the Company.
xviii) The Company has not raised any money by public issue during the
year covered by our audit report.
xix) In our opinion, and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year that causes the financial statements to be materially
mis-stated.
xx) Other clauses of the said Order are not applicable to the Company
SINGHI & COMPANY
9th Floor, Twin Towers, Chartered Accountants
Lokhandwala Complex, F. R. No. 110283W
Andheri (West), Mumbai - 400 053.
Maharashtra, India. (Praveen Kumar Singhi)
Partner
Dated : 30th June, 2014 Membership No. 51471 |