Mar 31, 2016
To
The Members of Binny Mills Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Binny Mills Limited, (herein after referred to âthe Companyâ) which comprises the Balance Sheet as at March, 31 2016, 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 (herein after referred to as âFinancial Statementsâ).
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) with respect to 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 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. The Board of Directors of the Company is responsible for 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 judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. 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 there under.
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 the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. These procedures selected depend on the auditorâs judgment, including the assessment of the risk 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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, of the state of affairs of the Company as at 31st March, 2016, and its profit, and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure âAâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. 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 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 it 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 aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representation received from the Directors of the Company as on 31st March, 2016 taken on record by the Board of Directors of the Company, none of the directors of the Company is disqualified as on 31st March, 2016, from being appointed as a director in terms of section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure âBâ; and
g) With respect to the other matters to be included in the Auditorâs 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 has disclosed the impact of pending litigations in its financial statements
ii) The Company does not have any material foreseeable losses on long-term contracts.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended 31st March 2016, we report that:
1. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b. The Company has physically verified the fixed assets during the year and no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, in respect of leasehold land, lease agreement is held in the name of the Company.
2. The management has conducted physical verification of inventories at reasonable intervals and no material discrepancies were noticed.
3. The Company has not granted any loans to Companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013,
4. The Company has not given/made any loans, investments, guarantees and securities requiring compliance with Section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public during the year.
6. The Company is not required to maintain cost records as per Section 148(1) of the Companies Act, 2013.
7. a. According to the information and explanation given to us and on the basis of our examination of the records of the Company, the company is generally regular in depositing undisputed statutory dues including Provident fund, Income tax, Service tax, Value Added Tax, Excise duty with the appropriate authorities.
According to the information and explanation given to us, no undisputed amounts payable in respect of Provident fund, Income tax, Service tax, Value added tax, Excise duty were in arrears as at 31st March, 2016 for a period of more than six months from the date they become payable.
b. According to the information and explanation given to us, there are no material dues of VAT, Service tax, Customs duty, Excise duty and Cess which have not been deposited with the appropriate authorities on account of any dispute.
8. The Company has not obtained any loans from banks and hence there is no repayment of dues to banks.
9. The Company did not raise any money by way of intial public offer or further public offer (including debt instruments) during the year. The Company did not obtain any term loans during the year.
10. According to the information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. No Managerial remuneration has been paid or provided during the year.
12. The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act, wherever applicable, and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph, 3(xv) of the order is not applicable.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Binny Mills Limited (âthe companyâ) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and, and that receipts and expenditures of the company are being made only in accordance with authorizations of the management and the directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of the changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ
For T. Selvaraj & Co.,
Chartered Accountants
Firm Regn. No. 003703S
Place : Chennai
Date : 30.05.2016 S Vidya
Partner
M. No: 217934
Mar 31, 2015
We have audited the accompanying financial statements of Binny Mills
Limited, (herein after referred to "the Company") which comprises
the Balance Sheet as at March, 31 2015, and 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
(herein after referred to as "Financial Statements").
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (herein after referred to
as "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 flows 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 of 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 reasonable and
prudent; and design, effectively implementation and maintenance of
adequate financial internal 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
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are to be included in the
audit report under the provisions of the Act and the Rules made
thereunder.
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 the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure 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 financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the
circumstances. 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.
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
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, of the state of affairs of the Company as
at 31st March, 2015, and its Profit and its 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, 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, the extent applicable.
2. 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
purpose 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 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 aforesaid financial statements comply with the
accounting standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
Directors as on 31st March, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as a director, in terms of section 164(2) of
the Act;
f. 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 has does not have any pending litigations which 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 Fund by the Company
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31 March 2015, we report that
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
b. The fixed assets have been physically verified by the management at
reasonable intervals and no material discrepancies were noticed on such
verification
2. a. Physical verification of inventory has been conducted at
reasonable intervals by the management
b. The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and nature of its business.
c. The Company is maintaining proper records of inventory no material
discrepancies were noticed on physical verification
3. a. 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
4. 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, for the
purchase of inventory and fixed assets and for the sale of goods and
services. No major weaknesses in internal control system were observed
during the course of audit.
5. The Company has not accepted any deposits from public during the
year.
6. The Company is not required to maintain cost records as per Section
148(1) of the Companies Act, 2013.
7. a. According to the information and explanations given to us and on
the basis of our examination 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, sales
tax, wealth tax, service tax, duty of customs, duty of excise, value
added tax, cess and any other statutory dues have been regularly
deposited during the year by the Company with the appropriate
authorities.
b. According to the information and explanations given to us, no dues
of income tax or sales tax or wealth tax or service tax or duty of
customs or duty of excise or value added tax or cess have not been
deposited on account of any dispute.
c. No amount was required to be transferred to Investor education and
Protection Fund in accordance with the provisions of the Act during the
year.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. The Company did not have any outstanding dues to financial
institutions, banks or debentures.
10. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof are prejudicial to the interest of the company.
11. The Company did not apply for any term loans during the year.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of audit.
for M/s T.Selvaraj& Co
Chartered Accountants
Firm Registration No: 003703S
Place : Chennai
Date : 29th May 2015 S Vidya
Partner
Membership No: 217934
Mar 31, 2014
We have audited the accompanying financial statements of Binny Mills
Ltd, which comprises the Balance Sheet as at March, 31 2014, and 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 Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance 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 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
controls 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure 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 the 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 or Loss, of the Profit of the
Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ( 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.
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 accounts 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 Balance sheet, the Statement of Profit and
Loss, and the Cash Flow statement comply with the accounting standards
referred to sub-section (3C) of Section 211 of the Act;
e. On the basis of the 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 Act;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act,
nor has it issued any rules under the said section prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
Referred to in Paragraph 3 of our Report of even date
1. In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
The fixed assets have been physically verified during the year by the
management in accordance with a programme of verification, which
provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
Based on our scrutiny of the records of the company and the information
& explanation received by us, we report that there were no sale of
fixed assets during the year.
2. As explained to us, the inventories of the Company have been
physically verified during the year by the management at reasonable
intervals.
According to the information and explanations given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventories and
no material discrepancies were noticed between physical stocks and book
records.
3. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured, to the
companies, firms or individual, parties covered in the register
maintained under section 301 of the Companies Act, 1956. The Company
has taken unsecured loan from one party covered in the register
maintained under section 301 of the Companies Act, 1956, and the year
end balance of such loan was Rs. 0.62 lakhs (Rs. 0.62 lakhs as on
31.3.2013). In our opinion, since the loan was received interest free
without any terms and conditions stipulated for repayment, the same is
not prima-facie prejudicial to the interest of the company In our
opinion, since the loan was received interest free without any terms
and conditions stipulated for repayment, the principal portion has not
fallen due for repayment.
4. 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 the purchase and sale of goods and services.
Further on the basis of our examination of the books and records of the
Company carried out in accordance with the auditing standards generally
accepted in India, and according to the information and explanations
given to us, we have neither come across nor have we been informed of
any continuing failure to correct major weaknesses in the internal
control system.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
required to be maintained under section 301 of the Companies Act, 1956
have been so entered and the transactions during the year in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
7. The Company does not have a formal internal Audit. However, from
the information and explanations given to us, the existing internal
control procedures are commensurate with its size and nature of its
business.
8. As explained to us and as per the information and explanations
given to us the maintenance of cost records under section 209(1)(d) of
the Companies Act, 1956 are not applicable.
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Pension Fund, Employees State Insurance, income tax, service tax,
professional tax, urban land tax, cess and other material statutory
dues applicable to the Company have generally been regularly deposited
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
income tax and other statutory dues were in arrears as at 31st March
2014 for a period of more than six months from the date they became
payable except in respect of urban land tax to the tune of
Rs.3,87,000/- Which is yet to be remitted.
There are no disputed statutory dues payables as at the Balance sheet
date.
10. The Company does not have any accumulated losses as at 31st March
2014 and has not incurred cash loss during the financial year and also
in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution and bank. The Company has not issued any
debentures.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. The Provisions of any special statute as specified under clause
(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities and
hence Clause (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from
financial institutions and hence Clause (xv) of the Order is not
applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loans during the
year.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report no funds raised on short term basis have been
utilized for long term investments and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year and
hence reporting under Clause (xix) of the Order is not applicable to
the Company.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For M/s T. Selvaraj & Co
Chartered Accountants
Firm Registration No: 003703S
Place: Chennai
Date : 30th May 2014
S Vidya
Partner
Membership No: 217934
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Binny Mills
Ltd, which comprises the Balance Sheet as at March, 31 2013, and 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 Company''s 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). This
responsibility includes the design, implementation and maintenance of
internal controls 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure 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 the 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, 2013;
b) In the case of the Statement of Profit or Loss, of the LOSS of the
Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 ( 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.
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 accounts 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 Balance sheet, the Statement of Profit and
Loss, and the Cash Flow statement comply with the accounting standards
referred to sub-section (3C) of Section 211 of the Act;
e. On the basis of the written representations received from the
Directors as on March 31, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2013,
from being appointed as a director, in terms of clause (g) of
sub-section (1) of section 274 of the Act;
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act,
nor has it issued any rules under the said section prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
Referred to in Paragraph 3 of our Report of even date
1. In respect of fixed assets, the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
The fixed assets have been physically verified during the year by the
management in accordance with a programme of verification, which
provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification. Based on our scrutiny of the records of the company and
the information & explanation received by us, we report that there were
sale of fixed assets during the year but the fixed assets disposed off
did not constitute a substantial part of the fixed assets of the
company.
2. As explained to us, the inventories of the Company have been
physically verified during the year by the management at reasonable
intervals.
According to the information and explanations given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventories and
no material discrepancies were noticed between physical stocks and book
records.
3. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured, to the
companies, firms or individual, parties covered in the register
maintained under section 301 of the Companies Act, 1956. The Company
has taken unsecured loan from one party covered in the register
maintained under section 301 of the Companies Act, 1956, and the year
end balance of such loan was Rs. 0.62 lakhs (Rs. 0.62 lakhs as on
31.3.2012). In our opinion, since the loan was received interest free
without any terms and conditions stipulated for repayment, the same is
not prima-facie prejudicial to the interest of the company.
In our opinion, since the loan was received interest free without any
terms and conditions stipulated for repayment, the principal portion
has not fallen due for repayment.
4. 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 the purchase and sale of goods and services.
Further on the basis of our examination of the books and records of the
Company carried out in accordance with the auditing standards generally
accepted in India, and according to the information and explanations
given to us, we have neither come across nor have we been informed of
any continuing failure to correct major weaknesses in the internal
control system.
5. In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
required to be maintained under section 301 of the Companies Act, 1956
have been so entered and the transactions during the year in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
7. The Company does not have a formal Internal Audit. However, from
the information and explanations given to us, the existing internal
control procedures are commensurate with its size and nature of its
business.
8. As explained to us and as per the information and explanations
given to us the maintenance of cost records under section 209(1)(d) of
the Companies Act, 1956 are not applicable.
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Pension Fund, Employees State Insurance, income tax, service tax, cess
and other material statutory dues applicable to the Company have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax and other statutory
dues were in arrears as at 31st March 2013 for a period of more than
six months from the date they became payable except in respect of
service tax to the tune of Rs.3,06,250/- Which is yet to be remitted.
There are no disputed statutory dues payables as at the Balance sheet
date.
10. The Company does not have any accumulated losses as at 31st March
2013 and has incurred cash loss during the financial year ended on that
date. The Company has not incurred any cash loss in the immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution and bank. The Company has not issued any
debentures.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. The Provisions of any special statute as specified under clause
(xiii) of the Order are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities and
hence Clause (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loan taken by others from
financial institutions and hence Clause (xv) of the Order is not
applicable to the Company.
16. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loans during the
year.
17. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Company, we report no funds raised on short term basis have been
utilized for long term investments and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year and
hence reporting under Clause (xix) of the Order is not applicable to
the Company.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For T.SELVARAJ & CO.,
Chartered Accountants
Firm Regn No:003703S
M. Balaganesh
Partner
Membership No. 208781
Place : Chennai
Date : 29th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Binny Mills Limited
as at 31st March 2012, the Statement of Profit and Loss and also the
Cash Flow Statement for the year ended on that date annexed there to.
These Financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that, our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors'' Report)(Amendment) Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all 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 such
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, the Statement of Profit and Loss
and the Cash Flow Statement dealt by this report, comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On the basis of written representation received from the Directors,
as on 31/03/2012 and taken on records by the Board of Directors, we
report that, none of the Directors are disqualified as on 31/03/2012
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) We draw the attention of members to the following Note:
i). Non-confirmation of balances as at 31.03.2012 from Debtors, other
Current Assets and Sundry Creditors as stated in Note 24 in Notes
Forming part of Financial Statements and we are unable to express any
opinion on the recoverability or otherwise and the effect, if any, on
the reported results of the company for the period under audit.
g) Subject to f(i) above, the said accounts, in our opinion and to the
best of our information and according to the explanations given to us,
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 :
i. In the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March 2012,
ii. In the case of Statement of Profit and Loss, of the PROFIT of the
Company for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Re: BINNY MILLS LIMITED
Referred to in Paragraph 3 of our Report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets, which needs to be updated.
(b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
(c) The Company has not disposed off any fixed assets during the year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management is 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 were not material.
3. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured, to the
companies, firms or individual, parties covered in the register
maintained under section 301 of the Companies Act, 1956. The Company
has taken unsecured loan from one party covered in the register
maintained under section 301 of the Companies Act, 1956, and the year
I end balance of such loan was Rs. 0.62 lakhs (Rs. 0.62 lakhs as on
31.3.2011). In our opinion, since the loan was received interest free
without any terms and conditions stipulated for repayment, the same is
not prima-facie prejudicial to the interest of the company.
In our opinion, since the loan was received interest free without any
terms and conditions stipulated for repayment, the principal portion
has not fallen due for repayment.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, for
purchases and for sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public.
7. The Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
8. As explained to us and as per the information and explanation given
to us the maintenance of Cost Records under section 209 (1 )(d) of the
Companies Act, 1956 are not applicable.
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, undisputed statutory dues including Provident Fund,
Pension Fund, Employees State Insurance, income tax, service tax, cess
and other material statutory dues applicable to the Company have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax and other statutory
dues were in arrears as at 31st March 2012 for a period of more than
six months from the date they became payable except in respect of
service tax to the tune of Rs.236529/- Which is yet to be remitted.
There are no disputed statutory dues payables as at the Balance sheet
date.
10. The Company does not have any accumulated losses as at 31st March
2012 and has not incurred cash losses during the financial year ended
on that date or in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institutions, bank and debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provision of clause 4 (xiii) of
the Companies (Auditor''s Report) (Amendment) Order, 2004 are not
applicable to the Company.
14. 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 (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks / financial institutions.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loans during the
year.
17. 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.
18. According to the information given to us, the Company has not made
any preferential allotment of preference shares during the year.
19. According to the information and explanation given to us, the
Company has not issued any debentures during the year and creation of
security for issue of debenture does not arise.
20. According to the information and explanation given to us, the
Company has not raised money by public issue during the year and
disclosure of end use of public issue does not arise.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For T.SELVARAJ & CO
CHARTERED ACCOUNTANTS
Firm Regn.No:003703S
T.SELVARAJ
Place : Chennai PARTNER
MEMBERSHIP No:11370
Date : 01.09.2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Binny Mills Limited
as at 31s'' March 2011 tne Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed there to.These
Financial statements are the responsibility of the Company''s management
Our responsibility is tB express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with the auditiog standards
generally accepted in India Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement Ah audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used ana significant estimates made
by the management, as well as evaluating the overall financial
statement presentation We believe that our audit provides a reasonable
basis for our opinion.
3. - As required by the Companies (Auditors'' Report)(Amendment! Order.
2004 issued by the Centrai
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act. 1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said order
4. Further to our comments in the Annexure referred to above, we
report that
a) We have obtained all 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 tar as appears from our examination of such
books,
c) The Balance Sheet Profit and loss Account and Cash Flow Statement
dealt with Dy this Report dir- in agreement with the Books of Account
di In our opinion the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt by tnis report, comply with tne
Accounting Standards referred to in Sub-section i3C) of Section 211 of
the Companies Act 1956
e) On the basis of written representation received from the Directors,
as on 31/03/2011 and taken on records by the Board of Directors, we
report that, none of the Directors are disqualified as on 31/03/2011
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act. 1956
f) We draw the attention of members to the following Note:
i). Non-confirmation of balances as at 31.03.2011 from Debtors, other
Current Assets and Sundry Creditors as stated in Note 1 in Notes on
accounts and we are unable to express any opinion on the recoverability
or otherwise and the effect, if any, on the reported results of the
Company for the period under audit.
g) Subject to f(i) above, the said accounts, in our opinion and to the
best of our information and according to the explanations given to us,
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 :
i. In the case of Balance Sheet, of the State of Affairs of the
Company as at 31st March 2011.
ii. In the case of Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date; and iii. In the case of Cash
Flow Statement, of the Cash Flows for the year ended on that date
Re: BINNY MILLS LIMITED
Referred to in Paragraph 3 of our Report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets, which needs to be updated.
(b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
(c) The Company has not disposed off any fixed assets during the year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management is 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 were not material
3. According to the information and explanations given to us. the
Company has not granted any loans. secured or unsecured, to or from
the companies, firms or individual, parties covered in the register
maintained under section 301 of the Companies Act, 1956. The Company
has taken unsecured loan from one party covered in the register
maintained under section 301 of the Companies Act, 1956, and the year
end balance of such loan was Rs. 0.62 lakhs (Rs. 0.62 lakhs as on
31.3.2010). In our opinion, since the loan was received interest free
without any terms and conditions stipulated for repayment, the same is
not prima-facie prejudicial to the interest of the company.
In our opinion, since the loan was received interest free without any
terms and conditions stipulated for repayment, the principal portion
has not fallen due for repayment.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business. for
purchases and for sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to the information and explanations
given to us. the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time
6 In our opinion and according to the information and explanation given
to us. the Company has not accepted deposits from public.
7. The Company does not have any internal audit system to commensurate
with the size of the Company and the nature of its business and
services.
8. As explained to us and as per the information and explanation given
to us the maintenance of Cost Records under section 209 (1)(d) of the
Companies Act, 1956 are not applicable
9. According to the information and explanations given to us and
according to the books and records as produced and examined by us. in
our opinion, undisputed statutory dues including Provident Fund,
Pension Fund. Employees State Insurance, income tax. service tax, cess
and other material statutory dues applicable to the Company have
generally been regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax and other statutory
dues were in arrears as at 31s1 March 2011 for a period of more than
six months from the date they became payable except in respect of
service tax to the tune of Rs. 72,356/- which is yet to be remitted.
There are no disputed statutory dues payables as at the Balance sheet
date.
10. The Company does not have any accumulated losses as at 31s'' March
2011 and has not incurred cash losses during the financial year ended
on that date or in the immediately preceding financial year
11. In our opinion and according to the information and explanations
given to us. the Company has not defaulted in repayment of dues to the
financial institutions, bank and debenture holders
12 In our opinion and according to the information and explanations
given to us. the Company has not granted loans and advances on the
basis of securities by way of pledge of shares, debentures and other
securities.
13 In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund /society Therefore, the provision of clause 4 (xiii) of
the Companies (Auditor''s Report) (Amendment) Order. 2004 are not
applicable to the Company.
14. 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 (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks / financial institutions.
16 In our opinion and according to the information and explanation
given to us. the Company has not obtained any term loans during the
year
17 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
18. According to the information given to us. the Company has made
preferential allotment of preference shares during the year pursuant to
the Demerger Scheme of Binny Limited as approved by the Honourable High
Court of Madras, as follows:
28,14,18.142 9% Cumulative Redeemable Preference Shares of Rs 5 each
amounting to Rs. 140,70.90.710/- 5.88,000 9 75 % Cumulative Redeemable
Preference Shares of Rs. 5 each amounting"to Rs. 29.40.000/-
The Company has not made any preferential allotment of equity shares
during the year
19. According to the information, and explanation given to us. the
Company has not Issued any debentures during the year and creation of
security for issue of debenture does not arise
20. According to the information and explanation given to us the
Company has not raised monev bv public issue during the year and
disclosure of end use of public issue does not arise
21. According to the information and explanation given to us. no fraud
on or by the Company has beer noticed or reported during the course of
our audit.
For T.SELVARAJ & CO
CHARTERED ACCOUNTANTS
Hnr, Regn.No:0G3703S
T.SELVARAJ
Place: Chennai & ARTNER
Date : 29.08.2011 MEMBERSHIP No 11300
Mar 31, 2010
1. We have audited the attached Balance Sheet of Binny Mills Limited
as at 31st March 201.0, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date annexed there to.These
Financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors'' Report)(Amendment) Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the Companies Act, 1956, we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
a) We have obtained all 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 such
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this Report are in agreement with the Books of Account;
d) In our opinion the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt by this report, comply with the
Accounting Standards referred to in Sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) On''the basis of written representation received from the Directors,
as on 31/03/2010 and taken on records by the Board of Directors, we
report that, none of the Directors are disqualified as on 31/03/2010
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) We draw the attention of members to the following Note:
i) Transfer of assets from the Binny Ltd as per the High Court Approved
Scheme of Demerger and consequent accounting of share application
Pending allotment, creation of Revaluation Reserve and utilization of
the reserve for writing off the Goodwill on account of demerger as
stated in the notes on accounts.
ii). Non-confirmation of balances as at 31.03.2010 from Debtors, Loans
and Advances, other Current Assets and Sundry Creditors as stated in
Note 10 in Notes on accounts and we are unable to express any opinion
on the recoverabitity or otherwise and the effect, if any, on the
reported results of the company for the period under audit.
g) Subject to f(ii) above, the said accounts, in our opinion and to the
best of our information and according to the explanations given to us,
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 :
i. In the case of Balance Sheet, of the State of Affairs of the
Company as at 31" March 2010, ii. In the case of Profit and Loss
Account, of the PROFIT of the Company for the year ended on that date;
and iii. In the case of Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Referred to in Paragraph 3 of our Report of even date
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets, which needs to be updated.
(b) The fixed assets have not been verified by the management during
this year. The discrepancies (between physical verification and book
records) and accounting for such discrepancies does not arise.
(c) The Company has not disposed off any fixed assets during the year.
2. (a) The inventory has been physically verified by the management at
reasonable intervals.
(b) The procedure of physical verification of inventory followed by the
management is 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 were not material.
3. According to the information and explanations given to us, the
company has not granted or taken any loans, secured or unsecured, to or
from the companies, firms or individual, parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) of the Companies
(Auditor''s Report) (Amendment) Order, 2004 are not applicable to the
Company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business, for
purchases of fixed assets and for sale of goods and services. During
the course of our audit, we havenot observed any continuing failure to
correct major weaknesses in internal control systems.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public.
7. The Company does not have any internal audit system to commensurate
with the size of the company and the nature of its business and
services.
8. As explained to us and as per the information and explanation given
to us the maintenance of Cost Records under section 209 (1)(d) of the
Companies Act, 1956 are not applicable.
9. The Company is depositing undisputed statutory dues like Provident
Fund, Employees Pension Fund and Employees State Insurance with some
delays. There are no undisputed Statutory dues like Investor Education
and Protection Fund, Wealth Tax, Service Tax, Customs Duty, and other
statutory dues.
10. In our opinion, there are no accumulated losses of the Company as
at the year end. The company has not incurred cash losses during the
financial year covered by our audit and incurred cash loss in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to the
financial institutions, bank and debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of securities by way of pledge of shares* debentures and other
securities. . ,
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund /society. Therefore, the provision of clause 4 (xiii) of
the Companies (Auditor''s Report) (Amendment) Order, 2004 are not
applicable to the Company.
14. 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 (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from banks / financial institutions.
16. In our opinion and according to the information and explanation
given to us, the Company has not obtained any term loans during the
year.
17. 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. '' . ¦ .
18. According to the information given to us, the Company has not made
any preferential allotment of shares during the year. The amount of
share capital pending allotment is as per the high Court approved
scheme of demerger, as stated in the notes on accounts.
19. According to the information and explanation given to us, the
Company has-not issued any debentures during the year and creation of
security for issue of debenture does not arise.
20. According to the information and explanation given to us, the
Company has not raised money by public issue during the year and
disclosure of end use of public issue does not arise.
21. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
For CNGSN& ASSOCIATES For T.SELVARAJ & CO
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
R.THIRUMALMARUGAN T.SELVARAJ
PARTNER PARTNER
Membership No.200102 MEMBERSHIP No:11370
Firm Regn.No: 004915S Firm Regn.No:003703S
Place: Chennai Date: 27.08.2010