Mar 31, 2023
The Bombay Burmah Trading Corporation, Limited
Report on the Audit of the standalone Financial statements
opinion
1. We have audited the accompanying standalone financial statements of the Bombay Burmah trading Corporation, Limited (''the Company''), which comprise the Standalone Balance Sheet as at 31 March 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash Flows and the Standalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information, in which are included the returns for the year ended on that date audited by the branch auditor of the Company''s branch located at Usambara in Tanzania.
2. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the branch auditor as referred to in paragraph 16 below, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained together with the audit evidence obtained by the branch auditor, in terms of their reports referred to in paragraph 16 of the Other Matter section below is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw attention to Note no. 55 of the accompanying standalone financial statement which describes the determination of total exposure of the Company and provision thereon with respect to a material associate entity, Go Airlines (India) Limited, who voluntarily filed insolvency proceedings with National Company Law Tribunal. Our opinion is not modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, and based on the consideration of the report of the branch auditor as referred to paragraph 16 below, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
6. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key audit matter |
How our audit addressed the key audit matter |
Revenue recognition Refer note 1(E)(ii)(m) and note 25 of the standalone financial statements. The Company is primarily involved in manufacturing and sale of automotive electric components, tea, coffee, dental products and real estate property. Owing to the multiplicity of the Company''s products of different nature and varied terms of contracts with customers, in line with the requirements of the Standards on Auditing, revenue is determined to be an area involving significant risk and hence, requiring significant auditor attention. The Company and its external stakeholders focus on revenue as a key performance metric, and this could create an incentive for revenue to be overstated or recognised before the control has been transferred. Considering the amount involved, large number of transactions and diverse nature of the revenue streams, revenue recognition is considered as a key audit matter for the current year audit. |
our audit procedures included, but were not limited, to the following: ⢠Assessed the appropriateness of revenue recognition accounting policies of the Company including those related to rebates and trade discounts, by evaluating the compliance with the applicable Ind AS. ⢠Evaluated the design and tested the operating effectiveness of the relevant internal financial controls with respect to recognition and measurement of revenue including general and specific information technology controls. ⢠Performed substantive testing on samples selected from revenue transactions recorded during the year by testing the underlying documents including contracts, invoices, goods dispatch notes, shipping documents and customer receipts, wherever applicable. ⢠Performed cut off procedures, on sample basis for the period before and after the year end by testing the underlying documents and ensured that the revenue is recognised in the correct period. ⢠Tested, on a sample basis, the appropriateness of journal entries impacting revenue, as well as other adjustments made in the preparation of the standalone financial statements with respect to revenue recognition of Company including specific journals posted manually directly to revenue. ⢠Performed analytical review procedures on revenue recognised during the year to identify any unusual and/or material variances. ⢠Performed confirmation procedures on selected balances outstanding as at the year end. ⢠Evaluated the appropriateness of disclosures made in the standalone financial statements with respect to revenue recognised during the year as required by applicable Ind AS. |
Litigations and contingent liabilities -Singampatti tea estate Refer note 41 of the standalone financial statements. The Company has been carrying on its plantation activities at Singampatti tea estate, Tamil Nadu under a lease arrangement since 1929. During an earlier year, the Commissioner of Land Administration in Tamil Nadu passed an order cancelling the lease alleging violation of conditions with regard to clearing of certain areas. |
our audit procedures included, but were not limited, to the following: ⢠Obtained an understanding of the management''s process for identification of legal matters, outcome of the litigations, assessment of accounting treatment for each of such litigated matter identified under Ind AS 37 and for measurement of amounts involved. ⢠We evaluated the design and tested the operating effectiveness of relevant internal financial controls with respect to the litigations. |
Key audit matter |
How our audit addressed the key audit matter |
During the earlier years, the authorities raised demands for lease rentals of the leased land retrospectively from 1958 to 2019 amounting to '' 23,192.58 lakhs. The Company had challenged the above orders by filing a writ petition before the Hon''ble Madras High Court which was admitted and an interim relief restraining the Government from taking any action was granted by the Court. We focused on this area as the eventual outcome of the litigations is uncertain and the positions taken by the management are based on the application of the significant judgement and reliance on legal opinions obtained. Accordingly, unexpected adverse outcomes may significantly impact the operations of the Company and hence it has been considered as a key audit matter. |
⢠We obtained an understanding of the aforesaid litigation matter and discussed the key developments during the year with the management. ⢠Obtained and reviewed the necessary evidence which includes correspondence with external legal counsel, and statutory authorities, inspected minutes of case proceedings available, to support the decision and rationale of the litigation matter and writ petition filed by the Company in relation to this matter. We also tested the independence, objectivity and competence of management''s expert involved. ⢠Obtained a direct confirmation from the management''s expert to ensure that the accounting treatment of this litigation matter is in accordance with the applicable Ind AS. ⢠Evaluated the appropriateness of disclosures made in the standalone financial statements with respect to the aforesaid litigation matter in accordance with the requirements of the applicable Ind AS. |
Related party transactions Refer note 48 of the standalone financial statements. The Company has entered into several transactions with related parties during the year ended 31 March 2023 and has outstanding balances from related parties as at the year end. We identified related party transactions as a key audit matter due to the risks identified with respect to completeness of disclosures made in the standalone financial statements due to the volume of such transactions, recoverability of the balances outstanding, compliance with statutory regulations governing related party transactions and the judgement involved in assessing whether transactions with related parties are undertaken at arms'' length. |
Our audit procedures included, but were not limited, to the following: ⢠Obtained an understanding of management''s processes and controls to record and evaluate related party transactions. ⢠Evaluated the design and tested operating effectiveness of the relevant internal financial controls to identify and disclose related party relationships and transactions and ensuring compliance with statutory requirements, assessing recoverability of the amount due from the related parties. ⢠Carried out an assessment of compliance with the relevant provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015 ("SEBI Listing Regulation") and the Act, including authorisation and approvals as specified in sections 177 and 188 of the Act with respect to the related party transactions, as applicable. ⢠On sample basis, inspected relevant ledgers, agreements and other information that may indicate the existence of related party relationships or transactions. We also assessed the completeness of related parties with reference to the various registers maintained in accordance with applicable statue and declarations maintained by the Company''s management. |
Key audit matter |
How our audit addressed the key audit matter |
⢠Verified the management''s assessment of recoverability of dues from related parties by reference to underlying supporting documents, valuation of underlying assets of such entities and settlement of such transactions subsequent to the balance sheet date. ⢠On a sample basis, tested the Company''s assessment of related party transactions for arms'' length pricing with the help of auditor''s experts. ⢠Evaluated the adequacy and appropriateness of disclosures made in the standalone financial statements of related party relationships and transactions in accordance with the requirements of applicable Ind AS. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon
7. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
8. The accompanying standalone financial statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the standalone financial position, standalone financial performance including other comprehensive income, standalone changes in equity and standalone cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. 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 judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
9. In preparing the standalone financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
10. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
12. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls;
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
⢠Conclude on the appropriateness of Board of Directors'' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern;
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation; and
⢠Obtain sufficient appropriate audit evidence regarding the standalone financial statements of the Company and its branches or the business activities within the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of the Company and such branches included in the standalone financial statements, of which we are the independent auditors. For the other branch included in the standalone financial statements, which have been audited by the branch auditor, such branch auditor remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
13. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
15. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
16. We did not audit the financial information of one branch included in the standalone financial statements of the Company whose financial information (before eliminating inter-unit balances and transactions) reflects total assets and net assets of '' 466.71 lakhs and '' 345.72 lakhs respectively as at 31 March 2023, and the total revenues of '' 473.60 lakhs, total net loss after tax of '' 102.46 lakhs, total comprehensive loss of '' 83.06 lakhs, and cash flows (net) of '' 31.90 lakhs respectively for the year ended on that date, as considered in the standalone financial statements. These financial information have been audited by the branch auditor whose report have been furnished to us by the management, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of branch, and our report in terms of sub-section (3) of section 143 of the Act in so far as it relates to the aforesaid branch, is based solely on the report of such branch auditor.
Further, this branch is located outside India whose financial statements and other financial information has been prepared in accordance with accounting principles generally accepted in their respective country and which has been audited by branch auditor under generally accepted auditing standards applicable in their country. The Company''s management has converted the financial information of such branch from accounting principles generally accepted in their country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company''s management. Our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of such branch, is based on the audit report of branch auditor and the conversion adjustments prepared by the management of the Company and audited by us.
Our opinion above on the standalone financial statements, and our report on other legal and regulatory requirements below, are not modified in respect of the above matters with respect to our reliance on the work done by and the reports of the branch auditor.
Report on Other Legal and Regulatory Requirements
17. As required by section 197(16) of the Act based on our audit, and on the consideration of the report of the branch auditor as referred to in paragraph 16 above, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
18. As required by the Companies (Auditor''s Report) Order, 2020 (''the Order'') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure I, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
19. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, and on the consideration of the report of the branch auditor as referred to in paragraph 16 above, we report, to the extent applicable, 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 of the accompanying standalone financial statements;
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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us;
c) The report on the accounts of the branch office of the Company audited under section 143(8) of the Act by the branch auditor has been sent to us and have been properly dealt with by us in preparing this report;
d) The standalone financial statements dealt with by this report are in agreement with the books of account and with the return received from the branch not visited by us;
e) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
f) The matter described in paragraph 4 under the Emphasis of Matter, in our opinion, may not have an adverse effect on the functioning of the Company;
g) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 from being appointed as a director in terms of section 164(2) of the Act;
h) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure II wherein we have expressed an unmodified opinion; and
i) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the branch auditor as referred to in paragraph 16 above:
i. The Company has disclosed the impact of pending litigations on its financial position as at 31 March 2023.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed in
note 53(g) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person or entity, including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 53(g) to the standalone financial statements, no funds have been received by the Company from any person or entity, including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.
v. The final dividend paid by the Company during the year ended 31 March 2023 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 44 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2023 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting software for maintaining their books of account, to use such an accounting software which has a feature of audit trail, with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial year.
For Walker Chandiok & Co LLP
Chartered Accountants Firm''s Registration No.: 001076N/N500013
Adi P. Sethna
Partner
Place: Mumbai Membership No.: 108840
Date: 26 May 2023 UDIN: 23108840BGYAWG3346
Mar 31, 2022
The Bombay Burmah Trading Corporation, LimitedReport on the Audit of the Standalone Financial StatementsOpinion
1. We have audited the accompanying standalone financial statements of The Bombay Burmah Trading Corporation, Limited (the ''Company''), which comprise the Standalone Balance Sheet as at 31 March 2022, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information, in which are included the returns for the year ended on that date audited by the branch auditor of the Company''s branch located at Usambara in Tanzania.
2. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the report of the branch auditor as referred to in paragraph 15 below, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the ''Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit (including Other Comprehensive Loss), its cash flows and the changes in equity for the year ended on that date.
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and that obtained by the branch auditor, in terms of their report referred to in paragraph 15 of the Other Matter section below is sufficient and appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in our professional judgment, and based on the consideration of the reports of the branch auditors as referred to paragraph 15 below, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matters described below to be the key audit matters to be communicated in our report.
The key audit matter |
How the matter was addressed in our audit |
Revenue recognition - Holding Company Refer note 1E and note 26 of the standalone financial statements. The Company is primarily involved in manufacturing and sale of Automotive Electric Components, Tea, Coffee and Dental Products and during the current year it also had sale of real estate property. Owing to the multiplicity of the Company''s products of different nature and varied terms of contracts with customers, in line with the requirements of the Standards on Auditing, revenue is determined to be an area involving significant risk and hence, requiring significant auditor attention. The Company and its external stakeholders focus on revenue as a key performance metric, and this could create an incentive for revenue to be overstated or recognised before the control has been transferred. Considering the amount involved, large number of transactions and diverse nature of the revenue streams, revenue recognition is considered as a key audit matter for the current year audit. |
Our audit procedures included, but were not limited, to the following: ⢠Assessed the appropriateness of revenue recognition accounting policies of the Company including those related to rebates and trade discounts, by evaluating the compliance with the applicable Ind AS. ⢠Evaluated the design and tested the operating effectiveness of the relevant internal financial controls with respect to recognition and measurement of revenue including general and specific information technology controls. ⢠Performed substantive testing on samples selected from revenue transactions recorded during the year by testing the underlying documents including contracts, invoices, goods dispatch notes, shipping documents and customer receipts, wherever applicable. ⢠Performed cut off procedures, on sample basis for the period before and after the year end by testing the underlying documents and ensured that the revenue is recognised in the correct period. ⢠Tested, on a sample basis, the appropriateness of journal entries impacting revenue, as well as other adjustments made in the preparation of the standalone financial statements with respect to revenue recognition of Company including specific journals posted manually directly to revenue. ⢠Performed analytical review procedures on revenue recognised during the year to identify any unusual and/or material variances. ⢠Performed confirmation procedures on selected balances outstanding as at the year end. ⢠Evaluated the appropriateness of disclosures made in the standalone financial statements with respect to revenue recognised during the year as required by applicable Ind AS. |
Litigations and contingent liabilities -Singampatti tea estate Refer note 41 of the standalone financial statements. The Holding Company has been carrying on its plantation activities at Singampatti tea estate, Tamil Nadu under a lease arrangement since 1929. During an earlier year, the Commissioner of Land Administration in Tamil Nadu passed an order cancelling the lease alleging violation of conditions with regard to clearing of certain areas. During the earlier years, the authorities raised demands for lease rentals of the leased land retrospectively from 1958 to 2019 amounting to '' 23,192.58 lakhs. |
Our audit procedures included, but were not limited, to the following: ⢠Obtained an understanding of the management''s process for identification of legal matters, outcome of the litigations, assessment of accounting treatment for each of such litigated matter identified under Ind AS 37 and for measurement of amounts involved. ⢠We evaluated the design and tested the operating effectiveness of relevant internal financial controls with respect to the litigations. ⢠We obtained an understanding of the aforesaid litigation matter and discussed the key developments during the year with the management. |
The key audit matter |
How the matter was addressed in our audit |
The Company had challenged the above orders by filing a writ petition before the Hon''ble Madras High Court which was admitted and an interim relief restraining the Government from taking any action was granted by the Court. We focused on this area as the eventual outcome of the litigations is uncertain and the positions taken by the management are based on the application of the significant judgement and reliance on legal opinions obtained. Accordingly, unexpected adverse outcomes may significantly impact the operations of the Holding Company and hence it has been considered as a key audit matter. |
⢠Obtained and reviewed the necessary evidence which includes correspondence with external legal counsel, and statutory authorities, inspected minutes of case proceedings available, to support the decision and rationale of the litigation matter and writ petition filed by the Company in relation to this matter. We also tested the independence, objectivity and competence of management''s expert involved. ⢠Obtained a direct confirmation from the management''s expert to ensure that the accounting treatment of this litigation matter is in accordance with the applicable Ind AS. ⢠Evaluated the appropriateness of disclosures made in the consolidated financial statements with respect to the aforesaid litigation matter in accordance with the requirements of the applicable Ind AS. |
Related party transactions Refer note 48 of the standalone financial statements. The Company has entered into several transactions with related parties during the year ended 31 March 2022 and has outstanding balances from related parties as at the year end. We identified related party transactions as a key audit matter due to the risks identified with respect to related completeness of disclosures made in the standalone financial statements due to the volume of such transactions, recoverability of the balances outstanding, compliance with statutory regulations governing related party transactions and the judgement involved in assessing whether transactions with related parties are undertaken at arms'' length. |
Our audit procedures included, but were not limited, to the following: ⢠Obtained an understanding of management''s processes and controls to record and evaluate related party transactions. ⢠Evaluated the design and tested operating effectiveness of the relevant internal financial controls to identify and disclose related party relationships and transactions and ensuring compliance with statutory requirements, assessing recoverability of the amount due from the related parties. ⢠Carried out an assessment of compliance with the relevant provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation, 2015 ("SEBI Listing Regulation") and the Act, including authorisation and approvals as specified in sections 177 and 188 of the Act with respect to the related party transactions, as applicable. ⢠On sample basis, inspected relevant ledgers, agreements and other information that may indicate the existence of related party relationships or transactions. We also assessed the completeness of related parties with reference to the various registers maintained in accordance with applicable statue and declarations maintained by the Company''s management. ⢠Verified the management''s assessment of recoverability of dues from related parties by reference to underlying supporting documents, valuation of underlying assets of such entities and settlement of such transactions subsequent to the balance sheet date. ⢠On a sample basis, tested the Company''s assessment of related party transactions for arms'' length pricing with the help of auditor''s experts. ⢠Evaluated the adequacy and appropriateness of disclosures made in the standalone financial statements of related party relationships and transactions in accordance with the requirements of applicable Ind AS. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon
6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including Other Comprehensive Income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. 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 judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls;
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern;
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation; and
⢠Obtain sufficient appropriate audit evidence regarding the standalone financial statements of the Company and its branches or the business activities within the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of financial statements of the Company and such branches included in the standalone financial statements, of which we are the independent auditors. For the other branch included in the standalone financial statements, which have been audited by the branch auditor, such branch auditor remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
15. We did not audit the financial information of one branch included in the standalone financial statements of the Company whose financial information (before eliminating inter-unit balances and transactions) reflects total assets and net assets of '' 352.72 lakhs and '' 197.72 lakhs, respectively as at 31 March 2022, total revenues of '' 412.76 lakhs, total net loss after tax of '' 308.26 lakhs, total comprehensive loss of '' 307.19 lakhs, and cash outflows (net) of '' 39.28 lakhs for the year then ended, as considered in the standalone financial statements. This financial information has been audited by the branch auditor whose report has been furnished to us by the management, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of branch, and our report in terms of subsection (3) of section 143 of the Act in so far as it relates to the aforesaid branch, is based solely on the report of such branch auditor.
Further, this branch is located outside India whose financial information has been prepared in accordance with accounting principles generally accepted in its country and which has been audited by branch auditor under generally accepted auditing standards applicable in its country. The Company''s management has converted the financial information of this branch from accounting principles generally accepted in their country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company''s management. Our opinion on the standalone financial statements, in so far as it relates to the balances and affairs of this branch, is based on the report of branch auditor and the conversion adjustments prepared by the management of the Company and audited by us.
Our opinion above on the standalone financial statements, and our report on other legal and regulatory requirements below, are not modified in respect of the above matters with respect to our reliance on the work done by and the report of the branch auditor.
Report on Other Legal and Regulatory Requirements
16. As required by section 197(16) of the Act based on our audit, and on the consideration of the report of the branch auditor as referred to in paragraph 15 above, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
17. As required by the Companies (Auditor''s Report) Order, 2020 (the ''Order'') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure - I, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
18. Further to our comments in Annexure - I, as required by section 143(3) of the Act based on our audit, and on the consideration of the report of the branch auditor as referred to in paragraph 15 above, we report, to the extent applicable, 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 of the accompanying standalone financial statements;
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 and proper return adequate for the purposes of our audit has been received from the branch not visited by us;
c) The report on the accounts of the branch office of the Company audited under section 143(8) of the Act by the branch auditor has been sent to us and have been properly dealt with by us in preparing this report;
d) The standalone financial statements dealt with by this report are in agreement with the books of account and with the return received from the branch not visited by us;
e) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
f) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of section 164(2) of the Act;
g) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company as on 31 March 2022 and the operating effectiveness of such controls, refer to our separate Report in Annexure - II wherein we have expressed an unmodified opinion; and
h) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the report of the branch auditor as referred to in paragraph 15 above:
i. The Company, as detailed in note 41 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2022;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2022;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2022;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed
in note 53 to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person or entity, including foreign entity (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (the ''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 53 to the standalone financial statements, no funds have been received by the Company from any person or entity, including foreign entity (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.
v. The final dividend paid by the Company during the year ended 31 March 2022 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
As stated in note 43 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
Chartered Accountants Firm''s Registration No.: 001076N/N500013
Partner
Place: Mumbai Membership No.: 108840
Date: 30 May 2022 UDIN: 22108840AJYAEC5803
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of The Bombay Burmah Trading Corporation, Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the branch auditors of the Companyâs branches at Johor Bahru in Malaysia and Usambara in Tanzania.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorâs responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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, 2018, its loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Emphasis of matter
We draw attention to Note 35 to the standalone Ind AS financial statements which describes the following matters:
a) In respect of managerial remuneration amounting to Rs.289.98 Lakhs for the year ended 31 March 2017, the Company has made an application to the Central Government pursuant to the provisions of Section 197 read with Schedule V of the Act, which is pending approval.
b) In respect of managerial remuneration amounting to Rs.289.98 Lakhs for the year ended 31 March 2018, the Company has made an application to the Central Government pursuant to the provisions of Section 197 read with Schedule V of the Act, which is pending approval.
Our opinion is not modified in respect of these matters.
Other Matters
We did not audit the financial statements of two branches included in the standalone Ind AS financial statements of the Company whose financial statements reflect total assets of Rs.622.89 Lakhs as at 31st March, 2018 and total revenues of Rs.627.17 Lakhs for the year ended on that date. The financial statements of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.
e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
f) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
h) 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 on its financial position in its standalone Ind AS financial statements; - Refer Note 40 to the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the standalone Ind AS financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31st March, 2018.
ANNEXURE A TO THE INDEPENDENT AUDITORSâ REPORT - 31ST MARCH, 2018 (Referred to in our report of even date)
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except for the following which are not held in the name of the Company pending registration in the name of the Company pursuant to the merger of Electromags Automotive Private Limited with the Company:
(Rs. in Lakhs)
Particulars |
Freehold Land |
Buildings |
Gross block as at 31st March, 2018 |
1,506 |
429 |
Net block as at 31st March, 2018 |
1,506 |
237 |
Total no of cases |
5 |
5 |
ii. The inventory, except for goods-in-transit and stocks lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.
iii. The Company has granted unsecured loan to one company covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). The Company has not granted any loans, secured or unsecured, to firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. In our opinion and according to the information and explanations given to us, the Company does not consider the reimbursement of cost charged and outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions on which the loan has been granted to the company listed in the register maintained under Section 189 of the Act is not, prima facie, prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained under Section 189 of the Act is repayable on demand. The loan was not demanded during the year. The borrower has been regular in the payment of interest.
(c) The loan granted to a company covered in the register maintained under Section 189 of the Act is repayable on demand. The loan was not demanded during the year.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans given, investments made, guarantees given and security provided.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by Central Government for maintenance of cost records under sub section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service tax, Goods and Services Tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales-tax, Service tax Goods and Services Tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise, Value added tax and Cess which have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
Name of the Statute |
Nature of the dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Tea cess |
7.77 26.52 |
2014-2016 2005-2016 |
Commissioner of Customs and Central Excise CESTAT |
Central Excise Act, 1944 |
Excise duty |
37.65 |
May 2004 to December 2005 |
Appellate tribunal of Central Excise |
Central Excise Act, 1944 |
Excise duty |
3.45 |
September 2004 to January 2007 |
Appellate tribunal of Central Excise |
Central Excise Act, 1944 |
Excise duty |
3,553.24* |
September 2006 to October 2011 |
Appellate tribunal of Central Excise |
*Net of deposit of Rs.175 lakhs
viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to banks, financial institutions and dues to debenture holders. According to the information and explanations given to us, the Company does not have any loan from government during the year.
ix. According to the information and explanations given to us, the Company did not raise money by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
x. According to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. Except for managerial remuneration aggregating to Rs.49.98 lakhs which exceeded the permissible limit as prescribed under Schedule V of the Act, the managerial remuneration paid/ provided for by the Company is in accordance with the requisite approvals as mandated by the provisions of Section 197 read with Schedule V to the Act. The Company has made an application to the Central Government for approval of payment of such remuneration which is pending approval. Pending disposal of the Companyâs application, the said amount has been charged to the Statement of profit and loss (refer Note 35 to the standalone Ind AS financial statements).
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. 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 where applicable and details of such transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
xv. 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 them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No: 101248W/W-100022
Vijay Mathur
Mumbai Partner
21st May, 2018 Membership No: 046476
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of The Bombay Burmah Trading Corporation, Limited ("the Company"), which comprise the Balance Sheet as at 31 March, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as "Standalone Ind AS financial statements"), in which are incorporated the Returns for the year ended on that date audited by the branch auditors of the Company''s branches at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued there under.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS 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 Standalone Ind AS 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 of the Standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone Ind AS 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 Standalone Ind AS 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 Standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS 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 including the Ind AS, of the financial position of the Company as at 31 March, 2017, its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matters
We draw attention to Note 36 of the Standalone Ind AS financial statements which describes the following matters:
a) In respect of managerial remuneration amounting to Rs. 290 Lakhs for the year ended 31 March, 2016, the Company has made an application to the Central Government pursuant to the provisions of Section 197 read with Schedule V of the Act, which is pending approval.
b) In respect of managerial remuneration amounting to Rs. 290 Lakhs for the year ended 31 March, 2017, the
Company has made an application to the Central Government pursuant to the provisions of Section 197 read with Schedule V of the Act, which is pending approval.
Our opinion is not modified in respect of the above matters.
Other Matter
We did not audit the financial statements of 2 branches included in the standalone Ind AS financial statements of the Company whose financial statements reflect total assets of Rs. 677 Lakhs as at 31 March, 2017 and total revenues of Rs. 521 Lakhs for the year ended on that date. The financial statements of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the ''Annexure A'', a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us;
(c) The reports on the accounts of the branch offices of the Company audited under Section 143 (8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report;
(d) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us;
(e) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;
(f) On the basis of the written representations received from the directors as on 31 March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164(2) of the Act;
(g) 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 B''; and
(h) With respect to the other matters to be included in the Auditors'' 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 on the financial position in its Standalone Ind AS financial statements - Refer Note 41 to the Standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on derivative contracts. The Company did not have any other long-term contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. The Company has provided requisite disclosures in the Standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management- Refer Note 46 to the Standalone Ind AS financial statements.
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) (b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified by the Management during the year. In our opinion, and according to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except for the following which are not held in the name of the Company pending registration in the name of the Company pursuant to the merger of Electromags Automotive Private Limited with the Company:
Rs. in Lakhs
Particulars |
Freehold Land |
Buildings |
Gross block as at 31 March, 2017 |
1,506 |
420 |
Net block as at 31 March, 2017 |
1,506 |
249 |
Total no of cases |
5 |
5 |
ii. The inventory, except for goods-in-transit and stocks lying with third parties, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained and in respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.
iii. The Company has granted unsecured loan to one company covered in the register maintained under Section 189 of the Companies Act, 2013 (''the Act''). The Company has not granted any loans, secured or unsecured, to firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. In our opinion and according to the information and explanations given to us, the Company does not consider the reimbursement of cost charged and outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions on which the loan has been granted to the company listed in the register maintained under Section 189 ofthe Act is not, prima facie, prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained under Section 189 of the Act is repayable on demand. The loan was not demanded during the year. The borrower has been regular in the payment of interest.
(c) The loan granted to a company covered in the register maintained under Section 189 of the Act is repayable on demand. The loans was not demanded during the year.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans given, investments made, guarantees given and security provided.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year in terms of the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.
vi. We have broadly reviewed the records maintained by the Company pursuant to the rules prescribed by Central Government for maintenance of cost records under sub section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise, Value added tax, Cess and other material statutory dues were in arrears as at 31 March, 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise and Value added tax which have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
Name of the Statute |
Nature of the dues |
Amount (Rs. in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Central Excise Act, 1944 |
Tea cess |
1.47 12.64 |
2005-2006 2006-2013 |
High Court CESTAT |
Central Excise Act, 1944 |
Excise duty |
37.65 |
May 2004 to December 2005 |
Appellate tribunal of Central Excise |
Central Excise Act, 1944 |
Excise duty |
3.45 |
September 2004 to January 2007 |
Appellate tribunal of Central Excise |
Central Excise Act, 1944 |
Excise duty |
3,553.24* |
September 2006 to October 2011 |
Appellate tribunal of Central Excise |
*Net of deposit of Rs. 175 Lakhs
viii. According to the information and explanations given to us, and based on the records of the Company, the Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions. According to the information and explanations given to us the Company does not have any loan from government or dues to debenture holders during the year.
ix. According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
x. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. Except for managerial remuneration aggregating to Rs 49.98 Lakhs which exceeded the permissible limit as prescribed under Schedule V of the Act, the managerial remuneration paid/ provided for by the Company is in accordance with the requisite approvals as mandated by the provisions of Section 197 read with Schedule V to the Act. The Company has made an application to the Central Government for approval of payment of such remuneration which is pending approval. Pending disposal of the Company''s application, the said amount has been charged to the Statement of profit and loss.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
xiii. 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 where applicable and details of such transactions have been disclosed in the Standalone Ind AS financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) ofthe Order is not applicable to the Company.
xv. 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 them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us, the Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.
For BSR& Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Mathur
Mumbai Partner
30th May, 2017 Membership No: 046476
Mar 31, 2016
We have audited the accompanying standalone financial statements of The
Bombay Burmah Trading Corporation, Limited, ("the Company"), which
comprise the Balance Sheet as at 31 March 2016, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information, in which are incorporated the Returns for the year ended
on that date audited by the branch auditors''of the Company''s branches
at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements to 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 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 design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
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
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 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2016, and its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to the following matters in the Notes to the financial
statements:
Note 36(b) of the standalone financial statements which more fully
explains that in respect of managerial remuneration amounting to Rs.
289.98 lakhs for the year ended 31 March 2016, the Company has made an
application to the Central Government pursuant to the provisions of
Section 197 read with Schedule V of the Act, which is pending approval.
Our audit opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of 2 branches included in the
standalone financial statements of the Company whose financial statements
reflect total assets of Rs. 119.68 lakhs as at 31 March 2016 and total
revenues of Rs. 361.99 lakhs for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as
it relates to the amounts and disclosures included in respect of these
branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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", 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
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31 March 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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 B" and
(h) 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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note 28
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31 March 2016 for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE A TO INDEPENDENT AUDITORS''REPORT Â 31 MARCH 2016 (Referred to
in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the Management during the year.
In our opinion, and according to information and explanations given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given
to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name
of the Company except for the following which are not held in the name
of the Company pending registration in the name of the Company pursuant
to the merger of Electromags Automotive Private Limited with the
Company:
Rs. in lakhs
Particulars Freehold Land Buildings
Gross block as at 31 March 2016 1506 420
Net block as at 31 March 2016 1506 255
Total no of cases 5 5
ii. The inventory, except for goods-in-transit and stocks lying with
third parties, have been physically verified by the management at
reasonable intervals during the year. In our opinion, the frequency of
such verification is reasonable. For stocks lying with third parties at
the year-end, written confirmations have been obtained and in respect of
goods-in-transit, subsequent goods receipt have been verified or
confirmations have been obtained from those parties. The discrepancies
noticed on verification between the physical stocks and the book records
were not material.
iii. The Company has granted unsecured loan to one company covered in
the register maintained under Section 189 of the Companies Act, 2013
(''the Act''). The Company has not granted any loans, secured or
unsecured, to firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. In our
opinion and according to the information and explanations given to us,
the Company does not consider the reimbursement of cost charged and
outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loan had been granted to the company listed in the
register maintained under Section 189 of the Act is not, prima facie,
prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loan was not
demanded during the year. The borrower has been regular in the payment
of interest.
(c) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loans was not
demanded during the year.
iv. In our opinion and according to information and explanations given
to us, the Company has complied with provisions of Section 185 and 186
of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
during the year in terms of the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under.
Accordingly, paragraph 3(v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act, in respect
of products manufactured by the Company, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees''State Insurance,
Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise,
Value added tax, Cess and any other material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund,
Employees''State Insurance, Income-tax, Sales-tax, Service tax, Duty of
Customs, Duty of Excise, Value added tax, Cess and any other material
statutory dues were in arrears as at 31 March 2016 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Service tax, Sales tax, Value added tax,
Duty of Customs, Excise duty and Cess which have not been deposited
with the appropriate authorities on account of any dispute, except as
stated below:
Name of the Nature of the Amount
(Rs. in Period to
which the Forum where
Statute dues lakhs) amount
relates dispute is
pending
Central
Excise Tea cess 1.47 2005-2006 High Court
Act 12.64 2006-2013 CESTAT
Central
Excise Excise duty 37.65 May 2004 to Appellate
tribunal of
Act December 2005 Central
Excise
Central
Excise Excise duty 3.45 September
2004 to Appellate
tribunal of
Act January 2007
Central Excise
Central
Excise Excise duty 3,553.24* September
2006 to Appellate
tribunal of
Act October 2011 Central Excise
Income tax
Act Income tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
*Net of deposit of Rs. 175 lakhs
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The Company does not have any loans or
borrowings from government or dues to debenture holders during the
year.
ix. According to the information and explanations given to us, the term
loans have been applied by the Company during the year for the purposes
for which they were obtained. The Company did not raise money by way of
initial public offer or further public offer (including debt
instruments) during the year.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given to us, the
Company has paid managerial remuneration amounting to Rs. 289.98 lakhs
for the year ended 31 March 2016. The Company has made an application
to the Central Government for approval of payment of such remuneration
pursuant to the provisions of Section 197 read with Schedule V of the
Act, which is pending approval. Pending disposal of the Company''s
application, the said amount has been charged to the Statement of profit
and loss.
xii. According to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all
transactions with the related parties are in compliance with Section
177 and 188 of Act, and where applicable the details have been
disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
xv. 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.
xvi. According to information and explanations given to us, the Company
is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is
not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Bhatt
Mumbai Partner
27 May 2016 Membership No: 036647
Mar 31, 2016
We have audited the accompanying standalone financial statements of The
Bombay Burmah Trading Corporation, Limited, ("the Company"), which
comprise the Balance Sheet as at 31 March 2016, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information, in which are incorporated the Returns for the year ended
on that date audited by the branch auditors''of the Company''s branches
at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements to 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 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 design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
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
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 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2016, and its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to the following matters in the Notes to the financial
statements:
Note 36(b) of the standalone financial statements which more fully
explains that in respect of managerial remuneration amounting to Rs.
289.98 lakhs for the year ended 31 March 2016, the Company has made an
application to the Central Government pursuant to the provisions of
Section 197 read with Schedule V of the Act, which is pending approval.
Our audit opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of 2 branches included in the
standalone financial statements of the Company whose financial statements
reflect total assets of Rs. 119.68 lakhs as at 31 March 2016 and total
revenues of Rs. 361.99 lakhs for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as
it relates to the amounts and disclosures included in respect of these
branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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", 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
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31 March 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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 B" and
(h) 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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note 28
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31 March 2016 for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE A TO INDEPENDENT AUDITORS''REPORT Â 31 MARCH 2016 (Referred to
in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the Management during the year.
In our opinion, and according to information and explanations given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given
to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name
of the Company except for the following which are not held in the name
of the Company pending registration in the name of the Company pursuant
to the merger of Electromags Automotive Private Limited with the
Company:
Rs. in lakhs
Particulars Freehold Land Buildings
Gross block as at 31 March 2016 1506 420
Net block as at 31 March 2016 1506 255
Total no of cases 5 5
ii. The inventory, except for goods-in-transit and stocks lying with
third parties, have been physically verified by the management at
reasonable intervals during the year. In our opinion, the frequency of
such verification is reasonable. For stocks lying with third parties at
the year-end, written confirmations have been obtained and in respect of
goods-in-transit, subsequent goods receipt have been verified or
confirmations have been obtained from those parties. The discrepancies
noticed on verification between the physical stocks and the book records
were not material.
iii. The Company has granted unsecured loan to one company covered in
the register maintained under Section 189 of the Companies Act, 2013
(''the Act''). The Company has not granted any loans, secured or
unsecured, to firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. In our
opinion and according to the information and explanations given to us,
the Company does not consider the reimbursement of cost charged and
outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loan had been granted to the company listed in the
register maintained under Section 189 of the Act is not, prima facie,
prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loan was not
demanded during the year. The borrower has been regular in the payment
of interest.
(c) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loans was not
demanded during the year.
iv. In our opinion and according to information and explanations given
to us, the Company has complied with provisions of Section 185 and 186
of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
during the year in terms of the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under.
Accordingly, paragraph 3(v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act, in respect
of products manufactured by the Company, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees''State Insurance,
Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise,
Value added tax, Cess and any other material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund,
Employees''State Insurance, Income-tax, Sales-tax, Service tax, Duty of
Customs, Duty of Excise, Value added tax, Cess and any other material
statutory dues were in arrears as at 31 March 2016 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Service tax, Sales tax, Value added tax,
Duty of Customs, Excise duty and Cess which have not been deposited
with the appropriate authorities on account of any dispute, except as
stated below:
Name of the Nature of the Amount
(Rs. in Period to
which the Forum where
Statute dues lakhs) amount
relates dispute is
pending
Central
Excise Tea cess 1.47 2005-2006 High Court
Act 12.64 2006-2013 CESTAT
Central
Excise Excise duty 37.65 May 2004 to Appellate
tribunal of
Act December 2005 Central
Excise
Central
Excise Excise duty 3.45 September
2004 to Appellate
tribunal of
Act January 2007
Central Excise
Central
Excise Excise duty 3,553.24* September
2006 to Appellate
tribunal of
Act October 2011 Central Excise
Income tax
Act Income tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
*Net of deposit of Rs. 175 lakhs
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The Company does not have any loans or
borrowings from government or dues to debenture holders during the
year.
ix. According to the information and explanations given to us, the term
loans have been applied by the Company during the year for the purposes
for which they were obtained. The Company did not raise money by way of
initial public offer or further public offer (including debt
instruments) during the year.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given to us, the
Company has paid managerial remuneration amounting to Rs. 289.98 lakhs
for the year ended 31 March 2016. The Company has made an application
to the Central Government for approval of payment of such remuneration
pursuant to the provisions of Section 197 read with Schedule V of the
Act, which is pending approval. Pending disposal of the Company''s
application, the said amount has been charged to the Statement of profit
and loss.
xii. According to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all
transactions with the related parties are in compliance with Section
177 and 188 of Act, and where applicable the details have been
disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
xv. 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.
xvi. According to information and explanations given to us, the Company
is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is
not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Bhatt
Mumbai Partner
27 May 2016 Membership No: 036647
Mar 31, 2016
We have audited the accompanying standalone financial statements of The
Bombay Burmah Trading Corporation, Limited, ("the Company"), which
comprise the Balance Sheet as at 31 March 2016, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information, in which are incorporated the Returns for the year ended
on that date audited by the branch auditors''of the Company''s branches
at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements to 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 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 design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
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
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 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2016, and its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to the following matters in the Notes to the financial
statements:
Note 36(b) of the standalone financial statements which more fully
explains that in respect of managerial remuneration amounting to Rs.
289.98 lakhs for the year ended 31 March 2016, the Company has made an
application to the Central Government pursuant to the provisions of
Section 197 read with Schedule V of the Act, which is pending approval.
Our audit opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of 2 branches included in the
standalone financial statements of the Company whose financial statements
reflect total assets of Rs. 119.68 lakhs as at 31 March 2016 and total
revenues of Rs. 361.99 lakhs for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as
it relates to the amounts and disclosures included in respect of these
branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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", 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
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31 March 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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 B" and
(h) 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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note 28
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31 March 2016 for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE A TO INDEPENDENT AUDITORS''REPORT Â 31 MARCH 2016 (Referred to
in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the Management during the year.
In our opinion, and according to information and explanations given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given
to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name
of the Company except for the following which are not held in the name
of the Company pending registration in the name of the Company pursuant
to the merger of Electromags Automotive Private Limited with the
Company:
Rs. in lakhs
Particulars Freehold Land Buildings
Gross block as at 31 March 2016 1506 420
Net block as at 31 March 2016 1506 255
Total no of cases 5 5
ii. The inventory, except for goods-in-transit and stocks lying with
third parties, have been physically verified by the management at
reasonable intervals during the year. In our opinion, the frequency of
such verification is reasonable. For stocks lying with third parties at
the year-end, written confirmations have been obtained and in respect of
goods-in-transit, subsequent goods receipt have been verified or
confirmations have been obtained from those parties. The discrepancies
noticed on verification between the physical stocks and the book records
were not material.
iii. The Company has granted unsecured loan to one company covered in
the register maintained under Section 189 of the Companies Act, 2013
(''the Act''). The Company has not granted any loans, secured or
unsecured, to firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. In our
opinion and according to the information and explanations given to us,
the Company does not consider the reimbursement of cost charged and
outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loan had been granted to the company listed in the
register maintained under Section 189 of the Act is not, prima facie,
prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loan was not
demanded during the year. The borrower has been regular in the payment
of interest.
(c) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loans was not
demanded during the year.
iv. In our opinion and according to information and explanations given
to us, the Company has complied with provisions of Section 185 and 186
of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
during the year in terms of the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under.
Accordingly, paragraph 3(v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act, in respect
of products manufactured by the Company, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees''State Insurance,
Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise,
Value added tax, Cess and any other material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund,
Employees''State Insurance, Income-tax, Sales-tax, Service tax, Duty of
Customs, Duty of Excise, Value added tax, Cess and any other material
statutory dues were in arrears as at 31 March 2016 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Service tax, Sales tax, Value added tax,
Duty of Customs, Excise duty and Cess which have not been deposited
with the appropriate authorities on account of any dispute, except as
stated below:
Name of the Nature of the Amount
(Rs. in Period to
which the Forum where
Statute dues lakhs) amount
relates dispute is
pending
Central
Excise Tea cess 1.47 2005-2006 High Court
Act 12.64 2006-2013 CESTAT
Central
Excise Excise duty 37.65 May 2004 to Appellate
tribunal of
Act December 2005 Central
Excise
Central
Excise Excise duty 3.45 September
2004 to Appellate
tribunal of
Act January 2007
Central Excise
Central
Excise Excise duty 3,553.24* September
2006 to Appellate
tribunal of
Act October 2011 Central Excise
Income tax
Act Income tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
*Net of deposit of Rs. 175 lakhs
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The Company does not have any loans or
borrowings from government or dues to debenture holders during the
year.
ix. According to the information and explanations given to us, the term
loans have been applied by the Company during the year for the purposes
for which they were obtained. The Company did not raise money by way of
initial public offer or further public offer (including debt
instruments) during the year.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given to us, the
Company has paid managerial remuneration amounting to Rs. 289.98 lakhs
for the year ended 31 March 2016. The Company has made an application
to the Central Government for approval of payment of such remuneration
pursuant to the provisions of Section 197 read with Schedule V of the
Act, which is pending approval. Pending disposal of the Company''s
application, the said amount has been charged to the Statement of profit
and loss.
xii. According to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all
transactions with the related parties are in compliance with Section
177 and 188 of Act, and where applicable the details have been
disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
xv. 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.
xvi. According to information and explanations given to us, the Company
is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is
not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Bhatt
Mumbai Partner
27 May 2016 Membership No: 036647
Mar 31, 2016
We have audited the accompanying standalone financial statements of The
Bombay Burmah Trading Corporation, Limited, ("the Company"), which
comprise the Balance Sheet as at 31 March 2016, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information, in which are incorporated the Returns for the year ended
on that date audited by the branch auditors''of the Company''s branches
at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements to 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 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 design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
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
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 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2016, and its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to the following matters in the Notes to the financial
statements:
Note 36(b) of the standalone financial statements which more fully
explains that in respect of managerial remuneration amounting to Rs.
289.98 lakhs for the year ended 31 March 2016, the Company has made an
application to the Central Government pursuant to the provisions of
Section 197 read with Schedule V of the Act, which is pending approval.
Our audit opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of 2 branches included in the
standalone financial statements of the Company whose financial statements
reflect total assets of Rs. 119.68 lakhs as at 31 March 2016 and total
revenues of Rs. 361.99 lakhs for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as
it relates to the amounts and disclosures included in respect of these
branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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", 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
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31 March 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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 B" and
(h) 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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note 28
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31 March 2016 for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE A TO INDEPENDENT AUDITORS''REPORT Â 31 MARCH 2016 (Referred to
in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the Management during the year.
In our opinion, and according to information and explanations given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given
to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name
of the Company except for the following which are not held in the name
of the Company pending registration in the name of the Company pursuant
to the merger of Electromags Automotive Private Limited with the
Company:
Rs. in lakhs
Particulars Freehold Land Buildings
Gross block as at 31 March 2016 1506 420
Net block as at 31 March 2016 1506 255
Total no of cases 5 5
ii. The inventory, except for goods-in-transit and stocks lying with
third parties, have been physically verified by the management at
reasonable intervals during the year. In our opinion, the frequency of
such verification is reasonable. For stocks lying with third parties at
the year-end, written confirmations have been obtained and in respect of
goods-in-transit, subsequent goods receipt have been verified or
confirmations have been obtained from those parties. The discrepancies
noticed on verification between the physical stocks and the book records
were not material.
iii. The Company has granted unsecured loan to one company covered in
the register maintained under Section 189 of the Companies Act, 2013
(''the Act''). The Company has not granted any loans, secured or
unsecured, to firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. In our
opinion and according to the information and explanations given to us,
the Company does not consider the reimbursement of cost charged and
outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loan had been granted to the company listed in the
register maintained under Section 189 of the Act is not, prima facie,
prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loan was not
demanded during the year. The borrower has been regular in the payment
of interest.
(c) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loans was not
demanded during the year.
iv. In our opinion and according to information and explanations given
to us, the Company has complied with provisions of Section 185 and 186
of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
during the year in terms of the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under.
Accordingly, paragraph 3(v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act, in respect
of products manufactured by the Company, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees''State Insurance,
Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise,
Value added tax, Cess and any other material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund,
Employees''State Insurance, Income-tax, Sales-tax, Service tax, Duty of
Customs, Duty of Excise, Value added tax, Cess and any other material
statutory dues were in arrears as at 31 March 2016 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Service tax, Sales tax, Value added tax,
Duty of Customs, Excise duty and Cess which have not been deposited
with the appropriate authorities on account of any dispute, except as
stated below:
Name of the Nature of the Amount
(Rs. in Period to
which the Forum where
Statute dues lakhs) amount
relates dispute is
pending
Central
Excise Tea cess 1.47 2005-2006 High Court
Act 12.64 2006-2013 CESTAT
Central
Excise Excise duty 37.65 May 2004 to Appellate
tribunal of
Act December 2005 Central
Excise
Central
Excise Excise duty 3.45 September
2004 to Appellate
tribunal of
Act January 2007
Central Excise
Central
Excise Excise duty 3,553.24* September
2006 to Appellate
tribunal of
Act October 2011 Central Excise
Income tax
Act Income tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
*Net of deposit of Rs. 175 lakhs
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The Company does not have any loans or
borrowings from government or dues to debenture holders during the
year.
ix. According to the information and explanations given to us, the term
loans have been applied by the Company during the year for the purposes
for which they were obtained. The Company did not raise money by way of
initial public offer or further public offer (including debt
instruments) during the year.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given to us, the
Company has paid managerial remuneration amounting to Rs. 289.98 lakhs
for the year ended 31 March 2016. The Company has made an application
to the Central Government for approval of payment of such remuneration
pursuant to the provisions of Section 197 read with Schedule V of the
Act, which is pending approval. Pending disposal of the Company''s
application, the said amount has been charged to the Statement of profit
and loss.
xii. According to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all
transactions with the related parties are in compliance with Section
177 and 188 of Act, and where applicable the details have been
disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
xv. 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.
xvi. According to information and explanations given to us, the Company
is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is
not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Bhatt
Mumbai Partner
27 May 2016 Membership No: 036647
Mar 31, 2016
We have audited the accompanying standalone financial statements of The
Bombay Burmah Trading Corporation, Limited, ("the Company"), which
comprise the Balance Sheet as at 31 March 2016, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory
information, in which are incorporated the Returns for the year ended
on that date audited by the branch auditors''of the Company''s branches
at Johor Bahru in Malaysia and Usambara in Tanzania.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements to 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 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 design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
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
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 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 the 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 financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances. 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 31 March 2016, and its loss and its cash flows for the year ended on
that date.
Emphasis of matter
We draw attention to the following matters in the Notes to the financial
statements:
Note 36(b) of the standalone financial statements which more fully
explains that in respect of managerial remuneration amounting to Rs.
289.98 lakhs for the year ended 31 March 2016, the Company has made an
application to the Central Government pursuant to the provisions of
Section 197 read with Schedule V of the Act, which is pending approval.
Our audit opinion is not modified in respect of this matter.
Other Matter
We did not audit the financial statements of 2 branches included in the
standalone financial statements of the Company whose financial statements
reflect total assets of Rs. 119.68 lakhs as at 31 March 2016 and total
revenues of Rs. 361.99 lakhs for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of these branches have been audited by the branch auditors
whose reports have been furnished to us, and our opinion in so far as
it relates to the amounts and disclosures included in respect of these
branches, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("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", 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
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us.
(c) The reports on the accounts of the branch offices of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
(d) 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 and with the returns received from the branches not
visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the
directors as on 31 March 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(g) 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 B" and
(h) 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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note 28
to the financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts as at 31 March 2016 for which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE A TO INDEPENDENT AUDITORS''REPORT Â 31 MARCH 2016 (Referred to
in our report of even date)
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain
fixed assets were physically verified by the Management during the year.
In our opinion, and according to information and explanations given to
us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to information and explanations given
to us and on the basis of our examination of the records of the
Company, the title deeds of immovable properties are held in the name
of the Company except for the following which are not held in the name
of the Company pending registration in the name of the Company pursuant
to the merger of Electromags Automotive Private Limited with the
Company:
Rs. in lakhs
Particulars Freehold Land Buildings
Gross block as at 31 March 2016 1506 420
Net block as at 31 March 2016 1506 255
Total no of cases 5 5
ii. The inventory, except for goods-in-transit and stocks lying with
third parties, have been physically verified by the management at
reasonable intervals during the year. In our opinion, the frequency of
such verification is reasonable. For stocks lying with third parties at
the year-end, written confirmations have been obtained and in respect of
goods-in-transit, subsequent goods receipt have been verified or
confirmations have been obtained from those parties. The discrepancies
noticed on verification between the physical stocks and the book records
were not material.
iii. The Company has granted unsecured loan to one company covered in
the register maintained under Section 189 of the Companies Act, 2013
(''the Act''). The Company has not granted any loans, secured or
unsecured, to firms, limited liability partnerships or other parties
covered in the register maintained under Section 189 of the Act. In our
opinion and according to the information and explanations given to us,
the Company does not consider the reimbursement of cost charged and
outstanding to fall under purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loan had been granted to the company listed in the
register maintained under Section 189 of the Act is not, prima facie,
prejudicial to the interest of the Company.
(b) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loan was not
demanded during the year. The borrower has been regular in the payment
of interest.
(c) The loan granted to a company covered in the register maintained
under Section 189 of the Act is repayable on demand. The loans was not
demanded during the year.
iv. In our opinion and according to information and explanations given
to us, the Company has complied with provisions of Section 185 and 186
of the Act in respect of loans, investments, guarantees and security.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
during the year in terms of the provisions of Sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under.
Accordingly, paragraph 3(v) of the Order is not applicable to the
Company.
vi. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 148(1) of the Act, in respect
of products manufactured by the Company, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees''State Insurance,
Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise,
Value added tax, Cess and any other material statutory dues have been
generally regularly deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund,
Employees''State Insurance, Income-tax, Sales-tax, Service tax, Duty of
Customs, Duty of Excise, Value added tax, Cess and any other material
statutory dues were in arrears as at 31 March 2016 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Service tax, Sales tax, Value added tax,
Duty of Customs, Excise duty and Cess which have not been deposited
with the appropriate authorities on account of any dispute, except as
stated below:
Name of the Nature of the Amount
(Rs. in Period to
which the Forum where
Statute dues lakhs) amount
relates dispute is
pending
Central
Excise Tea cess 1.47 2005-2006 High Court
Act 12.64 2006-2013 CESTAT
Central
Excise Excise duty 37.65 May 2004 to Appellate
tribunal of
Act December 2005 Central
Excise
Central
Excise Excise duty 3.45 September
2004 to Appellate
tribunal of
Act January 2007
Central Excise
Central
Excise Excise duty 3,553.24* September
2006 to Appellate
tribunal of
Act October 2011 Central Excise
Income tax
Act Income tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
*Net of deposit of Rs. 175 lakhs
viii. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The Company does not have any loans or
borrowings from government or dues to debenture holders during the
year.
ix. According to the information and explanations given to us, the term
loans have been applied by the Company during the year for the purposes
for which they were obtained. The Company did not raise money by way of
initial public offer or further public offer (including debt
instruments) during the year.
x. According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi. According to the information and explanations given to us, the
Company has paid managerial remuneration amounting to Rs. 289.98 lakhs
for the year ended 31 March 2016. The Company has made an application
to the Central Government for approval of payment of such remuneration
pursuant to the provisions of Section 197 read with Schedule V of the
Act, which is pending approval. Pending disposal of the Company''s
application, the said amount has been charged to the Statement of profit
and loss.
xii. According to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the
Order is not applicable to the Company.
xiii. According to the information and explanations given to us, all
transactions with the related parties are in compliance with Section
177 and 188 of Act, and where applicable the details have been
disclosed in the Financial Statements as required by the applicable
accounting standards.
xiv. According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
xv. 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.
xvi. According to information and explanations given to us, the Company
is not required to be registered under Section 45 IA of the Reserve
Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is
not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No: 101248W/W-100022
Vijay Bhatt
Mumbai Partner
27 May 2016 Membership No: 036647
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of The Bombay
Burmah Trading Corporation, Limited (''the Company''), which comprise the
Balance Sheet as at 31 March 2014, and the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, in which are
incorporated the returns from branches outside India, namely Johor
Bahru in Malaysia and Usambara in Tanzania and Plantations division -
South India branches audited by branch auditors appointed under section
228 of the Companies Act, 1956 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 sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). 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 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity''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 Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
ii. in case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii. in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of matter
Without qualifying our opinion, we draw attention to note 36 to the
financial statements, regarding remuneration paid by the Company to its
Managing Director during the year ended 31 March 2014 in excess of the
limits specified in relevant provisions of the Companies Act, 1956
("the Act") by Rs. 192.85 lakhs. We are informed that as required by the
relevant provisions of the Act, the Company has applied to seek
approval from the Central Government for excess remuneration paid.
Pending the said approvals in this regard, the excess remuneration paid
to the Managing Director has been charged to the statement of profit
and loss.
Report on Other Legal and Regulatory Requirements
1. 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 said
Order,
2. As required by Section 227 (3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
these books and proper returns adequate for the purpose of our audit
have been received from the branches outside India namely, Johor Bahru
in Malaysia and Usambara in Tanzania and Plantations division - South
India branches audited by branch auditors;
c. the audit reports of the Johor Bahru in Malaysia, Usambara in
Tanzania and Plantations division - South India branches audited by
branch auditors has been forwarded to us and has been dealt with by us
in preparing this report;
d. 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 and with the audited branch returns;
e. in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Act; and
f. on the basis of written representations received from the directors
of the Company, as of 31 March 2014, and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31 March 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT - 31 MARCH 2014
With reference to the Annexure referred to in our report of even date,
we report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years, In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed in respect of assets verified during the year.
(c) Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted unsecured loan to a company covered in
the register maintained under section 301 of the Companies Act, 1956
(''the Act''). The maximum amount outstanding during the year was Rs. 6,800
lakhs and the year-end balance of such loans was Rs. 3,870 lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the company.
(c) In the case of loans granted to the Company listed in the register
maintained under section 301, the borrowers have been regular in
repaying the principal amounts as stipulated and in the payment of
interest.
(d) There is no overdue amount of more than Rupees one lakh in respect
of loans granted to the companies, firms or other parties listed in the
register maintained under section 301.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act, Accordingly, paragraphs 4 (iii) (f) and
(g) of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system in respect of these areas.
v. (a) In our opinion and according to the information and explanations
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 that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lacs with any party during the year 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 deposits from the public.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Act in
respect of products manufactured by the Company and the branch auditors
have reviewed the said records in respect of South India branches in
regard to tea and coffee plantations products and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
records.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund. Income-tax, Sales-tax, Wealth
tax. Service tax. Customs duty. Investor Education and Protection Fund,
Employees'' State Insurance, Excise duty and other material statutory
dues have been generally regularly deposited during the year by the
Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund. Employees''
State Insurance, Investor Education and Protection Fund, Income tax.
Sales tax. Wealth tax. Service tax. Customs duty, Excise duty and other
material statutory dues were in arrears as at 31 March 2014 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax. Sales tax. Wealth tax. Service tax. Customs
duty and Excise duty which have not been deposited with the appropriate
authorities on account of any dispute, except as stated below:
Name of the Nature of Amount Period to which Forum where dispute
Statute the dues (Rs.
in
lakhs) the amount is pending
relates
Central
Excise Act Tea cess 1.47 2005-06 High Court
12.64 2006-2013 CESTAT
Central
Excise Act Excise
duty 37.65 May 2004 to Appellate
tribunal of
December 2005 Central Excise
Central
Excise Act Excise
duty 3.45 September 2004 Appellate tribunal
of
to January
2007 Central Excise
Central
Excise Act Excise
duty 3,728.24 September 2006 Appellate tribunal
of
to October 2011 Central Excise
Income
tax Act Income
tax 64.26 2008-09 Commissioner of
Income tax
(Appeals)
x. 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.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any debenture
holders and financial institutions.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund / nidhi / mutual benefit fund /
society,
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
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 Act.
xix. The Company did not have any outstanding debentures during the
year.
xx. The Company has not raised any money by public issues during the
year.
xxi. 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 our audit.
For B S R & Co. LLP
Chartered Accountants
Firm''s Registration No.: 101248W
Vinayak Padwal
Partner
Membership No: 049639
Mumbai
27 May 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of The Bombay
Burmah Trading Corporation, Limited (''the Company''), which comprise the
Balance Sheet as at 31 March 2013, and the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended, in which are
incorporated the returns from Johor Bahru, Usambara and South India
branches audited by branch auditors appointed under Section 228 of the
Companies Act, 1956 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 sub-section (3C) of Section 211
of the Companies Act, 1956 (''the Act''). 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 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 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:
i. in case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
ii. in case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii. in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of matter
Without qualifying our opinion, we draw attention to note 38 to the
financial statements, regarding remuneration paid by the Company to its
Managing Director during the year ended 31 March 2013 in excess of the
limits specified in relevant provisions of the Companies Act, 1956
("the Act") by Rs. 78.99 lakhs. We are informed that as required by the
relevant provisions of the Act, the Company has applied to seek
approval from the Central Government for excess remuneration paid.
Pending the said approval in this regard, the excess remuneration paid
to the Managing Director has been charged to the statement of profit
and loss.
Report on Other Legal and Regulatory Requirements
1. 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 said
Order.
2. As required by Section 227 (3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
these books and proper returns adequate for the purpose of our audit
have been received from the Johor Bahru, Usambara and South India
branches audited by branch auditors;
c. the audit reports of the Johor Bahru, Usambara and South India
branches audited by branch auditors has been forwarded to us and has
been dealt with by us in preparing this report;
d. 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 and with the audited branch returns;
e. i n our opinion, the Balance Sheet, the Statement of Profit and
Loss and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Act; and
f. on the basis of written representations received from the directors
of the Company, as of 31 March 2013, and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31 March 2013 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT - 31 MARCH 2013
With reference to the Annexure referred to in our report of even date,
we report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed in respect of assets verified during the year.
(c) Fixed assets disposed off during the year were not substantial and,
therefore, do not affect the going concern assumption.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted unsecured loan to a company covered in
the register maintained under section 301 of the Companies Act, 1956
(''the Act''). The maximum amount outstanding during the year was Rs.
9,300 lakhs and the year-end balance of such loans was nil.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the Company.
(c) I n the case of loans granted to the Company listed in the register
maintained under section 301, the borrowers have been regular in
repaying the principal amounts as stipulated and in the payment of
interest.
(d) There is no overdue amount of more than Rupees one lakh in respect
of loans granted to the companies, firms or other parties listed in the
register maintained under section 301.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, paragraphs 4 (iii) (f) and
(g) of the Order are not applicable.
iv. I n our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system in respect of these areas.
v. (a) In our opinion and according to the information and
explanations 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 that section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs. 5
lacs with any party during the year 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 deposits from the public.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the Act in
respect of products manufactured by the Company and the branch auditors
have reviewed the said records in respect of South India branches in
regard to tea and coffee plantations products and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
records.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Income-tax, Sales-tax, Wealth
tax, Service tax, Customs duty, Investor Education and Protection Fund,
Employees'' State Insurance, Excise duty and other material statutory
dues have been generally regularly deposited during the year by the
Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employees''
State Insurance, Investor Education and Protection Fund, Income tax,
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other
material statutory dues were in arrears as at 31 March 2013 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Wealth tax, Service tax, Customs
duty and Excise duty which have not been deposited with the appropriate
authorities on account of any dispute, except as stated below.
x. 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.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any debenture
holders and financial institutions.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund/nidhi/mutual benefit
fund/society.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
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 Act.
xix. The Company did not have any outstanding debentures during the
year.
xx. The Company has not raised any money by public issues during the
year.
xxi. 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 our audit.
For B s R & Co.
Chartered Accountants
Firm''s Registration No.: 101248W
Vijay Bhatt
Partner
Membership No: 036647
Mumbai
28 May 2013
Mar 31, 2012
We have audited the attached Balance Sheet of The Bombay Burmah Trading
Corporation, Limited ('the Company') as at 31 March 2012, the Statement
of Profit and Loss and the Cash Flow Statement of the Company for the
year ended on that date, annexed thereto, in which are incorporated the
returns from Johor Bahru, Usambara and South India branches audited by
branch auditors appointed under Section 228 of the Companies Act, 1956.
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.
We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. 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 Companies Act, 1956 ('the Act'),
we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2. Without qualifying our opinion, we draw attention to note 37 to the
financial statements, regarding remuneration paid by the Company to its
Managing Director during the year ended 31 March 2012 in excess of the
limits specified in relevant provisions of the Companies Act, 1956
("the Act") by Rs 107.52 Lakhs. We are informed that as required by the
relevant provisions of the Act, the Company has applied to seek
approval from the Central Government for excess remuneration paid.
Pending the said approvals in this regard, the excess remuneration paid
to the Managing Director has been charged to the statement of profit
and loss.
3. 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 purposes of 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 and proper returns adequate for the purpose of our audit
have been received from the Johor Bahru, Usambara and South India
branches audited by branch auditors;
(c) the audit reports of the Johor Bahru, Usambara and South India
branches audited by branch auditors has been forwarded to us and has
been dealt with by us in preparing this report;
(d) 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 and with the audited branch returns;
(e) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
(f) on the basis of written representations received from the directors
of the Company as at 31 March 2012 and taken on record by the board of
directors, we report that none of the director is disqualified as on 31
March 2012 from being appointed as a director of the Company under
clause (g) of sub-section (1) of Section 274 of the Act; and
(g) in our opinion and to the best of our information and according to
the explanations given to us, they said financial statements, read with
paragraph 2 above, give the information required by the Act, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(iii) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT - 31 MARCH 2012
With reference to the Annexure referred to in our report of even date,
we report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed in respect of assets verified during the year.
(c) The Company has sold its Sunmica division and Springs division
during the year. In our opinion and according to the information and
explanations given to us, the sale of the said divisions does not
affect the going concern status of the Company.
ii. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) The procedures for the physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii (a) The Company has granted unsecured loan to a company covered in
the register maintained under section 301 of the Companies Act, 1956
('the Act'). The maximum amount outstanding during the year was Rs 3,050
Lakhs and the year-end balance of such loans was nil.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to the Company listed in the register
maintained under section 301 of the Act are not, prima facie,
prejudicial to the interest of the company. .
(c) In the case of loans granted to the Company listed in the register
maintained under section 301, the borrowers have been regular in
repaying the principal amounts as stipulated and in the payment of
interest.
(d) There is no overdue amount of more than Rupees one lakh in respect
of loans granted to the companies, firms or other parties listed in the
register maintained under Section 301.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act. Accordingly, paragraphs 4 (iii) (f) and
(g) of the Order are not applicable.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories and fixed assets and with regard to the sale
of goods and services. In our opinion and according to the information
and explanations given to us, there is no continuing failure to correct
major weaknesses in internal control system in respect of these areas.
v. (a) In our opinion and according to the information and explanations
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 that Section.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of f 5
Lacs with any party during the year 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 deposits from the public.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1 ){d) of the Act in
respect of products manufactured by the Company and the branch auditors
have reviewed the said records in respect of South India branches in
regard to tea and coffee plantations products and are of the opinion
that prima facie, the prescribed accounts and records have been made
and maintained. However, we have not made a detailed examination of the
records.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident fund, Income- tax, Sales-tax, Wealth
tax. Service tax. Customs duty, Investor Education and Protection
Fund, Employees' State Insurance, Cess, Excise duty and other material
statutory dues have been generally regularly deposited during the year
by the Company with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident fund, Employees'
State Insurance, Investor Education and Protection Fund, Income tax.
Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues were in arrears as at 31 March 2012 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax. Wealth tax, Service tax, Customs
duty. Excise duty and Cess which have not been deposited with the
appropriate authorities on account of any dispute, except as stated
below.
Name of the Nature of Amount Period to which Forum where
Statute the dues (Rs in Lakhs) the amount dispute is
relates pending
Central
Excise Act Excise duty 1.47 2005-06 High Court
Central
Excise Act Excise duty 37.65 May 2004 to Appellate
tribunal
December 2005 of Central
Excise
Central
Excise Act Excise duty 3.45 September 2004 Appellate
tribunal
to January 2007 of Central
Excise
The Employees' Provident 98.63 August 2008 to Appellate
Provident
Funds Fund May 2011 authority
up to
and
Miscellaneous Commissioner
Provisions
Act level
x. 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.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any debenture
holders and financial institutions.
xii. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund/nidhi/mutual benefit fund/society.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
xvii. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
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 Act.
xix. The Company did not have any outstanding debentures during the
year.
xx. The Company has not raised any money by public issues during the
year.
xxi. 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 our audit.
For B S R & Co.
Chartered Accountants
Firm's Registration No: 101248W
Vijay Bhatt
Partner
Membership No: 036647
Mumbai
29 May, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of The Bombay Burmah
Trading Corporation, Limited ("the Corporation") as at 31st March,
2010, the Profit and Loss Account and the Cash Flow Statement of the
Corporation for the year ended as on that date, both annexed thereto,
in which are incorporated the Returns from the Johor Bahru, Usambara
and South India Branches audited by other auditors. These financial
statements are the responsibility of the Corporations management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with 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 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) Order, 2003 (CARO)
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we enclose 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 in paragraph 3
above, 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 purposes of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Corporation so far as it appears from our examination
of those books and proper returns adequate for the purposes of our
audit have been received from the Johor Bahru, Usambara and South India
Branches audited by other auditors;
(c) The reports on the accounts of the Johor Bahru, Usambara and South
India Branches audited by other auditors have been forwarded to us and
have been dealt with by us in preparing this report;
(d) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the audited Branch returns;
(e) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(f) We invite attention to Note No. 17 of Schedule No. 22 regarding
provision for foreseeable /osses on outstanding derivative contracts on
the basis stated in the note. On the basis of the information
available to us, we are unable to form an opinion in this matter.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, givethe information
required by the Companies Act, 1956, in the manner so required and
subject to the limited extent of our comments in paragraph (f) above,
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Corporation as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Corporation for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Corporation for the year ended on that date.
5. On the basis of written representations received from the directors
as on 31st March, 2010 taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of Section 274 (1) (g)
of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
(i) Having regard to the nature of the Corporations
business/activities/ results clauses (xiii) and (xiv) of CARO are not
applicable.
(ii) In respect of its fixed assets:
(a) The Corporation has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is a regular program of
verification which in our opinion is reasonable having regard to the
size of the Corporation and the nature of its assets. According to the
information and explanation given to us, no material discrepancies were
noticed by the management on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the
Corporation and such disposal has, in our opinion, not affected the
going concern status of the Corporation.
(iii) In respect of its inventories:
(a) As explained to us, inventories were physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Corporation and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Corporation has maintained proper records of its
inventories and no material discrepancies noticed on physical
verification.
(iv) According to the information and explanations given to us the
Corporation has not granted or taken any loans, secured or unsecured,
to or from companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act 1956.
In view of what has been stated above, sub-clauses (b), (c), (d), (f)
and (g) of clause (iii) of paragraph 4 of the order are not applicable
to the Corporation for the year.
(v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternate sources are not
readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Corporation and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance to Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) the particulars of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 that needed to have been entered in the
Register maintained under the said Section have so been entered.
(b) where each of such transactions is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(vii) The Corporation has not accepted any deposits from the public and
hence the directives issued by the Reserve Bank of India and the
provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under, are not
applicable to the Corporation.
(viii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the Management
have been commensurate with the size of the Corporation and the nature
of its business.
(ix) We have broadly reviewed the books of account maintained by the
Building Product Division of the Corporation in regard to Synthetic
Resins and Plastics and by South India Branches in regard to Tea and
Coffee Plantation Products, pursuant to the Rules made by the Central
Government for maintenance of cost records under Section 209(1 )(d) of
the Companies Act, 1956. We are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the books with a view to
determine their accuracy or completeness. To the best of our knowledge
and according to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
for any of the other products of the Corporation.
(x) According to the information and explanations given to us in
respect of statutory dues:
(a) The Corporation has been regular in depositing undisputed dues,
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income tax, Sales tax. Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and any other material statutory
dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Income tax,
Wealth tax, Service Tax, Sales tax, Custom duty and Excise duty in
arrears as at 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) Details of dues of Excise Duty that have not been deposited on
account of a dispute are given below:
Name Nature Amount Period to Forum where
of the of Dues (Rs. In which it the dispute is
Statute lakhs) relates pending
Central Excise 1.47 2005-06 Commissioner
Excise duty- - Appeals
Act Cess
Central Excise 162.50 April 98 - Central Board
Excise duty April 2004 of Excise &
Act Customs
Central Excise 37.65 May 2004 - Appellate
Excise duty Dec 2005 tribunal of
Act Central Excise
Central Excise 3.45 Sept 2004 Central Board
Excise duty to Jan 2007 of Excise &
Act Customs
Central Excise 0.18 Jan 2006 to CBEC (Central
Excise duty June 2006 Board of
Act Excise and
Customs)
Central Excise 148.62 2003-2004 Appellate
Excise duty tribunal of
Act Central Excise
Central Excise 8.66 2004 Joint
Excise duty Commissioner
Act of Central
Excise
(xi) The Corporation has no accumulated losses as at 31st March, 2010
and has not incurred any cash losses during the financial year covered
by our audit and the immediately preceding financial year.
(xii) In our opinion and according to the information and explanations
given to us, the Corporation has not defaulted in the repayment of dues
to banks during the year. During the year the Corporation has not
borrowed any monies through issue of debentures and from financial
institution nor were there any outstanding. Hence the question of
default in repayment of dues to debenture holders/financial
institutions during the year does not arise.
(xiii) According to the information and explanations given to us, the
Corporation has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiv) According to the information and explanations given to us, the
Corporation has not given guarantees for loans taken by others from
banks or financial institutions.
(xv) In our opinion and according to the information and explanations
given to us, the term loans availed by the Corporation have been,
applied by the Corporation during the year for the purposes for which
the loans were obtained, other than temporary deployment pending
application.
(xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet of the
Corporation, we report that funds raised on short-term basis have not
been used during the year for long-term investment.
(xvii) According to the information and explanations given to us, the
Corporation 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.
(xviii) According to the information and explanations given to us, the
Corporation has not borrowed any monies through issues of debentures.
Hence, the requirement of reporting under clause (xix) of the order
does not arise.
(xix) According to the information and explanations given to us, the
Corporation has not raised any money by public issue during the year.
Accordingly, provisions of clause (xx) are not applicable to the
Corporation.
(xx) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Corporation and no fraud on
the Corporation has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.117364W)
R. SALIVATI
Partner
Membership No: 34004
MUMBAI, 28th May, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article