We have audited the accompanying financial statements of M/S Bheema
Cements Ltd which comprise the Balance Sheet as at March 31, 2013, and
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management 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. 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.
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.
01. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
02. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
03. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS' REPORT
(Of even date referred to in Para 02 thereof) Re: M/s. Bheema Cements
Limited
i. a) The Company 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 Company and nature of its assets and to the best of our
knowledge no material discrepancies were noticed on such verification;.
c) In our opinion, the Company has not disposed off substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
ii. a) As explained to us, inventories have been physically verified
by the Management at regular intervals during the year.
b) The procedure of physical verification of stocks followed by the
Management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, no material discrepancies were noticed on physical
verification of inventory as compared to the book records.
iii. Based on the information and explanations provided to us, the
company has not granted or taken any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 301 of the Act during the year. Accordingly the sub-clauses
(b),(c),(d),(e) and (f) of clause 4(iii) are not applicable for the
year.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and also for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
v. In our opinion, and according to the information and explanations
given to us, the company has not entered into any transactions referred
to in section 301 of the Act and hence clause 4(v) is not applicable to
the company for the year;
vi. Based on the information provided to us, in our opinion, the
Company has not accepted any Deposits from the public during the year
and hence, in our opinion, the Clause 4(vi) is not applicable to the
company for the year;
vii. In our opinion, the company has an internal audit system to
commensurate with its size and nature of its business.
viii. We are of the opinion, based on the information provided to us,
that the accounts and records, as prescribed by the Central Government
under section 209(1)(d) of the Act in respect of maintenance of cost
records, have been made and maintained.
ix. (a) According to the records of the company, the company is regular
in depositing the undisputed statutory dues including Sales tax,
Income-tax, Customs duty, Excise duty and Employees State Insurance and
Provident Fund and cess, investor education fund with the appropriate
authorities. We have been informed that the company is not liable to
pay Wealth Tax. We have been informed that the provisions of wealth tax
are not applicable to the company;
(b) According to the information and explanations given to us, there
are no dues of sales tax/income tax/ customs duty/Wealth tax /excise
duty/cess to be deposited on account of any dispute;
x. In our opinion, based on the explanation offered to us, the
accumulated losses of the company are less than fifty percent of its
net worth and it has not incurred cash losses during the year covered
by our audit and but incurred in the immediate preceding financial
year.
xi. Based on the information provided and explanation given to us, in
our opinion pursuant to implementation of a Debt Restructuring Package,
the company has not defaulted in repayment of dues to its lending
bankers and hence the sub clause (xi) is not applicable to the company
for the year.
xii. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the Company is not a Chit fund or Nidhi / Mutual
Benefit Fund / Society and hence clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
xiv. Based on the information given to us, the Company has not dealt or
traded in shares, securities, debentures or other investments during
the year.
xv. Based on the information provided to us, the Company has not given
guarantees for loans taken by others from Banks or Financial
Institutions.
xvi. According to the information and explanations given to us, the
term loans availed during the year by the Company were applied for the
purposes for which the loans were obtained.
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.Based on the information provided and explanations offered,
during the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained u/s
301 of the Companies Act 1956 and hence sub clause (xviii) of the order
is not applicable to the company for the year.
xix. The Company has not issued any debentures and not created any
securities or charges in respect of any debentures.
xx. The Company has not raised any money by way of Public Issue during
the year.
xxi. In our opinion and according to the information provided and
explanations offered to us, no fraud on or by the Company has been
noticed or reported during the year.
For A.RAMACHANDRA RAO & CO.,
Chartered Accountants
ICAI FRN : 002857S
Sd/-
Place: Hyderabad, (A. RAMACHANDRA RAO)
Date: 30-05-2013 Partner
Membership No. 9750 |