TO THE MEMBERS OF BHARAT RASAYAN LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of BHARAT RASAYAN LIMITED
("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the
Statement of Profit and Loss, and the Cash Flow Statement for the year then ended, and the
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 gives
a true and fair view of the financial position, financial performance and the cash flows
of the Company in accordance with the Accounting Standards referred 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 miss-statements, 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 misstatements.
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 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.
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 Balance Sheet, of the state of affairs of the Company as at March, 31
2013; b) In the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor`s Report), Order, 2003 ("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 of the matters specified in paragraph 4 and 5
of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit,
b) In our opinion proper books of accounts as required by the law has been kept by the
Company so far as appears from our examination of those books.
c) The Balance Sheet, Statement of the Profit and Loss, and Cash Flow Statement dealt
with by the Report are in agreement with the books of accounts.
d) In our opinion, the Balance Sheet, 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 Companies Act, 1956.
e) On the basis of written representations received from the Directors as on March, 31,
2013 from being appointed as a Director in terms of clause (g) of sub-section (1) of the
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, prescribed the manner in which such cess is to paid, no cess
is due and payable by the Company.
||For B.K.GOEL & ASSOCIATES
|MAY, 30, 2013
||[Firm Regn. No. 016642N]
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
i. (a) According to the information and explanations given to us and as certified by
the management, the Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the management has
conducted physical verification of major fixed assets during the year, which in our
opinion, is reasonable having regard to the size of the Company and the nature of its
No material discrepancies were said to have noticed on such verification.
(c) According to the information and explanations given to us, the Company has not
disposed off substantial part of fixed assets.
ii. (a) Physical verification of inventories has been conducted at reasonable intervals
during the year by the management. In our opinion, the frequency of verification is
(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 Company and the nature of its
(c) In our opinion, the Company is maintaining proper records of inventories, and based
on the information and explanations given to us, discrepancies noticed on physical
verification were not material in relation to the operation of the Company and the same
have been properly dealt within the book of accounts.
iii. (a) The Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the Register maintained under section 301 of the
Companies Act, 1956.Accordingly, paragraphs (iii) (a), (b), (c) & (d) of the Order are
(b) The Company has taken loans/ICDs from five companies/firms or other parties covered
in the register maintained under section 301 of the Companies Act, 1956. The terms of such
loans are not prejudicial to the interest of the Company. Maximum outstanding of such
loans during the year and year end balances were Rs 425.62 lacs & Rs 307.41 lacs
respectively. Repayment is as per the terms of the loans.
iv. In our opinion and according to the information and explanations given to us, there
are adequate internal control systems commensurate with the size of the Company and the
nature of its business with regard to purchase of inventory and fixed assets and 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 of the Company.
v. a) According to the information and explanations given to us, we are of the opinion
that the particulars of all contracts or arrangements that need to be entered in the
register maintained under section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956, and exceeding the value of Rs
5,00,000perpartyinrespect of any such party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of sections 58A and 58AA and other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975, with regard to the deposits accepted from the public.
According to the information and explanations given to us, no order has been passed by
the Company Law Boardor National Company Law Tribunal or Reserve Bank of India or any
Court orany other Tribunalon the Company in respect of the said deposits.
vii. In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the Company in
respect of its products where, pursuant to the Rules made by the Central Government of
India, the maintenance of cost records has been prescribed under section 209(1)(d) of the
Companies Act, 1956, and are of the opinion that prima-facie, the prescribed accounts and
records have been made and maintained. We have not howevermadea detailed examination of
the records with a view to determine whether they are accurate or complete.
ix. (a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education and protection fund,
employees` state insurance, income tax, sales tax, wealth tax, custom duty, excise duty,
cess and other material statutory dues applicable to it. Some disputed issues on
deductions U/s 80IA and 80HHC for Asstt Year 1997-98 to 2001-02 has been decided against
the Company by Hon`ble High Court of Delhi.
Quantum for tax liability giving effect to the orders has not yet decided and paid.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess were in arrears, as at 31.03.2013 for a period of more than six months from
the date they became payable.
x. The Company is a profit making company and having Nil accumulated losses up to
31.03.2013. Further the Company has not incurred cash losses during the financial year
covered by our audit and 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 any financial institution, bank or
xii. We are of the opinion that the Company has maintained adequate records where the
Company has granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii. The provisions of special Statute applicable to Chit Fund/Nidhi/Mutual benefit
Fund/ Societies are not applicable to the Company.
xiv. The Company has dealt with trading in marketable bonds/securities in its own name
for which proper records have been maintained.
Trading in the said bonds/ securities was executed by the Company with intend to invest
its surplus funds with a view to earn income from investment.
xv. According to the information and explanations given to us, the Company has not
given any guarantees for loans taken by others from Banks or other financial institutions.
xvi. In our opinion and according to the information and explanations given to us, the
term loans have been applied on an overall basis for the purposes for which these were
xvii. According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on short
term basis have been used for long term investment.
xviii. The Company has not made any preferential allotment of shares during the year.
xix. The Company has not issued any debentures during its lifetime.
xx. The Company has not raised any money by way of any public issue during the year.
xxi. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of fraud ornery the Company, noticed or reported during the year, nor have we
been informed of any such case by the management.
||For B.K.GOEL & ASSOCIATES
|MAY, 30, 2013
||[Firm Regn. No. 016642N]