| We have audited the accompanying financial statements of Beeyu Overseas
Limited ("the Company"), which comprise the Balance Sheet as at March
31,2014, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs)
and in accordance with the accounting principles generally accepted in
India. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. An audit also includes evaluating the appropriateness
of 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.
Basis of Qualified Opinion
The Company has incurred a net loss of Rs. 7,85,739 for the year ended
on March 31, 2014. The Company's accumulated loss as on March 31,2014
exceeds fifty percent of the net worth. These factors raise substantial
doubt that the Company will be able to continue as a going concern.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date. Report on Other Legal and
Regulatory Requirements
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 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 account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act (which continue to be applicable in respect of
section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs); and
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
[Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of Beeyu Overseas Limited on the financial statements for the year
ended March 31,2014]
In our opinion and according to the information and explanations given
to us, the nature of the Company's business/ activities during the year
are such that clauses (xii), (xiii), (xviii), (xix) and (xx) of
paragraph 4 of the Order are not applicable to the Company. In respect
of the other clauses, we report as under:
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The assets have been physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) During the year, in our opinion, a substantial part of fixed assets
has not been disposed of by the Company.
(ii) As the Company does not have any stocks of loose tools, raw
materials and finished goods no comments can be made in terms of
paragraph 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Order.
(iii) (a) The Company has taken unsecured loan from one company under
the same management aggregating to Rs. 5,00,000: Maximum Balance due at
any time during the year: Rs. 5,00,000 (Previous Year : Rs. 5,00,000).
The terms and conditions of the said loan are not prejudicial to the
interest of the Company. There are no covenants with regard to
repayment of this loan. During the year the Company has not granted any
secured or unsecured loan/advance to any party covered in the register
maintained under section 301 of the Companies Act, 1956 ("the Act").
(b) Since the terms of repayment of unsecured loan taken have not been
stipulated, no specific comments about the regularity or otherwise of
repayment of this loan taken can be made.
(c) There has been no overdue interest exceeding Rs. 100,000 in respect
of unsecured loan taken. In view of no stipulation as to repayment of
the above unsecured loan taken, overdue amount exceeding Rs. 100,000 in
respect of principal cannot be ascertained.
(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 sale of Services. During the course of our audit, we have not
observed any major weakness in such internal control system.
(v) According to the information and explanations given to us, the
company has entered the transactions that need to be entered into a
register in pursuance of section 301 of the Act at prices which, in our
opinion, are reasonable having regard to the prevailing market prices.
(vi) The Company has not accepted any deposits from the public to which
the provisions of section 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975 would apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We are informed that the Central Government has not prescribed
maintenance of cost records under section 209(1)(d) of the Act.
Therefore, the question of reporting on Paragraph 4(viii) of the said
Order does not arise.
(ix) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion:
(a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-
tax, Customs Duty, Excise Duty, Cess and other material statutory dues
as applicable with the appropriate authorities.
(b) No undisputed amounts payable in respect of Income-tax, Wealth-tax,
Service-tax, Sales-tax, Customs Duty, Excise Duty, Cess and other
material statutory dues were in arrears, as at March 31, 2014 for a
period of more than six months from the date they became payable.
(c) As at March 31, 2014, the following are the particulars of dues on
account of Income-tax, Wealth-tax, Service-tax, Sales-tax, Customs
Duty, Excise Duty and Cess matters that have not been deposited on
account of any dispute.
Sl. Nature of Amount Period to which the
No. Name of the Statute the dues (Rs.) amount relates
1 Income tax Act, 1961 Income Tax 83,59,411 2001-02
2 Income tax Act, 1961 Income Tax 33,79,059 2002-03
3 Income tax Act, 1961 Income Tax 12,35,977 2003-04
4 Income tax Act, 1961 Income Tax 26,77,782 2004-05
5 Income tax Act, 1961 Income Tax 2,77,248 2005-06
Sl. Forum where the
No. Name of the Statute dispute is Pending
1 Income tax Act, 1961 Commissioner of Income
tax (Appeals)
2 Income tax Act, 1961 Commissoner of Income
tax (Appeals)
3 Income tax Act, 1961 Commissoner of Income
tax (Appeals)
4 Income tax Act, 1961 Commissoner of Income
tax (Appeals)
5 Income tax Act, 1961 Commissioner of Income
tax (Appeals)
(x) The company has an accumulated loss of Rs. 22,93,73,529 at the
beginning of the year and has an accumulated loss of Rs. 23,01,59,268
at the end of the financial year. The company has incurred cash loss of
Rs. 2,60,934 during the financial year covered by our audit and
incurred cash loss of Rs. 5,85,465 in the immediately preceding
financial year.
(xi) According to the information and explanations given to us, the
Company has not taken any loan from banks, financial institutions nor
has it issued any debentures.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in securities. The
Company has not made any investments in shares, securities, debentures
and other investments.
(xiii) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks and financial institutions.
(xiv) According to the information and explanations given to us, no
term loans have been taken by the Company during the year under
reference.
(xv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
Company, we report that funds raised on short-term basis have not been
used during the year for long-term investment. Also, no long-term funds
have been used to finance short-term assets except permanent working
capital.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no significant
fraud on the Company has been noticed or reported during the year.
For ROHIT SHUKLA & ASSOCIATES
Chartered Accountants
[Firm Registration No. 315178E]
ROHIT SHUKLA
Proprietor
Membership No. 052453
Kolkata, May 28, 2014
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