| We have audited the accompanying financial statements of Bee Electronic
Machines Limited, which comprise of the Balance Sheet as at March 31,
2014, the Statement of Profit and Loss, Cash Flow Statement for the
year then ended and a summary Of significant accounting policies and
other explanatory information.
Management's Responsibility tor 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 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. 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, foe financial statements give the information
required by the Act lit the manner so required subject to the
following:
Clause 1 regarding non-provision of gratuity, leave travel assistance,
Leave encashment and Medical reimbursement, amount being unascertained;
Clause.2 (a) regarding non-provtsion of excise duty on Finished goods
of Rs.196,892 being accounted for on clearance basis;
Clause No 2(b) Non provision of interest on Excise duty payable of Rs
48,300 (pp to PY Rs 483,000)
Clause No 2(C) Non provision of property tax of Rs 67,751 (up to PYRs
630,418)
Clause No. 4(b) regarding disclosure of overdue debentures die to this,
the seemed loan is overstated by Rs 131.25 lacs.
Clause No 4(d) regarding non-provision of interest on debentures of Rs
18.75 lacs Clause No 4(e) regarding non-provision of interest on premium
payable of Rs 93,750/-
Clause No 5 regarding unconfirmed balance of debtors, creditors, loans,
advances and secured loans from financial Institutions and Bankers: *
Clause No. 6 regarding non-provision of loans and advances of Rs.
581,279;
Clause No 7 (b) regarding non-provision of interest of Rs 171.88 lacs:
Clause No 8 regarding non-provision of loss of Rs 400 lacs
approximately on obsolete and slow moving stocks:
2. We further inform that without considering the items mentioned for
clause no 1, 4 (b) and 5 of notes to the accounts, effect of which
cannot be determined, had the observations been made by us in clause
nos. 2(b), 2(c), 4(d); -4(e), 6, 7(b) and 8 of the note to the accounts
been considered, the loss for the year would have been Rs.
6,08,52,542/- as against the reported loss figure of Rs 998,287/- and
the accumulated loss would have been Rs 18,41,10,346 as against the
reported figure of Rs.12,42,56,091 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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 fthe
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 appears from our examination of those
books for the purposes of our audit
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, 2014, and taken on record by the Board of Directors,
none of the directors are 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 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.
a.Based on the information and explanation give to use ,we are of the
opoion that the transaction that are meSon to be eentered in the resiter
in poersonl of section 301 of the company Act.1956 have been entered.
0.5 b. In our opion and accounding to the information and edmplation ot
the there werre the transactioon were made in prcodes of contracts
entered in the segister mainatianed under section 301 of the compaines
1956 in respect of any party during the year.
0.5 the company has not accepted andy deposited from public the
provision of section 58 A abd 58 of the Companies Act and the sales
financial there under are not applicable
06.in our ipionion, the company has an incidental audit system corporate
with fine size and nature of as business however it needs to the
strictures
07. to ear gpirioau *a Qaapacy to® aw Mfemal aarii do*-
inaamynurriB adh toe atea and natae of to business.
08. Weare infomM that tiie Central Government has not prescribed the
maintenance of cost records under section 209(1)
(d) of tiie Companies Act, 1956 for any ot the product of the company.
9.1 .Acconfingto information furnished to us, tt¯ company is regular fa
depositing with appropriate authorities, the undisputed statutory dues
Inducting Provident Fund, Investor Education Protection Fund, and
Employees State Insurance, Income Tax. Sales Tax. Service tax. Wealth
Tax, Custom Duty. Excise Duty, Cess and other material statutory dues
applicable to * and there were no unctispuled statutory dues in arrears,
as at the date of the Balance Sheet under report, for a " period of mote
than six months from the datethey became payable except Sales tax of
Rs318,793f-, service tax of Rs 24,663 profession tax Rs 7.7687-, and
Excise duty Rs 322.00/-
9.2. Aocordfog loiwinfoimatfon famished to us, mefoeowing amounts of
Beqise Duty and Sales Thx, have been, disputed . try the Company, and
hence, were not doposhed to the concerned authorities at date of the
Bafonce Sheet under report.
Name of Nature of Amount Period to
status due which the
amount related
Central Excise
act, 1944 Excise duly 4,34,19,414 1991 to 1994
Central Excise
act 1944 Excise duly 7479.179 1993 to 1997
Sales tax Act Sales tax 1,349,432 1997-98
Sales tax Act Sales tax 1,302,000 1998-99
Sales tax Act Sales tax 823,772 1999-00
Sales tax Act CST 91,115 1999-00
Sales tax Act Sales tax 49489 1998-98
Sales tax Act CST 58447 1998-43
Sales tax Act Sales tax 42,997 1990-2000
Sales tax Act Sales tax 99,211 1999-2000
Sales tax Act CST 104,8442 1999-2000
Sales tax Act CST 97481 2001-2002
Name of Forum where the
status dispute is pending
Central Excise
act, 1944 CESTHT
Central Excise
act 1944 CESTHT
Sales tax Act Gujarat sales Tax Tribunal Ahmedabed
Sales tax Act Gujarat sales Tax Tribunal Ahmedabed
Sales tax Act Gujarat sales Tax Tribunal Ahmedabed
Sales tax Act Asst Commissioner of sales Tax
(Appeal 1). Ahmedabed
Sales tax Act By Commissioner -Cmaaertiti tores. Kolikata.
(South) circle
Sales tax Act By Commissioner - Coneaetdti tores. Kolikata.
(South) circle
Sales tax Act By Commissioner - Ccnensrclsl toss. Kolikata
(South) circle
Sales tax Act By Commissioner (CT) AppeOtie Secunderabad Div
Sales tax Act By Commissioner (CT). Appeiete Secunderabad div
Sales tax Act The Joint Commissioner-6. Trade tax Lucknow
10. Aootmting to tho informaion and saplanafions famished to us
a) It has accumuitied tosses at tiie end of the tinandaf year of Rs
12,42.56,091
b) Outing Are year ire company has incurred a cash toss of Rs 585444 and
in Vie bnmectiately preceding financial year company had incurred a toss
of Rs 3884557-.
11. In our opinion and aooonting to the information and explanations
famished to us by the Company, there were defaults la mpayarent of 8s
dues to faiandal institutions and banks at the date of tire Balance
Sheet and the company has cfafaabBd fet repayment of dues of Rs 4215.16
lacs to ihe financial institutions and banks. (Inducting Rs 3030.65 lacs
un- presided Merest accnred 8 due)
12. According to the information and explanation given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not chit fund, nidhi, mutual benefit fond or a
society. Accordingly, the provisions of clause 4 (xiii) of the Order,
is not applicable to the company.
14. According to the information and explanation given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, clause (xiv) of .the order is not
applicable to the company.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. The Company has not taken any term loan during the year.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised during the year on short - term basis have been used for
long - term investment.
18. The Company has not made any preferential alfotmeet of shares to
parties and companies covered in the register maintained under section
301 of the Act Accordingly, the provisions of clause 4 (xviii) of the
order are not applicable to the company.
19. The Company has not issued any debentures during the year.
However, the company had taken money from UTI for issuing debentures
of Rs 125 lacs in the year 1991 for which securities are yet to be
created.
20. The Company has not raised any money from the public Issue during
the year
21. During the course of our examination of the accounts of toe Company
in accordance with generally accepted auditing practices, we have not
come across any instances of fraud on or by the Company, nor have we
been informed by the! management, of any such instance being noticed or
reported during the year.
For SHANKARLAL JAIN & ASSOCIATES
Chartered Accountants
Place: Mumbai Firm Reg. No.109901 W
Date : 30th May, 2014 S.L. AGRAWAL
(PARTNER)
Membership No. 72184
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