SENSEX NIFTY
Bharat Heavy Electricals | Auditor's Report > Infrastructure - General > Auditor's Report from Bharat Heavy Electricals - BSE: 500103, NSE: BHEL
YOU ARE HERE > MONEYCONTROL > MARKETS > INFRASTRUCTURE - GENERAL > AUDITORS REPORT - Bharat Heavy Electricals

Bharat Heavy Electricals

BSE: 500103|NSE: BHEL|ISIN: INE257A01026|SECTOR: Infrastructure - General
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 06, 11:56
128.30
-0.3 (-0.23%)
VOLUME 199,623
LIVE
NSE
Dec 06, 11:56
128.20
-0.45 (-0.35%)
VOLUME 1,764,305
« Mar 15
Auditor's Report (Bharat Heavy Electricals) Year End : Mar '16
We have audited the accompanying financial statements of Bharat Heavy
 Electricals Limited (the Company), which comprise the Balance Sheet
 as at March 31, 2016, 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 in which are
 incorporated the returns for the year ended on that date audited by us
 for 16 branches and 18 branches audited by the branch auditors of the
 company.
 
 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 of these standalone 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 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:
 
 (a) In the case of the Balance Sheet, of the state of affairs of the
 company as at March 31, 2016;
 
 (b) In the case of the Statement of Profit and Loss, 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.
 
 Other Matter
 
 We did not audit the financial statements/information of 18 ( Eighteen)
 branches included in the standalone financial statements of the Company
 whose financial statements/financial information reflect total assets
 of Rs. 37337.65 crores as at 31st March, 2016 and total revenue of Rs.
 13006.97 crores for the year ended on that date, as considered in the
 standalone financial statements. The financial statements/information
 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) Being a Government Company, Section 164(2) of the Companies Act,
 2013 regarding ''whether any director is disqualified from being
 appointed as a director'' is not applicable to the Company in view of
 Notification no. G.S.R. 463(E) dtd. 05-06- 2015
 
 (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.
 
 (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 financial statements – Refer Note 31 (5) to
 the financial statements.
 
 ii. The Company has made provision, as required under the applicable
 law and accounting standards, for material foreseeable losses, if any,
 on long- term contracts – Refer Note 31 (11) to the financial
 statements.
 
 iii. There has been no delay in transferring amounts, required to be
 transferred, to the Investor Education and Protection Fund by the
 Company.
 
 (3) As required by section 143(5) of the Act, we have considered the
 directions issued by the Comptroller and Auditor General of India, the
 action taken thereon and its impact on the accounts and financial
 statements of the company –Refer Annexure C attached.
 
 Annexure A to Independent Auditors'' Report
 
 (Referred to in Paragraph 1 under the heading Report on Other Legal
 and Regulatory Requirements of our report of even date on the accounts
 of Bharat Heavy Electricals Limited (the Company), for the year ended
 March 31, 2016)
 
 i) (a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of its fixed
 assets.
 
 (b) According to the information and explanations given to us, physical
 verification of fixed assets is being conducted in a phased manner by
 the management under a programme designed to cover all the fixed assets
 over a period of three years, which, in our opinion, is reasonable
 having regard to the size of the Company and nature of its business and
 no material discrepancies were noticed on such verification to the
 extent verification was made during the year.
 
 (c) The details of title deeds of immovable properties not held in the
 name of the company are given in note 31(2)(a) (i to iii) to the
 Financial Statements.
 
 ii) As explained to us physical verification of inventory has been
 conducted by the management under Perpetual Inventory Programme at
 regular intervals during the year except for stock of work in progress
 and finished goods in few units where these are verified at the year
 end with reference to the inspection reports and production reports of
 the Production Planning Department of such units. In regard to stocks
 lying with contractors/fabricators and other parties, confirmations
 were received in few cases only. In our opinion the frequency of
 verification is reasonable.
 
 iii) According to the information given to us, the Company has not
 granted any loans, secured or unsecured to companies, firms, Limited
 Liability Partnerships or other parties covered in the register
 maintained under section 189 of the Companies Act, 2013. Therefore
 clauses (iii) (a), (iii) (b) and (iii)(c) of Paragraph 3 of the Order
 are not applicable to the Company.
 
 iv) The Company has complied with the provisions of the section 185 and
 186 of the Companies Act, 2013 in respect of loans, investments,
 guarantees, and security.
 
 v) According to the information and explanations given to us, the
 Company has not accepted any deposits from public during the year
 within the meaning of sections 73 to 76 or any other relevant
 provisions of the Companies Act, 2013 and the Companies (Acceptance of
 Deposits) Rules 2014.
 
 vi) We have broadly reviewed the books of account and records
 maintained by the Company pursuant to the Companies (Cost Records and
 Audit) Rules 2014 prescribed by the Central Government under section
 148(1) of the Companies Act, 2013 and 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
 cost records with a view to determine whether they are accurate and
 complete.
 
 vii) (a) According to the information and explanations given to us, in
 our opinion, the Company is generally regular in depositing with
 appropriate authorities 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
 statutory dues as applicable to it.
 
 (b) 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 statutory dues were
 outstanding as at March 31, 2016 for a period of more than six months
 from the date they became payable.
 
 (c) According to the information and explanations given to us, the
 particulars of Income Tax, Sales Tax, Service Tax, duty of Customs,
 duty of Excise and Value Added Tax which have not been deposited on
 account of dispute are as under:
 
                                                         (Rs. in Crore)
 
 Sl.  Name of the Statute      Nature of         Pending      Amount
 No.                           the Dues          Amount       paid under
                                                              protest
 
 1    Central Sales Tax Act,
      Value                    Sales Tax,         30.97         3.81
      Added Tax and Sales Tax 
      Act of                   VAT 
      various States                             398.59        58.31
 
                                                 378.08       133.27
 
                                                  43.47        22.33
 
                                                   2.87         2.83
 
                                                 399.34        26.05
 
 2    Income Tax Act, 1961     Income Tax          0.81            -
 
                                                   0.05            -
 
                                                   0.10            -
 
 3    Central Excise Act, 1944 Excise Duty        41.84         4.37
 
                                                 369.86        13.69
 
                                                  55.70         4.96
 
                                                   0.55         0.55
 
                                                      -            -
 
 4    Service Tax under the
      Finance                  Service Tax         1.56         0.74
      Act, 1994
 
                                                 468.51         6.54
 
                                                  15.10            -
 
                                                   0.77         0.06
 
 5    Customs Act,1962         Custom              0.10            -
                               duty
 
 Name of the Statute            Forum where dispute is pending
 
 Central Sales Tax Act          Assessing Officer
 
                                Dy. Commissioner/ Jt. Commissioner/ 
                                Commissioner (Appeals)
 
                                Appellate Tribunal
 
                                High Court
 
                                Supreme Court
 
                                Various Appellate Authorities
 
 Income Tax Act, 1961           Assessing Officer
 
                                Commissioner (Appeals)
 
                                High Court
 
 Central Excise Act, 1944       Commissioner (Appeals)
 
                                Appellate Tribunal
 
                                High Court
 
                                Supreme Court
 
                                Various Appellate Authorities
 
 Service Tax Under the Finance
 Act, 1994                      Commissioner (Appeals)
 
                                Appellate Tribunal
 
                                High Court
 
                                Various Appellate Authorities
 
 Customs Act, 1962              Assessing Officer
 
 viii) According to the records of the Company examined by us and the
 information and explanations given to us, the Company has not defaulted
 in repayment of loans or borrowings to financial institutions, banks,
 government. The company has not issued any debentures.
 
 ix) Provisions of clause no. (ix) relating to utilization of moneys
 raised by way of initial public offer or further public offer including
 debt instruments and term loans is not applicable to the Company as no
 such moneys raised during the year.
 
 x) 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, no fraud by the Company or any fraud on the Company by its
 officers or employees has been noticed or reported during the year.
 
 xi) Being a Government Company, provision of clause no. (xi) regarding
 section 197 of the Companies Act, 2013 relating to managerial
 remuneration is not applicable to the Company in view of Notification
 no. G.S.R.  463(E) dtd. 05-06-2015.
 
 xii) Provisions of clause no. (xii) regarding Nidhi Company is not
 applicable to the Company;
 
 xiii) According to the records of the Company examined by us and the
 information and explanations given to us, the related party
 transactions are in compliance with section 177 and 188 of the
 Companies Act, 2013 and have been disclosed in the Financial
 Statements.
 
 xiv) Provision of clause no. (xiv) reg. preferential allotment or
 private placement of shares or fully or partly convertible debentures
 during the year is not applicable to the Company as no such
 preferential allotment or private placement took place during the year.
 
 xv) The company has not entered into any non-cash transactions with
 directors or persons connected with him.
 
 xvi) The Company is not required to be registered under section 45-IA
 of the Reserve Bank of India. Act, 1934.
 
 
 For Wahi & Gupta        For DSP & Associates    For SBA & Company
 
 Chartered Accountants   Chartered Accountants   Chartered Accountants
 
 FRN 002263N             FRN 006791N             FRN 004651C
 
 (CA Y K Gupta)         (CA Sanjay Jain)        (CA Vikas Jain)
 
 Partner                 Partner                 Partner
 
 M.No.016020             M.No. 084906            M.No. 078245
 
 Place : New Delhi 
 
 Date : May 27, 2016
Source : Dion Global Solutions Limited
Quick Links for bharatheavyelectricals
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.