you are here:

Bharat Heavy Electricals Ltd.

BSE: 500103 | NSE: BHEL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE257A01026 | SECTOR: Infrastructure - General

BSE Live

Sep 24, 16:00
56.25 -0.85 (-1.49%)
Volume
AVERAGE VOLUME
5-Day
2,883,725
10-Day
3,385,889
30-Day
3,355,172
3,563,870
  • Prev. Close

    57.10

  • Open Price

    57.20

  • Bid Price (Qty.)

    56.05 (1230)

  • Offer Price (Qty.)

    56.25 (9210)

NSE Live

Sep 24, 15:59
56.25 -0.90 (-1.57%)
Volume
AVERAGE VOLUME
5-Day
32,406,160
10-Day
34,844,999
30-Day
34,691,581
53,416,142
  • Prev. Close

    57.15

  • Open Price

    57.15

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    56.25 (54694)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

We have audited the attached Balance Sheet of Bharat Heavy Electricals Limited as at 31st March, 2007 and also the Profit and Loss Account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In accordance with the provisions of section 227 of the Companies Act, 1956, we report that: I, As required by the Companies (Auditors' Report) Order, 2003, issued by the Central Government of India under sub-section (4A) of section 227 of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. II. Further to our comments in the Annexure referred to in paragraph I above, we report that : (1) The balances of Sundry Debtors, Creditors, Contractors Advances, Deposits and Stocks/materials lying with Sub-contractors/Fabricators are subject to confirmation and reconciliation. The consequential impact thereof, if any, on the accounts could not be ascertained. (2) Provision for Contractual obligations is made @ 2.5% of contract value as in previous years in accordance with the Accounting Policy No. 14. Accounting Standard (AS) 29 of the Institute of Chartered Accountants of India requires inter-alia that the provision should reflect the current best estimate of expenditure to be incurred on this account and that the expected timing of any resulting outflow of economic benefits is to be disclosed. In the MANAGEMENT'S REPLIES (1) Requests for confirmations are sent and reconciliations with the parties are carried out as an ongoing process and the management does not envisage any significant impact on the accounts due to this. (2) The Company's policy of providing for contractual obligation @ 2.5% of contract value is consistent over the years and is on a conservative basis. The Company reviewed the Policy and decided to continue the same for the years 2005-06 and 2006-07 and, in the meantime, to review the actual expenditure and take a view thereafter. absence of sufficient data regarding the appropriateness of the above provision, we are unable to express an opinion as to whether the provision made is in line with the above Accounting Standard. (3) Attention is drawn to: (i) Note No.18(a) (i) & (ii) of Schedule 19 regarding change in accounting practice relating to leave liability & LTC/LTA Encashment resulting in increase in profit for the year by Rs. 40.53 Crores & Rs. 28.10 Crores respectively. (ii) Note No 18(b) of Schedule 19 regarding change in accounting practice relating to encashment of Half Pay Leave (HPL) resulting in decrease in profit for the year by Rs. 70.18 Crores. (4) We further report that overall impact of the adjustments to be carried out as per our remarks as given in Paras 11(1) to ll(2) above could not be determined. Subject to the foregoing and consequential effect thereof: (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 the books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us. (c) The Branch Auditor's Reports have been furnished to us and have been appropriately dealt with while preparing our report. (d) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account and with the audited returns received from the branches. (e) In our opinion, the Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub Section (3C) of Section 211 of the Companies Act, 1956. (f) In terms of Notification No. GSR 829(E) dated 21.10.2003 issued by the Department of Company Affairs, Government of India, the provisions of Section 274(1 )(g) of the Companies Act, 1956 are not applicable to the Company. (g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Accounting Policies and Explanatory Notes in Schedule-19, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31. 2007: and (ii) In case of Profit & Loss Account of the profit for the year ended on that date; and (iii) In the case of cash flow statements of the cash flows for the year ended on that date. For M.L. Puri & Co. Chartered Accountants (Navin Bansal) Partner Membership No. 091922 New Delhi, May 25, 2007 Annexure to the Auditors' Report (Referred to in Para I of our report of even date) i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of its fixed assets. (b) We are informed that management has generally carried out the physical verification of a portion of the fixed assets in accordance with their phased programme of physical verification, which is considered 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. In respect of 65 locomotives given to Indian Railways on lease instead of physical verification a certificate confirming physical possession of these locomotives has been obtained from Indian Railways as per the lease agreement. (c) The company has not disposed off any substantial part of its fixed assets so as to affect its going concern status. ii) (a) 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 a few cases only. Subject to the above, in our opinion the frequency of verification is reasonable. (b) In our opinion procedures of physical verification of inventory, followed by the management are generally reasonable and adequate in relation to the size of the Company and the nature of its business. (c) The company has generally maintained proper records of inventory and the discrepancies noticed on physical verification of inventory with regard to the size and nature of operations of the company were not material and have been properly dealt with in the books of account of the Company. iii) (a) According to the information given to us, the company has not granted any loans, secured or unsecured to companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, clauses (iii)(b) to (iii)(d) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the company for the current year. (b) According to the information given to us, the company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, clauses (iii) (f) and (iii) (g) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the company for the current year. iv) In our opinion and according to the information and explanation 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, fixed assets and sale of goods and services. Further on the basis of our examination of the books and records of the company, and according to the information and explanation given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in internal control systems. v) According to the information and explanation given to us, we are of the opinion that there are no contracts and arrangements referred to in Section 301 of the Act during the year that need to be entered in the register maintained under that Section. Accordingly, clause (v)(b) of paragraph 4 of the Companies (Auditor's Report) Order, 2003 is not applicable to the company for the current year. vi) According to the information and explanation given to us, the company has not accepted any deposits from public during the year within the meaning of sections 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules 1975 framed there under. vii) In our opinion, the Internal Audit System of the Company is largely commensurate with the size and nature of its business. viii) We have broadly reviewed the books of accounts and records maintained by the company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of manufacture of Electric Motors, Seamless Steel Tubes, Electric Generator, Power Transformers, Power Driven Pumps, Power generation through windmills, Control Instrumentation and Automation Equipment, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us. ix) (a) According to the information and explanation given to us, and books and records as produced and examined by us, in our opinion, 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, Excise Duty, Customs Duty, Cess and any other material statutory dues as applicable with appropriate authorities. According to the information and explanation given to us, except Ground rent of Rs.3.39 Crores there were no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Customs Duty, Cess and other statutory dues outstanding as at 31s' March. 2007 for a period of more than six months from the date they become payable. (b) According to the information and explanation given to us, the particulars of Sales Tax, Income Tax, Excise Duty, Service Tax, Custom Duty and Cess which have not been deposited on account of dispute are as under: Sl. Name of Nature of Amount Forum where No. the Statute the Dues (Rs. in dispute is Crores) pending 1. Central Sales Sales Tax 14.22 Assessing Tax Act, Work Entry Tax Officer Contract Tax & Work 91.90 Commissioner/ Act, Lease Contract Dy. Tax, Entry Tax Commissioner Tax Act and 43.54 Appellate Sales Tax Act Tribunal of Various 46,84 High Court States 43.22 Various Appellate Authorities 2. Income Tax Income 0.06 Assessing Act, 1961 Tax Officer 1.76 High Court 3. Central Excise 1.01 Assessing Excise Act, Duty Officer 1944 7.92 Commissioner (Appeals) 119.35 Appellate Tribunal 0.43 Various Appellate Authorities 4. Service Tax Service 8.24 Assessing under the Tax Officer Finance Act, 5.70 Commissioner 1994 (Appeals) 5. Custom Act Custom 0.76 Various Duty Appellate Authorities Total 384.95 The Company is continuously pursuing the case with DDA for early settlement. x) The company has no accumulated losses as at March 31, 2007 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. xi) 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 dues to financial institutions, banks or debenture holders, xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. xiii) The provisions of any special statute applicable to Chit fund/Nidhi/Mutual benefit fund/Societies are not applicable to the company. xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company. xv) In our opinion and according to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year. xvi) As per information and explanations given to us, the company has not obtained any term loan during the year. 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 to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year, xix) In our opinion, the company has not issued any debentures during the year, xx) The company has not raised any money by 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 on or by the company noticed or reported during the year nor have we been informed of any such case by the management. MANAGEMENT'S REPLIES Requests for confirmations are sent to contractors/fabricators and other parties and reconciliations with them are carried out as an ongoing process and the management does not envisage any significant impact on the accounts due to this. For M. L. Puri & Co, Chartered Accountants (Navin Bansal) Partner Membership No, 091922 New Delhi, May 25, 2007