BF UTILITIES Auditors Report

We Joshi Apte & Co. Chartered Accountants have audited the accompanying
standalone financial statements of BF Utilities Limited ("the Company")
which comprise the Balance Sheet as at 30 September, 2015, the
Statement of Profit and Loss, the Cash Flow statement for the period
then ended, and a summary of significant accounting policies and other
explanatory information.

Management'' 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 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 of 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 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 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
there under.

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 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 preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by the
Company 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 Companies Act, 2013, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 30 September, 2015, and its profit and its
cash flows for the period then ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the
financial statements:

(a) We draw attention to Note No.35 to the accompanying financial
statements. As mentioned therein there are certain litigations by and
against the Company and the subsidiaries of the Company that are yet to
be decided by various courts and the matter is subjudice. No cognizance
thereof is taken in the preparation of the financial statements,
pending the final outcome of these cases.

Note 35- Certain litigations by and against the Company and the
subsidiaries of the Company are pending in various courts and the
matter is subjudice. No cognizance thereof is taken in the preparation
of the financial statements, pending final outcome of the cases.

(b) As stated in note no. 37 in the financial statements, in an event
of non-receipt of Open Access Permission from Maharashtra State
Electricity Distribution Co. Ltd., (MSEDCL) and consequent sale of
power from April 2014 to March 2015 to MSEDCL, the profits of the
Company for the accounting period ended on 31 March, 2015 would be
lower by Rs. 40.5 Million (net of tax).

Note 37- The Company is required to apply for Open Access Permission to
Maharashtra State Electricity Distribution Co. Ltd., (MSEDCL) every
financial year. Upon receipt of the Open Access Permission, the credit
notes are issued by MSEDCL for power generated at the Company''s Wind
Farm at Satara which are subsequently adjusted in the power bill of the
customer in Pune.

The Company has applied for Open Access Permission to MSEDCL for the
financial year1 April, 2014 to 31 March, 2015 well in time. However,
due to certain policy issues at MSEDCL, it has still not granted Open
Access Permission to the Company for the said year and consequently
credit notes for this period are awaited from MSEDCL. The Company had
preferred an appeal with MERC against the decision of MSEDCL.

Pending issuance of these credit notes, the Company has recognized
revenue from power generation during 1 April, 2014 to 31 March, 2015 at
the average power tariff rate at Rs. 5.75 per unit generated.

In case of unfavourable decision by MERC and consequent sale of power to
MSEDCL ,at Rs. 2.52 per unit generated, as per case no. 58 of 2008
issued by MSEDCL, the profits of the Company for that year would be
lower by about Rs.40.5 Million net of tax.

However the Company has received Open Access Permission for 3 years
from 1 April, 2015

Our opinion is not qualified in respect of the above matters

Report on Other Legal and Regulatory Matters

1. As required by the Companies (Auditor''s Report) Order, 2015 (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
statement on the matters specified in paragraph 3 and 4 of the Order .

2. Further, as required by section 143(3) of the Companies Act, 2013,
we further report that:

(i) We have sought and obtained all the information and explanation
which to the best of our knowledge and belief were necessary for the
purpose of our audit;

(ii) 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.

(iii) The Balance Sheet, the statement of Profit and Loss and the Cash
Flow Statement dealt with by us in the Report are in agreement with the
books of account.

(iv) 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.

(v) On the basis of the written representations received from the
directors as on 30 September, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 30 September,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.

(vi) 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:

a) The Company has, in accordance with generally accepted accounting
practice, disclosed the impact of pending litigations on its financial
position in its financial statements. Refer Note 26 & 27 to the
financial statement;

b) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.

c) There were no amounts which were required to be transferred to the
investor Education and Protection Fund by the Company.

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)

RE: BF Utilities Limited ("the Company")

1. In respect of the Company''s fixed assets:

(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets were physically verified
during the period by the Management in accordance with a regular
program of verification which, in our opinion, provides for physical
verification of the fixed assets at reasonable intervals having regards
to the size of the Company and the nature of its assets. According to
the information and explanation given to us, no material discrepancies
were noticed on such verification.

2. Considering the nature of the Company, the provisions of clause 3
(ii) (a),(b) and (c) of the Order pertaining to the physical
verification of inventory and maintenance of inventory records are not
applicable to the Company.

3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Act.

4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations for purchase
of fixed assets, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of fixed assets and the sale of goods
and services. The activities of the Company do not involve activities
of purchase of inventory. During the course of our audit, we have not
observed any major weakness in such internal control system.

5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits. Therefore, the
provisions of the clause 3 (v) of the Order are not applicable to the
Company.

6. The provisions of clause (3)(vi) of the Order are not applicable to
the Company as the Company is not covered by the Companies (Cost
Records and Audit) Rules, 2014.

7. According to the information and explanations given to us, in
respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed
statutory dues, including provident fund, income tax, sales tax, wealth
tax, service tax, value added tax, cess and other material statutory
dues applicable to it with the appropriate authorities.

(b) There were no undisputed amounts payable in respect of provident
fund, income tax, sales tax, wealth tax, service tax, value added tax,
cess and other material statutory dues in arrears as at 30September,
2015 for a period of more than six months from the date they became
payable.

There were no dues of wealth tax, duty of customs, duty of excise and
cess which have not been deposited as at 30 September, 2015 on account
of disputes.

(c) There are no amounts that are required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
there under.

8. The Company does not have accumulated losses. The Company has not
incurred cash losses during the financial period covered by our audit
and in the immediately preceding financial year.

9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank. Further, in our opinion and according to information and
explanations given to us, the Company did not have any amount
outstanding to financial institutions, bank or debenture holders.

10. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantee given by the
Company for loan taken by the subsidiary from a bank is not prima facie
prejudicial to the interest of the Company.

11. In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained.

12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the period.

For Joshi Apte & Co.

Chartered Accountants

ICAI Firm Registration Number: 104370W


P. J. Apte

Pune Partner

28th November, 2015 Membership Number: 033212

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
“2019 © COPYRIGHT DYNAMIC EQUITIES PVT. LTD.”

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

  • Download our Mobile App
  • Available on Google Play
  • Available on App Store
  • RSS