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Bedmutha Industries Ltd.

BSE: 533270 Sector: Metals & Mining
NSE: BEDMUTHA ISIN Code: INE844K01012
BSE LIVE 10:39 | 21 Sep 24.85 -0.95
(-3.68%)
OPEN

26.75

HIGH

26.75

LOW

24.75

NSE 10:24 | 21 Sep 25.40 -0.40
(-1.55%)
OPEN

25.45

HIGH

25.55

LOW

25.40

OPEN 26.75
PREVIOUS CLOSE 25.80
VOLUME 2385
52-Week high 50.00
52-Week low 16.60
P/E
Mkt Cap.(Rs cr) 61
Buy Price 24.85
Buy Qty 100.00
Sell Price 24.90
Sell Qty 3225.00
OPEN 26.75
CLOSE 25.80
VOLUME 2385
52-Week high 50.00
52-Week low 16.60
P/E
Mkt Cap.(Rs cr) 61
Buy Price 24.85
Buy Qty 100.00
Sell Price 24.90
Sell Qty 3225.00

Bedmutha Industries Ltd. (BEDMUTHA) - Auditors Report

Company auditors report

To the Members of Bedmutha Industries Limited

Report on the standalone Financial statements

We have audited the accompanying standalone financial statements of Bedmutha IndustriesLtd ("the Company") which comprise the Balance Sheet as at 31st March 2016the Statement of Profit and Loss and the Cash Flow Statement for the year the ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the standalone Financial statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the Audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India and specified under sec. 143(10) of the Act.Those Standards require that we comply with the ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers the internal control relevant to the Company’s preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) of the state of affairs of the Company as at 31st March 2016;

(b) and its loss and cash flows for the year ended on that date Report on other Legaland Regulatory Requirements

1) As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 bestof 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 theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

(d) In our opinion the standalone financial statements comply with the AccountingStandards specified under section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsub-section (2) of section 164 of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanation given to us:

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. the Company has made provision as required under the applicable Law or AccountingStandards material foreseeable losses if any on long term contracts includingderivative contracts

iii. There has been no delay in transferring amounts to be transferred to theInvestor Education and Protection Fund by the Company.

For Patil Hiran Jajoo & Co.
Chartered Accountants
Aniruddha Jajoo
Partner
Membership No: 103246
Place: Nashik Firm Registration No: 120117W
Date : 25/05/2016

ANNEXURE - A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended March 31st 2016 we report that

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(ii) (a) As explained to us physical verification of inventory has been conducted atreasonable intervals by the management.

(b) In our opinion the procedures of physical verification of inventory followed bythe management is reasonable and adequate in relation to the size of the company and thenature of its business.

(c) In our opinion the company is maintaining proper records of inventory. Thediscrepancies noticed on verification between the physical verifications and book recordswere not material.

(iii) The company has not granted unsecured loans to company covered in the registermaintained under section 189 of the Act. The company has not granted any secured orunsecured loans to firm or other parties covered in the register maintained under section189 of the Act.

(a) In respect of aforesaid loans the parties are repaying the principal amounts asstipulated and are also regular in payment of interest as applicable.

(b) There is no overdue amount of loans granted to companies listed in the registermaintained under section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanation given to us thereare adequate internal control system commensurate with the size of the company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. Further on the basis of our examination of the books and records ofthe company and according to the information and explanation given to us we have neithercome across nor have been informed of any continuing failure to correct major weaknessesin the aforesaid internal control system.

(v) The company has not accepted any deposits from the public within the meaning ofsection 73 to 76 of the Act and the rules framed there under to the extent notified.

(vi) We have broadly reviewed the books of accounts maintained by the company inrespect of activity where pursuant rules made by Central Government of India themaintenance of cost records has been prescribed under subsection (1) of section 148 of theCompanies Act 2013 and are of opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examination ofcost records with the view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and the records ofthe company examined by us in our opinion the company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund income taxsales tax service tax employees’ state insurance custom duty excise duty cessand other material statutory dues applicable to it. There have been no taxes unpaid as on31st March 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofsales tax income tax customs duty wealth tax excise duty and cess which have not beendeposited on account of any dispute except as stated below:-

(Rs. In Lacs)

Sr. No. Department Financial Year Amount of Dispute & Possible Impact
1 Department of Sales Tax Maharashtra 1999-00 0.46
2 Custom Excise & Service tax Appellate Tribunal Bombay 2004-05 8.48
3 The Commissioner Of Central Excise and Customs Nagpur 2015-16 16.94
4 The Commissioner Of Income Tax (Appeals) 2011-12 4.12

(c) In our opinion any amount is not required to be transferred to investor educationand protection fund in accordance with the relevant provisions of the Companies Act 1956(1 of 1956) and rules made there under.

(viii) In our opinion and according to the information and explanations given to usthe accumulated losses at the end of the financial year are less than fifty per cent ofits net worth and it has incurred cash losses in such financial year of Rs. 20.55 croreand in the immediately preceding financial year is Rs. 1.36 crore

(ix) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to the bank or financial institutions.However the company has got the debt restructuring scheme approved from financialinstitutions.

(x) In our opinion and according to the information and explanations given to us theterms and conditions of the guarantee given by the company for loans taken by others frombanks or financial institutions are not prima facie prejudicial to the interest of theCompany.

(xi) In our opinion and according to the information and explanations given to us theterm loans have been applied for the purpose for which they were obtained.

(xii) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing standards in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the company noticed or reported during the year nor have beeninformed of such case by the management.

For patil Hiran Jajoo & Co.
Chartered Accountants
Aniruddha Jajoo
Partner
Membership No: 103246
Place: Nashik Firm Registration No: 120117W
Date: 25/05/2016

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the companies act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BedmuthaIndustries Ltd ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the guidance note on audit of internal financial controls over financial reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the companies act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the " Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those standards and the guidance note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancials controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles an and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Patil Hiran Jajoo & Co.
Chartered Accountants
Aniruddha Jajoo
Partner
Membership No: 103246
Place: Nashik Firm Registration No: 120117W
Date : 25/05/2016