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Bemco Hydraulics Ltd.

BSE: 522650 Sector: Engineering
NSE: N.A. ISIN Code: INE142E01014
BSE LIVE 14:53 | 05 Dec 100.00 -5.00
(-4.76%)
OPEN

100.00

HIGH

100.00

LOW

100.00

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 100.00
PREVIOUS CLOSE 105.00
VOLUME 17
52-Week high 146.50
52-Week low 65.85
P/E 312.50
Mkt Cap.(Rs cr) 21.90
Buy Price 99.75
Buy Qty 6.00
Sell Price 110.00
Sell Qty 100.00
OPEN 100.00
CLOSE 105.00
VOLUME 17
52-Week high 146.50
52-Week low 65.85
P/E 312.50
Mkt Cap.(Rs cr) 21.90
Buy Price 99.75
Buy Qty 6.00
Sell Price 110.00
Sell Qty 100.00

Bemco Hydraulics Ltd. (BEMCOHYDRAULICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF BEMCO HYDRAULICS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BEMCO HYDRAULICSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.

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 of the state of affairs of the Companyas at 31st March 2016 and its loss and 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 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that: i. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. ii. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. iii. The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount. iv. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. v. On the basis of the written representations receivedfrom the directors as on 31st March 2016 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2016 from being appointed as a directorin terms of Section 164 (2) of the Act. vi. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in "Annexure B"; and vii. Withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our information and according to the explanations given to us: a. The Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements Refer Note 2.45 to the financial statements; b. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. c. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

For A.C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Place : Camp Belgaum Ashish Choudhary
Date : 17-05-2016 Partner
Membership No. 308886

Annexure 'A' to Independent Auditor's Report referred to in Paragraph 1 under theheading of "Report on Other Legal and Regulatory Requirements" of our report ofeven date.

(i)

(a) The Company has maintained 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 onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) Physical verification of inventories has been conducted at reasonable intervals bythe management. No material discrepancies were noticed on physical verification ascompared to book record.

(iii) The Company has not granted any loans secured or unsecured to Companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013 ('the Act') . Accordingly paragraphs 3(iii) (a) 3(iii) (b) & 3(iii) (c) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loan/guarantee/security to or on behalf of any party referred toin Section 185 of the Companies Act 2013. The Company has complied with Section 186 inrespect of loans and investments made. The Company has not given any guarantee or providedany security in connection with a loan to any body corporate or any other person.

(v) On the basis of our examination of books and records of the Company in our opinionand according to the information and explanations given to us the company has notaccepted deposits during the year and therefore the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder Section 148(1) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete. (vii) a. According to the information and explanations given to us and on thebasis of our examination of the books and records of the Company the company is regularin depositing undisputed statutory dues including provident fund income-tax sales taxvalue added tax duty of customs service tax cess and other material statutory dues withthe appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the books and records of the Company no undisputed amounts payable inrespect of provident fund income tax sales tax value added tax duty of customsservice tax cess and other material statutory dues were in arrears as at 31st March 2016for a period of more than six months from the date they became payable. b. According tothe information & explanation give to us there are no dues of Income tax Sales taxService Tax Custom duty or Excise duty which have not been deposited on account of anydispute except as stated as below:

Name ofthe Statute Nature of the Dues Amount (Rs.) Period to which the amount relates(Financial year) Forum where dispute is pending
Karnataka Tax on Entry of Goods 1979 Entry Tax 75755/- 2006-07 Joint Commissioner of Commercial Taxes (Appeals)
Karnataka Tax on Entry of Goods 1979 Entry Tax 28666/- 2007-08 Joint Commissioner of Commercial Taxes (Appeals)
Karnataka Tax on Entry of Goods 1979 Entry Tax 34580/- 2008-09 Joint Commissioner of Commercial Taxes (Appeals)
Karnataka Tax on Entry of Goods 1979 Entry Tax 70632/- 2009-10 Joint Commissioner of Commercial Taxes (Appeals)

Out of the total amount of Rs. 209633/- 30% of the amount i.e. Rs. 62890/- has beendeposited.

(viii) Based on our examination of books and records and according to the information& explanations given to us the Company has not defaulted in repayment of loans orborrowings to financial Institution or Banks or Government. The Company has not issued anydebentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

(x) On the basis of our examination of books and records of the Company and accordingto the information and explanations given to us no material fraud by the company or onthe Company by its officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable. (xiii) According to the information and explanations given to us and based onour examination of the records of the Company transactions with the related parties arein compliance with sections 177 and 188 of the Act and details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and therefore paragraph 3(xiv) of the Order is not applicable.

(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non cash transaction with directors or persons connectedwith him and therefore paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A.C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Place : Camp Belgaum Ashish Choudhary
Date : 17-05-2016 Partner
Membership No. 308886

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 BEMCOHYDRAULICS LIMITED ("the Company") as of 31st March 2016 in conjunction withour audit 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') . Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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 31st 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 A.C. Bhuteria & Co.
Chartered Accountants
Firm's Registration No. 303105E
Place : Camp Belgaum Ashish Choudhary
Date : 17-05-2016 Partner
Membership No. 308886

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