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Bemco Hydraulics Ltd.

BSE: 522650 Sector: Engineering
NSE: N.A. ISIN Code: INE142E01014
BSE LIVE 15:40 | 15 Dec 145.60 -6.30
(-4.15%)
OPEN

151.75

HIGH

151.80

LOW

145.60

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 151.75
PREVIOUS CLOSE 151.90
VOLUME 301
52-Week high 194.00
52-Week low 84.20
P/E
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 151.75
CLOSE 151.90
VOLUME 301
52-Week high 194.00
52-Week low 84.20
P/E
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 accompanyingstandalone financial statements of BEMCO HYDRAULICSLIMITED("the Company") which comprise the Balance Sheet as at 31st March 2017the Statement of Profit and Loss the Cash Flow Statement for the year then 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 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 thereunder.

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 thedisclosures in the financialstatements. The procedures selected depend on the auditor's judgmentincluding 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 theaforesaid standalone financial statements give the information required bythe 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 2017 its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note No. 2.29 to the standalone financial statements which statesthat the Company has credited Exceptional Items in the Statement of Profit and Loss forthe year by ` 28242100/- on account of write back of the amount of 'Deferred PaymentLiabilities'.

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 ofthe Actwe give in the Annexure A a statement on the matters specified in the paragraph 3and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

i. 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.

ii. 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.

iii. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

iv. In our opinion the aforesaidstandalone financial statements comply with theAccountingStandards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts)Rules 2014.

v. On the basis of the written representations received from the directors as on 31stMarch 2017and taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2017 from being appointed as a director in terms of Section164 (2) of the Act.

vi. 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 vii. With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

a. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note No. 2.45(c) to the standalone financialstatements;

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

c. There were no amounts which were required to betransferred to the Investor Educationand Protection Fund by the Company.

d. The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management Refer NoteNo. 2.48 to the standalone financial statements.

For A.C. Bhuteria& Co. Ashish Choudhary
Place : Camp Belgaum Chartered Accountants Partner
Date : 30-05-2017 Firm's Registration No. 303105E 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 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. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. Pursuant to the programme a portion of thefixed assets has been physically verified by the Management during the year and nomaterial discrepancies have been noticed on such verification.

(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) 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 loanssecured 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 investments made. The Company has not given any loan guarantee or provided anysecurity 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 the basis ofour examination of the books and records of the Company the company is generally regularin depositing undisputed statutory dues including provident fund employees' stateinsurance income-tax sales tax service taxduty of customsvalue added tax cess andother material statutory dues with the appropriate authorities except for the followingundisputed statutory dues as on the last day of the financial year outstanding for aperiod of more than six months from the date it became payable:

Name of the statute Nature of the dues Amount (Rs.) Period to which the amount relates Due date Date of Payment
Central Sales Tax Act 1956 Sales Tax 12499/- FY 2011-2012 20.06.2011 -
Central Sales Tax Act 1956 Sales Tax 4190/- FY 2013-2014 20.02.2014 -

b. According to the information & explanation give to us there are no dues ofIncome tax Sales tax Service Tax Custom duty or Excise duty which have not beendeposited on account of any dispute except as stated as below:

Name of the 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 ` 209633/- 50% of the amount. i.e. ` 104816/- 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) during the year. Terms Loans were applied forthe purposes for which those were raised.

(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 & explanations given to us & 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 on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act and details of related party transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

(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. Ashish Choudhary
Place : Camp Belgaum Chartered Accountants Partner
Date : 30-05-2017 Firm's Registration No. 303105E Membership No. 308886

Annexure - B to the Independent 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 2017 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 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding 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 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 2017 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. Ashish Choudhary
Place : Camp Belgaum Chartered Accountants Partner
Date : 30-05-2017 Firm's Registration No. 303105E Membership No. 308886