TO THE MEMBERS OF BENGAL TEA & FABRICS LIMITED REPORT ON THE STANDALONE FINANCIALSTATEMENTS
We have audited the accompanying standalone financial statements of BENGAL TEA &FABRICS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended anda summary of significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILTY FORTHE 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 Standard 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 ofthe Act for safeguardingthe assets ofthe Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; makingjudgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness ofthe accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions ofthe Act the accounting and auditingstandards and matters which are required to be included in the audit report undertheprovisions ofthe Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) ofthe 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 performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor'sjudgment including the assessment ofthe risks ofmaterial misstatement ofthefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statement that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness ofthe accountingestimates made by the Company's Directors as well as evaluating the overall presentationofthe 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India ofthe state of affairs ofthe Company as at 31stMarch 2017 and its loss and its 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 ("the Order")issued by the Central Government of India in terms ofsub section (11) ofSection 143 oftheAct we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and 4 ofthe Order.
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 ofthose books;
c) 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;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 ofthe Companies(Accounts) Rules 2014.
e) On the basis ofwritten representations received from the directors as on 31st March2017 and taken on record by the Board of Directors none ofthe directors is disqualifiedas on 31st March 2017 from being appointed as a director in terms ofSection 164(2) oftheAct.
f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B"; and
g) With respectto other matters to be included in the Auditors' Report inaccordancewith Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note No 30(B) to the financial statements
(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(iv) The Company has duly provided requisite disclosures in its financial statements asto holdings as well as dealing in
specified bank notes during the period from 8th November 2016 to 30th December 2016and these are in accordance withthebooksofaccountsmaintainedbytheCompany.
|For JAIN CO. Chartered Accountants Registration No. 3 02023E CA M. K. JAIN Partner |
Membership No. 055048
|P-21/22 Radha Bazar Street |
Kolkata 700 001
Dated : 12th day of May 2017
ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" OF OUR REPORT OF EVEN DATE.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of
b) As explained to us some ofthe fixed assets have been physically verified by themanagement at reasonable intervals. We have been informed that no material discrepancieswere 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 thetitle deeds of immovable properties are heldin the name ofthe Company.
2. a) As explained to us inventory has been physically verified during the year by themanagement at reasonable intervals.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.
c) No material discrepancy was noticed on physical verification of stocks by themanagement as compared to book records.
3. According to the information and explanations given to us and on the basis ofourexamination ofthe books of accountthe Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 ofthe Act. Consequently the provisions of clauses iii (a) and iii (b) oftheorder are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions ofSection 185 and 186 ofthe Act with respecttoloans and investments made.
5. The Company has not accepted deposits from the public covered within the meaning ofdirectives issued by the Reserve Bank of India and provisions ofSections 73 to Section 76or any other relevant provisions ofthe Act and rules framed there under are notapplicable.
6. As per information & explanation given by the management maintenance of costrecords has been specified by the Central Government under sub section (1) of Section 148of the Act and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination oftherecords with a view to determine whether they are accurate or complete.
7. a) According to the records ofthe company undisputed statutory dues includingProvident Fund Employees State Insurance
Income-tax Sales-tax Service Tax Custom Duty Excise Duty Value Added Tax and Cessto the extent applicable and any other statutory dues have generally been regularlydeposited with the appropriate authorities. According to the information and explanationsgiven to us there were no outstanding statutory dues as on 31st of March 2017 for aperiod of more than six months from the date they became payable. b) According to theinformation and explanations given to us and on the basis ofthe documents and records thedisputed statutory dues which have not been deposited with the appropriate authorities areas under:
|. Name of Statute ||Nature of Dues ||Financial year to which the matter pertains ||Amount in (lakhs) ||Forum where dispute is pending |
|1 Employees State Insurance ||E.S.I. Contribution ||2004-2005 |
|High Court Ahmedabad |
|2 The Central Excise Act 1944 ||Cenvat Credit on Capital Goods ||2011-2012 ||0.22 ||The Commissioner of Central Excise (Technical) Ahmedabad |
|3 West Bengal Value Added Tax Act 2003 ||VAT ||2011-2012 ||1.18 ||West Bengal Commercial Tax Appellate & Revisional Board |
|4 The Central Sales Tax Act 1956 ||CST ||2013-14 ||0.01 ||Revision Petition |
8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to a financial institution bank government or dues to debentureholders during the year.
9. 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.
10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on ourexamination ofthe records ofthe 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 said Act.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.
13. 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 where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations giveto us and based on ourexamination ofthe records ofthe Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringtheyear.
15. According to the information and explanations given to us and based on ourexamination ofthe records ofthe Company the Company has not entered into non-cashtransactions with directors or persons connected with him.
16. The Company is not required to be registered under Section 45-IA ofthe Reserve Bankof India Act 1934.
|For JAIN & CO. Chartered Accountants Registration No. 3 02023E CA M. K. JAIN Partner |
Membership No. 055048
|P-21/22 Radha Bazar Street |
Kolkata 700 001
Dated : 12th day of May 2017
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB SECTION 3 OF SECTION143 OFTHE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of BENGALTEA & FABRICS LIMITED ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibilityfor 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 policiesthe safeguarding of its assetstheprevention and detection offrauds and errors the accuracy and completeness oftheaccounting 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 overfinancial 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) ofthe Companies Act 2013 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 internalfinancial 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 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'sjudgment 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 systemoverfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control overfinancial reporting is a process designed toprovide reasonable assurance regarding the reliability offinancial reporting and thepreparation offinancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control overfinancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions ofthe assets ofthe company; (2) provide reasonable assurance thattransactions are recorded as necessaryto permit preparation offinancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures ofthe 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.
In our opinion the Company has in all material respects an adequate internalfinancial control system overfinancial reporting and such internal financial controlsoverfinancial 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 JAIN & CO. |
|Chartered Accountants |
|Registration No. 30 2023E |
|CAM. K.JAIN |
|Membership No. 055048 |
|P-21/22 Radha Bazar Street |
|Kolkata 700 001 |
|Dated : 12th day of May 2017 |