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BGIL Films & Technologies Ltd.

BSE: 511664 Sector: Media
NSE: N.A. ISIN Code: INE443D01018
BSE 00:00 | 18 May 3.89 0.04
(1.04%)
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NSE 05:30 | 01 Jan BGIL Films & Technologies Ltd
OPEN 3.89
PREVIOUS CLOSE 3.85
VOLUME 100
52-Week high 4.30
52-Week low 1.68
P/E 389.00
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.89
CLOSE 3.85
VOLUME 100
52-Week high 4.30
52-Week low 1.68
P/E 389.00
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

BGIL Films & Technologies Ltd. (BGILFILMSTEC) - Auditors Report

Company auditors report

To the Members of BGIL Films & Technologies Limited Report on the FinancialStatements

We have audited the accompanying financial statements of BGIL Films & TechnologiesLimited (‘the Company') which comprise the Balance Sheet as at 31 March 2017 thestatement of Profit and Loss and the Cash Flow statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor'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 internal financial control relevant to the Company's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Opinion

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 subject to confirmation and reconciliation ofsome of the accounts as further detailed in note no. 26 of the notes on account andnon-provision for diminution in value of quoted investments amounting to Rs. 163.92lacs asfurther detailed in note no. 36 note on non-recognition of profit from joint venture asfurther detailed in note no. 38 of the notes on account of the state of affairsof the Company as at 31 March 2017 and its Profit and its cash flows for the year ended onthat 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:

(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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) the Balance Sheet the statement ofProfit and Loss and the Cash Flow statement dealt with by this Report are in agreementwith the books of account; (d) in our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014; (e) on the basis of the written representationsreceived from the directors as on 31 March 2017 taken on record by the Board of Directorsnone of the directors is disqualified as on 31 March 2017 from being appointed as adirector in terms of Section 164 (2) of the Act; (f) with respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate report in"Annexure B"; and(g) with respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. The Company doesnot have any pending litigations which may impact its financial position; ii. The companydid not have any long-term contract including derivative contracts for which there wereany material foreseeable losses and iii. There were no amount which were required to betransferred to the Investor Education and

Protection Fund by the Company. iv. the Company has provided requisite disclosures inits financial statements as to holdings as well as dealings in Specified Bank Notes duringthe period from 8thNovember 2016 to 30thDecember 2016 and theseare in accordance with the books of accounts maintained by the Company. Refer Note 28 tothe Financial Statements.

For SNMG& Co.

Chartered Accountants Firm Regn No.: 004921N

Sd/- Place: New Delhi

Neeraj Gupta Date : 27.05.2017

Partner

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2017 we report that: (i) (a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets (b) The Company has a regular program of physicalverification of its fixed assets by which fixed assets are verified in a phased mannerover a period of two years. In accordance with this programme certain fixed assets wereverified during the year and no material discrepancies were noticed on such verification.In our opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets. (c) According to the information andexplanations given to us and on the basis of our examination of the records of theCompany there is no immoveable property in the name of the Company. Hence the sub clause(c) is not applicable. (ii) (a) The management has conducted the physical verification ofinventory at reasonable intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial. (iii) The company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. (iv) In our opinion and according to the information and explanationsgiven to us the Company has not made any loan investments guarantees and security asper the provisions of section 185 and 186 of the Companies Act 2013(‘the Act') withrespect to the loans and investments made. Hence the sub clause (iv) of the order is notapplicable. (v) The Company has not accepted any deposits from the public within themeaning of section 73 to 76 of the company act 2013 and rule framed there under. (vi) TheCentral Government has not prescribed the maintenance of cost records under section 148(1)of the Act for any of the services rendered by the Company. (vii) (a) According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company amounts deducted/ accrued in the books of account in respect ofundisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax value added tax duty of customs service tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities as applicable to it except for Service Tax Payable amountingto Rs. 209848/- as on 31.03.2017 and TDS Payable amounting to Rs. 446119 as on31.03.2017. According to the information and explanations given to us no undisputedamounts payable in respect of provident fund income tax sales tax value added tax dutyof customs service tax cess and other material statutory dues were in arrears as at 31stMarch2017 for a period of more than six months from the date they became payable.

the Statute (inRs.)
Income Tax Act 1961 Tax Deducted at Source 815986 01.04.2015 to 31.03.2016
Income Tax Act 1961 Interest on late payment of TDS 63286 01.04.2009 to 31.03.2016
Income Tax Act 1961 Late filing of TDS Returns 205412 01.07.2012 to 31.03.2016

(b) According to the information and explanations given to us there are no materialdues of duty of customs excise sales tax service tax and value added tax which have notbeen deposited with the appropriate authorities on account of any dispute. Details of duesof Income Tax which have not been deposited as on March 31 2017 on account of disputesare given below:

Name of the Statute Nature of Dues Forum where disputes are pending Amount (Rs.) Period to which amount relates
Income Tax Act 1961 Income Tax DCIT Circle 4(1) New Delhi 1405200 AY 2010-11
Income Tax Act 1961 Income Tax CIT (A)-2 New Delhi 2867590 AY 2012-13
Income Tax Act 1961 Income Tax DCIT Circle 4(1) New Delhi 476640 AY 2013-14
Income Tax Act 1961 Income Tax DCIT Circle 4(1) New Delhi 296560 AY 2014-15

(viii) The company has not made any loan or borrowing from any financial institutionbank government and debenture holder during the year. Accordingly paragraph 3 (viii) ofthe order is not applicable. (ix) The Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) and term loans duringthe year. Accordingly paragraph 3 (ix) of the Order is not applicable. (x) According tothe information and explanations given to us no fraud by the Company or on the Company byits officers or employees has been noticed or reported during the year under our audit.(xi) According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not paid/provided for any managerialremuneration. Accordingly Paragraph 3(xi) of the order is not applicable. (xii) In ouropinion and according to the information and explanations given to us the Company is nota nidhi company. Accordingly paragraph 3(xii) of the Order is not applicable. (xiii)According to the information and explanations given to us and based on our examination ofthe records of the Company transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and details of such transactions havebeen 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 under our audit. (xv) According to the information and explanations given to usand based on our examination of the records of the Company the Company has not enteredinto any non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the Order is not applicable. (xvi) The Company is not required to beregistered under section 45-IA of the Reserve Bank of India Act 1934.

For SNMG& Co.

Chartered Accountants

Neeraj Gupta Place: New Delhi

Partner Date : 27th May 2017

M. No.: 087004

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 internalfinancial controls over financial reporting of BGIL Films & Technologies Limited("the Company") as of 31 March 2017 in conjunction with our audit of thefinancial statements of the Company for the year ended on that date.

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 onAuditing issued by ICAI and deemed tobe prescribed under section 143(10) of the 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's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 unauthorized 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 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 SNMG& Co.

Chartered Accountants Firm Regn No.: 004921N

Sd/-

Neeraj Gupta Partner M. No.: 087004

Place: New Delhi Date: 27th May 2017