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Bhagawati Gas Ltd.

BSE: 500051 Sector: Industrials
NSE: BAGWATIGAS ISIN Code: INE099C01010
BSE LIVE 12:21 | 05 Dec 0.56 -0.01
(-1.75%)
OPEN

0.56

HIGH

0.56

LOW

0.56

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.56
PREVIOUS CLOSE 0.57
VOLUME 100
52-Week high 1.50
52-Week low 0.50
P/E
Mkt Cap.(Rs cr) 0.94
Buy Price 0.56
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.56
CLOSE 0.57
VOLUME 100
52-Week high 1.50
52-Week low 0.50
P/E
Mkt Cap.(Rs cr) 0.94
Buy Price 0.56
Buy Qty 400.00
Sell Price 0.00
Sell Qty 0.00

Bhagawati Gas Ltd. (BAGWATIGAS) - Auditors Report

Company auditors report

To the Members of

BHAGAWATI GAS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of BHAGAWATI GAS LIMITED ( theCompany ) which comprise the Balance sheet as at March 31 2015 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that are free from material misstatementwhether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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 the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company s preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell 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 qualified audit opinion.

Basis for Qualified Opinion

Attention is drawn to Note 28 and 29 regarding non-provision for receivables doubtfuladvances aggregating to Rs. 64949701 for the reasons stated therein. We are unable toexpress an opinion as to when and to what extent said amount would be recovered.

Attention is drawn to note 31 the financial statements in respect of expiry of Gassupply agreement and restoration of company s operation being dependent upon the extensionof gas supply agreement.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for QualifiedOpinion paragraph above the 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:

i. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2015. ii. in the case of the Statement of Profit and Loss of the loss for the yearended on that date; and iii. in the case of the Cash Flow Statement of the cash flows forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2003 ("the Order")issued by the Central

Government of India in terms of sub-section (4A) of Section 227 of the Act we give inthe Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act we report that:

a. we have obtained all the information and explanations which to the best of ourknowledge 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 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. Except for the effect of the matters described in the Basis for Qualified Opinionparagraph in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the accounting standards referred to in sub-section (3C) of Section211 of the Act.

e. On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of directors none of the directors is disqualifiedas on March 31

2015 from being appointed as a director in terms of clause (g) of sub section (1) ofsection 274 of the Act.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
New Delhi R N CHATURVEDI
Partner
May 30 2015 Membership No. 092087

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

i. a. The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. A major portion of the fixed assets has been physically verified by the managementduring the year pursuant to a programme for physical verification of fixed assets whichin our opinion is reasonable having regard to the size of the company and the nature ofits assets.

c. No Fixed Assets has been disposed off during the year and therefore do not affectthe going concern status of the Company.

ii. a. The inventory has been physically verified during the year by themanagement. In our opinion the frequency of verification is reasonable.

b. The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c. The company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records have been properly dealtwith in the books of account.

iii. a. The company has granted interest free inter corporate loan to a company. Themaximum amount involved during the year was Rs 17964928 and yearend balance was Rs.17370108.

b. As stated in note to the financial statements regarding proposal of conversion ofinterest free loan given in to equity shares of the borrower company we are unable toexpress an opinion as to whether the terms and conditions of the interest free loan areprima facie prejudicial to the interest of the company.

c. According to the information and explanations given to us the principal isrepayable on demand.

Accordingly we are unable to comment as to whether the party has been regular inpayment of interest to the company.

d. According to the information and explanations given to us the company has not takenany loans secured or unsecured from companies firms or other parties covered in theregister maintained under Section 301 of the Companies Act 1956. Accordingly theprovisions of the clause 4 (iii) (d)

(iii) (e) (iii) (f) and (iii) (g) of the Companies (Auditors Report) Order 2003 arenot applicable to the company.

iv. In our opinion and according to the information and explanations given to us thereexists an adequate internal control system commensurate with the size of the company andthe nature of its business with regard to purchases of inventory fixed assets and withregard to the sale of goods and services. During the course of our audit we have neitherobserved nor have been informed of any continuing failure to correct major weaknesses ininternal control system of the company.

v. a. In our opinion and according to the information and explanations given to usthe particulars of contracts or arrangements referred to in Section 301 of the Act havebeen entered in the register required to be maintained under that section.

b. In our opinion and according to the information and explanations given to us thetransactions made in pursuance of contracts or arrangements entered in the registermaintained under Section 301 of the Companies Act 1956 and exceeding the value of RS.500000 in respect of any party during the year have been made at prices which arereasonable with regard to the prevailing market prices at the relevant time. vi. In ouropinion and according to the information and explanations given to us the company has notaccepted any deposits under the provisions of Sections 58A 58AA and other relevantprovisions of the Companies Act 1956 and the rules framed there under. vii. In ouropinion the company has an internal audit system commensurate with the size and nature ofits business.

viii. There being no manufacturing operations of the company during the year the booksof account required to be maintained by the company pursuant to the rules made by theCentral Government for the maintenance of cost records under clause (d) of sub-section (1)of Section 209 of the Companies Act 1956 in respect of manufacturing operations have notbeen maintained.

ix. a. According to the information and explanations given to us the company isgenerally regular in depositing with the appropriate authorities undisputed statutory duesincluding investor education and protection fund income-tax sales-tax wealth taxcustom duty excise duty cess and any other statutory dues applicable to it except forTax Deducted at Source Service Tax and Provident Fund where there have been regulardelay.

b. According to the information and explanations given to us no undisputed amountspayable in respect of income-tax sales-tax wealth tax service tax custom duty andexcise duty were in arrear as at March 31 2015 for a period of more than six months fromthe date they became payable.

c. According to information and explanations given to us there are no dues ofincome-tax sales tax wealth tax service tax customs duty excise duty or cess or anyother statutory dues which have not been deposited on account of any dispute.

x. In our opinion the accumulated losses of the Company at the end of the financialyear are not more than fifty percent of its net worth. The company has incurred cashlosses in the financial year covered by our audit and in the immediately precedingfinancial year.

xi. In our opinion and according to the records of the company examined by us and theinformation and explanations given to us the company has not defaulted in repayment ofdues to any financial institution or bank except the following dues:

Central bank of India A/C No. 3207352107

Amount Due Due Date Amount of default Date of payment Period of default
(in days)
346614 30.04.2014 210788 28.07.2014 88
135826 11.08.2014 102
352008 31.05.2014 352008 11.08.2014 71
350312 30.06.2014 3166 11.08.2014 41
42000 13.08.2014 43
305146 23.12.2014 175
341154 31.07.2014 341154 23.12.2014 144
341314 31.08.2014 43700 23.12.2014 113
297614 23.02.2015 175
329431 30.09.2014 52386 23.02.2015 145
277045 24.03.2015 174
333898 31.10.2014 72955 24.03.2015 143
260943 24.04.2015 212
332571 30.11.2014 79057 24.04.2015 144
100000 29.05.2015 179
153514 Outstanding 181
334829 31.12.2014 334829 Outstanding 150
329389 31.01.2015 329389 Outstanding 119
321439 28.02.2015 321439 Outstanding 91
326456 31.03.2015 326456 Outstanding 60
Total 4039415 4039415

xii. In our opinion and according to the information and explanations given to us thecompany has not granted loans and advances on the basis of security by way of pledge ofshares debentures and other securities.

xiii. In our opinion the company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore the provisions of clause 4 (xiii) of the Companies (Auditors Report)Order 2003 are not applicable to the company.

According to the information and explanations given to us the company is not dealingor trading in shares securities debentures and other investments. Accordingly theprovisions of clause 4 (xiv) of the

Companies (Auditors Report) Order 2003 are not applicable to the company. xiv.According to the information and explanations given to us the Company has not given anyguarantee for loans taken by others from bank or financial institutions.

xv. In our opinion and according to the information and explanations given to us termloans have been applied for the purposes for which they were raised. xvi. According to theinformation and explanations given to us and on an overall examination of the Balance

Sheet of the company we report that no funds raised on a short-term basis have beenused for long-term investment. xviii. The company has not made any preferential allotmentof shares to parties and companies covered in the register maintained under Section 301 ofthe Act during the year. Accordingly the provisions of clause 4

(xviii) of the Companies (Auditors Report) Order 2003 are not applicable to thecompany.

xix. The company has not issued any debentures during the year.

xx. The company has not raised any money by public issues during the year. Accordinglythe provisions of clause 4 (xx) of the Companies (Auditors Report) Order 2003 are notapplicable to the company.

xxi. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the course of our audit.

For CHATURVEDI & PARTNERS
Chartered Accountants
Firm Registration No. 307068E
New Delhi R N CHATURVEDI
May30 2015 Partner
Membership No. 092087

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