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Bhagawati Oxygen Ltd.

BSE: 509449 Sector: Industrials
NSE: N.A. ISIN Code: INE026I01010
BSE LIVE 15:02 | 21 Aug 35.15 1.65
(4.93%)
OPEN

35.15

HIGH

35.15

LOW

35.15

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 35.15
PREVIOUS CLOSE 33.50
VOLUME 40
52-Week high 53.55
52-Week low 17.70
P/E 9.06
Mkt Cap.(Rs cr) 8
Buy Price 35.15
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00
OPEN 35.15
CLOSE 33.50
VOLUME 40
52-Week high 53.55
52-Week low 17.70
P/E 9.06
Mkt Cap.(Rs cr) 8
Buy Price 35.15
Buy Qty 10.00
Sell Price 0.00
Sell Qty 0.00

Bhagawati Oxygen Ltd. (BHAGAWATIOXYGEN) - Auditors Report

Company auditors report

To The Members of Bhagawati Oxygen Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Bhagawati Oxygen Limited(hereinafter referred to as 'the Company') which comprise the balance sheet as at 31stMarch 2016 the statement of profit and loss and the cash flow statement for the year thenended and a summary 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 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 performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 statements 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 the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial 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 of the state of affairs of the Company as at 31stMarch 2016 and its profit and its 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 Order1)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 theparagraph 3 and 4 of the said 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 of those 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 accounts.

d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on 31st March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2016 from being appointed as director in terms of Section 164(2) of theAct.

f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourreport in Annexure-'B' and

g) with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the 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 26.11 to the financial statements);

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseable losses;

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For CHATURVEDI & CO. S.C.Chaturvedi
Chartered Accountants Partner
Firm Regn. No.302137E Membership No. 12705
Place: Kolkata
Dated: May 30 2016

Annexure-'A' to the Independent Auditor's Report (Referred to in Paragraph 1 ofOther Legal and Regulatory requirements of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals. No serious discrepancies were noticed on such physicalverification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deeds of immovable properties are held inthe name of the company.

(ii) In respect of Inventories:

(a) As explained to us the physical verification of inventory has been conducted bythe management at reasonable intervals. In our opinion the frequency of the verificationis reasonable having regard to the size of the Company and nature of its business

(b) In our opinion and according to the information and explanations given to us theprocedures and frequency of physical verification of inventories followed by themanagement are reasonable and adequate in relation to the size of the Company and natureof its business

(c) The Company has maintained proper records of inventory. As explained to us therewere no material discrepancies noticed on physical verification of inventory as comparedto the book records.

(iii) According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 as such provisions of paragraph 3(iii) of the said order are notapplicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed there under.According to the information and explanations given to us no order has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other Tribunal on the company in respect of the aforesaid deposits

(vi) Based on the information available and explanations given to us the maintenanceof Cost records has not been specified by the Central Government under section 148(1) ofthe Companies Act 2013 for any of the products manufactured by the company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books of accounts the Company is generally regular in depositing the undisputed statutory duesincluding Provident fund Income

Tax Wealth Tax Service Tax Duty of customs Duty of excise Value added Tax Cessand any other statutory dues as applicable with the appropriate authorities. There were noun-disputed statutory dues as at the end of the year outstanding for a period of more thansix months from the date they became payable b) According to the information andexplanations given to us and as per the records of the Company examined by us theparticulars of dues of Sale tax and Income tax which have not been deposited on accountof any dispute as at 31st March 2016 are given below:

SI. No. Name of the Statute Nature of dues Amount (In Rs.) Period to which the amount relates Forum where pending
1 West Bengal VAT Act & CST Act VAT & CST 1518996/- 2006-2007 WB Commercial Tax Appellate and Revisional Board
2 Income Tax Act Income Tax 397860/- 2010-2011 DCIT (Appeal) Circle 8(1) Kolkata
305320/- 2012-2013 DCIT Kolkata
15950/- 2007-2008 DCIT. Kolkata

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to any financial institutions or banks.The company has not issued any debentures during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us the term loans have been applied for thepurpose for which they were raised.

(x) According to the information and explanations given to us no fraud by the Companyor on the company by its officers or employees has been noticed or reported during theyear.

(xi) According to the information and explanations given 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 Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as such provisions of paragraph 3(xii) of the Order are notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with Section 177 and Section 188 of the Act where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given 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.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as such provisions of paragraph3(xv) of the Order are not applicable.

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

ForCHATURVEDI & CO.
Chartered Accountants
Firm Regn. No.302137E S.C.Chaturvedi
Partner
Place: Kolkata Membership No. 12705
Dated: May 30 2016

Annexure-'B' to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Ad) We have audited the internal financialcontrols over financial reporting of Bhagawati Oxygen Limited (hereinafter referred to as'the Company') as of 31 st March 2016 in conjunction with our audit of the financialstatements 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'). 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 thatthe 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 authorizations 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

According to the information and explanations given to us and based on our audit inour opinion the Company has generally maintained in all material respects an adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were generally operating effectively as of 31st March 2016 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For CHATURVEDI & CO. S.C.Chaturvedi
Chartered Accountants Partner
Firm Regn. No.302137E Membership No.12705
Place: Kolkata
Dated: May 30 2016