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Bhagawati Oxygen Ltd.

BSE: 509449 Sector: Industrials
NSE: N.A. ISIN Code: INE026I01010
BSE 14:38 | 25 May 35.25 1.30
(3.83%)
OPEN

35.60

HIGH

35.60

LOW

35.25

NSE 05:30 | 01 Jan Bhagawati Oxygen Ltd
OPEN 35.60
PREVIOUS CLOSE 33.95
VOLUME 27
52-Week high 47.25
52-Week low 24.30
P/E 15.19
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 35.00
Sell Qty 5.00
OPEN 35.60
CLOSE 33.95
VOLUME 27
52-Week high 47.25
52-Week low 24.30
P/E 15.19
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 35.00
Sell Qty 5.00

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 BhagawatiOxygen Limited (hereinafter referred to as 'the Company') which comprise the balancesheet as at 31st March 2017 the statement of profit and loss and the cash flow statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation and presentation of these financial statements that give a true and fairview of 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 of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidenceabout the amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and accordingto the explanations given to us the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2017 and its profit and its cash flows for the year ended on thatdate.

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) ofsection 143 of the Act we give in the Annexure-'A' a statement on the mattersspecified in the paragraph 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 andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit.

b) in our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

c) the balance sheet the statement of profit and loss and thecash flow statement dealt with by this report are in agreement with the books of accounts.

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

e) On the basis of written representations received from thedirectors as on 31st March 2017 and taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2017 from being appointed as director interms of Section 164(2) of the Act.

f) with respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our report in Annexure-'B' and

g) with respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us:

i. the Company has disclosed the impact of pending litigations onits financial position in its financial statements.[Refer Note 26(12) to the financialstatements);

ii the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseable losses;

iii. there were no amounts which were required to be transferredto the Investor Education and Protection Fund by the Company;

iv. the Company has provided requisite disclosures in itsfinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 8 November 2016 to 30 December 2016 and these are in accordance with thebooks of accounts maintained by the Company.[Refer Note 26(23) to the financialstatements]

Place: Kolkata
Dated: May 18 2017 For CHATURVEDI & CO.
Chartered Accountants
Firm Regn. No.302137E
S.C.Chaturvedi
Partner
Membership No. 12705

Annexure-'A' to the Independent Auditors' Report (Referred to inParagraph 1 of "Other Legal and Regulatory requirements" of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) As explained to us the fixed assets have been physicallyverified by the management at reasonable intervals. No material discrepancies were noticedon such physical verification.

(c) According to the information and explanations given to us andon the basis of our examination of the records of the Company title deeds of immovableproperties are held in the name of the company.

(ii) In respect of Inventories:

(a) As explained to us the physical verification of inventoryhas been conducted by the management at reasonable intervals. In our opinion thefrequency of the verification is reasonable having regard to the size of the Company andnature of its business.

(b) In our opinion and according to the information andexplanations given to us the procedures and frequency of physical verification ofinventories followed by the management are reasonable and adequate in relation to the sizeof the Company and nature of its business.

(c) The Company has maintained proper records of inventory. Asexplained to us there was no material discrepancies noticed on physical verification ofinventory as compared to the book records.

(iii) According to the information and explanation given to usthe Company has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013 as such provisions of paragraph 3(iii) of the said orderare not applicable.

(iv) In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of section 185 and186 of the Act with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the publicwithin the meaning of directives issued by the Reserve Bank of India and provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. According to the information and explanations given to us noorder has been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or any court or any other Tribunal on the company in respect of theaforesaid deposits.

(vi) Based on the information available and explanations given tous the maintenance of Cost records has not been specified by the Central Government undersection 148(1) of the Companies Act 2013 for any of the products manufactured by thecompany.

(vii) (a) According to the information and explanations given tous and on the basis of our examination of the books of accounts the Company is generallyregular in depositing the undisputed statutory dues including Provident fund Income TaxWealth Tax Service Tax Duty of customs Duty of excise. Value added Tax Cess and anyother 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 and explanations given to us andas per the records of the Company examined by us the particulars of dues of Sale taxIncome tax and Central excise which have not been deposited on account of any dispute asat 31st March 2017 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
7210 2008-2009 to 2012-2013 TDS (CPC)
3 Central Excise Act Central Excise 72461090/- 2010-2011 to 2015-2016 CESTAT Kolkata

(viii) In our opinion and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to anyfinancial institutions or banks. The company has not issued any debentures during theyear.

(ix) The Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments) during the year. In our opinionand according to the information and explanations given to us the term loans have beenapplied for the purpose for which they were raised.

(x) According to the information and explanations given to us nofraud by the Company or on the company by its officers or employees has been noticed orreported during the year.

(xi) According to the information and explanations given to usand based on our examination of the records of the Company the Company has paid/providedfor managerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information andexplanations given to us the Company is not a Nidhi Company as such provisions ofparagraph 3(xii) of the Order are not applicable.

(xiii) According to the information and explanations given to usand based on our examination of the records of the company all transactions with therelated parties are in compliance with Section 177 and Section 188 of the Act whereapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to usand based on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(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 non-cash transactions with directors or persons connected with them as suchprovisions of paragraph 3(xv) of the Order are not applicable.

(xvi) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For CHATURVEDI &CO.
Place: Kolkata Chartered Accountants
Dated: May 18 2017 Firm Regn. No.302137E
S.C. Chaturvedi
Partner
Membership No.12705

Annexure-'B' to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Bhagawati Oxygen Limited (hereinafter referred to as 'the Company1)as of 31st March 2017 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI1).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of Internal Financial Controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reportingis a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 overFinancial Reporting

Because of the inherent limitations of internal financialcontrols over financial reporting including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

According to the information and explanations given to us andbased on our audit in our opinion the Company has generally maintained in all materialrespects an adequate internal financial controls over financial reporting and suchinternal financial controls over financial reporting were generally operating effectivelyas of 31st March 2017 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the "Guidance Note on Audit of Internal Financial Controls over FinancialReporting" issued by the Institute of Chartered Accountants of India.

For CHATURVEDI & CO.
Place: Kolkata Chartered Accountants
Dated: May 18 2017 Firm Regn. No.302137E
S.C. Chaturvedi
Partner
Membership No. 12705