To The Members BHAGERIA INDUSTRIES LIMITED
(formerly known as Bhageria Dye-Chem Limited)
Report on the Financial Statements
We have audited the accompanying Financial Statements of BHAGERIA INDUSTRIES LIMITED("the Company") which comprise the Balance Sheet as at March 31st 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act
2013 ("the Act") with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 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 the amounts anddisclosures in the Financial Statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe Financial Statements whether due to fraud or error. In making those risk assessmentthe auditor considers internal control relevant to the Companys 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 accounting policies used and the reasonableness of the accountingestimates made by the companys directors as well as evaluating the overallpresentation of 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 Standalone Financial Statements.
In our opinion and to the best of our information and according to the explanationsgives to us the aforesaid Standalone
Financial Statements give the information required by the Act in the manner so requiredand give true and fair view in conformity with the accounting principles generallyaccepted in India of the State of Affairs of the company as at March 31 2016 and itsProfit and its Cash Flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanation which to the bestof our knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion proper books of accounts as required by the law have been kept bythe company so far as it appears from our examination of the books.
(c) The balance sheet the Statement of Profit & Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts.
(d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. (e) On the basis of written representation received fromthe directors as on 31st March 2016 and taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2016 frombeing appointed as a director in terms of Section 164(2) of the Act.
(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 ourseparate Report in "Annexure A".
(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. TheCompany does not have any pending litigations which would impact its financial position.ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts. iii. There has been no delay in transferring amounts required to betransferred to the Investor
Education and Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) Act we give in"Annexure B" a statement on the matters specified in paragraph 3 & 4 of theorder to the extent applicable.
For SARDA & PAREEK
Gaurav Sarda Partner
Memb No: 110208
Date: 06th May2016
"ANNEXURE A" TO THE AUDITORS REPORT
Annexure referred to in Para 1(f) of our Report of even date on the Standalonefinancial statements for the year ended 31st March 2016 of Bhageria IndustriesLimited (formerly known as Bhageria Dye-Chem Limited)
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 internal financial controls over financial reporting of BhageriaIndustries Ltd ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended March 312016.
Managements Responsibility for Internal Financial Controls
The Companys 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to companys 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.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls both applicableto an audit of Internal Financial Controls and both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance 168 Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financialcontrols over financial reportingincluded obtaining an understanding of internal financial controls overfinancialreporting 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 auditors judgment includingthe assessment of the risks of materialmisstatementofthefinancialstatements whether dueto fraud or error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Companys internalfinancial controls system over financial reporting.
Meaning Of Companys Internal Financial Control Over Financial Reporting
A companys internal financial control over financialreporting is a processreporting and the regardingthereliabilityof preparation of financialstatements forexternal purposes in accordance with generally accepted accounting principles.financialcontrol over financial A companys internal reporting includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflectthe transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the companys assets that could have a materialeffect 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 controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 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 SARDA & PAREEK
Memb No: 110208
Date: 06th May2016
"ANNEXURE B" TO THE AUDITORS REPORT
Annexure referred to in Para 2 of our Report of even date on the financial statementsfor the year ended 31st March 2016 of BHAGERIA INDUSTRIES LIMITED (formerlyknown as Bhageria Dye-Chem Limited)
Report as per Sub-section 11 of Section 143 of the Companies Act 2013 ("theAct").
Based on the audit procedures performed for the purpose of reporting a true and fairview of the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books and other records examined by us inthe normal course of our audit in our opinion and to the best of our knowledge we reportthat:
I. In respect to Fixed Assets :-
(a) The Company has maintained proper record showing full particulars includingquantitative details and situation of its fixed assets. (b) Fixed asset was physicallyverified during the year by the management which in our opinion is considered reasonable.No material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
II. In Respect of Inventory :-
The inventories have been physically verified during the year by the management. Theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
III. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under sec 189 of the Act. Thereforethe provision of Clause (III) and its sub-clauses of the order are not applicable to thecompany.
IV. There is no loan given investments made or guarantees given or security providedby the Company to any entity covered under the provision of Section 185 and 186 of theCompanies Act 2013. Therefore the provision of Clause (IV) of the order is notapplicable to the company.
V. Since Company has not accepted public deposit for the year ended 31stMarch 2016 therefore Clause (v) of the order is not applicable to the company for theyear.
VI. The Company has been prescribed to maintain cost records under section 148(1) ofthe Companies Act 2013 by the Central Government and such accounts and records aremaintained by the company.
VII (a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Investor Education and Protection Fund Employees StateInsurance Income Tax Sales Tax Service
Tax Wealth Tax Custom Duty Excise Duty Cess VAT and other material statutory dueswith appropriate authorities. There were no undisputed amount payable as at 31stMarch 2016 for a period of more than six months from the date they become payable.
(b) On the basis of examination of books of account there is no dues of income taxWealth Tax Service Tax
Customs Duty Excise Duty and Cess which is disputed and not deposited. The particularsof Dues of Sales tax as on 31st March 2016 which has not been deposited onaccount of a dispute are given below:-
|Statute ||Nature of Dues ||Forum where Dispute is pending ||Period to which amount relates ||Amount Involved (Rs. In Lakhs) |
| || || || ||31/03/16 ||31/03/15 |
|The Maharashtra Value Added Tax2002 ||Value Added Tax ||Deputy Commissioner of Sales Tax (Appeals) ||2006-07 ||1.48 ||1.48 |
|The Maharashtra Value Added Tax2002 ||Value Added Tax ||Deputy Commissioner of Sales Tax (Appeals) ||2008-09 ||2.37 ||2.37 |
|The Maharashtra Value Added Tax2002 ||Value Added Tax ||Deputy Commissioner of Sales Tax (Appeals) ||2010-11 ||1.40 ||1.40 |
|The Gujarat Value Added Tax Act2006 ||Sales-Tax ||Gujarat Value Added Tax Tribunal Ahmedabad ||2008-09 ||8.81 ||- |
|The Gujarat Value Added Tax Act2006 ||Sales-Tax ||Assistant Commissioner of Sales Tax Surat (Appeals) ||2009-10 ||- ||13.86 |
| || || ||Total ||14.06 ||19.11 |
VIII. The Company has not defaulted in repayment of dues to any financial institutionor bank as at the balance sheet date.
IX. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). Term loans raised were applied for the purposes forwhich those were raised.
X. As explained to us no fraud on or by the Company has been noticed or reportedduring the period covered by our audit.
XI. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provision of the section 197 read with the Schedule Vto the Companies Act 2013.
XII. This company is not a Nidhi Company therefore Clause (XII) of the order is notapplicable to the company.
XIII According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards
XIV According to the information and explanations given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. therefore Clause (XIV) of the order is notapplicable to the Company.
XV According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him andtherefore the provisions of section 192 of
Companies Act are not applicable.
XVI The company is not required to be registered under section 45-lA of the ReserveBank of lndia Act 1934 therefore Clause (XVI) of the order is not applicable to theCompany.
For SARDA & PAREEK
Memb No: 110208
Date: 06th May 2016