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Bhagheeratha Engineering Ltd.

BSE: 522136 Sector: Infrastructure
NSE: N.A. ISIN Code: INE869E01012
BSE 05:30 | 01 Jan Bhagheeratha Engineering Ltd
NSE 05:30 | 01 Jan Bhagheeratha Engineering Ltd

Bhagheeratha Engineering Ltd. (BHAGHEERATHAENG) - Auditors Report

Company auditors report

TOTHE MEMBERS OFBHAGHEERATHAENGINEERING LTD

Report on the Financial Statements

We have audited the accompanying standalone financialstatementsof BHAGHEERATHAENGINEERING LTD ("the Company") which comprise the Balance Sheet as at 31s1March 2017 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors 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 audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our informationand according to the explanationsgiven to us the aforesaidfinancial statements give the information required by the Act inthe manner so required and give a true and fair view in conformitywith theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

Long'Outstanding: The Balances in Trade payables and receivables loans andadvances are outstanding and are subject to confirmation reconciliation and consequentialadjustments if any from the concerned parties.

Our opinion is not modified in respect of the matters emphasised above.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central Governmentof India interms of the Section 143(11) of the Act wegive in Annexure -A .statement on the matters specified in the paragraphs 3 and 4 of thesaid Order to the extent applicable.

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 n agreementi with the books of account

(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 the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2017 from being appointed as adirector n i terms ofSection 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 B"; and

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our informationand according to theexplanations given to us:

.i The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 33 & 34 to the financial statements.

ii; During the year the company has made provision for material foreseeable losses -Refer Note 31 to the financial statements.

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

For SANKAR & MOORTHY
Chartered Accountants
FRN:003575S
Sd/-
CA. V C JAMES B.Sc. F.C.A
Kochi Partner
11th August 2017 (Membership No. 022565)

ANNEXURE -A TO THE INDEPENDENTAUDITORS REPORT

Statement referred to in our report of even date to the members of BHAGHEERATHAENGINEERING LTD on the accounts for the year ended 31st March 2017 we report that.

1. a. The company has maintained records showing particulars including quantitativedetails and situation of fixed assets.

b. The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. a. Physical verification of inventory has been conducted by the management atreasonable intervals during the year.

b. In our opinion and according to the information and explanations given to us theprocedure for physical verification of inventory is reasonable and adequate in relation tothe size of the company and the nature of its business.

c. On the basis of examination of the records of inventory in our opinion the companyhas generally maintained proper records of inventory. Material discrepancies noticed onphysical verification of inventory as compared to the book records have been properlydealt with in the books of accounts.

3. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act.Clauses (iii) (a) to (iii) (b) of paragraph 3 of the said Order are not applicable to thecompany.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the . provision s of section 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and security.

5. In our opinion and according to the information and explanations given to us thecompany had accepted deposits in respect of which directives issued by the Reserve Bankof India and the provisions of section 73 to 76 or any other relevant provisions of theCompanies Act 2013 and rules framed there under to the extent applicable have beencomplied with.

6. The provisions regarding maintenance of cost records under section 148 of theCompanies Act 2013 are not applicable to the company.

7. a. According to the information and explanations provided to us the company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income tax service tax and othermaterial statutory dues applicable to it. As explained to us no undisputed amountspayable were in arrears as on 31st March2017 for a period of more than six months fromthe date they became payable. •

b. As per the information given to us the following statutory dues have not beendeposited on account of disputes:-

Nature of the Dues Amount in Rs. Period to which the amount relates Forum where dispute pending
VAT 29948737- 2005-06
VAT 84916097- 2006-07 Revision Board Calcutta
VAT 20800007- 2007-08

c. According to the information and explanations given to us there were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

8. As per the informationand explanations given to us the company has not defaulted inrepayment of its dues to banks and financial institutions.

9. According to the information and explanations given to usthe company has not raisedany-money by way of Initial Public Offer or Further Public offer (Including DebtInstrument).

10. According to the information and explanations given to us during the year nofraud on or by the company has been noticed or reported.

11. According to the information and explanations give 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.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. 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.

15. According to the information andexplanations given to us and based on ourexamination of the records of the Company the Companyhas not enteredintonon-cashtransactions withdirectors or personsconnected with them. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16. The Company is not required to be registered under section 45-IA of fhe ReserveBank of India Act 1934.

ForSANKAR & MQORTHY
Chartered Accountants
FRN:003575S
Sd/-
CA. V C JAMES B.Sc.F.C.A
Kochi Partne r
11th August 2017 (Membership No. 022565)

policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.

Emphasis of Matter

We would draw attention to matters disclosed in Paragraph 1 under 'Emphasis of Matter'in the Audit Report and specifically the ongoing inquiry with respect to the additionalmatters which could indicate possible lapses in Internal Financial Controls system atvarious points of time.

Our opinion under Clause (i) of Sub-section 3 of section 143 of the Act is notqualified in respect of this matter.

ForSANKAR&MOORTHY
Chartered Accountants
FRN:003575S
Sd/-
Kochi CA. V C JAMES B.Sc. F.C.A
11th August 2017 Partner
(Membership No. 022565)