TO THE MEMBERS OF M/s. BHAGWANDAS METALS LIMITED
Report on the Financial Statements
I have audited the accompanying financial statements of M/s Bhagwandas MetalsLimited("the company") which comprise the Balance Sheet as at 31st March2016the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of directors is responsible for the matters stated in Section134(5) of the Companies Act2013("the Act") with respect to the preparation andpresentation of these financial statement that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principle generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 materialmisstatements whether due to fraud or error.
My responsibility is to express an opinion on these financial statement based on myaudit. I have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to the included in the audit report under theprovisions of the Act and the Rules made there under.
I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that I 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 theauditors judgment including the assessment of the risks of material misstatement ofthe financial statement whether due to fraud or error. In making those risk assessmentthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that the give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a
basis for my audit opinion on the financial statements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;
(b) in the case of the Statement of Profit and Loss of the profit of the Company forthe year ended on that date and
(c) In the case of cash flow statement of the cash flows for the year ended on thatdate
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("the Order)issued by the Central Government of India in terms of sub-section(11) of section 143 ofthe Act I give in the Annexure B a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act I report that:
a. I have sought and obtained all the information and explanation which to the best ofmy knowledge and belief were necessary for the purposes of my audit.
b. In my opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from my 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 books of account.
d. In my opinion the aforesaid financial statements comply with the Accounting InStandards 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 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(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 myseparate report in Annexure A; 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) Rules2014 in my opinionand to the best of my information and according to the explanation given to me:
i. The company does not have any pending litigation which would impact its financialposition.
ii. The company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
h. The company has not appointed whole-time company secretary and chief financialofficer as required by section 203 of Companies Act 2013.
| ||For R.R. More & Co |
| ||Chartered Accountant |
| ||C. A. Raja Ram More |
|Place : Chennai ||Proprietor |
|Date : 30.05.2016 ||M. No: 21233 |
| ||FR NO : 21233S |
Annexure A to the Independent Auditors Report
(Referred to in paragraph 1(f) under "Report on other legal and regulatoryrequirements"
section of my report of even date)
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (the Act)
I have audited the internal financial controls over financial reporting of M/sBhagwandas Metals Limited (the Company) as of 31 March 2016 in conjunctionwith my audit of the financial statements of the company for the year ended as on thatdate.
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 (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Companys 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.
My responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on my audit. I conducted my 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 I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My 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 depends on the auditors judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Companys assets that could have a material effect on the financialstatements.
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 my opinion to the best of my information and explanation given to me the companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2016 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.
| ||For R.R. More & Co |
| ||Chartered Accountant |
| ||C. A. Raja Ram More |
| ||Proprietor |
| ||M. No: 21233 |
|Place : Chennai ||FR NO : 21233S |
|Date : 30.05.2016 || |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 UNDER THEHEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF MY REPORT OF EVENDATE
The Annexure referred to in my Independent Auditors Report to the members of M/sBhagwandas Metals Limited for the year ended on 31.03.2016. I report that:
i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) These fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification and the samehave been properly dealt with in the books of account.
(c) The company does not have any immovable property.
ii. The Management has conducted physical verification of inventory at reasonableintervals and no material discrepancies were noticed.
iii. As informed to me the company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnership or other parties covered in the registermaintained under section 189 of the Companies Act. Hence clause (a) (b) & (c) are notapplicable.
iv. In respect of loan investment guarantee and security the provisions of section185 & 186 of the Companies Act 2013 have been complied with.
v. The company has not accepted any deposits.
vi. Maintenance of cost records has not been specified by the Central Government undersub section (1) of section 148 of the Companies Act. for the company.
vii. (a) According to the information and explanations given to me and on the basis ofmy examination of the records the company is regular in depositing undisputed statutorydues including provident fund employees state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax Cess and any otherstatutory dues with the appropriate authorities.
(b) According to the information and explanations given to me no undisputed amountspayable in respect of the above were in arrears as at 31st March 2016 for a period of morethan six months from the date they became payable.
viii. The company has not defaulted in repayment of dues to financial institutions orbanks and Government during the year. There have been no outstanding dues to debentureholders.
ix. During the year company has not raised any money through Initial Public Offer orfurther Public Offer. The company has not availed any term loans.
x. Based upon the audit procedures performed for the purpose of reporting true and fairview of the financial statements and as per the information and explanations given by themanagement I report that no fraud on the Company by its officers or employees has beennoticed or reported during the year.
xi. Managerial Remuneration has been paid/provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct.
xii. Company is not a Nidhi Company.
xiii. All transactions with the related parties are in compliance with Section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
xv. The company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi. The company is not required to be registered under section 45-I of the ReserveBank of India Act 1934.
| ||For R.R.More & Co |
| ||Chartered Accountant |
| ||C.A. Raja Ram More |
|Place : Chennai ||Proprietor |
|Date : 30.05.2016 ||M.No : 21233 |
| ||FR NO : 21233S |