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Bhagwati Autocast Ltd.

BSE: 504646 Sector: Engineering
NSE: N.A. ISIN Code: INE106G01014
BSE LIVE 15:40 | 13 Dec 122.85 -8.65
(-6.58%)
OPEN

129.00

HIGH

133.00

LOW

120.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 129.00
PREVIOUS CLOSE 131.50
VOLUME 3950
52-Week high 149.90
52-Week low 63.15
P/E 35.82
Mkt Cap.(Rs cr) 35
Buy Price 122.85
Buy Qty 43.00
Sell Price 0.00
Sell Qty 0.00
OPEN 129.00
CLOSE 131.50
VOLUME 3950
52-Week high 149.90
52-Week low 63.15
P/E 35.82
Mkt Cap.(Rs cr) 35
Buy Price 122.85
Buy Qty 43.00
Sell Price 0.00
Sell Qty 0.00

Bhagwati Autocast Ltd. (BHAGWATIAUTO) - Auditors Report

Company auditors report

Independent Auditor's Report

To the Members of Bhagwati Autocast Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BHAGWATIAUTOCAST LIMITED ("the Company") which comprises the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of 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 the Companies (Accounts)Rules 2014.

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 standalonefinancial 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 standalonefinancial 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 thereunder.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols.

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 standalone 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 information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(i) in the case of the Balance sheet of the state of affairs of the company as atMarch 31 2017;

(ii) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

(iii) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

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 subsection 11 of section 143 of theAct We give in the Annexure "A" statement on the matter specified in paragraphs3 & 4 of the 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 purpose 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;

(d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in section 133 of the CompaniesAct 2013 read with rule 7 of the Companies (Accounts) Rules 2014.

(e) on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of sub section (2) ofsection 164 of the Companies Act 2013.

(f) with reference to the adequacy of the internal financial controls over financialreporting of the Company and operating effectiveness of such control refer to ourseparate report to "Annexure : B".

(g) With respect to the other matters included in the auditor's report and to best ofour information and according to the explanation given to us.

1. The company has disclosed the impact of pending litigation on its financial positionin its standalone financial statements Refer to Note 12 to the standalone financialstatement.

2. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

For and on behalf of
Mahendra N. Shah & Co.
Chartered Accountants
Firm's registration No. : 105775W
CA Chirag M. Shah
Partner
Membership No. : 045706
Date : 24/05/2017
Place : Ahmedabad

Annexure "A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirements' of our report of even date to the standalone financial statementsof the Company for the year ended March 31 2017:

1. In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of five years which in our opinionis reasonable having regard to the size of the company and nature of its business.According to information and explanation given to us no material discrepancies werenoticedon such verification.

(c) The title deeds of immovable properties are in the name of the company.

2. In respect of Inventories:

According to information and explanation given to us Physical verification ofinventories has been conducted in reasonable interval by the Management and no materialdiscrepancies were noticed on physical verification during the year.

3. According to information and explanation given to us the Company has not grantedany loans secured or unsecured to companies firms Limited Liability partnerships orother parties covered in the Register maintained under section 189 of the Act.Accordingly the provisions of clause 3 (iii) (a) to (c) of the Order are not applicableto the Company and hence not commented upon.

4. In our opinion and according to the information and explanations given to us thecompany has not granted loan or given guarantee or provided security as provided in thesection 185 and I86 of the Companies Act 2013 In respect of loans investmentsguarantees and security.

5. According to information and explanation given to us the Company has not acceptedany deposits from the public and hence the directives issued by the Reserve Bank of Indiaand the provisions of Sections 73 to 76 or any other relevant provisions of the Act andthe Companies (Acceptance of Deposit) Rules 2015 with regard to the deposits acceptedfrom the public are not applicable.

6. The Central Government has prescribed maintenance of Cost Records under section148(1) of the Companies Act 2013 in respect of manufacturing activities of the Company.We have broadly reviewed the accounts and records of the Company in this connection andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have not however made a detailed examination of the same.

7. According to information and explanations given to us in respect of statutory duesand on the basis of our examination of the books of account and records

(a) the Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Income-Tax Sales tax Service Tax Duty of Customs Duty ofExcise Value added Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2017 for a periodof more than six months from the date on when they become payable.

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax service tax value added tax wealth tax duty of customsand Cess which have not been deposited with the appropriate authorities on account of anydispute except in respect to income tax penalty and excise duty the following dues havenot been deposited by the Company on account of disputes according to information andexplanations given to us:

Name of the Statute Nature of dues Amount (‘ lacs) Period to which the amount relates Forum where the dispute is pending
Income Tax Penalty 1.47 A.Y. 10-11 CIT-(A)
Excise Demand 3.92 F.Y. 02-03 CESTAT
Excise Demand 3.39 F.Y. 03-04 CESTAT
Excise Demand 2.35 F.Y. 04-05 CESTAT
Excise Demand 1.87 F.Y. 05-06 CESTAT

8. The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

9. According to the information and explanations given by the management the companyhas not raised moneys by way of initial public offer or further public offer includingdebt instruments and term Loans during the year. Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company.

10. According to the information and explanations given by the management we reportthat no fraud by the Company or on the company by its officers or employees has beennoticed or reported during the year.

11. According to the information and explanations given by the management themanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct;

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in thestandalone financial statements as required by the applicable accounting standards.

14. According to the information and explanations given by the management the companyhas not made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

15. According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim.

Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

16. In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For and on behalf of
Mahendra N. Shah & Co.
Chartered Accountants
Firm's registration No. : 105775W
CA Chirag M. Shah
Partner
Membership No. : 045706
Date : 24/05/2017
Place : Ahmedabad

Annexure ‘B'

Annexure to the Independent Auditor's report of even date on the Standalone financialstatements of Bhagwati Autocast Limited

Report on the Internal Financial Controls under Clause (1) of Sub-section 3 of Sec.143of the Companies Act 2013("the Act")

We have audited the internal financial controls over financial reporting of BhagwatiAutocast Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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. 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 company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems 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 standalone financial statements whether due to fraud orerror.

We believe that the 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 standalone financial statements for external purpose in accordance withgenerally accepted accounting principles. A company's 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 standalonefinancial statements in accordance with generally accepted accounting principles andthat receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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 of procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting was operating effectively as on March 312017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reports issued by the Institute of CharteredAccountants of India.

For and on behalf of
Mahendra N. Shah & Co.
Chartered Accountants
Firm's registration No. : 105775W
CA Chirag M. Shah
Partner
Membership No. : 045706
Date : 24/05/2017
Place : Ahmedabad