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Bhagyanagar India Ltd.

BSE: 512296 Sector: Engineering
NSE: BHAGYNAGAR ISIN Code: INE458B01028
BSE LIVE 15:24 | 09 Dec 18.00 0
(0.00%)
OPEN

18.35

HIGH

18.35

LOW

18.00

NSE LIVE 15:31 | 09 Dec 18.00 0
(0.00%)
OPEN

18.00

HIGH

18.30

LOW

17.50

OPEN 18.35
PREVIOUS CLOSE 18.00
VOLUME 1702
52-Week high 23.50
52-Week low 15.35
P/E 26.47
Mkt Cap.(Rs cr) 115.20
Buy Price 17.90
Buy Qty 500.00
Sell Price 18.20
Sell Qty 200.00
OPEN 18.35
CLOSE 18.00
VOLUME 1702
52-Week high 23.50
52-Week low 15.35
P/E 26.47
Mkt Cap.(Rs cr) 115.20
Buy Price 17.90
Buy Qty 500.00
Sell Price 18.20
Sell Qty 200.00

Bhagyanagar India Ltd. (BHAGYNAGAR) - Auditors Report

Company auditors report

To The Members of Bhagyanagar India Limited Report on the Financial Statements

We have audited the accompanying financial statements of Bhagyanagar India Limited(“the Company”) which comprise the Balance Sheet as at 31 March 2015 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’s Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 (“the Act”) with respect to the preparation of thesefinancial 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 the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.

Auditor’s Responsibility

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 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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 an opinionon whether the Company has in place an adequate internal financial control system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the management 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312015 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw your attention to Note 2.26 of the financial statements wherein the managementhas disclosed the details of Claims against the company not acknowledged as debt inrespect of matters under dispute with statutory authorities.

Our opinion is not modified in this matter.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in Annexure a statement on matters specified in paragraphs 3 and 4 of theOrder 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 Cash Flow Statement dealtwith by this Report are in agreement 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 written representations received from the directors as on 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164(2) of the Act.

f. We are not required to report on clause (i) with respect to Internal FinancialControls over financial reporting and the operating effectiveness of the same

for the Financial Year ending 31st March 2015 based on the Government of Indianotification dated October 14 2014 on the same matter.

g. With respect to the other matters included in the Auditor's Report and in accordancewith Rule 11 of Companies (Audit and Auditors) Rules 2014 and in our opinion and to thebest of our information and explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 2.26 to the financial statementsand also included in the Emphasis of matter paragraph above;

ii. The Company has made provision as required under the applicable law or accountingstandards

for material foreseeable losses if any on long term contracts including derivativecontracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Sekhar & Co.
Chartered Accountants
FRN: 003695-S
G. Ganesh
Place : Secunderabad Partner
Date : 30-May-2015 M.No.: 211704

Annexure referred to in paragraph 1 of our report of even date

Re: Bhagyanagar India Limited

i. a) The Company has maintained proper records showing full particular includingquantitative details and situation of fixed assets.

b) As explained to us the fixed assets have been physically verified by the managementaccording to the phased program designed to cover all the fixed assets over the year. Inrespect of fixed assets verified according to this program which we consider reasonableno material discrepancies were noticed on such verification.

ii. a) As explained to us inventories have been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable.

b) The procedures explained to us which are followed by the management for physicalverification of inventories are in our opinion reasonable and adequate in relation to thesize of the company and nature of its business.

c) The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.

iii. The Company has granted loans to six parties covered in the registermaintained under section 189 of the Act. The maximum amount involved during the year is '1316999108 and year end outstanding is ' 1242149177.

a) In our opinion and as per the records examined by us the payment of principalamount and interest thereon is regular. In respect of Interest due from subsidiaries thecompany has added the same to the principal since the sanction of loan to the subsidiary.

b) There are no overdue amounts in excess of ' 1 lakh in respect of loans granted tocompanies firms or other parties listed in register maintained under section 189 of theAct.

iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the company and thenature of its business with regard to purchase of inventory and fixed assets and for saleof goods and power. We have not observed any major weakness in the internal control systemduring the course of the audit.

v. The Company has not accepted any deposits from the public within the meaning ofsections 73 to 76 or any other relevant provisions of the Act and rules framed thereunder.

vi. We have broadly reviewed the cost records maintained by the Company prescribed bythe Central Government of India under Section 148(1) of the Act and are of the opinionthat prima facie the prescribed accounts and records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinewhether they are accurate or complete.

vii. a) The Company is regular in depositing undisputed statutory dues with appropriateauthorities including provident fund employees' state insurance income tax sales taxwealth tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amountspayable in respect of income tax sales tax wealth tax service tax duty of customsduty of excise value added tax or cess were in arrears as at 31st March 2015 for a periodmore than six months from the date they became payable.

c) Details of dues of Duty of Excise Duty of Customs and Income Tax which have notbeen deposited as on 31st March 2015 on account of disputes are given below:

Sl. No. Name of Statute Nature of Dues Amount not paid/ (Amount involved in dispute) Period to which it relates Forum where dispute is pending
1 Central Excise Act 1944 Excise Duty 2569007 2008-09 Appellate Additional Commissioner - Hyd
(2569007)
NIL Various Years
(2000000)
2 Customs Act 1964 Custom Duty 10000000 2008-09 Supreme Court of India
(24007856)
3 Income Tax Act 1961 Income Tax 1391515 2008-09 ITAT - Hyd
(2620804)
87993920 2012-13 CIT Appeals
(87993920)

Figures in brackets are the amounts involved in dispute. The taxes paid against theabove disputes at ' 16353076 are shown under heads Taxes paid under protest in LongTerm Advances and Income Tax Receivable under other current assets.

d) In our opinion the amount required to be transferred to the investor education andprotection fund in accordance with relevant provisions of the Companies Act 1956 andrules made thereunder has been transferred to such fund within time.

viii. The Company has no accumulated losses at the end of the financial year and it hasnot incurred cash loss during the year covered by audit and in the immediately precedingfinancial year.

ix. According to the records of the Company examined by us and the information andexplanations given to us the company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as applicable as at the Balance sheetdate.

x. The Company has not given any guarantee for loans taken by others from bank orfinancial institutions.

xi. In our opinion and according to the information and explanations given to us theterm loans have been applied for the purposes for which they were obtained.

xii. During the course of our examination of the books and records of the Companycarried out in accordance with the Generally Accepted Accounting Practice in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.

For Sekhar & Co.
Chartered Accountants
FRN: 003695-S
G. Ganesh
Place : Secunderabad Partner
Date : 30-May-2015 M.No.: 211704

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