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Blue Blends (India) Ltd.

BSE: 502761 Sector: Industrials
NSE: BLUEBLENDS ISIN Code: INE113O01014
BSE 00:00 | 20 Apr 19.65 -0.55
(-2.72%)
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19.10

NSE 00:00 | 20 Apr 19.55 -1.00
(-4.87%)
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OPEN 20.50
PREVIOUS CLOSE 20.20
VOLUME 12586
52-Week high 64.00
52-Week low 17.65
P/E 8.40
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.50
CLOSE 20.20
VOLUME 12586
52-Week high 64.00
52-Week low 17.65
P/E 8.40
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Blue Blends (India) Ltd. (BLUEBLENDS) - Auditors Report

Company auditors report

To the Members of

BLUE BLENDS (INDIA) LIMITED

Report on the Financial Statements

1. We have audited the accompanying Financial Statements of Blue Blends (India)Limited ("the Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit & Loss and the Cash Flow Statement for the year thenended and a Summary of Significant Accounting Policies and other Explanatory Information.

Management's Responsibility for the Financial Statements

2. The management and Board of Directors of the Company are responsible for thematters stated in Section 134(5) of the Companies Act 2013 ("the Act")with respect to the preparation of these financial statements that give a true and fairview of the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with rule 7 of Companies(Accounts) Rules 2014. This responsibility includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; design implementation and maintenance of adequate internalfinancial controls that are 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 materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements basedon our audit.

4. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 misstatements.

6. An audit involves performing procedures to obtain audit evidence about theamounts and 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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: a) in the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2017; b) in the case of the Statementof Profit and Loss of the profit for the year ended on that date; and c) in the case ofthe Cash Flow Statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure ‘B' a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

10. As required by section 143(3) of the Act we further report that: a) we havesought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit. b) in our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books. c) the Balance Sheet Statement of Profit and Loss andCash Flow Statement dealt with by this Report are in agreement with the books of account.d) in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) on the basis of written representations received fromthe directors as on March 31 2017 and taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2017 from being appointed as a director interms of Section 164(2) of the Act. f) with respect to adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure A" and g) withrespect to other matters to be included in the Auditor's Report in accordance with Rule 11of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. the Company does not haveany pending litigations which would impact its financial position. ii. The Company did nothave any long-term contracts including derivative contracts; as such the question ofcommenting on any material foreseeable losses thereon does not arise. iii. there has notbeen any occasion in case of the Company during the year under report to transfer any sumsto the Investor Education and Protection Fund. The question of delay in transferring suchsums does not arise. iv. The Company has provided requisite disclosures in the standalonefinancial statements as to holding as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to December 2016 on the basis of information availablewith the Company. Based on audit procedures and relying on management's representationwe report that disclosures are in accordance with the books of accounts maintained by theCompany and as produced to us by the Management. – Refer Note 28.

FOR P. C. SURANA & CO.

CHARTEREDACCOUNTANTS

REG. NO. 110631W

P. C. SURANA MEM. NO. : 017136 PARTNER

PLACE : MUMBAI

DATE : 30th MAY 2017

Annexure - A to the Independent Auditors' Report

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers of Blue Blends (India) Limited

on the standalone financial statements for the year ended March 31 2017

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 BlueBlends (India) Limited ("the Company") as of 31 March 2017

in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

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 (‘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 company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 the adequacy ofthe internal financial controls system 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 financial statements whether due to fraud or error.

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 system over 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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.

FOR P. C. SURANA & CO.

CHARTEREDACCOUNTANTS

REG. NO. 110631W

P. C. SURANA MEM. NO. : 017136 PARTNER

PLACE : MUMBAI

DATE : 30th MAY 2017

Annexure ‘B' referred to in paragraph 9 of OurReport of even date to the Members ofBLUE BLENDS (INDIA) LIMITED ("the Company") on the accountsof the Company for the year ended 31stMarch 2017.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of

our audit we report that:

(i) In respect of its fixed assets:

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

(b) As explained to us the management during the year has physically verified thefixed assets in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

(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 are held in the name of the Company.

(ii) In respect of its inventories:

As explained to us in our opinion the management has physically verified inventoriesat reasonable intervals during the year and there was

no material discrepancies noticed on such physical verification as compared to the bookrecords.

(iii) In respect of the loans secured or unsecured granted by the Company tocompanies firms or other parties covered in the Register

maintained under Section 189 of the Companies Act 2013:

(a) the terms and conditions of the grant of such loans are not prejudicial to thecompany's interest;

(b) such loans are payable on demand and receipt of the principal amount and interest if any are regular; and

(c) there is no overdue amount of principal and interest in respect of such loans

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185

and 186 of the Act with respect to the loans investments and guarantees made.

(v) The Company has not accepted any deposits from the public covered under sections 73to 76 of the Act.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act in respect of Company's products and services and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made any detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of records of the Company undisputed statutory dues including Provident FundEmployees' State Insurance Income Tax Sales Tax Wealth Tax Service Tax Customs DutyExcise Duty Value Added Tax Cess and other material statutory dues as applicable havebeen generally deposited regularly with the appropriate authorities.

According to the information and explanation given to us no undisputed amounts payablein respect of Provident Fund Employees' State Insurance Income Tax Sales Tax WealthTax Service Tax Customs Duty Excise Duty Value Added Tax Cess and other materialstatutory dues were in arrears as at 31 March 2017 for a period of more than six monthsfrom the date they become payable.

(b) According to the information and explanations given to us there are no disputeddues in respect of Sales Tax Income Tax Wealth Tax

Service Tax Excise & Custom Duty Value Added Tax or Cess except Value Added Taxof Rs.11.69 lakhs for financial years 2007-08 and 2008-09. Company is in appeal beforeSales Tax Appellate Tribunal Ahmedabad. However the Company has paid the full amount

under protest.

(viii) According to the explanations and information given to us and on the basis ofour examination of records of the Company the Company does not have any loans orborrowings from any financial institution or bank and in respect of borrowings from thedebenture holders as at Balance Sheet date the Company has not defaulted in repayment ofdues to such debenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. The

term loans raised by the Company have been applied by the Company for the purpose forwhich such loans were obtained.

(x) During the course of our examination of the books and records of the Companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud by the Company or by its officers or employeeson it has been noticed or reported during the course of our audit nor have we beeninformed of any such instance by the Management.

(xi) According to the information and explanations given to us the provisions ofsection 197 read with Schedule V to the Companies Act have

been complied with in making the payment of managerial remuneration.

(xii) In our opinion and according to information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii)

of the order is not applicable.

(xiii) According to information and explanations given to us and based on ourexamination of the records of the Company in our opinion all the transactions enteredwith the related parties are in compliance with sections 177 and 188 of the Act and thedetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting standards.

(xiv) According to information and explanations given to us and based on ourexamination of the records of the Company in our opinion preferential allotment ofshares and fully convertible debentures made by the company during the year are incompliance with the provisions of section 42 of the Act and the amount so raised have beenused for the purposes for which the funds were raised.

(xv) According to information and explanations given to us and based on our examinationof the records of the Company the company has not entered into any non--cash transactionswith directors or persons connected with him. Accordingly paragraph 3(xv) of the Order isnot applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

FOR P. C. SURANA & CO.

CHARTEREDACCOUNTANTS

REG. NO. 110631W

P. C. SURANA MEM. NO. : 017136 PARTNER

PLACE : MUMBAI

DATE : 30th MAY 2017