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Blue Blends (India) Ltd.

BSE: 502761 Sector: Industrials
NSE: BLUEBLENDS ISIN Code: INE113O01014
BSE LIVE 15:40 | 24 Mar 41.00 0.05
(0.12%)
OPEN

43.50

HIGH

43.50

LOW

41.00

NSE LIVE 15:31 | 24 Mar 41.00 0.05
(0.12%)
OPEN

41.50

HIGH

41.80

LOW

39.50

OPEN 43.50
PREVIOUS CLOSE 40.95
VOLUME 128621
52-Week high 101.00
52-Week low 35.00
P/E 10.76
Mkt Cap.(Rs cr) 84.42
Buy Price 41.00
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 43.50
CLOSE 40.95
VOLUME 128621
52-Week high 101.00
52-Week low 35.00
P/E 10.76
Mkt Cap.(Rs cr) 84.42
Buy Price 41.00
Buy Qty 200.00
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 312016 theStatement of Profit & Loss and 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

2. The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility 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; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting 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

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. 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 misstatements.

6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 and appropriate toprovide 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 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:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312016;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

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 subsection (11) ofsection 143 of the Act we give in the Annexure ‘A' 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 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 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 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 from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312016 from being appointed as a director in terms of Section164(2) of the Act.

f) with respect to adequacy of the internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separatereport in "Annexure B" and

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

i) the Company does not have any pending litigations which would impact its financialposition.

ii) the Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii) there has not been any occasion in case of the Company during the year underreport to transfer any sums to the Investor Education and Protection Fund. The question ofdelay in transferring such sums does not arise.

For P.C. SURANA & CO.
Chartered Accountants
(Registration No. 110631W)
(P.C.Surana)
Place: Mumbai Partner
Date: August 11th 2016 Membership No.17136

Annexure ‘A' referred to in paragraph 9 of Our Report of even date to the Membersof BLUE BLENDS (INDIA) LIMITED ("the

Company") on the accounts of the Company for the year ended 31 st March 2016

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 areheld 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 onsuch physical verification as compared to the book records.

(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 ofthe 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 interestif 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 respectto 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 2016 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 & CustomDuty Value Added Tax or Cess except following:-

1. Central Excise Duty of RS. 5.25 lacs for financial years 2001-02 and 2002-03.Company is in appeal before Central Excise and Service Tax Appellate T ribunal Ahmedabad.However the Company has paid the full amount under protest.

2. Disputed Sales Tax demands in respect of financial years 2007-08 and 2008-09 underGujarat Value Added Tax Act 2003 Rs. 11.69 lakhs. Company is in appeal before Sales TaxAppellate Tribunal Ahmedabad. However the Company has paid the full amount underprotest.

(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 theCompany have been applied by the Company for the purpose for which such loans wereobtained.

(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 makingthe 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 notapplicable.

(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 the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year in terms of section 42 of the Act. Accordingly paragraph 3(xiv) of the Order isnot applicable.

(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 Act1934.

For P.C. SURANA & CO.
Chartered Accountants
(Registration No. 110631W)
(P.C.Surana)
Place: Mumbai Partner
Date : August 11th 2016 Membership No.17136

Annexure - B to the Auditors' Report

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 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 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 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 2016 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.
Chartered Accountants
(Registration No. 110631W)
(P.C.Surana)
Place: Mumbai Partner
Date : August 11th 2016 Membership No.17136