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Bodal Chemicals Ltd.

BSE: 524370 Sector: Industrials
NSE: BODALCHEM ISIN Code: INE338D01028
BSE LIVE 15:44 | 17 Nov 175.30 2.40
(1.39%)
OPEN

175.00

HIGH

176.90

LOW

172.45

NSE 15:59 | 17 Nov 175.30 2.50
(1.45%)
OPEN

174.20

HIGH

176.85

LOW

172.60

OPEN 175.00
PREVIOUS CLOSE 172.90
VOLUME 62177
52-Week high 193.60
52-Week low 99.60
P/E 17.15
Mkt Cap.(Rs cr) 2,142
Buy Price 175.30
Buy Qty 207.00
Sell Price 0.00
Sell Qty 0.00
OPEN 175.00
CLOSE 172.90
VOLUME 62177
52-Week high 193.60
52-Week low 99.60
P/E 17.15
Mkt Cap.(Rs cr) 2,142
Buy Price 175.30
Buy Qty 207.00
Sell Price 0.00
Sell Qty 0.00

Bodal Chemicals Ltd. (BODALCHEM) - Auditors Report

Company auditors report

To

The Members of

Bodal Chemicals Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of BODAL CHEMICALSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the ma ers stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of these standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and ma ers which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

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. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section(11) of section 143 ofthe Companies Act 2013 we give in the ‘Annexure A' astatement on the ma ersspecified in paragraph 3 and 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 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaidstandalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the wri en representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017from 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 ourseparate Report in ‘Annexure B'.

(g) With respect to the other ma ers to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31st March 2017on its financial position in its standalone financial statement – Refer Note 29 tothe Standalone Financial Statements.

ii. The Company did not have any pending long-term contracts including derivativecontracts for which there were any material foreseeable losses.

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

iv. The Company has provided requisite disclosures in its Standalone FinancialStatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016.Based on audit procedures and according toinformation and explanations givento us we report that the disclosures are in accordancewith the books of account maintained by the Company and as produced before us by theManagement - ReferNote 16.1 to the Standalone Financial Statements.

For Mayank Shah & Associates
Chartered Accountants
Firm Registration No: 106109W
M.S. Shah
Ahmedabad Partner
May 25 2017 Membership No. 044093

Annexure ‘A' to the

Independent Auditors' Report

(Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" section of our report of even date)

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals having regard to thesize of the company nature and value of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such verification.

(c) In our opinion and according to information and explanations given to us and on thebasis of an examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

(ii) The inventory except goods-in-transit has been physically verified by theManagement at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable. For goods-in-transit at year end relevant evidences have beenobtained.The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been dealt with in books of account.

(iii) According to information and explanations given to us the company has grantedunsecured loans to Companies covered in the register maintained under section 189 of theCompanies Act 2013 in respect of which:

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the interest of the Company.

(b) The principal amounts are repayable on demandand payment of interest has beenstipulated and the repayments of principal amounts are at discretion of the Company andinterest payment has been regular as per stipulation.

(c) There are no overdue amounts in respect of the loan granted to a Subsidiary company& Associate in the register maintained under Section 189 of the Act .

(iv) In our opinion and according to information and explanations given to us theCompany has complied with provisions of Sections 185 and 186 of the Act in respect ofloans investments guarantees and security.

(v) According to the information and explanations given to us the Company has notaccepted any deposit nor has any unclaimed deposit within the meaning of the provisions ofSections 73 to 76 or any other relevant provision of the Act and the rules framed thereunder. Accordingly the provisions of Clause (v) of paragraph 3 of the Order are notapplicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules prescribed by the Central Government for the maintenance of cost recordsunder subsection (1) of section 148 of the Act and are of the opinion that prima faciethe prescribed accounts and records have been made and maintained. We have not howevermade a detailed examination of the same.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is regular in depositing theundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess andany other material statutory dues as applicable with the appropriate authorities.

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

(b) According to the information and explanations given to us details of dues towardsIncome Tax Service Tax Custom Duty Excise dutywhich have not been deposited by theCompany on account of disputes are as follows

Name of the Statute Nature of the Dues (Rs. in Millions) Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 25.83 A.Y. 2007-08 A.Y. 2008-09 Commissioner of Income Tax (Appeals)
Income Tax 4.28 Various Years Assessing Officer
Central Excise Act 1944 Excise Duty & Penalty 4.33 F.Y. 2010-11 to F.Y.2015-16 Commissioner of Central Excise (Appeals) & Tribunal
Excise Duty & Penalty 27.62 F.Y. 2005-06 to F.Y 2014-15 Customs Excise & Service Tax Appellate Tribunal
Service Tax Service Tax & Penalty 0.39 F.Y. 2011-12 Customs Excise & Service Tax Appellate Tribunal

According to the information and explanations given to us there are no dues of SalestaxValue Added Tax and Cess which have not been deposited with the appropriateauthorities on account of any dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans during the year. Accordingly theprovisions of clause (ix) of paragraph 3 of the Order are not applicable to the Company.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of the Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordinglythe provisions of Clauses (xii) of paragraph 3of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv) According to the 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.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transaction with theDirectors or Persons connected with its Directors and covered under Section 192 of theAct. Accordingly the provisions of Clause (xv) of paragraph 3 of the Order are notapplicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45- IA of the Reserve Bank of India Act 1934.Accordingly Clause (xvi) of paragraph 3 of the Order is not applicable to the Company .

For Mayank Shah & Associates
Chartered Accountants
Firm Registration No: 106109W
M.S. Shah
Ahmedabad Partner
May 25 2017 Membership No. 044093

Annexure ‘B' to the

Independent Auditors' Report

(Referred to in Paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of BODALCHEMICALS LIMITED (‘the Company') as of March 31 2017 in conjunction with our auditof the standalone financial statements of the Company for the 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 (the ‘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 andprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with the ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

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 auditors' judgment including the assessment of the risks ofmaterial misstatement of thefinancialstatements whether due to fraud or error. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Company's internal financial controls system over financialreporting.

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: (a) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (b) 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 (c) 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 controlsover 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the ICAI.

For Mayank Shah & Associates
Chartered Accountants
Firm Registration No: 106109W
M.S. Shah
Ahmedabad Partner
May 25 2017 Membership No. 044093