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Bright Brothers Ltd.

BSE: 526731 Sector: Industrials
NSE: BRIGHTBROS ISIN Code: INE630D01010
BSE LIVE 12:27 | 24 Nov 118.95 2.95
(2.54%)
OPEN

120.00

HIGH

121.70

LOW

115.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 120.00
PREVIOUS CLOSE 116.00
VOLUME 10926
52-Week high 121.70
52-Week low 61.20
P/E
Mkt Cap.(Rs cr) 68
Buy Price 117.00
Buy Qty 10.00
Sell Price 118.95
Sell Qty 143.00
OPEN 120.00
CLOSE 116.00
VOLUME 10926
52-Week high 121.70
52-Week low 61.20
P/E
Mkt Cap.(Rs cr) 68
Buy Price 117.00
Buy Qty 10.00
Sell Price 118.95
Sell Qty 143.00

Bright Brothers Ltd. (BRIGHTBROS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

BRIGHT BROTHERS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Bright Brothers Limited(‘the Company’) which comprise the balance sheet as at 31st March 2017 thestatement of profit and loss and the cash flow statement for the year ended on that dateand a summary of the significant accounting policies and other explanatory information(herein after referred to as "financial statements").

Management’s Responsibility for the 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 preparationand presentation 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 the Companies (Accounts)Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016 ("theRules"). This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were 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

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 and the Order under Section 143(11) ofthe Act.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation 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 31stMarch 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the "Annexure A" a statement on thematters specified in the paragraphs 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 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 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 aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules 2016;

(e) on the basis of the written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from 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" to this report; and

(g) with respect to the other matters to be included in the Independent Auditor’sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note No. 28 (Sn. 1 to 6) to thefinancial statements;

ii. there are no material foreseeable losses arising out of any long-term contracts forwhich provision is required to be made under any law or accounting standards. The Companyhas not entered into any derivative contracts;

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

iv. the Company has provided requisite disclosures in Note No. 27 to these financialstatements as to holding as well as dealings in the Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 on the basis of information available withthe Company. Based on audit procedures and relying on the management’srepresentation we report that the disclosures are in accordance with the Books ofaccounts maintained by the Company and as produced to us by the Management.

For Desai Saksena & Associates
Chartered Accountants
Firm’s Registration No.: 102358W
DR. S. N. DESAI
Place : Mumbai Partner
Date : 8th May 2017 Membership No.: 32546

Annexure - A to the Independent Auditors’ Report

The Annexure referred to in Independent Auditors’ Report to the members of theCompany on the financial statements for the year ended 31st March 2017 we report that:

(i) In respect of Company’s property plant and equipment:

(a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.

(b) The property plant and equipment were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the property plant and equipment at reasonableintervals. According to the information and explanations given to us no materialdiscrepancies were noticed on such 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 Company’s inventories: The inventory except goods-in-transit andinventory lying with third parties has been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable. The discrepancies noticed on verification between the physical stocks andthe book records were not material.

(iii) In our opinion and according to information and explanation given to us theCompany has not granted any loans secured or unsecured to parties covered in the registermaintained under Section 189 of the Act. Accordingly paragraph 3 (iii) of the Order isnot applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured or provided any guarantees or security to partiescovered under Section 185 of the Act. The Company has not granted any loans noinvestments has been made no guarantees or security are given to parties covered Section186 of the Act. Accordingly paragraph 3 (iv) of the Order is not applicable to theCompany.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with directives issued by Reserve Bank of India and the provision ofSections 73 to 75 or any other applicable provisions of the Act and the (Acceptance ofDeposits) Rules 2014 with regard to the deposits accepted from the public. According tothe information and explanations given to us no order has been passed by the Company LawBoard or the National Company Law Tribunal or the Reserve Bank of India or any Court orany other Tribunal. In our opinion and according to explanation given to us the Companyhas not accepted deposit from non-members.

(vi) We have broadly reviewed the books of accounts and records maintained by theCompany pursuant to the Rules prescribed by the Central Government under sub-section (1)of Section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of excise duty of customs service tax professionaltax cess and other material statutory dues have been generally regularly deposited duringthe year by the Company with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of provident fundincome tax sales tax value added tax duty of excise duty of customs service taxprofessional tax cess and other material statutory dues were in arrears as at 31st March2017 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute other than the following dues of duty of excise service tax income taxsales tax value added tax and provident fund:

Sr. No. Name of the statute Nature of dues Financial Year to which it pertains Forum where dispute is pending *Amount (Rs. in Lakhs)
1 Bombay Sales Tax Act 1959 and Central Sales Tax Act 1956 Sales tax Interest and Penalty 1992-93 1998-99 2001-02 Sales Tax Appellate Tribunal 8.02

 

2 Bombay Sales Tax Act Sales tax Interest and Penalty 1987-89 1999-00 Joint Commissioner (Appeals-Sales Tax) 34.01
3 Maharashtra Value Added Tax Act 2002/ and Central Sales Tax Act 1956 VAT Interest and Penalty 2005-06 2008-09 Joint Commissioner (Appeals-Sales Tax) 36.58
4 Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act 1956 VAT Interest and Penalty 2005-06 2007-08. Deputy Commissioner (Appeals-Sales Tax) 27.06
5 The Central Excise Act 1944 Duty and Penalty 1996-1997 to 1998-1999 CESTAT 89.78
6 Provident Fund Act 1952 P.F. dues 2010-2011 2011-2012 2012-2013 Commissioner (PF) 8.66
7 Service Tax under the Finance Act 1994 Service tax 2012-13 Additional Commissioner of Service tax 6.46
8 Service tax under the Finance Act 1994 Service tax 2007-08 The Commissioner of Central Excise 51.50
9 Sales Tax and Central Sales Tax Sales Tax 2009-10 2010-11 2011-12 2012-13 2013-14 Deputy Commissioner of Commercial Taxes 505.19

* Note: 1. The Company has made provision of Rs. 0.27 lacs on account of disputedStatutory Liabilities. Disputed amount is disclosed net of provision made.

2. Interest and Penalty as per the orders received.

(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 did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). The term loan raised during the year has beenapplied for the purpose for which it was raised.

(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) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 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. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosure specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give 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. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

For Desai Saksena & Associates
Chartered Accountants
Firm’s Registration No.: 102358W
DR. S. N. DESAI
Place : Mumbai Partner
Date : 8th May 2017 Membership No.: 32546

Annexure - B to the Independent Auditors’ Report for the year ended 31st March2017 on the Financial Statement

(Referred to in 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 Act

We have audited the internal financial controls over financial reporting of BrightBrothers Limited ("the Company") as of 31st March 2017 in conjunction withour audit of the 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI’)(the ‘Guidance Note’). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence toCompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material 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 auditor’s judgement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

The Company has an Internal control system. However the same needs to be strengthen.

Opinion

According to the information and explanations give to us the Company has in allmaterial respects an adequate internal financial controls system over financial reportingand such internal financial controls over financial reporting were operating effectivelyas at 31st March 2017 based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For Desai Saksena & Associates
Chartered Accountants
Firm’s Registration No.: 102358W
DR. S. N. DESAI
Place : Mumbai Partner
Date : 8th May 2017 Membership No.: 32546