To the Members of BANARAS BEADS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Banaras Beads Ltd("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (Including Other Comprehensive Income) the Statement ofChanges in Equity and the statement of Cash Flows for the year then ended and notes tothe standalone Financial statements including a summary of the significant accountingpolicies and other explanatory information (herein after referred to as " standalonefinancial statements"). In our opinion and to the best of our information andaccording to the explanations given to us the aforesaid standalone financial statementsgive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 and its profit (including othercomprehensive income) the changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Companies Act 2013 and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
| ||How our audit addressed the Key Audit Matters |
|The Key Audit Matters ||Revenue recognition of Duty Credit Scripts |
|Duty Credit Incentive Script Schemes receivable at the end of accounting year is accounted on estimated realizable value. ( refer point D of Note 1 of the Standalone Financial Statement) ||Our Audit procedures include the following substantive procedures- |
| ||Duty Credit Incentive Script under various export incentive schemes received during the year are verified from the Realised Value of Export prescribed rate of script by the Government related to the product exported and value mentioned on the Script. |
| ||The recognition of revenue of Duty Credit Incentive Script on value of Export not realized at year end is verified from the FOB value of export prescribed rate of script by the Government related to the product and last realizable rate of transferred script during the year. |
| ||Reduction in Script value due to actual realization of export is adjusted in revenue when actual script is received. Difference between provision and actual transfer value is adjusted in revenue at the time of transfer. |
| ||Value of Scripts consumed in payments of custom duty against imports made are verified from documents of import and scripts. |
| ||Entries for scripts transferred during the year are accounted for on actual realised value and verified from invoice and other relevant documents. |
Management's Responsibility for the Standalone Financial Statements
The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 (the Act') with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flow of the Company in accordance with the Accounting Principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act. This responsibility also includes maintenance of adequateaccounting record in accordance with the provisions of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities selectionand application of appropriate accounting policies making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the stand alone financial statements management and board of directorsare responsible for assessing the company's ability to continue as going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intend to liquidate the company or to ceaseoperations or has no realistic alternative but to do so. The board of directors is alsoresponsible for overseeing the company's financial reporting process.
Auditor's Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements. As part of an audit inaccordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also: Identify and assess the risks of materialmisstatement of the standalone financial statements whether due to fraud or error designand perform audit procedures responsive to those risks and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error asfraud may involve collusion forgery intentional omissions misrepresentations or theoverride of internal control. Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit. We also provide thosecharged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and whereapplicable related safeguards. From the matters communicated with those charged withgovernance we determine those matters that were of most significance in the audit of thestandalone financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the company'sannual report but does not include the standalone financial statements and our auditor'sreport thereon. Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon. In connectionwith our audit of the standalone financial statements our responsibility is to read theother information and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 (the Order") issuedby the Central Government in terms of Section 143(11) of the Act we give in "Annexure A" a statement of the matters specified in paragraphs 3 and 4 of the Orderto 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books. c) The Standalone Balance Sheet theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChange in Equity and statement of Cash Flow dealt with by the Report are in agreement withthe books of account. d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards specified under Section 133 of the Act. e) Onthe basis of the written representations received from the directors as on 31st March2021 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2021 from being appointed as a director in terms of Section 164 (2) of theAct. f) With Respect to the adequacy of the internal financial controls over financialreporting and the operating effectiveness of such controls refer to our separate reportin Annexure-B. g) With respect to the other matters to be included in the Auditor's Reportin accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amendedin our opinion and to the best of our information and according to the explanations givento us: i. The Company has disclosed the impact of pending litigations on its financialposition in note number 48 & 49 in its financial Statement. ii. The Company has madeprovision as required under the applicable law or accounting standards for the materialforeseeable losses if any on long terms contracts including derivative contracts. iii.There has been no delay in transferring amounts to the Investor Education and ProtectionFund by the Company during the year ended 31 March 2021.
3. With respect to the matter to be included in the Auditor's Report under section197(16) in our opinion and according to the information and explanation given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of the section 197 of the Act. The remuneration paid to any directoris not in excess of the limit laid down under section 197 of the Act. The ministry ofcorporate affairs has not prescribed other details under section 197(16) which arerequired to be commented upon by us.
For- G D Dubey & Associates
(Firm No 009836C)
M. No. 076804
THE ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF BANARAS BEADSLIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31ST MARCH 2021.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies 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.
2. As explained to us inventories have been physically verified during the year by themanagement at reasonable intervals and the discrepancy noticed on physical verification ofstocks as compared to book records were not material and have been properly dealt with inthe books of accounts.
3. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has granted unsecured loans to companiesfirms or other parties listed in the register maintained under Section 189 of theCompanies Act and as explained to us the terms and conditions are not prejudicial to theinterest of the company and no schedule of repayment has been stipulated.
4. In our opinion and according to the information and explanation given to us thecompany has complied with the provision of Section 185 and 186 of the act with respect tothe investment and loan made.
5. The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India Provisions of Section 73 to 76 of the Actany other relevant provision of the Act and the relevant Rules framed there under.
6. Reporting under clause 3(v) of the order is not applicable as the Company's businessactivities are not covered by the companies (Cost Records and Audit) Rules 2014.
7. According to the records of the company undisputed statutory dues includingProvident Fund Employees' State Insurance Income tax Sales-tax Wealth Tax ServiceTax Custom Duty Excise Duty Goods and Service Tax Cess to the extent applicable andany other statutory dues have generally been regularly deposited with the appropriateauthorities. According to the information and explanations given to us there were nooutstanding statutory dues as on 31st of March 2021 for a period of more thansix months from the date they became payable except as reported in note 31 of theFinancial Statements. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
8. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has taken only working capital loansfrom banks and has not defaulted in repayment of dues to the bank. The company does nothave any borrowing from financial institution and has not issued debentures.
9. The Company has not raised during the Financial Year moneys by way of initial publicoffer or future public offer (including debt instruments) or term loans and hencereporting under clause 3(ix) of the Order is not applicable. 10. Based on the auditprocedures performed and the information and explanations given to us we report that nofraud on or by the
Company has been noticed or reported during the year nor have we been informed of suchcase by the management.
11. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act. 12.The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order isnot applicable. 13. In our opinion and according to the information and explanations givento us the Company is in compliance with Section 177 and 188 of the Act where applicablefor all transactions with the related parties and the details of related partytransactions have been disclosed in point 32 of the standalone financial statements asrequired by the applicable accounting standards. 14. During the year the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures and hence reporting under clause 3(xiv) of the Order is notapplicable to the Company. 15. In our opinion and according to the information andexplanations given to us during the year the Company has not entered into any non-cashtransactions with its Directors or persons connected to its Directors and hence provisionsof Section 192 of the Act are not applicable. 16. The Company is not required to beregistered under Section 45-I of the Reserve Bank of India Act 1934.
For- G D Dubey & Associates
(Firm No 009836C)
M. No. 076804
ANNEXURE B' TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under on other Legal and Regulatory Requirements'section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act) of Banaras BeadsLimited.
We have audited the internal financial controls over financial reporting of BanarasBeads Limited ( the Company') as of March 31 2021 in conjunction with our audit ofthe standalone Ind AS financial statements of the Company for the year ended and as at 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 (the Guidance Note').These responsibilities include the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuing the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial as required under the Act.
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 accordance with the Guidance Note and the Standards requirethat we comply with 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 reporting included obtaining an understanding of internal financialcontrols over financial reporting assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditors' judgment including theassessment of the risk of material misstatement of the standalone Ind AS financialstatements 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future period are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the polices or procedures may deteriorate.
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 controlsystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover reporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.
For- G D Dubey & Associates
(Firm No 009836C)
M. No. 076804