To the Members of BANARAS BEADS LIMITED Report on the Standalone FinancialStatements Opinion
We have audited the accompanying standalone financial statements of Banaras Beads Ltd("the Company") which comprise the Balance Sheet as at March 31 2019 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 2019 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.
|The Key Audit Matters ||How our audit addressed 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 adequate accounting record 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement 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 over seeing 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 in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits 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 other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing 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 Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Change in Equity and statement of Cash Flow dealt with by theReport are in agreement with the books of account. d) In our opinion the aforesaidstandalone financial statements comply with the Indian Accounting Standards specifiedunder Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 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 Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended 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 note number 46 & 47 in its financial Statement.
ii. The Company has made provision as required under the applicable law or accountingstandards for the material foreseeable losses if any on long terms contracts includingderivative contracts. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the
Company. However un-claimed dividend of 2011-12 amounting to Rs. 219250 have not beentransferred to IEPF on account of pending execution of CLB order dt. 04.07.2007 03.08.2007 and 14.09.2007 pending compliance by Petitioners.
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
ANNEXURE "A" TO INDEPENDENT AUDITORS' REPORT
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 2019.
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 2019 for a period of more than six monthsfrom the date they became payable except as reported in note 30 of the FinancialStatements. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. However un-claimed dividend of2011-12 amounting to Rs. 219250 have not been transferred to IEPF on account of pendingexecution of CLB order dt. 04.07.2007 03.08.2007 and 14.09.2007 pending compliance byPetitioners..
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 moneys by way of initial public offer or future publicoffer (including debt instruments) or term loans and hence reporting under clause 3(ix) ofthe Order is not applicable.
10. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case 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 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 point 31 of the standalone financial statements as required by theapplicable accounting standards.
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company. 15. In our opinion andaccording to the information and explanations given to us during the year the Company hasnot entered into any non-cash transactions with its Directors or persons connected to itsDirectors and hence provisions of Section 192 of the Act are not applicable. 16. TheCompany is not required to be registered under Section 45-I of the Reserve Bank of IndiaAct 1934. For- G D Dubey & Associates Chartered Accountants
(Firm No 009836C)
M. No. 076804 VARANASI;30.05.2019
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 2019 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 2019 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