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Bengal & Assam Company Ltd.

BSE: 533095 Sector: Financials
NSE: N.A. ISIN Code: INE083K01017
BSE 00:00 | 02 Aug 2114.95 189.50
(9.84%)
OPEN

1960.00

HIGH

2180.00

LOW

1936.00

NSE 05:30 | 01 Jan Bengal & Assam Company Ltd
OPEN 1960.00
PREVIOUS CLOSE 1925.45
VOLUME 22749
52-Week high 2180.00
52-Week low 1129.90
P/E 102.72
Mkt Cap.(Rs cr) 2,390
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1960.00
CLOSE 1925.45
VOLUME 22749
52-Week high 2180.00
52-Week low 1129.90
P/E 102.72
Mkt Cap.(Rs cr) 2,390
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bengal & Assam Company Ltd. (BENGALASSAM) - Auditors Report

Company auditors report

To the Members of Bengal & Assam Company Limited Report on the Audit of theStandalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Bengal & AssamCompany Limited ("the Company") which comprise the balance sheet as at March 312020 the statement of profit and loss including the statement of other comprehensiveincome the statement of changes in equity and the cash flow statement for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2020 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 of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sresponsibilities for the audit of the standalone financial statements' section of ourreport. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.

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 for the financial yearended March 312020. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.

Key audit matters How our audit addressed the key audit matter
AdoDtion of new accounting framework (Ind AS)
Refer Note No. 1.2 and 47 to the standalone financial statements. We have assessed the design implementation and operating effectiveness of key internal controls
Effective April 01 2019 the Company has adopted Ind AS notified by the Ministry of Corporate Affairs with the transition date of April 01 2018. over management's evaluation of transition date choices and exemptions availed in line with the principles under Ind AS 101.
The following are the major impact areas for the Company upon transition: We understood the methodology implemented by management to give impact on the transition;
• Classification and measurement offinancial assets We assessed areas of significant estimates and management judgement in line with principles
• Accounting of expected credit losses as per Ind AS 109 under Ind AS;
• Complexity of disclosure We compared the reasonableness of management
Transition to the new financial reporting framework is an intricate process involving multiple decision points for management i.e. Ind AS 101. First Time Adoption prescribes choices and exemptions for first time application of Ind AS principles at the transition date. assumptions in respect of recognition and measurement of financial assets allowance for expected credit losses and complexity of disclosure etc.
We identified the transition date accounting as a key audit matter because of the significant degree of management judgement in the first-time application of Ind AS principles as at the transition date particularly in the areas noted above and the additional disclosures associated with transition to Ind AS. We performed the audit procedures on transition adjustments and subsequent measurements and found management's assessment to be reasonable and the disclosures are appropriate.

Other Matter

The comparative financial information of the Company for the year ended March 31 2019and the transition date opening balance sheet as at April 1 2018 included in these Ind ASstandalone financial statements are based on the previously issued financial statementsprepared in accordance with the Accounting Standards referred in section 133 of theCompanies Act 2013 audited by the predecessor auditor whose report for the year endedMarch 31 2019 and March 312018 dated May 30 2019 and May 19 2018 respectivelyexpressed an unmodified opinion on those financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

Other Information

The Company's Board of Directors are responsible for the other information. The otherinformation comprises the

information included in the Company's annual report but does not include thestandalone financial statements and our auditor's report thereon. The annual report isexpected to be made available to us after the date of this auditor's report. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially 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. When we read the annual report if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with governance and take necessary actions as applicable under theapplicable laws and regulations.

Responsibilities of management for the standalone financial statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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 the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's responsibilities 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

accordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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 statementsfor the financial year ended March 312020 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 including the statement ofother comprehensive income statement of changes in equity and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 of the Company with reference to these standalone financial statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB" to this report;

(g) In our opinion the managerial remuneration for the year ended March 312020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197(16) read with Schedule V to the Act;

(h) 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 to us:

i. The Company has disclosed the impact of pending litigations on its standalonefinancial position in its standalone financial statements - Refer note no 30 of thestandalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For Singhi & Co.
Chartered Accountants
Firm Reg. No. 302049E
Bimal Kumar Sipani
Partner
Place: Noida (Delhi-NCR) Membership No. 088926
Date: June 24 2020 UDIN : 20088926AAAAFF8882

ANNEXURES' TO THE AUDITORS' REPORT

Annexure A referred to in paragraph 1 of our report of even date on the other legal andregulatory requirements (Re: Bengal & Assam Company Limited)

(i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment.

b. The Company physically verify its property plant and equipment in every alternateyear which in our opinion is reasonable having regard to the size of the Company andnature of its assets. Accordingly property plant and equipment were not physicallyverified during the year.

c. The title deeds of immovable properties included in investment properties [note 8 tothe standalone financial statements] are held in the name of the Company except as statedin footnote of Note No. 8 of the standalone financial statement.

(ii) The Company has no inventory. Therefore the provisions of clause 3(ii) of theOrder are not applicable.

(iii) The Company has not granted any loan to companies firms limited liabilitypartnership or other parties covered in the register maintained under section 189 of theAct. Therefore the provisions of clause 3(iii) of the Order are not applicable.

(iv) The Company has complied with provisions of section 186 of the Act in respect ofInvestments made during the year. According to information and explanations given by themanagement no loans guarantees and securities covered under section 185 and section 186of the Act have given during the year.

(v) The Company has not accepted during the year deposit within the meaning of sections73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014. Thereforeprovisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not prescribed maintenance of cost records u/s 148(1)of the Act. Therefore the provisions of clause 3 (vi) of the Order are not applicable.

(vii) a. According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome-tax goods and service tax sales tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues where deducted/ accrued inthe books with the appropriate authorities. There was no undisputed outstanding statutorydues as at the year end for a period of more than six months from the date they becamepayable.

b. According to the records of the Company there are no dues outstanding of incometax sales tax service tax duty of customs duty of excise goods and service tax andvalue added tax on account of any dispute other than the followings.

Name of Statue Nature of disputed dues Amount (' in Lakhs) Financial year to which it relates Forum where dispute is pending
Income Tax Act 1961

Income tax on enhancement of income

27.00 2007-08 ITAT
37.34 2009-10

Commissioner Appeals

1.77 2011-12
16.71 2016-17

(viii) The Company has not defaulted in repayment of dues to banks and financialinstitutions. The Company did not have any borrowing from Government and dues to debentureholders.

(ix) The Company has not raised any monies by way of initial public offer or furtherpublic offer (including debt instruments) or raised any term loan during the year.Therefore the provisions of clause 3(ix) of the Order are not applicable.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven to us no fraud by the Company or no fraud on the Company by its officers andemployees has been noticed or reported during the year.

(xi) The managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.

(xii) In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable.

(xiii) According to the information and explanations given to us and as per records ofthe Company transactions with the related parties as identified by the Company are incompliance with section 177 and 188 of the Act where applicable and details for the samehave been disclosed in the financial statements as required by the applicable Indianaccounting standards.

(xiv) The Company has issued preference shares on private placement basis during theyear and requirements of section 42 of the Companies Act 2013 in this respect have beencomplied with. The Company has not made any preferential allotment or private placement offully or partly convertible debentures and equity shares during the year.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withthem. Therefore the provisions of clause 3(xv) of the Order are not applicable.

(xvi) In our opinion the Company is required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and such registration has been obtained.

For 5^innhi Ri On
i ui on lyi ii ix wu. Chartered Accountants
Firm Reg. No. 302049E
Bimal Kumar Sipani
Partner
Place: Noida (Delhi-NCR) Membership No 088926
1 ICtUC. 1 MVJIUCl l L/CII II 1 >1KS1 11 Date: June 24 2020 UDIN : 20088926AAAAFF8882

Report on the Internal Financial controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to standalone financialstatements of Bengal & Assam Company Limited ("the Company") as of March 312020 in conjunction with our audit of the standalone financial statements of the Companyfor 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 the 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underAct.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "guidance Note") and the standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to as audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those standards and the Guidance Note require that we comply withethical requirements of and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls with reference to standalone financialstatements 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 with reference to standalone financial statementsand their operating effectiveness. Our audit of internal financial controls with referenceto standalone financial statements included obtaining an understanding of internalfinancial controls with reference to standalone financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the standalone 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 systemwith reference to standalone financial statements.

Meaning of Infernal Financial controls with reference to standalone financialstatements

A Company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions

and dispositions of the assets of the company ; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of standalone financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorization 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 standalone financial statements.

Inherent Limitations of Internal Financial controls with reference to standalonefinancial statements

Because of the inherent limitations of Internal Financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance 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 controlswith reference to standalone financial statements were operating effectively as at March31 2020 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For Singhi & Co.
Chartered Accountants
Firm Reg. No. 302049E
Bimal Kumar Sipani
Partner
Place: Noida (Delhi-NCR) Membership No. 088926
Date: June 24 2020 UDIN : 20088926AAAAFF8882

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