You are here » Home » Companies » Company Overview » BGR Energy Systems Ltd

BGR Energy Systems Ltd.

BSE: 532930 Sector: Engineering
NSE: BGRENERGY ISIN Code: INE661I01014
BSE 00:00 | 25 Mar 59.50 -2.25
(-3.64%)
OPEN

60.60

HIGH

60.60

LOW

59.05

NSE 00:00 | 25 Mar 59.45 -2.25
(-3.65%)
OPEN

61.00

HIGH

61.00

LOW

58.85

OPEN 60.60
PREVIOUS CLOSE 61.75
VOLUME 18406
52-Week high 118.20
52-Week low 44.95
P/E 17.50
Mkt Cap.(Rs cr) 429
Buy Price 59.15
Buy Qty 200.00
Sell Price 59.45
Sell Qty 430.00
OPEN 60.60
CLOSE 61.75
VOLUME 18406
52-Week high 118.20
52-Week low 44.95
P/E 17.50
Mkt Cap.(Rs cr) 429
Buy Price 59.15
Buy Qty 200.00
Sell Price 59.45
Sell Qty 430.00

BGR Energy Systems Ltd. (BGRENERGY) - Auditors Report

Company auditors report

TO THE MEMBERS OF BGR ENERGY SYSTEMS LIMITED REPORT ON THE STANDALONE IND AS FINANCIALSTATEMENTS

We have audited the accompanying standalone Ind AS financial statements of BGREnergy Systems Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 and the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fairview of the state of affairs (financial position) profit (financial performance includingother comprehensive income) cash flows and changes in equity 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 relevantrules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. In conducting our audit we have taken into account theprovisions of the Act the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade thereunder. We conducted our audit of standalone Ind AS financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind ASfinancialstatementsthatgiveatrue and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on standalone Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at March 31 2018 and itsprofit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1) As required by the Companies (Auditors' 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 to the extent applicable.

2) As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c. The Balance Sheet the Statement of Profit andLoss(including other comprehensive income) the Cash Flow Statement and the Statement ofChanges in Equity dealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e. On the basis of the written representations receivedfrom the directors as on March 31 2018 taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2018 from being appointed as a director interms of Section 164(2) of the Act. f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in Annexure B; and g. With respectto the other matters to be included in the Auditor's Report in accordance with the Rule 11of the Companies (Audit and Auditors) Rules 2014 as amended in our opinion and to thebest of our information and according to the explanations given to us: i. The Company hasdisclosed the impact of pending litigations on its financial position in its standaloneInd AS financial statements – Refer Note nos. 3.c.(i) 3.c.(ii) and 34 to thestandalone Ind AS financial statements; ii. The Company has made provision as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long-term contracts including derivative contracts; iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company; and iv. The disclosure in the Standalone Ind AS Financial Statementsregarding holdings as well as dealings in specified bank notes during the period fromNovember 8 2016 to December 30 2016 have not been made since they do not pertain to thefinancial year ended March 31 2018. However amounts as appearing in the audited Ind ASFinancial Statements for the year ended 31 March 2017 have been disclosed vide referenceto Note no 41.

For N R Doraiswami & Co
Chartered Accountants
Firm Registration No: 000771S
Suguna Ravichandran
Place: Chennai Partner
Date: May 30 2018 Membership No: 207893

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONE IND AS FINANCIALSTATEMENTS

The Annexure referred to in paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" of our Independent Auditors' Report to the members ofBGR ENERGY SYSTEMS LIMITED for the year ended March 31 2018 we report that:

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; (b) The Company has a regular programof physical verification of its fixed assets by which fixed assets are verified in aphased manner on a rotational basis. In accordance with this program certain fixed assetswere verified during the year and no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets; and

(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) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company we are of the opinion that the management hasconducted the physical verificationofinventoryatreasonable intervals during the year.There are no material discrepancies were noticed between book stock and physical stock onphysical verification conducted by the management.

(iii) The Company has not granted any loans to parties covered in the registermaintained under section 189 of the Act during the year. Accordingly paragraph 3(iii)(a)(b) and (c) of the Order is not applicable.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the company has not granted loans andguarantees to any parties covered under Section 185 of the Act.

In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of the Act.

(v) The Company has not accepted any deposits from the public within the meaning ofsections 73 to 76 of the Act and the rules framed there under to the extent notified.Therefore the provisions of clause (v) of the Companies (Auditors' Report) Order 2016are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company as specifiedby the Central Government under Section 148(1) of the Act and are of the opinion thatprima facie the prescribed cost records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) (a) In our opinion and according to the information and explanations given to usand on the basis of our examination of the records of the Company amounts deducted /accrued in the books of account in respect of undisputed statutory dues includingProvident Fund Employees' State Insurance Profession Tax Income-tax Sales-tax ValueAdded Tax Works Contract Tax Service tax Customs Duty Excise Duty Goods and Servicetax Cess and other statutory dues have generally been regularly deposited during the yearby the company with the appropriate authorities.

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Profession Tax Income-tax Sales-tax ValueAdded Tax Works Contract Tax Service tax Customs Duty Excise Duty Goods and Servicetax Cess were in arrears as at March 31 2018 for a period of more than six months fromthe date they became payable; and (b) As per the information and explanations given to usthe following are the details of statutory dues which have not been deposited by theCompany on account of disputes:

Name of the Statute Nature of Due Disputed tax amount (Rs. in Lakhs) Financial year Forum in which the dispute is lying in
Central Sales Tax Act 1956 Central Sales Tax 4.20 1997-98 The Honourable High Court Andhra Pradesh.
Central Sales Tax Act 1956 Central Sales Tax 35.03 1997-98 The Honourable High Court Andhra Pradesh.
Andhra Pradesh Value Added Tax Act 2005 Andhra Pradesh Sales Tax 0.12 1998-99 Commercial Tax officer Andhra Pradesh.
Tamil Nadu General Sales Tax Act 1959 Tamil Nadu Sales Tax 0.11 1999-00 Commercial Tax officer Tamilnadu.
Tamil Nadu General Sales Tax Act 1959 Tamil Nadu Sales Tax 2.21(1) 2001-02 Sales Tax Appellate Tribunal Chennai Tamilnadu.
Central Sales Tax act 1956 Central Sales Tax 5.58(1) 2004-05 Sales Tax Appellate Tribunal Vishakapatnam Andhra Pradesh.
Andhra Pradesh Value Added Tax Act 2005 Andhra Pradesh Sales Tax (Penalty) 2.59(1) 2006-07 Sales Tax Appellate Tribunal Vishakapatnam Andhra Pradesh.
Kerala Value Added Tax Act 2003 Kerala Sales Tax 2.65(1) 2006-07 The Deputy Commisioner (Appeals) Ernakulam Kerala.
Andhra Pradesh Value Added Tax Act 2005 Andhra Pradesh Sales Tax ( Penalty) 7.43(1) 2007-08 Sales Tax Appellate Tribunal Vishakapatnam Andhra Pradesh.
Chapter V of Finance Act 1994 Service Tax 25.26(2) 2007-08 CESTAT Chennai Tamilnadu.
The Rajasthan Value Added Tax 2003 Rajasthan Sales Tax 9865.96(1&3) 2009-2010 Rajasthan Tax Board Ajmer
The Rajasthan Value Added Tax 2003 Rajasthan Sales Tax 9541.31(1&3) 2010-2011 Rajasthan Tax Board Ajmer
The Rajasthan Value Added Tax 2003 Rajasthan Sales Tax 4333.66(1&3) 2011-2012 Rajasthan Tax Board Ajmer
Central Sales Tax Act 1956 Central Sales Tax 261.76(1) 2014-15 The Appellate Deputy Commissioner (CT) North Chennai.
Central Sales Tax Act 1956 Central Sales Tax 95.88 2013-14 The Tamil nadu Sales Tax Appellate Tribunal Chennai -104
Central Sales Tax Act 1956 Maharashtra Value Added Tax 47.10(3) 2013-14 The Joint Commissioner of Sales Tax Appeal VII Mumbai
Chapter V of Finance Act 1994 Service Tax 24482(3) 2007-08 to 2014-15 CESTAT Chennai Tamilnadu.
Chapter V of Finance Act 1994 Service Tax 11798.95(3) 2014-15 to 2017-18 Refer foot note(4) bellow the table
Chapter V of Finance Act 1994 Service Tax 306.45(3) 2007-08 to 2014-15 Refer foot note(5) bellow the table
The Employee Provident Fund & Miscellaneous Provisions Act 1952 Provident Fund 521.15(1) 2006-2010 The Honourable High Court Hyderabad
Income-tax Act 1961 Income tax 137.65(1&2) 2006-07 The Hounourable High Court Andhra Pradesh
Income-tax Act 1961 Income tax – Appeal against order u / s. 143(3) r.w.s. 153A 22.29(1&2) 2007-08 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax – Appeal against order u / s. 143(3) r.w.s. 153A 27.25(1&2) 2008-09 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax 119.38(1&2) 2007-08 The Hounourable High Court Andhra Pradesh
Income-tax Act 1961 Income tax 164.90(1&2) 2008-09 The Hounourable High Court Andhra Pradesh
Income-tax Act 1961 Income tax – Appeal against order u / s. 143(3) r.w.s. 153A 92.61(1&2) 2009-10 The Hounourable High Court Madras
Income-tax Act 1961 Income tax 141.38(1&2) 2010-11 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax 89.48(1&2) 2011-12 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax 97.67(1&2) 2012-13 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax 116.39(1&2) 2013-14 Income Tax Appellate Tribunal
Income-tax Act 1961 Income tax 1468.00(1&2) 2007-08 To 2013-14 Income Tax Appellate Tribunal

(1) Represents gross tax liability. Out of this a sum of Rs.4068.54 / - lakhs was paidas deposit / adjusted refund due. (2) Excludes interest and penalty which are notascertainable.

(3) Excludes interest and penalty.

(4) The company is in the process of filing appeal before CESTAT and due date forfilling the appeal is not lapsed as on the date of this report.

(5) The company is in the process of filing appeal before Commissioner (Appeals) anddue date for filling the appeal is not lapsed as on the date of this report.

(viii) According to the information and explanations given to us and on the basis ofour examination of the books of account the Company has not defaulted in repayment ofloans or borrowings to any financial institutions or banks.

(ix) During the year the Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loan. Accordingly paragraph3(ix) of the order is not applicable.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeeshas been noticed or reported during the year nor we have been informed of such case bythe management.

(xi) According to the information and explanations given 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 theinformation and explanations given to us the Company is not a Nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable. (xiii) According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct where ever applicable and the details of such transactions have been disclosed in thestandalone Ind AS financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.

(xv) According to the information and explanations given to us and based on ourexaminations 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) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3(xvi) of the Order is not applicable.

For N R Doraiswami & Co
Chartered Accountants
Firm Registration No: 000771S
Suguna Ravichandran
Place: Chennai Partner
Date: May 30 2018 Membership No: 207893

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONE IND AS FINANCIALSTATEMENTS

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofsub-section (3) of section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BGREnergy Systems Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities includethedesignimplementationandmaintenanceofadequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor 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:

(i) pertain to the maintenance of records that in reasonable details accurately andfairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

(iii) providereasonableassuranceregardingprevention ortimely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton 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.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For N R Doraiswami & Co
Chartered Accountants
Firm Registration No: 000771S
Suguna Ravichandran
Place: Chennai Partner
Date: May 30 2018 Membership No: 207893