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Bhagawati Oxygen Ltd.

BSE: 509449 Sector: Industrials
NSE: N.A. ISIN Code: INE026I01010
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NSE 05:30 | 01 Jan Bhagawati Oxygen Ltd
OPEN 16.00
PREVIOUS CLOSE 16.00
VOLUME 325
52-Week high 35.60
52-Week low 16.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 15.25
Buy Qty 105.00
Sell Price 16.00
Sell Qty 125.00
OPEN 16.00
CLOSE 16.00
VOLUME 325
52-Week high 35.60
52-Week low 16.00
P/E
Mkt Cap.(Rs cr) 4
Buy Price 15.25
Buy Qty 105.00
Sell Price 16.00
Sell Qty 125.00

Bhagawati Oxygen Ltd. (BHAGAWATIOXYGEN) - Auditors Report

Company auditors report

To

The Members of Bhagawati Oxygen Limited Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Bhagawati OxygenLimited (hereinafter referred to as 'the Company'i which comprise the balance sheet as at31st March 2018. the statement of profit and loss including other comprehensive income thestatement of cash flows and the statement of changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information

Management's Responsibility for the 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection i33 of the Act read with relevant rules issued thereunder. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company ana for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent: and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the Ind AS financial statements that givea true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act. the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetnerthe Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fan view m ordec todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating the overallpresentation of the 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 the Ind AS financial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us. the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS. of the state ofaffairs (financial position) of the Company as at 31 st March 2018. and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date

Other Matters

The comparative financial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1 st April 2016 included in these IndAS financial statements are based on the previously issued statutory financial statementsoreDared in accordance with the ComDames (Accounting Standards) Rules. 2006 audited by thepredecessor auditors whose audit reports for the year ended 31st March 2017 dated 18th May2017 and for the year ended 31st March 2016 dated 30th May 2016 expressed an unqualifiedopinion on those financial statements as adjusted for the differences the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus

Our opinion is not qualified m respect of above matter Report on Other Legal andRegulatory Requirements

1) As required by the Companies (Auditor's Report) Order. 2016 ('the Order') issued bythe Central Government of India in terms of sub-section tiii of section 143 of the Act wegive in the Annexure- 'A' a statement on the matters specified in the naragraph 3 and 4of the said order

2) As reauired 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 other comprehensiveincome the statement of cash flow and the statement of changes in equity dealt with bythis report are m agreement with the books of accounts.

d) in our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014

e) On the basis of written representations received from the directors as on 31st March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2018 from being appointed as 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 and the operating effectiveness of such controls refer to ourreport in Annexure-'B' and

g) with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financial positionin its Ind AS financial statements.(Refer Note 37 to the Ind AS financial statements)

ii the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseable losses;

iii there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company

For CHETAN & CO A 3om
Chartered Accountants Partner Place: Kolkata
FirmRegn No321151E Membership No 006308 Dated: 30th May.2018

Annexure-'A' to the Independent Auditors' Report

(Referred to in Paragraph 1 of "Report on Other Legal and Regulatoryrequirements" section of our Audit Report)

(i) In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) As explained to us the fixed assets have been physically verified by themanagement at reasonable intervals No material discrepancies were noticed on such physicalverification

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company title deeds of immovable properties are held inthe name of the company.

(ii) In respect of Inventories as explained to us the physical verification ofInventories has been conducted by the

' ' management at reasonable intervals In our opinion the frequency of verification isreasonable having regard to the size

of the company and nature of its business. The company has maintained proper records ofinventory As explained to us there was no material discrepancies noticed on such physicalverification of inventories

(iii) According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013 as such provisions of paragraph 3(iii) of the said order are not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made

(v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of Sections 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed there underAccording to the information and explanations given to us no order has been passed by theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courtor any other Tribunal on the company in respect of the aforesaid deposits

(vi) Based on the information available and explanations given to us the maintenance ofCost records has not been specified by the Central Government under section 148(1) of theCompanies Act 2013 for any of the products manufactured by the company

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the books of accounts the Company is generally regular in depositingthe undisputed statutory dues including Provident fund Income

Tax Wealth Tax Service Tax Duty of customs. Duty of excise. Value added Tax Goods andServices tax Cess and any other statutory dues as applicable with the appropriateauthorities. There were no un-disputed statutory dues as at the end of the yearoutstanding for a period of more than six months from the date they became payable

b ) According to the information and explanations given to os and as per the records ofthe Company examined by us the particulars of dues of Sale tax income tax and Centralexcise which have not been deposited on account of any dispute as at 31st March 2018 aregiven below:

Name of the Statute Nature of dues Amount

(In Rs.)

Period to which the amount relates Forum where

pending

1 West Bengal VAT Act & CST Act VAT & CST 15 18.996/- 2006-07 WB Commercial Tax Appellate and Revisional Board
2 income Tax Act

Income Tax

3 05320/ 2012-20 3 DCIT Kolkata
10 791.10/- 2014-15 CIT (Appeal)
3 Central Excise Act Central Excise 7.24.61090/- 2010-2011 to 2015-2016 CESTAT Kolkata

(viin In our oomion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to any financial institutions or banks. Thecompany has not issued any debentures during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during me year In our opinion and according tothe information and explanations given to us. the term loans have been applied forthe purpose for which they were raised.

(x) no fraud Dy the Company or on the company by its officers or employees has beennoticed or reported during the year

(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 the information and explanations given to us theCompany is not a Nidhi Company as such provisions of paragraph 3(xii) of the Order are notapplicable

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with Section 177 and Section 188 of the Act where applicable and details ofsuch transactions have been disclosed in the Ind AS financial statements as required bythe 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

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as such provisions of paragraph3(xv) of the Order are not applicable

(xvi) According tc the information and explanations given to us the Company is notrequired to be registered under section 45- IA of the Reserve Bank of India Act 1934

ForCHETAN SCO A Som
Chartered Accountants Partner Place: Koikata
FirmRegn No32H51E Membership No 006308 Dated: 30th May2018

Annexure-'B' to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies

Act. 2013 i‘the Act")

We have audited the internal financial controls over financial reporting of BhagawatiOxygen Limited (hereinafter referred to as ‘the Comoany') as of 31st March 2018 inconjunction with our audit of the Ind AS financial statements of the Comoany for the yearended on tnat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible fo< establishing and maintaining internalfinancial controls based on the interna: 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'i These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act. 2013.

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 deemed to beprescribed under section 143(10} of the Companies Act. 2013 to the extentapplicable to an audit of interna! financial controls both applicable to an audit ofinternal Financial Controls and. both issued by the Institute of Chartered Accountants ofIndia Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate interna! financial controls over financial reporting was established andmaintained and if such controls operated effectively in all materia! 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 interna! financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial 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 ana 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 of management and directors of the company and (3)provide reasonable assurance regardinq prevention or timely 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 Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subiect to the risk that the internal financial control overfinancial reporting may become inadequate because of changes m conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

According to the information and explanations given to us and based on our audit inour opinion the Company has generally maintained in all material respects an adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were generally operating effectively as of 31st March 2018. basedon the interna! control over financial reporting criteria established by theCompany considering the essential components of internal controls stated m the"Guidance Note on Audit of Internal Financial Controls over Financial Reporting"issued by the Institute of Chartered Accountants of India

For CHETAN & CO A Som
Chartered Accountants Partner Place; Kolkata
FirmRegn No 321151E Membership No. 006308 Dated: 30th May2018