The Members of Bhagawati Oxygen Limited
Report on the Audit of the Ind AS Financiall Statements
We have audited the accompanying Ind AS financial statements of Bhagawati OxygenLimited("the Company'') which comprise the Balance Sheet as at March 31 2021 andthe Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows fqr the year ended on that date andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "the financialstatements").
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 Companies Act 2013 in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312021 and its profit (including Other ComprehensiveIncome) changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor-'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the Ind AS financial statements under the provisions of theCompanies Act 2013 and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to be communicatedin our report.
Responsibility of Management and Those Charged with Governance for the FinancialStatements
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 changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in Indie including theaccounting Standards specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation Of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the Ind AS financial statements the Board of Directors 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 unlessthe Board of Directors either intends to liquidate the Company orto cease operations orhas no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibilities forthe Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis ofthese Ind AS 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 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 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 gbing 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 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 financialstatements including thedisclosures and whether the IndAS financial statements representthe underlying transactions and events in a manner that achieves fair presentation.
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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes publicdisclosure about the matter orwhen 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.
Report on Other Legal and Regulatory Requirements
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 Companies Act 2013 we give in the "Annexure-A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
1) As required by Section 143(3)oftheActwereportthat:
a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary forthe 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid Ind AS financial statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.
e) On the basis of written representation received from the directors as on 3T March2021 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31" March 2021 from being appointed as director in terms of Section164(2)oftheAct.
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 ourseparate Report 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 financialposition in its Ind AS financial statements.[Refer Note No. 35 to the accompanying Ind ASfinancial statements];
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure-'A' to the Independent Auditors' Report
(Referred to in Paragraph 1 of "Report on Other Legal and Regulatory requirements'1section of our Independent Auditors' Report)
(i) In respect of Fixed Assets:
(a) The he 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 suchphysical verification.
(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 opinionthe frequency of verification is reasonable having regard to the size of the company andnature of Its business. The company has maintained proper records of inventory. Asexplained to us there was no material discrepancies noticed or such physical verificationof inventories.
(iii) According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms. Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013 as such provisions of paragraph 3(iii) of the said order are notapplicable.
(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 withrespecttothe 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 under.According 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.
(vl) Based on the information available and explanations given to us the maintenanceof Cost records has not been specified by the Central Government under section 148(1) ofthe Companies Act 2013 for any of the products manufactured by the company.
(vli) a) According tothe 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 Goods and Service TaxCess and any other Statutory dues as applicable with the appropriate authorities. Therewere no on-disputed statutory dues as attheend ofthe year outstanding for a period of morethan six months from the date they became payable b) According to the information andexplanations given to us and as per the records of the Company examined by us theparticulars of dues of Sale tax Income tax and Central excise which have not beendeposited on account of any dispute as at March 31 st March are given below:
|Serial No Name Statute ||Nature of dues ||Amount (In INR) ||Period to which the amount relates ||Forum where pending |
|1 Central Excise Act ||Central Excise ||79716430 ||2010-2011 to 2017-18 ||CESTAT Kolkata |
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to any financial institutions or banks.The company 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 the year. In our opinion and according tothe information and explanations given to us the term loans have been applied for thepurpose for which they were raised.
(x) According to the information and explanations given to us no fraud by the Companyor on the company by its officers or employees has been noticed or reported during theyear.
(xi) According to the information and explanations given to us and based on ourexamination of the records ofthe Company the Company has paid/provided for any managerialremuneration in accordance with the requisite approvals mandated by the provision ofsection 197 read with schedule V of 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) ofthe Order are notapplicable.
(xiii) According to the information and explanation given to us and based on ourexamination ofthe records ofthe company all transaction with the related parties are inaccordance withSection 177 and Section 188 ofthe Act where applicable and details of suchtransaction have been disclosed in financial statement as required by the applicableaccounting standards.
(xiv) According tothe information and explanation given to us and based on ourexamination ofthe records ofthe 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 ofthe records ofthe Company the Company has not entered into non-cashtransactions with directors or persons connected with them as such provisions of paragraph3(xv) ofthe Order are not'applicable.
Annexure-'B' to the Independent Auditors' Report Report on the Internal FinancialControls Over Financial Reporting under Clause (II of Sub-section 3 of Section 143 of theCompanies Act. 2013 ("the Act")
We have audited the Internal financial controls over financial reporting of BhagawatiOxygen Limited (hereinafter referred as "the Company") as of March 312021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Company 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 ('ICAl'). 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 respective company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the CompaniesAct 2013.
Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 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 internal financial controls system overfinancial reporting of the Company.
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 of records that in reasonable detail accurately andfairly reflect the transactions are dispositions Of the assets of the company;
(2) 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
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.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 of procedures may deteriorate.
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 31" March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal controls stated in the "GuidanceNote on Audit of Internal Financial Controls over Financial Reporting" issued by theInstitute of Chartered Accountants of India.
|FOR CHETAN & CO. ||Malaya Ray Chaudhuri || |
|Chartered Accountants ||Partner ||Place: Kolkata |
|(Firm's Registration No.321151E) ||(Membership No. 053201) ||Date : 30th July 2021 |