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Bhageria Industries Ltd.

BSE: 530803 Sector: Industrials
NSE: BHAGERIA ISIN Code: INE354C01027
BSE 00:00 | 04 Jun 108.70 -1.80
(-1.63%)
OPEN

111.10

HIGH

111.10

LOW

108.00

NSE 00:00 | 04 Jun 109.50 -1.00
(-0.90%)
OPEN

112.15

HIGH

113.90

LOW

107.80

OPEN 111.10
PREVIOUS CLOSE 110.50
VOLUME 1581
52-Week high 154.55
52-Week low 66.00
P/E 7.62
Mkt Cap.(Rs cr) 474
Buy Price 108.70
Buy Qty 1000.00
Sell Price 113.00
Sell Qty 100.00
OPEN 111.10
CLOSE 110.50
VOLUME 1581
52-Week high 154.55
52-Week low 66.00
P/E 7.62
Mkt Cap.(Rs cr) 474
Buy Price 108.70
Buy Qty 1000.00
Sell Price 113.00
Sell Qty 100.00

Bhageria Industries Ltd. (BHAGERIA) - Auditors Report

Company auditors report

To

The Members of

Bhageria Industries Limited

Report on the Audit of the Ind AS Financial Statements

Opinion

We have audited the accompanying Ind AS Financial Statements of Bhageria IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including Other Comprehensive Income) Statementof changes in Equity and Statement of Cash Flow for the year ended on that date and notesto the financial statements including a summary of significant accounting policies andother explanatory information (hereinafter referred as the "the Ind AS 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 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

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 Ind AS Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the Ind AS financial statements under theprovisions of the Companies Act 2013 and the Rules there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Ind AS Financial Statements.

Information Other than the Ind AS Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Ind AS financial statements and our auditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the Ind AS financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibility of Management and Those Charged with Governance for Ind AS 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 Ins AS financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with Ind AS and other accounting principles generallyaccepted in India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 Ind AS financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Ind AS 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 of these 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 Ind AS 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 financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) (i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such 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 Ind AS 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 Ind AS financialstatements including the disclosures and whether the Ind AS financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 defficiencies 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.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit 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 Statement of Change in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the 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 the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our Report expressed an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of 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 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 in Note No. 43.

ii. The Company did not have any long-term contracts including derivatives contractsfor which 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.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For MRB & Associates
Chartered Accountants
Firm Registration Number-136306W
Manish R Bohra
Place: Mumbai Proprietor
Date: May 29 2019 Membership No:058431

Annexure "A" to the Independent Auditors' Report

Referred to in paragraph 1(f) under "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Bhageria Industries Limited.

Report on the internal financial controls under Clause (i) of subsection 3 of Section143 of the Companies Act 2013 ("the act")

We have audited the internal financial controls over financial reporting of BhageriaIndustries Limited ("the Company") as of 31st March 2019 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act2013.

Auditors' Responsibility

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 CompaniesAc t 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 judgement 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 of the company.

Meaning of company's internal financial control over financial reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) Pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) Provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.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 to the best of our knowledge and according to the explanations given tous the Company has maintained in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls over financialreporting were operating effectively as of 31st March 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For MRB & Associates
Chartered Accountants
Firm Registration Number-136306W
Manish R Bohra
Place: Mumbai Proprietor
Date: May 29 2019 Membership No:058431
Annual Report 2018-19 l 79

Annexure "B" to the Independent Auditors' Report

Referred to in Paragraph 2 under "Report on Other Legal and RegulatoryRequirements" section of our Report of even date to the members of BhageriaIndustries Limited

Based on audit procedure performed for the purpose of reporting the true and fair viewof the financial statements of the company and taking into consideration the informationand explanations given to us and the books of accounts and other records examined by us inthe normal course of our audit in our opinion and to the best of our knowledge andbelief we report that:

i. In respect of its fixed assets: -

a. The company is maintaining proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment's;

b. The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification;

c. All title deeds of immovable properties are held in the name of the company.

ii. In Respect of inventory

a. The inventories have been physically verified during the year by the management. Theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

b. During such verification no material discrepancies where noticed.

iii. According to the information and explanations given to us the company has notgranted any loans to companies firms Limited liability partnership or other partiescovered in the Register maintained under section 189 of the Companies Act 2013.

iv. The company has not advanced any loan investments guarantees and securitiesduring the period under audit and the provisions of section 185 and 186 of the CompaniesAct 2013 are complied with.

v. The Company has not accepted any public deposit for the year ended 31st March 2019.

vi. We have reviewed the books of account maintained by the Company pursuant to therules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 related to the manufacturing activities and are of theopinion that prima facie the specified accounts and records have been made andmaintained.

vii. In respect of statutory dues:-

(a) The company has been generally regular in depositing undisputed statutory duesincluding Provident fund Investor education and Protection Fund Employees' StateInsurance Income-Tax Sales-tax Service Tax Wealth Tax Customs Duty Excise DutyValue Added Tax Goods and Services Tax Cess and any other material statutory dues to theappropriate authorities. The Company did not have any undisputed amount payable in thisrespect at 31st March 2019 for a period of more than six months from the date when theybecome payable.

(b) On the basis of examination of books of account there is no dues of income taxWealth Tax Service Tax Goods and Service Tax Customs Duty Excise Duty and Cess whichis disputed and not deposited. The particulars of Dues of Sales tax as on 31st March 2019which has not been deposited on account of a dispute are given below-

(र in lakhs)
Statute Nature of dues Forum where dispute is pending Period to which the amount relates Current year Previous year
The Maharashtra Value Added Tax 2002 VAT Deputy Commissioner of Sales Tax (Appeals) 2006-07 Nil 1.48
The Maharashtra Value Added Tax 2002 VAT Deputy Commissioner of Sales Tax (Appeals) 2008-09 Nil 2.37
The Maharashtra Value Added Tax 2002 VAT Deputy Commissioner of Sales Tax (Appeals) 2010-11 Nil 1.4
The Gujarat Value Added Tax Act 2006 Sales Tax Gujarat Value Added Tax Tribunal Ahmedabad 2008-09 8.81 8.81
Customs Act1962 Custom Duty Additional Commissioner of Customs (Preventive) Mumbai 2011-12 16.33 16.33
Customs Act1962 Custom Duty Additional Commissioner of Customs (Preventive) Mumbai 2012-13 16.96 16.96
Customs Act1962 Custom Duty Additional Commissioner of Customs (Preventive) Raighad Maharastra 2005-06 Nil 0.23
Customs Act1962 Custom Duty Additional Commissioner of Customs (Preventive) Raighad Maharastra 2006-07 Nil 0.26
Customs Act1962 Custom Duty Additional Commissioner of Customs (Preventive) Raighad Maharastra 2007-08 Nil 1.09

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to a financial institutions or banks.

ix. The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year.

x. In our opinion and according to the information and explanations given to us nofraud by the company or any fraud on the Company by its officers or employees has beennoticed or reported during the year.

xi. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

xii. The Company has not been classified as Nidhi Company hence clause 3(xii) of theorder is not applicable to the company.

xiii. According to the information and explanations provided by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review.

xv. The Company has not entered into any non- cash transactions with directors orpersons connected with him therefore clause 3(xv) of order is not applicable.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 therefore clause 3(xvi) of order is not applicable to the company.

For MRB & Associates
Chartered Accountants
Firm Registration Number-136306W
Manish R Bohra
Place: Mumbai Proprietor
Date: May 29 2019 Membership No:058431