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Bhagiradha Chemicals & Industries Ltd.

BSE: 531719 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE414D01019
BSE 12:59 | 01 Jun 267.95 10.00
(3.88%)
OPEN

275.00

HIGH

279.00

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261.05

NSE 05:30 | 01 Jan Bhagiradha Chemicals & Industries Ltd
OPEN 275.00
PREVIOUS CLOSE 257.95
VOLUME 191
52-Week high 524.40
52-Week low 192.10
P/E 17.71
Mkt Cap.(Rs cr) 223
Buy Price 261.10
Buy Qty 9.00
Sell Price 266.00
Sell Qty 3.00
OPEN 275.00
CLOSE 257.95
VOLUME 191
52-Week high 524.40
52-Week low 192.10
P/E 17.71
Mkt Cap.(Rs cr) 223
Buy Price 261.10
Buy Qty 9.00
Sell Price 266.00
Sell Qty 3.00

Bhagiradha Chemicals & Industries Ltd. (BHAGIRADHACHEM) - Auditors Report

Company auditors report

To

The Members of

Bhagiradha Chemicals & Industries Limited

Opinion

We have audited the financial statements of Bhagiradha Chemicals & Industries Limited (the Company) which comprise the balance sheet as at 31st March 2019 and the statement of Profit and Loss (including other comprehensive income) cash flows statement and statement of changes in equity for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Companies Act 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) and other accounting principles generally accepted in India of the state of affairs of the Company as at March 312019 the profit and other comprehensive income changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. 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 ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sl.NoKey Audit MatterAuditor's Response
1Net Realisable value of Finished Goods

Finished goods inventory are valued at lower of cost or net realizable value. Considering that there is always a volatility in the Selling price of the Agro-Chemicals which is dependent upon various market conditions determination of net realizable value for these chemicals involves significant management judgement and therefore has been considered as a key audit matter. The total value of finished goods (Agro chemicals) as at 31stMarch 2019 is ?. 301583894/- which is in accordance with the accounting policies referred to in Note no. 2.10(c).

1. Evaluated the design of internal controls relating to the management judgments and estimates relating to quantity purity fair value less costs to sell and also tested the operating effectiveness of the aforesaid controls.

2. Obtained an understanding of the significant management judgements applied in determination of the quantity purity and their fair value and assessed and tested the reasonableness of these judgements.

3. Obtained the market information for the fair values and compared them with the rates considered by the management in determining the fair values.

4. Assessed the appropriateness of the disclosure in the financial statements in accordance with the applicable financial reporting framework.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis Board's Report including Annexures to Board's Report Business Responsibility Report Corporate Governance and Shareholder's Information but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon.

In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during 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 material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance other comprehensive income changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative to do so.

The Board of Directors are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is 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 individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.

 Obtain an understanding of internal financial controls relevant to the audit in order to design 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 has adequate internal financial control systems in place and the operating effectiveness of such controls.

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

 Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the 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's report. However future events or conditions may cause the Company to cease to continue as a going concern.

 Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that individually or in aggregate makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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 interms of Section 143(H) of the Act we give in Annexure A a statement on the matters specified in paragraphs 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 best of 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 the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including other comprehensive income the Cash Flow Statement and Statement of changes in equity dealt with by this report are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors none of the directors is disqualified 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 financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanations given to us the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our 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 financial position in its financial statements;

ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred on account of unpaid dividend to the Investor Education Protection Fund by the Company as at 31st March 2019. However the Company is required to transfer 15946 equity shares of face value of ?. 10/- each as per the provisions of section 124(5) of the Companies Act 2013 read with Investor Education Protection Fund Authority (Accounting Audit Transfer and Refund) Rules 2016 (as amended) and are yet to be transferred.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: HyderabadProprietor
Date: 14-05-2019Membership No.023125/ICAI

ANNEXURE A TO THE AUDITOR'S REPORT

Referred to in paragraph 1 under the head Report on other legal & regulatory requirements of our report of even date.

i) a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b. All the Fixed assets have been physically verified by the management during the year according to the information and explanations given to us no material discrepancies were noticed on such verification.

c. As per the documents verified by us and explanation given to us the title deeds of immovable properties are held in the name of the company.

ii) . The inventory has been physically verified during the year by the management at reasonable intervals. In our opinion the frequency of verification is reasonable. No material discrepancies have been noticed on physical verification of stocks as compared to book records.

iii) . The company has not granted any loans secured or unsecured to companies firms Limited Liability Partnership or other parties who are covered in the register maintained under section 189 of Companies Act 2013 accordingly Clause (iii) (a) (b) and ( c) of Paragraph 3 of the Order are not applicable.

iv) According to the information and explanations given to us the Company has not granted any loans guarantees and security and made investments as per section 185 & 186 of the Companies Act 2013.

v) According to the information and explanations given to us the Company has not accepted any deposits from the public as per the directives issued by the Reserve Bank of India and as per the provisions of section 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under.

vi) The Company has maintained cost records as specified by the Central Government under section 148(1) of the Companies Act 2013.

vii) a. According to the information & explanations given to us none of the undisputed statutory dues including Provident Fund Employees State Insurance Income Tax Custom Duty Goods & Service Tax Cess and any other material Statutory Dues were outstanding as at last day of the financial year concerned for a period of more than six months.

b. According to the information & explanations given to us there are no dues in respect of disputed amount to be deposited in respect of Custom Duty Goods and Service Tax Cess and other material Statutory dues as on 31st March2019.

viii) According to the information and explanations given to us the company has not defaulted in repayment of loans or borrowing to the financial institutions bank government or dues to debenture holders.

ix) In our opinion and according to the information and explanations given to us the company has not raised money by way of term loans or initial public offer or further public offer (including debt instruments) and hence reporting under clause (ix) of the Order is not applicable.

x) According to the information and explanations given to us no fraud by the Company or any fraud on the company by its officers/employees has been noticed or reported during the course of our audit.

xi) According to the information and explanations given to us the Company has paid and provided managerial remuneration during the year as per the provisions of Section 197 read with Schedule V to the Companies Act.

xii) In our opinion the Company is not a Nidhi Company. Accordingly Clause (xii) of Paragraph 3 of the Order is not applicable.

xiii) According to the information and explanations given to us all transactions with the related party are in compliance with section 177 & 188 of Companies Act 2013 and the same have been disclosed in financial statements as required by the Accounting Standards.

xiv) According to the information and explanations given to us the company has made allotment of shares by way of converting share warrants on private placement basis during the year under review and the company has complied with the requirement of section 42 of the Companies Act 2013 and other applicable laws and regulations and the amount raised has been used for the purpose for which the funds were raised.

xv) According to the information and explanations given to us the company has not entered into Non Cash Transactions with directors or persons connected with him during the year.

xvi) According to the information and explanations given to us company is not required to be registered under section 45-IA of Reserve Bank of India.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: HyderabadProprietor
Date: 14.05.2019Membership No.023125/ICAI

Annexure B to the Independent Auditor's Report of even date on the Financial Statements of Bhagiradha Chemicals & Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)

We have audited the internal financial controls over financial reporting of Bhagiradha Chemicals & Industries Limited (the Company) as of March 31 2019 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business including adherence to company's policies the safeguarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with 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 be prescribed under section 143(10) of the Companies Act 2013 to the extent applicable to an audit of internal financial controls both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company'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 financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 312019 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: HyderabadProprietor
Date: 14.05.2019Membership No.023125/ICAI