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Bhagiradha Chemicals & Industries Ltd.

BSE: 531719 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE414D01019
BSE 00:00 | 22 Mar 461.30 -8.00
(-1.70%)
OPEN

474.95

HIGH

474.95

LOW

461.30

NSE 05:30 | 01 Jan Bhagiradha Chemicals & Industries Ltd
OPEN 474.95
PREVIOUS CLOSE 469.30
VOLUME 1079
52-Week high 522.30
52-Week low 206.00
P/E 23.48
Mkt Cap.(Rs cr) 383
Buy Price 461.25
Buy Qty 100.00
Sell Price 470.00
Sell Qty 100.00
OPEN 474.95
CLOSE 469.30
VOLUME 1079
52-Week high 522.30
52-Week low 206.00
P/E 23.48
Mkt Cap.(Rs cr) 383
Buy Price 461.25
Buy Qty 100.00
Sell Price 470.00
Sell Qty 100.00

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

Company auditors report

To the Members of

Bhagiradha Chemicals & Industries Limited Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Bhagiradha Chemicals& Industries Limited ("the Company") which comprise the Balance Sheetas at 31st March 2018 and the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors are 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 state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's 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 thereunder. We conducted our audit of the IndAS financial statements in accordance with the Standards on Auditing specified under

Section 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe Ind AS financial statements. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of theInd AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's 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 31st March 2018 and its loss(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Emphasis of Matter

We draw attention to the following Notes to the financial statements: Note No. 24regarding the exceptional item is pertaining to loss due to fire which affected Block-3situated at factory premises on 20-05-2017 the company has recognised in the statement ofprofit and loss the loss due to fire of Rs 8.27 crores net of insurance claim received onadhoc basis on account of loss of damaged Plant & Machinery Electricals andInventories. The company has further incurred Rs 2.58 crores towards re-instatement offactory building and the same is charged to statement of profit and loss as currentrepairs. Our opinion is not modified in respect of above matters.

Other Matter

The comparative financial information of the Company for the year ended 31st March2017 and transition date opening Balance Sheet as at 1st April 2016 included in these IndAS financial statements are based on previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited bypredecessor auditor whose report dated 22-05-2017 and 25-05-2016 respectively expressedan unmodified opinion on those financial statements as adjusted for the difference inaccounting principles adopted by the Company on transition to the Ind AS which have beenaudited by us. Our opinion is not modified in respect of this matter.

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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanationswhich to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss theCash Flow Statement and Statement of Changes in Equity dealt with by this Report are inagreement with the books of account. d) In our opinion the aforesaid Ind AS financialstatements comply with the Indian Accounting Standards prescribed under section 133 of theAct.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its Ind AS financial statements; ii. The Companydid not have any long term contracts including derivative contracts for which there wereany material foreseeable losses. iii. There were no amount as at 31st March 2018 whichare required to be transferred to the Investor Education and Protection Fund by theCompany.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: Hyderabad Proprietor
Date: 26-05-2018 Membership No.023125/ICAI

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

i) a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. All the Fixed assets have beenphysically verified by the management during the year according to the information andexplanations 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 ofimmovable properties are held in the name of the company.

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

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

iv) According to the information and explanations given to us the Company has notgranted 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 notaccepted any deposits from the public as per the directives issued by the Reserve Bank ofIndia and as per the provisions of section 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed there under.

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

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

b. According to the information & explanations given to us there is no dues inrespect of disputed amount to be deposited in respect of Sales Tax Service Tax CustomDuty Excise Duty Value Added Tax as on 31st March 2018 except the followings:

Name of the Statute Nature of dues Period to which the amount relates Amount (Rs) Forum where the dispute is pending
Income Tax Act 1961 Income Tax A Y 2009-10 7150479/- Commissioner of Income Tax (Appeal)

viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowing to the financial institutions bankgovernment or dues to debenture holders. ix) In our opinion and according to theinformation and explanations given to us the company has raised money by way of termloans and has applied for the purpose for which it was raised company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)during the year. x) According to the information and explanations given to us no fraud bythe Company or any fraud on the company by its officers/employees has been noticed orreported during the course of our audit. xi) According to the information and explanationsgiven to us the Company has paid and provided managerial remuneration during the year asper the provisions of Section 197 read with Schedule V to the Companies Act. xii) In ouropinion the Company is not a Nidhi Company. Accordingly Clause (xii) of Paragraph 3 ofthe Order is not applicable.

xiii) According to the information and explanations given to us all transactions withthe related party are in compliance with section 177 & 188 of Companies Act 2013 andthe same has been disclosed in financial statements as required by the AccountingStandards. xiv) According to the information and explanations given to us the company hasmade preferential allotment of shares and convertible share warrants on private placementbasis during the year under review and the company has complied with the requirement ofsection 42 of the Companies Act 2013 and the amount raised has been used for the purposefor which the fund were raised. xv) According to the information and explanations given tous the company has not entered into Non Cash Transactions with directors or personsconnected with him during the year. xvi) According to the information and explanationsgiven to us company is not required to be registered under section 45-IA of Reserve Bankof India.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: Hyderabad Proprietor
Date: 26-05-2018 Membership No.023125/ICAI

Annexure "B" to the Independent Auditor's Report of even date on theFinancial Statements of Bhagiradha Chemicals & Industires Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BhagiradhaChemicals & Industries Limited ("the Company") as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal 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 internal financial controls over financial reporting was established andmaintained and if such controls 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S Singhvi & Co.
Chartered Accountants
Firm Regi. No. 003872S
Shailendra Singhvi
Place: Hyderabad Proprietor
Date: 26-05-2018 Membership No.023125/ICAI