TO THE MEMBERS OF BHALCHANDRAM CLOTHING LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of BHALCHANDRAM CLOTHING LIMITED ( The Company ) which comprise the Balance Sheet as at March 31 2019 the Statement of Profit & Loss Account statement of Cash Flow 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 in the manner so required and give a true and fair view in conformity with the Indian accounting standards prescribed U/s 133 of the Act and other accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 Statement of Profit and Loss and its cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the financial statement 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 Auditors 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 ICAI together with the independent requirement that are relevant to our audit of the Financial Statements under the provisions of the Act and the rules made there under 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 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.
INFORMATION OTHER THAN STANDALONE FINANCIAL STATEMENTS AND AUDITORS REPORT THEREON
The Company's Board of Directors are responsible for the preparation of the other information. The other information comprises of the information included in the management discussion and analysis Boards report including Annexure to the Boards Report corporate governance and shareholders information but does not include the financial statements and our auditor's report thereon.
Our opinion on standalone 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 statement our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statement or other information obtained during the course of our audit or otherwise appear 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 the facts. We have nothing to report in this regard.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flow of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under section 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities selection and application of the appropriate implementation and maintenance of accounting policies making judgments and estimates that are reasonable and prudent and design implementation and maintenance of adequate internal financial controls that we 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 realistic no alternative but to do so. The Board of Directors are responsible for overseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATMENTS
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 high level 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 theses standalone 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 omission misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system 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 the management.
Conclude on the appropriateness of management's use of going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statement 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.
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 though 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 standalone 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 regulations 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 communications.
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 of India in terms of sub-section (11) of section 143 of the Companies Act 2013 we give in the Annexure I a statement on the matters specified in the paragraph 3 and 4 of the Order to the extent applicable.
2. As required under provisions of 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 appears from our examination of those books.
c. The Balance Sheet Statement of Profit & Loss and cash flow Statement dealt with by this report is in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the Accounting standards 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 March31 2019 taken on record by the Board of Directors none of the directors is disqualified as on March 31 2019 from being appointed as a director in terms of section 164(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 refer to our separate report in Annexure II ;
g. With respect to the other matters to be included in the Auditor's Report in accordance with Rules 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which have material impact on its financial position in its financial statements.
ii. The Company did not have any long term contracts including derivative contracts that require provision under any law or accounting standards for which there were any material foreseeable losses.
iii. There were no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company during the year.
iv. The disclosure requirements relating to holdings as well dealing in specified bank notes were applicable for the period from November 8 2016 to December 30 2016 which are not relevant to these standalone financial statements. Hence Reporting under this clause is not applicable.
For Lahoti Navneet & Co
FRN : 116870W
CA Navneet Lahoti
Date: 30th May 2019
ANNEXURES TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 of the Auditors Report to the Members of BHALCHANDRAM CLOTHING LIMITEDon accounts for the year ended 31st March 2019.
1. In respect of Fixed Assets:
a) The Company does not have any Fixed Assets. Hence this clause is not applicable.
2. In respect of Inventories:
Clause 4(ii)(a) (b) & (c) is not applicable as the company has not carried out any activity requiring to carry inventory.
3. During the year company has granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act in respect of which :
(a) The terms and conditions of the grant of such loans are in our opinion prima facie not prejudicial to the Company's interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the year-end.
5. In our opinion and according to information and explanations given to us the company has complied with the provision of section 185 and 186 of companies Act 2013 in respect of loans investments guarantees and security.
6. During the year no deposits from the public have been accepted by the Company falling in the purview of Section 73 to 76 or any other provision of the Companies Act 2013.
7. As explained to us the maintenance of cost records has not been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act 2013.
8. In respect of statutory dues:
(a) According to books of accounts examined by us and as per information and explanations given to us the company is generally regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-Lax wealth tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities. Except Profession Tax deducted amounting to Rs.12500/- is outstanding for a period more than six month from date they become payable.
(b) According to books of accounts examined by us and as per information and explanations given to us there were no disputed amounts as on 31.03.2019 due towards statutory dues including provident fund investors education and protection fund employees' state insurance income tax sales tax wealth tax service tax custom duty excise dutyvalue added tax cess and other material statutory dues as applicable pending with the appropriate authority.
9. According to the information and explanation given to us the Company has not defaulted in repayment of dues to financial institutions/banks.
10. In our opinion and according to information and explanation the company did not raise moneys by way of Initial Public Offer or Further Public offer (incl. debt Instrument) .In our opinion the term loans were applied for the purpose for which the loans were obtained.
11. According to the information and explanation given to us no material fraud on or by the officer of company has been noticed or reported during year.
12. In our opinion and according to information and explanations given to us the company has not provided any managerial remuneration accordingly provision of this clause is not applicable.
13. In our opinion and according to information and explanations given to us the company is not a Nidhi Company accordingly provision of this clause is not applicable.
14. In our opinion and according to information and explanations given to us all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 the details have been disclosed in the Financial Statements as required by the applicable accounting standards;
15. As per the information and explanations given to us no preferential allotment or private placement of shares or fully or partly convertible debenture is made during the year under audit.
16. As per the information and explanations given to us the company has not entered into any non-cash transactions with directors or persons connected with him accordingly provision of this clause is not applicable.
17. As per the information and explanations given to us the company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Lahoti Navneet and Co.
CA Navneet Lahoti
Date: 30th May 2019
Independent Auditor's report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act 2013 (the Act)
In conjunction with our audit of the financial statements of BHALCHANDRAM CLOTHING LIMITED (the Company) as on and for the year ended 31 March 2019 we have audited the internal financial controls over financial reporting (IFCoFR) of the company as on that date.
Management's Responsibility for Internal Financial Controls
The Company's Board of Directors is responsible for establishing and maintaining internal financial controls based on the criteria being specified by the management. These responsibilities includes design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring orderly and efficient conduct of the company's business including adherence to company's policies safeguarding of its assets prevention and detection of frauds and errors accuracy and completeness of the accounting records and timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of IFCoFR and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the ICAI. 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 IFCoFR 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR 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 assessment of 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 IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
A company's IFCoFR 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 IFCoFR includes those policies and procedures that: Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; 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 the management and directors of the company; and 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 IFCoFR 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 IFCoFR to future periods are subject to the risk that IFCoFR may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2019 based on the criteria being specified by management.
For Lahoti Navneet and Co.
CA Navneet Lahoti
Date: 30th May 2019