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Bhalchandram Clothing Ltd.

BSE: 532583 Sector: Others
NSE: BHALCHANDR ISIN Code: INE992S01012
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Bhalchandram Clothing Ltd. (BHALCHANDR) - Auditors Report

Company auditors report

TO THE MEMBERS OF

BHALCHANDRAM CLOTHING LIMITED

REPORT ON THE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying financial statements of BHALCHANDRAM CLOTHINGLIMITED

( " The Company ") which comprise the Balance Sheet as at March 312020 the Statement of Profit & Loss Account statement of Cash Flow for the yearthen ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the Indian accounting standards prescribed U/s 133 of the Act and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 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 onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those standards are further described in the Auditorsresponsibilities 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 ICAItogether with the independent requirement that are relevant to our audit of the FinancialStatements under the provisions of the Act and the rules made there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's code of Ethics. We believe that the audit evidence we have obtained is sufficientand 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 mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing 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 otherinformation. The other information comprises of the information included in the managementdiscussion and analysis Boards report including Annexure to the Boards Report corporategovernance and shareholders information but does not include the financial statements andour auditor's report thereon.

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

In connection with our audit of the financial statement our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statement or other information obtained duringthe course of our audit or otherwise appear to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report the facts. We have nothing to report in thisregard.

RESPONSIBILITIES 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flow of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities selection and application of the appropriateimplementation and maintenance of accounting policies making judgments and estimates thatare reasonable and prudent and design implementation and maintenance of adequateinternal financial controls that we were operating effectively for ensuring the accuracyand completeness of the accounting records relevant to the preparation and presentationof the financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany'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 realistic noalternative but to do so.

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

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATMENTS

Our objectives are to obtain reasonable assurance about whether the 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 highlevel 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 theses standalone 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 collusion forgery intentional omission 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of going concern basis ofaccounting 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 inthe financial statement or if such disclosures are inadequate to modify our opinion. Ourconclusions are based on the audit evidence obtained up

to the date of our auditor's report. However future events or conditions may cause thecompany to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying 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 though 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulations precludes public disclosure about thematter or when 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 communications.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the Annexure I a statement on the matters specified in theparagraph 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 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 appears from our examination of those books.

c. The Balance Sheet Statement of Profit & Loss and cash flow Statement dealt withby this report is in agreement with the books of account.

d. In our opinion the aforesaid financial statements comply with the Accountingstandards 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 March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 from being appointed as a director in terms of section 164(2) of theAct.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such refer to our separatereport in Annexure II ;

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 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 does not have any pending litigations which have material impact on itsfinancial position in its financial statements.

ii. The Company did not have any long term contracts including derivative contractsthat require provision under any law or accounting standards for which there were anymaterial foreseeable losses.

iii. There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company during the year.

iv. The disclosure requirements relating to holdings as well dealing in specified banknotes were applicable for the period from November 82016 to December 30 2016 whicharenot relevant to these standalone financial statements. Hence Reporting under this clauseis not applicable.

For Lahoti Navneet & Co

Chartered Accountants

FRN : 116870W

Sd/-

CA Navneet Lahoti

Partner

M.N.100529

Place: Mumbai

Date: July 31 2020

UDIN:20100529AAAABR3279

ANNEXURES TO THE AUDITORS' REPORT

AnnexureI

Annexure referred to in paragraph 3 of the Auditors Report to the Members of BHALCHANDRAMCLOTHING LIMITED 2020.

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 anyactivity requiring to carry inventory.

3. The company has granted interest free unsecured loans without stipulation of time toThree companies covered in the register maintained under section 189 of the Companies Actin respect of which :

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

(b) The schedule of repayment of principal has not been stipulated.

(c) Loans are without stipulation of time hence question of overdue does not arise.

5. In our opinion and according to information and explanations given to us thecompany has complied with the provision of section 185 and 186 of companies Act 2013inrespect of loans investments guarantees and security.

6. During the year no deposits from the public have been accepted by the Companyfalling in the purview of Section 73 to 76 or any other provision of the Companies Act2013.

7. As explained to us the maintenance of cost records has not been prescribed by theCentral 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 andexplanations given to us the company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-taxsales-Lax wealth tax service tax duty of customs duty of excise value added tax cessand any other statutory dues with the appropriate authorities except Profession Taxdeducted amounting to Rs.14600/- is outstanding for a period more than six month from datethey become payable.

(b) According to books of accounts examined by us and as per information andexplanations given to us there were no disputed amounts as on 31.03.2020 due towardsstatutory dues including provident fund investors education and protection fundemployees' state insurance income tax sales tax wealth tax service tax custom dutyexcise duty value added tax cess and other material statutory dues as applicablepending with the appropriate authority.

9. According to the information and explanation given to us the Company has notdefaulted in repayment of dues to financial institutions/banks.

10. In our opinion and according to information and explanation the company did notraise moneys by way of Initial Public Offer or Further Public offer (incl. debtInstrument) .In our opinion the term loans were applied for the purpose for which theloans were obtained.

11. According to the information and explanation given to us no material fraud on orby the officer of company has been noticed or reported during year.

12. In our opinion and according to information and explanations given to us thecompany has not provided any managerial remunerationaccordingly provision of this clauseis not applicable.

13. In our opinion and according to information and explanations given to us thecompany 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 alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards;

15. As per the information and explanations given to us no preferential allotment orprivate placement of shares or fully or partly convertible debenture is made during theyear under audit.

16. As per the information and explanations given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him accordinglyprovision of this clause is not applicable.

17. As per the information and explanations given to us the company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.

For Lahoti Navneet and Co.

Chartered Accountants

FRN: 116870W

Sd/-

CA Navneet Lahoti

Partner

M.N.100529

Place: Mumbai

Date: 31st July 2020

UDIN:20100529AAAABR3279

Annexure II

Independent Auditor's report on the Internal Financial Controls under Clause (i) of Sub- section 3 of Section 143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the financial statements of BHALCHANDRAM CLOTHINGLIMITED ("the Company") as on and for the year ended 31 March 2020 we haveaudited the internal financial controls over financial reporting (IFCoFR) of the companyas on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the criteria being specified by the management. Theseresponsibilities includes design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring orderly and efficientconduct of the company's business including adherence to company's policies safeguardingof its assets prevention and detection of frauds and errors accuracy and completeness ofthe accounting records and timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

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 theInstitute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingassessment of risks of material misstatement of the financial statements whether due tofraud 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 IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

A company's IFCoFR is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company;

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 the management and directors of the company; and Providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of IFCoFR including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the IFCoFR to futureperiods are subject to the risk that IFCoFR may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2020 based on the criteria beingspecified by management.

For Lahoti Navneet and Co.

Chartered Accountants

FRN: 116870W

Sd/-

CA Navneet Lahoti

Partner

M.N.100529

Place: Mumbai

Date: 31st July 2020

UDIN: 20100529AAAABR3279.

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