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Bhansali Engineering Polymers Ltd.

BSE: 500052 Sector: Industrials
NSE: BEPL ISIN Code: INE922A01025
BSE 00:00 | 30 Sep 116.45 1.50
(1.30%)
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114.15

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117.80

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113.90

NSE 00:00 | 30 Sep 116.65 2.00
(1.74%)
OPEN

115.15

HIGH

117.85

LOW

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OPEN 114.15
PREVIOUS CLOSE 114.95
VOLUME 32947
52-Week high 221.80
52-Week low 98.00
P/E 6.04
Mkt Cap.(Rs cr) 1,932
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 114.15
CLOSE 114.95
VOLUME 32947
52-Week high 221.80
52-Week low 98.00
P/E 6.04
Mkt Cap.(Rs cr) 1,932
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bhansali Engineering Polymers Ltd. (BEPL) - Auditors Report

Company auditors report

To

The Members of

Bhansali Engineering Polymers Limited

Report on the Audit of Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of BhansaliEngineering Polymers Limited ("the Company") which comprise the BalanceSheet as at 31st March 2022 the Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement the Statement of Changes in Equity for theyear ended on that date and a summary of the significant accounting policies and otherexplanatory information.

Opinion

2. In our opinion and to the best of our information and according to the explanationsgiven to us the accompanying standalone financial statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2022 the profit total comprehensive income changesin equity and its cash flows for the year ended on that date.

Basis of Opinion

3. We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Standalone Financial Statements Section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinionon the standalone financial statements.

Key Audit Matters

4. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon we do not provide a separateopinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our audit report.

Sr. No. Key Audit Matter Auditor’s Response
1. Inventory Valuation and Management Principal Audit Procedures
Due to the materiality of the value of Inventory for the year ended 31st March 2022 and significant movement of raw material between ports and plants we identified this matter as key in our audit. Assessment of the design implementation and operational effectiveness of the relevant controls in place for inventory management and measurement process.
Evaluation of the inventory costing methodology and valuation policy established by management including compliance with the applicable accounting standard.
Assessing the analysis and assessment made by the management with respect to physical verification of the Inventories.
Verification of the determination of net realizable value on a representative sample basis.

Information Other than the Standalone Financial Statements and Auditor’s Reportthereon

5. The Company’s Board of Directors is responsible for the preparation of theother information. The other information comprises the information included in theManagement Discussion and Analysis Board’s Report including Annexures toBoard’s Report Business Responsibility Report Corporate Governance andShareholder’s Information but does not include the standalone financial statementsand our auditor’s report thereon. Our opinion on the standalone financial statementsdoes not cover the other information and we do not express any form of assuranceconclusion thereon. In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially 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.

Management’s Responsibility for the Standalone Financial Statements

6. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the company inaccordance with the accounting principles generally accepted in India. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfraud and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error. In preparingthe financial statements management is responsible for assessing the Company’sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Directors are also responsible for overseeing theCompany’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

7. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements. As part of an auditin accordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany 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 management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence 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 regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal & Regulatory Requirements

8. As required by the Companies (Auditor’s Report) Order 2020 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act andon the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in theAnnexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

9. 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 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) the Cash Flow statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of written representations received from the Directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2022 from being appointed as a Director in termsof Section 164(2) of the Act.

f) W ith respect to the adequacy of the internal financials control over financialreporting of the Company and the operative effectiveness of such controls refer to ourseparate report in "Annexure II".

g) 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 Standalone financial statements.

ii. The Company does 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.

For and on behalf of
Azad Jain & Co
Chartered Accountants
F.R. No.: 006251C
Rishabh Verdia
Partner
M. No. : 400600
Place: Mumbai
Dated: 23rd April 2022
UDIN NO: 22400600AHQJKE4639

Annexure – I to the Independent Auditors’ Report

(Referred to in paragraph 8 under the heading of "Report on Other Legal andRegulatory Requirements" Section of our report of even date)

1. a) The Company has maintained proper records showing full particulars includingquantitative details wherever applicable and situation of Property Plant and Equipmentand Intangible assets.

b) As explained to us a major portion of the Plant and Equipment and Intangible Assetshas been physically verified by the management during the year in a phased periodicalmanner which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. As informed to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of Immovable properties areheld in the name of Company.

d) The Company has not revalued any of its Property Plant and Equipment or Intangibleassets hence the provision of Clause 3 (i) (d) of the Order is not applicable to theCompany.

e) There has been no proceedings initiated or pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder hence the provisions of Clause 3 (i) (e) of the Order is notapplicable to the Company.

2. a) The Inventories were physically verified by the management during the year exceptgoods in transit and those lying with third parties. In respect of inventory lying withthird parties these have substantially been confirmed by them.

b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of the above stocks followed by the management arereasonable and adequate in relation to the size of the Company and nature of its business.

c) As explained to us the discrepancies between the physical stocks and the bookstocks were not material and have been properly dealt with in the books of account.

d) During the year the Company has not been sanctioned working capital limit in excessof five crore rupees in aggregate from banks or financial institutions on the basis ofsecurity of current assets hence the provision of Clause 3(ii) (b) of the Order is notapplicable to the Company.

3. a) According to the information and explanations given to us and based on the auditprocedures performed by us the Company has not provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured tosubsidiaries joint venture and associates. The Investments made in the joint venturecompany are not prejudicial to the company’s interest. The company has not madeinvestments in provided any guarantee or security or secured loans or advances in thenature of loans to Companies Firms Limited Liability Partnerships and other parties. Thecompany has granted Unsecured loans ("Loans") to Companies Firms LimitedLiability Partnerships and other parties. The aggregate amount of Loans given during theyear is Rs. 28775.00 lakhs and balance outstanding at the Balance sheet date is Rs.25902.22 lakhs.

b) According to the information and explanations given to us and based on the auditprocedures conducted by us the terms and conditions of the Loans granted by the companyare prima-facie not prejudicial to the company’s interest;

c) According to the information and explanations given to us and based on the auditprocedures conducted by us the repayment of the principal amounts of Loans and receipt ofinterest is regular during the year and the schedule of repayment of principal andinterest of all Loans granted by the company have been stipulated;

d) According to the information and explanations given to us and based on the auditprocedures conducted by us there is no amount overdue in respect of any Loans granted bythe company;

e) According to the information and explanations given to us and based on the auditprocedures conducted by us the total Loans renewed during the year amounted to Rs.4050.00 lakhs constituting 15.64% of the total Loans outstanding. F

) According to the information and explanations given to us and based on the auditprocedures conducted by us the company has not granted any Loans repayable on demand orwithout specifying any terms or period of repayment.

4. In our opinion and according to the information and explanations given to us theCompany has not granted any loans or provided any guarantees or security in respect of anyloan(s) to any party covered under Section 185 and 186 of the Act. In respect ofInvestments made in Body Corporate by the Company the provisions of Section 186 of theAct has been complied with.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits within the meaning of Section 73 74 75 and 76 ofthe Act and the Rules framed thereunder to the extent notified.

6. We have broadly reviewed the books of account maintained by the Company in respectof products pursuant to the Companies (Cost Records and Audit) Rules 2014 as amended andprescribed by the Central Government under sub Section (1) of Section 148 of theAct. We are of the opinion that prima facie the cost records and accounts havebeen maintained by the Company. However we are not required to carry out and have notcarried out any detailed examination of such accounts and records.

7. a) In our opinion and according to the information and explanations given to us andthe records of the Company examined by us undisputed statutory dues including ProvidentFund Employees’ State Insurance Income Tax Custom Duty GST Cess and any otherstatutory dues have been generally regularly deposited in time with the appropriateauthorities and there are no undisputed statutory dues payable at the year-end for aperiod of more than six months from the date they became payable. b) In our opinion andaccording to the information and explanations given to us and the records of the Companyexamined by us there are no dues outstanding in respect of Income Tax Custom Duty GSTCess and any other statutory dues on account of any dispute other than the following:

Name of the Statute Nature of Dues Disputed Amount Rs. in lakhs Period to which it relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 28.43 FY 11-12 Commissioner of Income Tax (Appeals) Mumbai
The Income Tax Act 1961 Income Tax 43.10 FY 17-18 Commissioner of Income Tax (Appeals) Mumbai

8. According to the information and explanations given by the management and based onthe procedures carried out during the course of our audit we have not come across anytransactions not recorded in the books of account and which have been surrendered ordisclosed as Income in the tax assessments under the Income Tax Act 1961.

9. The Company has not taken any loans or borrowings from financial institutions banksand government or has not issued any debentures. Hence paragraphs (a) (b) (c) (d) (e)& (f) of Clause 3 (ix) of the Order are not applicable.

10. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and has not availed any term loans during the yearunder audit. Hence the provisions of clause 3 (x) of the Order is not applicable to theCompany.

11. a) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to information and explanations given to us no material fraud by the company oron the company has been noticed or reported during the course of our audit. Hence theprovisions of Clause 3 (xi) of the Order is not applicable to the Company.

b) There has been no report filed under sub-Section (12) of Section 143 of the Act bythe auditors as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

c) As represented to us by the management there were no whistle blower complaintsreceived during the year under audit. 12. In our opinion and according to information andexplanations given to us the Company is not a Nidhi Company hence the provisions ofClause 3 (xii) of the Order is not applicable to the Company.

13. In our opinion and according to information and explanations given to ustransactions with related parties are in compliance with sections 177 and 188 of Act anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable accounting standards.

14. a) The company has an Internal audit system commensurate with the size and natureof its business;

b) We have considered the Internal Audit reports of the company issued till date forthe period under audit.

15. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with directors or persons connected with him. Hence the provisions of Clause3 (xv) of the Order is not applicable to the Company.

16. According to information and explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordinglythe provisions of Clause 3 (xvi) of the Order are not applicable to the Company.

17. The Company has not incurred any cash losses during the current financial year andin the immediately preceding financial year and hence the provision of Clause 3 (xvii) isnot applicable to the company.

18. There has not been any resignation of the Statutory auditors during the year. Hencethe provision of Clause 3 (xviii) is not applicable to the company.

19. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no material uncertainty exists as on the dateof the audit report that Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date based on the financial ratios ageing expected dates of realisation offinancial assets payment of financial liabilities other information accompanying thefinancial statements the auditor’s knowledge of the Board of Directors andmanagement plans. We further state that our reporting is based on the facts up to the dateof audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

20. According to the information and explanations given to us and on the basis of ourexamination of the records there is no unspent amount under sub-section 5 of Section 135of the Act pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) of theOrder are not applicable.

21. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no qualifications or adverse remarksin the Companies (Auditor’s Report) Order (CARO) report included in the consolidatedfinancial statements.

For and on behalf of
Azad Jain & Co
Chartered Accountants
F.R. No.: 006251C
Rishabh Verdia
Partner
M. No. : 400600
Place: Mumbai
Dated: 23rd April 2022
UDIN NO: 22400600AHQJKE4639
38th ANNUAL REPORT 2021-2022 87

Annexure – II to the Independent Auditor’s Report

(Referred to in paragraph 9(f) under the heading of "Report on Other Legal andRegulatory Requirements" Section of our report of even date)

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 BhansaliEngineering Polymers Limited as of 31st March 2022 in conjunction with ouraudit of the Ind AS standalone financial statements of the Company for the year ended onthat 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 Act.

Auditor’s 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 the Institute ofChartered Accountants of India and deemed to be prescribed u/s 143 (10) of the Act to theextent applicable to an audit of internal financial controls both applicable to an auditof internal financial controls and both issued by the Institute of Chartered Accountantsof India. 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 system over financial reportingincluded obtaining an understanding of internal financial controls system over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depends upon the auditor’s judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransaction and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 31st March 2022based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For and on behalf of
Azad Jain & Co
Chartered Accountants
F.R. No.: 006251C
Rishabh Verdia
Partner
M. No.: 400600
Place: Mumbai
Dated: 23rd April 2022
UDIN NO: 22400600AHQJKE4639

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