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Bhansali Engineering Polymers Ltd.

BSE: 500052 Sector: Industrials
NSE: BEPL ISIN Code: INE922A01025
BSE 00:00 | 14 May 155.35 -2.00
(-1.27%)
OPEN

152.20

HIGH

158.95

LOW

152.20

NSE 00:00 | 14 May 155.35 -1.95
(-1.24%)
OPEN

156.50

HIGH

158.90

LOW

153.80

OPEN 152.20
PREVIOUS CLOSE 157.35
VOLUME 148673
52-Week high 179.00
52-Week low 34.20
P/E 7.73
Mkt Cap.(Rs cr) 2,577
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 152.20
CLOSE 157.35
VOLUME 148673
52-Week high 179.00
52-Week low 34.20
P/E 7.73
Mkt Cap.(Rs cr) 2,577
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 2020 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. I n our opinion and to the best of our information and according tothe explanations given to us the accompanying standalone financial statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with Section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 as amended (“Ind AS”)and other accounting principles generally accepted in India of the state of affairs ofthe Company as at 31st March 2020 the profit total comprehensive incomechanges in 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 inaccordance with the Standards on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial StatementsSection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.

Key Audit Matters

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current year. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon we do notprovide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our audit report.

Key Audit Matter Auditor's Response
1. Inventory verification and valuation Principal Audit Procedures
In view of the significance of matter our auditing procedures included the following:
Due to the current scenario of Covid-19 the procedures followed for physical verification of the Inventory at various locations of the Company was to be evaluated. Testing the design implementation and operating effectiveness of key controls over the verification of Inventory followed by the management. Assessing the valuation methodology used by management and testing the accuracy of the same.
Considering whether events or transactions that occurred after the balance sheet date but before the reporting date affect the conclusions reached on the carrying values of Inventory and associated disclosures.
Obtaining third party confirmations wherever necessary.
Assessing the various transaction codes of Inventory to identify unusual items.

Information Other than the Standalone Financial Statements andAuditor's Report thereon

5. The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board'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 statements does not cover theother information and we do not express any form of assurance conclusion thereon.

I n 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 amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

6. The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of thecompany in accordance with the accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting fraud and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial control that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but 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 FinancialStatements

7. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

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

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

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters 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 wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal & Regulatory Requirements

8. As required by the Companies (Auditor's Report) Order 2016(“the Order”) issued by the Central Government in terms of Section 143(11) ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of theOrder.

9. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b) In our opinion proper books of account as required by law have beenkept 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 othercomprehensive income) the Cash Flow statement and the Statement of Changes in Equitydealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act.

e) On the basis of written representations received from the Directorsas on 31st March 2020 taken on record by the Board of Directors none of thedirectors are disqualified as on 31st March 2020 from being appointed as aDirector in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financials control overfinancial reporting of the Company and the operative effectiveness of such controls referto our separate report in “Annexure II”.

g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone financial statements.

ii. The Company does not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the 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: 16th June 2020
UDIN NO: 20400600AAAAAJ2358 td>

Annexure - I to the Independent Auditors' Report

(Referred to in paragraph 8 under the heading of “Report on OtherLegal and Regulatory Requirements” Section of our report of even date)

1. a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b) As explained to us a major portion of the fixed assets has beenphysically verified by the management during the year in a phased periodical manner whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. As informed to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of Immovableproperties are held in the name of Company.

2. a) The Inventories were physically verified by the management duringthe year except goods in transit and those lying with third parties. In respect ofinventory lying with third parties these have substantially been confirmed by them.

b) In our opinion and according to the information and explanationsgiven to us the procedures of physical verification of the above stocks followed by themanagement are reasonable and adequate in relation to the size of the Company and natureof its business.

c) As explained to us the discrepancies between the physical stocksand the book stocks were not material and have been properly dealt with in the books ofaccount.

3. As informed to us the Company has not granted any loans secured orunsecured to Companies Firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Act. Hence paragraph (a) (b) & (c)of Clause 3 (iii) of the Order are not applicable.

4. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans or provided any guarantees or securityin respect of any loan(s) to any party covered under Section 185 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 explanationsgiven to us the Company has not accepted any deposits within the meaning of Section 7374 75 and 76 of the Act and the Rules framed thereunder to the extent notified.

6. We have broadly reviewed the books of account maintained by theCompany in respect of products pursuant to the Companies (Cost Records and Audit) Rules2014 as amended and prescribed by the Central Government under sub Section (1) of Section148 of the Act. We are of the opinion that prima facie the cost records and accountshave been maintained by the Company. However we are not required to carry out and havenot carried out any detailed examination of such accounts and records.

7. a) In our opinion and according to the information and explanationsgiven to us and the records of the Company examined by us undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Custom Duty GSTCess and any other statutory dues have been generally regularly deposited in time with theappropriate authorities and there are no undisputed statutory dues payable at the year-endfor a period of more than six months from the date they became payable.

b) In our opinion and according to the information and explanationsgiven to us and the records of the Company examined by us there are no dues outstandingin respect of Income Tax Custom Duty GST Service Tax Cess and any other statutory dueson account of any dispute other than the following:

Name of the Statute Nature of Dues Disputed Amount in Rs lakhs Period to which it relates Forum where dispute is pending
The Income Tax Act 1961 Income Tax 19.68 FY 11-12 Commissioner of Income Tax (Appeals) Mumbai

8. The Company has not taken any loans or borrowings from financialinstitutions banks and government or has not issued any debentures. Hence reporting underclause 3 (viii) of the Order is not applicable to the Company.

9. The Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) and has not availed any term loansduring the year under audit. Hence the provisions of clause 3 (ix) of the Order is notapplicable to the Company.

10. During the course of our examination of the books and records ofthe Company carried out in accordance with the Generally Accepted Auditing Practices inIndia and according to information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. I n our opinion and according to information and explanations givento us the managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12. I n our opinion and according to information and explanations givento us the Company is not a Nidhi Company hence the provisions of Clause 3 (xii) of theOrder is not applicable to the Company.

13. In our opinion and according to information and explanations givento us transactions with related parties are in compliance with sections 177 and 188 ofAct wherever applicable and details of such transactions have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the Clause 3 (xiv) of the Order isnot applicable to the Company.

15. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not enteredinto any non-cash transactions with directors or persons connected with him. Hence theprovisions of Clause 3 (xv) the Order is not applicable to the Company.

16. According to information and explanations given to us the Companyis not required to be registered under Section 45-IA of the Reserve Bank of India Act1934. Accordingly the Clause 3 (xvi) of the Order is not applicable to 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: 16th June 2020
UDIN NO: 20400600AAAAAJ2358

Annexure - II to the Independent Auditor's Report

(Referred to in paragraph 8 under the heading of “Report on OtherLegal and Regulatory Requirements” Section of our report of even date)

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 financialreporting of Bhansali Engineering Polymers Limited as of 31st March 2020 inconjunction with our audit of the Ind AS standalone financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) and the Standards on Auditing issuedby the Institute of Chartered Accountants of India and deemed to be prescribed u/s 143(10) of the Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of internal financial controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls system over financialreporting included obtaining an understanding of internal financial controls system overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depends upon the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial controlover financial 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered 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: 16th June 2020
UDIN NO: 20400600AAAAAJ2358

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