The Members of
Bhaskar Agrochemicals Limited
We have audited the financial statements of Bhaskar Agrochemicals Limited ("theCompany") which comprise the balance sheet as at 31st March 2021 and thestatement of Profit and Loss (including other comprehensive income)cash flows statementand statement of changes in equity for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according to theexplanationsgiven to us except for the effects of the matter described in the Basis forQualifiedOpinion section of our report the aforesaid 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 the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Qualified Opinion
The Company has not provided depreciation on building and plant and equipment relatingto Unit - II in the books of accounts of the company as the Unit - II is closed and henceour opinion is qualified in respect of this matter.
We conducted our audit of the financial statements 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 Auditor'sResponsibilities 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 Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion on the 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. Wehave determined the matters described below to be the key audit matters to becommunicated in our report.
|Sl.No 1 Key Audit Matter ||Auditor's Response |
|Revenue Recognition || |
|Revenue from the sale of goods (hereinafterreferred to as Revenue") is recognised when theCompany performs its obligation to its customersand the amount of revenue can be measuredreliably and recovery of the consideration isprobable. The timing of such recognition in caseof sale of goods is when the control over the sameis transferred to the customer which is mainly upondelivery.The timing of revenue recognition is relevant tothe reported performance of the Company. ||Principal Audit Procedures Our audit approach was a combination of test of internal controls and substantive procedures including: |
|The management considers revenue as a key measurefor evaluation of performance. There is a risk ofrevenue being recorded before control is transferred.Refer Note 1 to the FinancialStatements - Significant Accounting Policies ||1. Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers")and testing thereof. |
| ||2. Evaluating the design and implementation of Company's controls in respect of revenue recognition. |
| ||3. Testing the effectiveness of such controls over revenue cut off at year-end. |
| ||4. Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end including examination of credit notes issued after the year end to determine whether revenue was recognised in the correct period. |
| ||5. Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing. |
Information Other than the Financial Statements and Auditor'sReport Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially 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 Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance other comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing thefinancial 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 no realisticalternative but to do so.
The Board of Directors are responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Financial Statements
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 a highlevel of 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 ofthese financial statements.
Report on Other Legal and Regulatory Requirements
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 collusionforgery intentional omissions misrepresentations or the override of internal control.
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 concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements 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'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether thefinancial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
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 thought 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government interms of Section 143(11) of the Act we give in"Annexure A"a statement on the matters specified in paragraphs 3 and 4of theOrder.
2. As required by Section 143(3) of the Act we report that:
a) We have sought and obtained all the informationand explanations which to the best ofour knowledgeand belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as requiredby law have been kept by theCompany so far as itappears from our examination of those books.
c) The Balance Sheet the Statement of Profit andLoss including other comprehensiveincome the Cash Flow Statement and Statement ofChanges in Equity dealt with by thisReport are inagreement with the books of account.
d) In our opinion the aforesaid Ind AS financial statements comply with theIndianAccounting Standards prescribed under section 133of the Act.
e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken onrecord by the Board of Directors none of the directors isdisqualified as on 31st March 2021 frombeing appointed as a director in terms ofSection164(2) of the Act.
f) With respect to the adequacy of the internal financialcontrols over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included inthe Auditor's Report inaccordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 as amended inouropinion and to the best of our information andaccording to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred onaccount of unpaid dividend to the Investor Education and Protection Fund by the Companyas at 31stMarch 2021.
ANNEXURE "A" TO THE AUDITOR'S REPORT
Referred to in paragraph 1 under the head "Report on other legal & regulatoryrequirements" of our report of even date.
i) a. The Company has maintained proper records showing full particularsincludingquantitative details and situation of fixed assets.
b. All the Fixed assets have been physically verified by the management during the yearaccording to the information and explanations given to us no material discrepancies werenoticed on such verification.
c. As per the documents verified by us and explanation given to us the Title Deeds ofimmovable properties are held in the name of the company.
ii) . The inventory has been physically verified during the year by the management atreasonable intervals.In our opinion the frequency of verification is reasonable. Nomaterial discrepancies have been noticed on physical verification of stocks as compared tobook records.
iii) . The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties who are covered in the register maintainedunder section 189 of Companies Act 2013 accordingly Clause (iiia)(iii b) and (iii c) ofParagraph 3 of the Order are not applicable.
iv) According to the information and explanations given to us the Company has notgranted any loans guarantees and security and made investments as per section 185 &186 of the Companies Act 2013
v) According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the directives issued by the Reserve Bank ofIndia and as per the provisions of section 73 to 76 or any other relevant provisions ofthe Companies Act 2013 and the rules framed there under.
vi) The central government has not prescribed the maintenance of cost records asspecified under section 148(1) of the Companies Act 2013.
vii) a. According to the information & explanations given to us none of theundisputed statutory dues including Provident Fund Employees State Insurance Income TaxCustom Duty Goods & Service Tax Cess and any other material Statutory Dues wereoutstanding as at last day of the financial year concerned for a period of more than sixmonths.
b. According to the information & explanations given to us there is no duesinrespect of disputed amount to be deposited in respect of Custom Duty Goods and ServiceTax Cess and other material Statutory dues as on 31st March2021.
viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowing to the financial institutions bankgovernment or dues to debenture holders.
ix) In our opinion and according to the information and explanations given to us thecompany has not raised money by way of term loans orinitial public offer or further publicoffer (including debt instruments) and hence reporting under clause (ix) of the Order isnot applicable.
x) According to the information and explanations given to us no fraud by the Companyor any fraud on the company by its officers/employees has been noticed or reported duringthe course of our audit.
xi) According to the information and explanations given to us the Company has paid andprovided managerial remuneration during the year as per the provisions of Section 197 readwith Schedule V to the Companies Act.
xii) In our opinion the Company is not a Nidhi Company. Accordingly Clause (xii) ofParagraph 3 of the Order is not applicable.
xiii) According to the information and explanations given to us all transactions withthe related party are in compliance with section 177 & 188 of Companies Act 2013 andthe same has been disclosed in financial statements as required by the AccountingStandards.
xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.
xv) According to the information and explanations given to us the company has notentered into Non Cash Transactions with directors or persons connected with him during theyear.
xvi) According to the information and explanations given to us company is not requiredto be registered under section 45-IA of Reserve Bank of India.
Report on Internal Financial Controls Over Financial Reporting Annexure "B"to the Independent Auditor's Report of even date on the Financial Statements of BhaskarAgrochemicals Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of BhaskarAgrochemicals Limited ("the Company") as of March 31 2021 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation ofreliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that;
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) 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 management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
Statement of Impact of Audit Qualifications (for audit report with modified opinion)submitted along with standalone Annual Audited Financial Results
Statement of Impact of Audit Qualifications For the Financial Year Ended March 31 2021[See Regulation 33/52 of the SEBI (LODR) (Amendment) Regulations 2016]
|Particulars ||Audited Figures (as reported before adjusting for qualifications) ||Adjusted Figures (audited figures after adjusting for qualifications) |
|1 Total Revenue ||638189928 ||638189928 |
|2 Total Expenditure ||629696481 ||629696481 |
|3 Net Profit / (Loss) (before tax) ||8493447 ||8493447 |
|4 Earnings Per Shares ||1.63 ||1.63 |
|5 Total Assets ||315721963 ||315721963 |
|6 Total Liabilities ||315721963 ||315721963 |
|7 Net Worth ||102107406 ||102107406 |
|8 Any other financial items (as felt appropriate by the management) ||NIL ||NIL |
II Audit Qualification (each audit qualification separately)
|a. Details of audit qualifications ||The Company has not provided depreciation on Building & Plant & Machinery relating to Unit II in Books of account of the company as Unit II is closed. |
|b. Type of Audit Qualification ||Qualified Opinion |
|c. Frequency of qualifications ||Repetitive |
|d. For Audit Qualification(s) where the impact is quantified by the auditor e. For Audit Qualification(s) where the impact is not quantified by the auditor ||No. |
|i. Management's estimation on the impact of audit qualification ||NIL |
|ii. If management is unable to estimate the impact reason for the same ||N.A. |
|iii. Auditors' comment on (i) or (ii) ||NIL |
|III Signatories: || |
|Managing Director ||Sd/- |
| ||P Pattabhi Rama Rao |
|CFO ||Sd/- |
| ||P Praveen Kumar |
|Audit Committee Chairman ||Sd/- |
| ||SVS Chowdary |
|Statutory Auditor ||Sd/- |
| ||Shailendra Singhvi Prop. S Singhvi & Co. |
| ||Chartered Accountants FRNo. 003872S |