TO THE MEMBERS OF BINAYAK TEX PROCESSORS LIMITED
Report on the standalone Financial Statements
I have audited the financial statements of BINAYAK TEX PROCESSORS LIMITED ("theCompany") which comprise the balance sheet as at March 31 2019 and thestatement of profit and loss (including other comprehensive income) statement of changesin equity and statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (Collectively referred to as standalone financial statements').
in my opinion and to the best of my information and according to the explanations givento us the aforesaid standalone 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 accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at March 31 2019 and its profit (financialperformance including other comprehensive income) changes in equity and its cash flowsfor the year ended on that date.
a. In the case of the balance sheet of the state of affairs of the company as at 31stMarch 2019 and
b. In the case of the statement of profit and loss of the profit (financialperformance including other comprehensive income) changes in equity and
c. In the case of the cash flow statement of the cash flow statement for the yearended on that date.
Basis for Opinion
I conducted my audit in accordance with the Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013.
My responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of my report. I amindependent 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 my audit of the financial statements under the provisions of the Companies Act 2013and the Rules there under and I have fulfilled my other ethical responsibilities inaccordance with these requirements and the Code of Ethics. I believe that the auditevidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Basis for Qualified Opinion
The Company has not accounted for liability for gratuity and leave encashment for theyear ended 31 March 2019 this is not in accordance with the requirements of Ind AS 19Employee Benefits which requires the Company to accounted for actuarial liability ofgratuity and leave encashment I am unable to quantify the amount adjustments to these IndAS financial statements as the Company has not carried out actuarial valuation of gratuityand leave encashment.
In my opinion and to the best of my information and according to the explanations givento us except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph the aforesaid Ind AS financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2019 its loss and other comprehensive income changes in equity and itscash flows for the year ended on that date.
Key Audit Matters
Key audit matters are those matters that in my professional judgment were of mostsignificance. in my audit of the financial statements of the current period. These matterswere addressed in the context of my audit of the financial statements as a whole and informing my opinion thereon
I have determined that there are no key audit matters to communicate in myreport.
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and my auditor's report thereon.
My opinion on the financial statements does not cover the other information and I donot express any form of assurance conclusion thereon.
In connection with my audit of the financial statements my responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or my knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work I haveperformed I conclude that there is a material misstatement of this other information Ihave required to report that fact. I have nothing to report in this regard.
Responsibility of Management for the Standalone Financial Statements
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 standalone financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the. Indian Accounting Standards (Ind AS') specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related. to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Boards of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes my opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with Standards on Auditing (SAs') I exerciseprofessional judgment and maintain professional skepticism throughout the audit. I 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 my 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3} ofthe Act I am also responsible for expressing my opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 I conclude that a material uncertainty existsI am required to draw attention in my auditor's report to the related disclosures in thefinancial statements or if such disclosures are inadequate to modify my opinion. Myconclusions are based on the audit evidence obtained up to the date of my 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 the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements maybe influenced.We consider quantitative materiality and qualitative factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and (ii) to evaluated the effectof any identified misstatements in the financial statements.
We communicate with those charged with governance regarding among other mattersthe planned 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 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 determinethose matters that were of mist significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstance 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 AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. 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 the Statement of Changes InEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of accounts;
d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with Companies (IndianAccounting Standard)Rules 2016.
e. On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms of section164(2) of the Act ;
f. With respect to theadequacy of the internal financial controls over financialReporting of the Company and the operating effectiveness of such controls Refer to ourseparate Report in "Annexure B".
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 does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long term contract including derivative contract; assuch the question of commenting on any material foreseeable losses thereon does not arise;
iii. There has been delay in transferring amounts of Rs 8488.00 Which is paid on27/05/2019 required to be transferred to the Investor Education and Protection Fund bythe Company.
| ||For YATIN KUMAR SHAH |
| ||CHARTERED ACCOUNTANT |
|Place: Mumbai || |
|Date: 30th MAY2019 || |
| ||Sd/- |
| ||(YATIN KUMAR SHAH) |
| ||SOLE PROPRIETOR |
| ||Membership. No. 159796 |
ANNEXURE A TO THE AUDITORS' REPORT
The Annexure referred to in my Independent Auditors' Report to the members of theCompany on the Financial Statements for the year ended 31st March 2019 I report that:
I. Fixed Assets
a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) All fixed assets have been physically verified by the management during the year andthere is a regular programme of verification which in my opinion is reasonable havingregard to the size of the company and the nature of its assets. No material discrepanciesare noticed on such verification
c) According to the information and explanations given to us and on the basis of myexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
a) The inventories have been physically verified by the management at reasonableintervals during the current year. The discrepancies noticed on verification between thephysical stocks and the book records are not material and have been properly dealt with inthe books of accounts. In my opinion the frequency of verification is reasonable.
iii. The Company has granted loans to one bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').
a) In my opinion the rate of interest and other terms and conditions on which theloans had been granted to the bodies corporate listed in the register maintained underSection 189 of the Act are not prima facie prejudicial to the interest of the Company.
b) In the case of the loans granted to the bodies corporate listed in the registermaintained under section 189 of the Act the borrower have been regular in the payment ofthe principal and interest as stipulated.
c) There are no overdue amounts in respect of the loan granted to a body corporatelisted in the register maintained under section 189 of the Act.
iv. In my opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
v. In my opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public covered under section 73 to 76 ofthe companies Act 2013.
vi. I have broadly reviewed the records maintained by the company pursuant to companies(Cost Records and Audit) Rules 2014 prescribed by the Central Government underSub-section (1) of section 148 of the Companies Act 2013 and I am of the opinion thatprima facie the prescribed accounts and records have been made and maintained. I have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.
vii. a. According to the information and explanation given to us and on the basis of myexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income tax GSTand other material statutory dues have been regularly deposited during the year by theCompany with the appropriate authorities. As explained to us the Company did not have anydues on account of employees' state insurance and duty of excise.
According to information and explanations given to us no undisputed amounts payable inrespect of provident fund income tax GST and other material statutory dues are inarrears as at 31 March 2019 for a period of more than six months from the date they becamepayable. b. According to the information and explanations given to us there are nomaterial dues of duty of customs which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of income tax sales tax duty of excise service tax andvalue added tax have not been deposited by the Company on account of disputes:
|Name of the statute ||Nature of dues ||Disputed Amount (in Rs) ||Amount Paid ||Period to which the amount relate ||Forum where dispute is pending |
|The Income Tax Act 1961 ||Income Tax ||935361/- ||935361/- ||A.Y 2012- 13 ||ITAT Appeal |
|The Income Tax Act 1961 ||Income Tax ||896787/- ||896787/- ||A.Y 2013-14 ||CIT Appeal |
|The Income Tax Act 1961 ||Income Tax ||979710/- ||979710/- ||A.Y 2014-15 ||CIT Appeal |
|The Income Tax Act 1961 ||Income Tax ||1175070/- ||1175070/- ||A.Y 2015-16 ||CIT Appeal |
|The Income Tax Act 1961 ||Income Tax ||845649/- ||845649/- ||A.Y 2016-17 ||CIT Appeal |
viii. The Company has taken loan from Union Bank of India & HDFC Bank and companyhas not defaulted in repayment of installment during the year.
ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.
x. To the best of my knowledge and belief and according to the information andexplanations given to me no fraud on or by the Company has been noticed or reportedduring the course of my audit.
xi. According to the information and explanations give to us and based on myexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
xii. In my opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
xiii. According to the information and explanations given to us and based on myexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv. According to the information and explanations given to us and based on myexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv. According to the information and explanation given to us and based on myexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
xvi. According to the information and explanation given to us and based on myexamination of the records of the Company the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.
| ||For YATIN KUMAR SHAH |
| ||CHARTERED ACCOUNTANTS |
|PLACE : MUMBAI ||Sd/- |
|DATE : 30thMay 2019 ||(YATIN KUMAR SHAH) |
| ||PROPRIETOR |
| ||Membership Number 159796 |
ANNEXURE B TO THE AUDITORS' REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 143 OF THECOMPANIES ACT 2013 ("the Act")
I have audited the internal financial controls over financial reporting of Binayak TexProcessors Limited ('the company') as of 31 March 2019 in conjunction with my audit ofthe standalone 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 Companies Act 2013.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that I comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. My audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.
In my opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting are operating effectively as at 31 March 2019 based on theinformation and explanation of the company provided to us Internal Financial Controlframework and the report of the Internal Auditors 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.
| ||For YATIN KUMAR SHAH |
| ||CHARTERED ACCOUNTANTS |
|PLACE : MUMBAI ||Sd/- |
|DATE : 30thMay 2019 ||(YATIN KUMAR SHAH) |
| ||PROPRIETOR |
| ||Membership Number 159796 |