THE MEMBERS OF BOHRA INDUSTRIES LIMITED
Report on the stand alone Ind AS financial statement.
We have audited the accompanying stand alone financial statement of Bohra Industries(The Company) which comprise the Balance Sheet as at 31st March 2019 the Statement ofProfit and Loss and the Cash Flow Statement for the year ended and a summary of thesignificant accounting policies and other explanatory information.
Management's Responsibility for the stand alone Ind AS 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these stand alone Ind AS financialstatements based on our audit. We have taken into account the provision of the act theaccounting and auditing standards and matters which are required to be included in auditreport under the provision of the act and rules made there under. We conducted our auditin accordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India. Those Standards require that we comply with the ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the stand alone Ind AS financial statements. 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. In making thoserisk assessments the auditor considers the internal financial control relevant to theCompany's preparation and fair presentation of the stand alone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theManagement as well as evaluating the overall presentation of the stand alone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone Ind AS financialstatements.
Basis of qualified opinion
1. The company has taken policy for gratuity and premium payments have been maderegularly against the policy by the company however it has been noticed by us thatcoverage of policy is insufficient therefore company should expand the coverage of thepolicy. Additional premium to expand the coverage has to be ascertained and that extrapremium payable will increase the figure loss up to that extent.
2. We are unable to observe the physical inventories of Finished Goods Semi FinishedGoods stock in Trade and consumable stores and spares due to the size and nature of theinventories and we are also unable to satisfy ourselves by alternative means concerningthe inventories held on 31st March 2019. As informed to us no physical verification ofinventory was conducted by the management during the year however the internal auditor M/sJain Kothari & Co. appointed by the company has given his Stock verification report ason 31st March 2019.There is no deviation in closing stock verified by him and books ofaccounts as on 31st March 2019.
3. Valuation of Inventories has been done on the basis of average purchase price methodwhereas the AS-2 on Valuation of Inventories issued by The Institute ofChartered Accountants of India has prescribed valuation method as cost or net realizablevalue whichever is lower. The impact on loss could not be ascertained.
4. Substantial amount of advances for materials services and capital goods wereoutstanding as on 31st March 2019 .Out of such advances provision for doubtful advancesshould be recognised in respect of advances outstanding for a period of three years ormore where no movement has taken place and no confirmations are available. Adjustment ifany is not ascertainable and will be provided on identification of such parties.
5. During the course audit of it has been observed by us that there has been afollowing demand against Rajasthan Value Added Tax Act 2003 for assessment year 2014-15& 2015-16 of Rs. 5599197.00 and 2562783.00 respectively. These demands have beenmade by the concern assessing authority against non receipt of declaration forms fromvarious dealers who made purchases form company on concessional rates. In our opinion thecompany should debit the difference amount of tax to the account of respective dealers towhom supplies were made at concessional rate of tax and recover the amount along withpenalty if any imposed by the assessing authority. The balance of sundry debtors willincrease by above amount.
Emphasis of Matter:
1. The Balances of Sundry debtors creditors and advances along with all other personalaccounts whether in debit or in credit are subject to confirmation reconciliation andadjustment if any in books of accounts.
2. The amount payable to Small and Medium enterprises as on 31st March 2019 is notascertainable.
3. It has been observed while going through various marketing policy pronounced by theconcern department of company to accelerate the sales as a part of strategy there has beena incentive provided to customers who are lifting material in quantities on incrementalbasis. Company has not provided various quantity discount by issuing credit note to itscustomers in citing the explanation of non adherence of timely payment where as there arefew major customers who was regularly reminding for credit notes based on schemes floatedin the beginning of the financial year.
Our opinion is not qualified in respect of this matter.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the basis for qualifiedopinion paragraphs above the standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:
in the case of the Balance Sheet of the state of affairs of the Company as at31st March 2019;
in the case of the Statement of Profit and Loss of the profit of the Companyfor the year ended on that date; and
in the case of the Cash Flow Statement of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issuedby the Central Government of India in terms of sub section (11) of section 143 of the Act we give as given in the Annexure A' statement on the matters specified inparagraphs 3 and 4 of the Order
1 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 and the cash flow statementdealt with by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with the standalone Ind ASAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act; and
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure B ; and
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 litigation on its financial positionin its stand alone Ind. AS financial statement which would impact its financial position ;
ii. the Company did not have any long term contracts including derivative contractsfrom which there were any material foreseeable losses ;
iii. There are no amounts which are required to be transferred to investor educationand protection fund.
For Ajay Paliwal & Co.
(Firm Registration No. 012345C)
CA Ajay Paliwal
Membership No. 403290
DATE : 04-10-2019
PLACE : UDAIPUR