You are here » Home » Companies » Company Overview » Bohra Industries Ltd

Bohra Industries Ltd.

BSE: 538413 Sector: Agri and agri inputs
NSE: BOHRAIND ISIN Code: INE802W01015
BSE 05:30 | 01 Jan Bohra Industries Ltd
NSE 00:00 | 02 Dec 158.35 -8.30
(-4.98%)
OPEN

167.10

HIGH

173.90

LOW

158.35

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Bohra Industries Ltd. (BOHRAIND) - Auditors Report

Company auditors report

TO

THE MEMBERS OF BOHRA INDUSTRIES LIMITED

Pursuant to an order of the Honorable Company Law Tribunal Jaipur ("NCLT")dated August 7 2019 Corporate Insolvency Resolution Process ("CIRP") of theCompany had been initiated and Shri Naresh Verma (IP Regn. No.IPA-002/IP-N00054/2017-2018/10106) had been appointed as the Interim ResolutionProfessional (RP) under Insolvency and Bankruptcy Code 2016 ("Code"). Furtherthe Committee of Creditors ("COC") constituted during the CIRP confirmed theappointment of Shri Naresh Verma as the Resolution Professional ("RP") on05.09.2019. Accordingly the powers of the Board of Directors was vested in the IRP/RP.

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 2020 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.

Auditors' Responsibility

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. There was no significant production during the year and purchases made during theyear were NIL. There is very small outward movement in the inventory during the year. Thequantity of closing inventory is almost what it was last year except shortage during theyear. No physical verification was done by the management during the year.

2. Sundry Debtors of Rs. 208008392.29 outstanding for period exceeding three yearsas per information given to us and records produced before us by the management despiteof various letters written by the management to them there is no recovery in theseaccounts and no balance confirmations are available. No provision on this amount was madeduring the year. In our opinion it is prudent to make full provision on this outstandingamount of Rs 208008392.29. This will have impact on the loss for current year up theextent of provision.

Emphasis of Matter:

1. The Balances of overdue Sundry debtors creditors and advances for materialsservices and capital goods along with all other personal accounts whether in debit or incredit are subject to confirmation reconciliation and adjustment if any in books ofaccounts.

2. The amount payable to Small and Medium enterprises as on 31st March 2020is not ascertainable as company has not received any claims form such enterprises duringthe year.

Our opinion is not qualified in respect of this matter.

Qualified Opinion

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 2020;

• 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) issued bythe 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 in paragraphs 3and 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 best of 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 the Company 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 statement dealt 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 AS Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31st March 2020 taken on record by the Board of Directors none of the directors is disqualified as on 31st March 2020 from being appointed as a director in terms of Section 164 (2) of the Act; and
f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate report in 'Annexure B ' ; and
g) with respect to the other matters to be included in the Auditor'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 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.
Chartered Accountants
(Firm Registration No. 012345C)
SD/-
CA Ajay Paliwal
Proprietor
Membership No. 403290
DATE :31-07-2020
PLACE : UDAIPUR
UDIN:20403290AAAAAK5064

Annexure A to Independent Auditors' Report

Annexure A referred to in our Independent Auditor's Report to the Members of BohraIndustries Limited on the standalone Ind AS financial statements for the year ended 31stMarch 2020.

1. (a)The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The company has a phased programme of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. In accordance with such programme the management has physicallyverified its fixed assets during the year and no material discrepancies were noticed bythem and the same have been properly dealt with in the books of account.

(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 the immovable properties areheld in the name of the Company.

2. The inventory has been not been physically verified by the management during theyear. In our opinion this is reasonableas no manufacturing activity took place during theyear and no purchases were made during the year.

3. The Company has granted unsecured loans to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013.In ouropinion and according to information and explanation given to us:

(a) Terms and conditions of the grant of loan are not prejudicial to the Company'sinterest.

(b) The company has not granted loans that are re payable on demand.

(c) There is no amount of loan granted to companies and firms or other parties listedin register maintained under section 189 of the Companies Act 2013 which is overdue formore than 90 days.

4. In our opinion and according to information and explanations given to us provisionsof section 185 and 186 of the Companies Act 2013 in respect of loans investmentsguarantees and securities given have been complied with by the company.

5. The Company has not accepted any deposits within the meaning of provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. Thus paragraph 3(v) of the Order is not applicable to thecompany.

6. We have broadly reviewed the books of account maintained by the company in respectof the product covered where pursuant to the Rules made by the Central Government themaintenance of cost records has been prescribed under section 148(1) of the Act. Inrelation to fertilizer industry and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a

detailed examination of the records with a view to ensuring whether they are accurateor complete.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the books of account the company have not been regular in depositingthe undisputed statutory dues including provident fund employees' state insurance incometax sales tax duty of customs duty of excise value added tax cess and any otherstatutory dues as applicable with the appropriate authorities and there have beensignificant delays in many cases. According to the information and explanations given tous there were undisputed amounts payable in respect of the above dues which wereoutstanding as at 31st March 2020 for a period of more than six months from the date oftheir becoming payable.

Statement of arrears of statuary dues outstanding for more the six months

Name of The Statute Nature of Dues Amount (in Laks) Period to Which the amount relates Due date Date of Payment
Income Tax Act 1961 TDS 76.11 Financial Year 2017-18 2018-19 & 2019-20 7Th of every succeeding month Not Paid
Employee State Insurance Act ESIC 5.94 Form October 2018 to March 2020 15th Of every succeeding month Not Paid
Provident Fund PF 11.95 From November 2018 to August 2019 15th Of every succeeding month Not Paid
Goods and service Tax Act 2017 GST 23.91 FY 2018-19 & 2019-20 20th of succeeding month Not Paid
Income Tax Act 1961 Corporate Tax 101.29 AY 2017-18 Quarterly Payable Not Paid
Income Tax Act 1961 Corporate Tax 158.96 AY 2018-19 Quarterly Payable Not Paid
Income Tax Act 1961 Corporate Tax 7.23 AY 16-17 Quarterly Payable Not Paid

(b)According to the information and explanations given to us there wereduesoutstanding of income tax wealth tax service tax duty of customs duty of excise

value added tax cess and any other statutory dues which have not been deposited onaccount of any disputes.

Statement of Disputed Dues

Name of Statute Nature of dues Amount (In Lakhs) Amount Paid Under protest Period to which amount relates Forum where dispute is pending
Income Tax Act 1961 Interest on Corporate Tax 34.66 16.00 AY 2011-12 Rajasthan High Court
Income Tax Act 1961 Interest on Corporate Tax 14.00 0 AY 2012-13 Rajasthan High Court

8. According to the information and explanations given to us the company has defaultedin repayment of dues to banks and the financial institutions. An amount of Rs.246995391 due on STCI Finance Limited and Rs. 707242379 due to State Bank of Indiaas per claims submitted with RP under The Insolvency and Bankruptcy Code 2016 againstprincipal and interest repayment as on 31st March 2020 according to final claimlodged by them. Further there were no debentures issued during the year or outstanding asat 31st March 2020.

9. The Company has not raised money/fund by way of initial public offer during thereporting period.

10. During the year no fraud by employees or officers of the company has been noticed.

11. According to information and explanations given to us the company has providedmanagerial remuneration in accordance with Section 197 read with schedule V to theCompanies Act 2013.

12. In our opinion the company is not a Nidhi company. Accordingly Para 3(xii) of theOrder is not applicable for the company.

13. In our opinion and according to information and explanations given to us alltransaction with the related party are in compliance with section 177 and 188 of CompaniesAct 2013 and the details of such transaction have been disclosed in the Financialstatement of the company as required by the applicable Accounting Standards.

14. According to the information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

15. According to information and explanation given to us the company has not enteredinto non cash transactions with directors or any person connected with him. Thusparagraph 3(xv) of the Order is not applicable to the company.

16. In our opinion the company is not required to be registered under the section 45IAof Reserve Bank of India Act 1934. Thus paragraph 3(xvi) of the Order is not applicableto the company.

For Ajay Paliwal& Co.
Chartered Accountants
(Firm Registration No. 012345C)
SD/-
CA Ajay Paliwal
Proprietor
Membership No. 403290
DATE :31-07-2020
PLACE : UDAIPUR
UDIN: 20403290AAAAAK5064

Annexure B to Independent Auditor's report of even date on the standalone Ind ASFinancial Statements of Bohra Industries 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 BohraIndustries Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were 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 .

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 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exits 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 statement 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.

Qualified Opinion

1. The procedure of physical verification of Inventory of finished goods semi finishedgoods WIP and consumable stores followed by the management are not reasonable andadequate in relation to the size of the company and the nature of its business.Substantial inventory 3356.879 MT whose valuation comes around Rs. 37928765as permanagement have been reported as short during the year therefore adequate measures tosafeguard the inventories should be taken immediately.

2. The Company did not have appropriate internal control system over debtors andcreditors confirmation and reconciliation of balances with parties. This could potentiallyresult in material misstatements in company's trade receivables and trade payables.

3. The Company does not have adequate system to monitor and operate the control ofdepositing undisputed statuary dues with appropriate authorities. This could potentiallyresult in levy of interest and other penal provisions of statutes and have a significantimpact on functioning of the Company.

4. There is a material weakness with regard to control over advances given to supplierof goods and services as a result many parties to whom advances were given stand unsettle.There is no control system over confirmation and reconciliation of balances with partiesand same may potentially result in write off of advances and have an potential impact onfinancial statement of the company.

5. In our opinion except above qualification the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as atMarch 312020 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India .

For Ajay Paliwal& Co.
Chartered Accountants
(Firm Registration No. 012345C)
SD/-
CA Ajay Paliwal
Proprietor
Membership No.403290
DATE :31-07-2020
PLACE : UDAIPUR
UDIN: 20403290AAAAAK5064

.