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Bright Brothers Ltd.

BSE: 526731 Sector: Industrials
NSE: BRIGHTBROS ISIN Code: INE630D01010
BSE 14:31 | 17 Feb 82.05 -1.60
(-1.91%)
OPEN

86.95

HIGH

86.95

LOW

82.05

NSE 05:30 | 01 Jan Bright Brothers Ltd
OPEN 86.95
PREVIOUS CLOSE 83.65
VOLUME 436
52-Week high 97.00
52-Week low 46.00
P/E 8.50
Mkt Cap.(Rs cr) 47
Buy Price 80.95
Buy Qty 10.00
Sell Price 82.80
Sell Qty 10.00
OPEN 86.95
CLOSE 83.65
VOLUME 436
52-Week high 97.00
52-Week low 46.00
P/E 8.50
Mkt Cap.(Rs cr) 47
Buy Price 80.95
Buy Qty 10.00
Sell Price 82.80
Sell Qty 10.00

Bright Brothers Ltd. (BRIGHTBROS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

BRIGHT BROTHERS LIMITED

Report on the Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Bright BrothersLimited ("the Company") which comprise the Balance Sheet as at March 312018 the Statement of Profit and Loss the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and summary of the significant accountingpolicies and other explanatory information.

Management's Responsibility for the 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 preparation ofthese Ind AS financial statements that give a true and fair view of the state of affairsfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We are also responsible to 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause an entity to cease to continue as a going concern.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 March 31 2018 its profit (including other comprehensive income) changes in equityand its cash flows for the year 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 by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 33 ( Sn 1 to 5) to the Ind ASfinancial 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 tothe Investor Education and Protection Fund by the Company.

iv. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from November 8 2016 to December 30 2016 havenot been made since they do not pertain to the financial year ended March 31 2018.

For Desai Saksena & Associates
Chartered Accountants
Firm's registration No.: 102358W
Alok K. Saksena
Partner
M.N.35170
Place: Mumbai
Date: 29th May 2018

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31st March 2018 we report that:

(i) In respect of Company's property plant and equipment:

(a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment.

(b) The property plant and equipment were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the property plant and equipment at reasonableintervals. According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

(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 immovable properties areheld in the name of the Company.

(ii) In respect Company's inventories:

The inventory except goods-in-transit and inventory lying with third parties has beenphysically verified by the management at reasonable intervals during the year. In ouropinion the frequency of such verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material.

(iii) In our opinion and according to information and explanation given to us theCompany has not granted any loans secured or unsecured to parties covered in the registermaintained under section 189 of the Act. Accordingly paragraph 3 (iii) of the order isnot applicable to the Company.

(iv) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured or provided any guarantees or security to partiescovered under section 185 of the Act. The Company has not granted any loans noinvestments has been made no guarantees or security are given to parties covered section186 of the Act. Accordingly paragraph 3 (iv) of the order is not applicable to theCompany.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with directives issued by Reserve Bank of India and the provision ofsections 73 to 75 or any other applicable provisions of the Act and the (Acceptance ofDeposits) rules 2014 with regard to the deposits accepted from the public. According tothe information and explanations given to us no order has been passed by the Company Lawboard or the National Company Law Tribunal or the reserve bank of India or any Court orany other Tribunal. In our opinion and according to explanation given to us the Companyhas not accepted deposit from non-members.

(vi) We have broadly reviewed the books of accounts and records maintained by theCompany pursuant to the rules prescribed by the Central Government under sub section (1)of section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of excise duty of customs service tax goods andservice tax professional tax cess and other material statutory dues have been generallyregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofexcise duty of customs service tax goods and service tax professional tax cess andother material statutory dues were in arrears as at 31st March 2018 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialstatutory dues which have not been deposited with the appropriate authorities on accountof any dispute other than the following dues of duty of excise service tax Income taxsales tax value added tax and provident fund:

Sr. No. Name of the Statute Nature of dues Financial Year to which it pertains Forum where dispute is pending *Amount (Rs. in lakhs)
1 Bombay sales Tax Act 1959 and Central sales Tax Act 1956 Sales tax Interest and Penalty 1992-93 1998-99 2001-02 Sales tax appellate tribunal 8.02
2 Bombay sales Tax Act Sales tax Interest and Penalty 1987-89 Joint commissioner (appeals-sales tax) 16.86
3 Central sales Tax Act 1956 CsT - sales Tax Interest and Penalty 2005-06 Sales tax appellate tribunal 3.97
4 Central sales Tax Act 1956 CsT - sales Tax Interest and Penalty 2008-09. Joint commissioner (appeals-sales tax) 7.89
5 Maharashtra Value Added Tax Act 2002 and Central sales Tax Act 1956 VAT-CsT Interest and Penalty 2007-08 Deputy commissioner (appeals-sales tax) 26.90
6 The Central Excise Act 1944 Duty and Penalty 1996-1997 to 1998-1999 Cestat 89.78
7 Provident Fund Act 1952 P.F.dues 2010-2011 2011-2012 2012-2013 Commissioner (pf) 8.66
8 Service Tax under the Finance Act 1994 Service tax 2012-13 Additional commissioner of service tax 6.46
9 Sales Tax and Central sales Tax Sales Tax 2009-10 2010-11 2011-12 2012-13 2013-14 Deputy Commissioner of commercial taxes 69.19

* Note: 1. The Company has made provision of Rs.0.27 lacs on account of disputedstatutory Liabilities. Disputed amount is disclosed net of provision made.

2. Interest and Penalty as per the orders received.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments). The term loan raised during the year has beenapplied for the purpose for which it was raised.

(x) According to the 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.

(xi) According to the information and explanations give to us and based on ourexamination 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 our 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 ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Ind As 24 "related Parties Disclosures" specified under section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination 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. Accordingly paragraph 3(xiv) of the order is not applicable.

(xv) According to the information and explanations given to us and based on ourexamination 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) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the order is not applicable.

For Desai Saksena & Associates
Chartered Accountants
Firm's registration No.: 102358W
Alok K. Saksena
Partner
M.N.35170
Place: Mumbai
Date: 29th May 2018

Annexure - B to the Independent Auditors' Report for the year ended 31st March 2018 onthe Ind As Financial statement

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 BrightBrothers Limited ("the Company") as of March 31 2018 in conjunction with ouraudit of the Ind AS 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 Reporting('Guidance Note') issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' 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 and the standards on Auditing issued by ICAI and deemed to beprescribed under Section 143 (10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout 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 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 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 Ind AS 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 Ind AS financial statements for external purposes in accordance with thegenerally accepted accounting principles. A Company's internal financial control overfinancial reporting 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Ind AS 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 however the same needs to bestrengthen and such internal financial controls over financial reporting were operatingeffectively as at March 31 2018 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

For Desai saksena & Associates
Chartered Accountants
Firm's registration No.: 102358W
Alok K. Saksena
Partner
M.N.35170
Place: Mumbai
Date: 29th May 2018