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Shree Bhavya Fabrics Ltd.

BSE: 521131 Sector: Industrials
NSE: N.A. ISIN Code: INE363D01018
BSE 00:00 | 27 Aug 2.36 0
(0.00%)
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2.36

HIGH

2.36

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2.36

NSE 05:30 | 01 Jan Shree Bhavya Fabrics Ltd
OPEN 2.36
PREVIOUS CLOSE 2.36
VOLUME 10
52-Week high 9.59
52-Week low 2.36
P/E 2.03
Mkt Cap.(Rs cr) 2
Buy Price 2.36
Buy Qty 3990.00
Sell Price 3.10
Sell Qty 50.00
OPEN 2.36
CLOSE 2.36
VOLUME 10
52-Week high 9.59
52-Week low 2.36
P/E 2.03
Mkt Cap.(Rs cr) 2
Buy Price 2.36
Buy Qty 3990.00
Sell Price 3.10
Sell Qty 50.00

Shree Bhavya Fabrics Ltd. (SHREEBHAVYA) - Auditors Report

Company auditors report

To the Members of

M/S. SHREE BHAVYA FABRICS LIMITED

(FORMERLY KNOWN AS ANJANI DHAM INDUSTRIES LIMITED)

Report on the Standalone Financial Statements

I have audited the accompanying these standalone financial statements of M/S. SHREEBHAVYA FABRICS LIMITED (FORMERLY KNOWN AS ANJANI DHAM INDUSTRIES LIMITED) ("theCompany") which comprise the Balance Sheet as at March 31 2018 the Statement ofProfit and Loss (including other comprehensive income) Cash Flow Statement and thestatement of changes in equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility 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 preparationand presentation of these these standalone financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows statement the statement of changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Indian Accounting Standards) Rules 2015. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies; makingjudgements 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these these standalone financialstatements based on my audit. I have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

I conducted my audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the these standalone financial statements.

Opinion :

In my opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone 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 2018 and its profit including other comprehensive income its cash flowsand the statement of changes in equity for the year ended on that date.

Other Matters

1. The comparative financial information of the company for the year ended March 312017 prepaid in accordance with accounting standards included in these standalonefinancial statements have been audited by the predecessor auditor. The report of thepredecessor auditor on the comparative financial information dated May 30 2017 expressedan unmodified opinion.

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 statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that: a) I have sought andobtained all the information and explanations which to the best of my knowledge and beliefwere necessary for the purpose of my audit. b) In my opinion proper books of account asrequired by law have been kept by the Company so far as appears from our examination ofthose books; c) The balance sheet the statement of profit and loss and the cash flowStatement dealt with by this Report are in agreement with the books of account; d) In myopinion the aforesaid these standalone financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the companies(Accounts) Rules 2014; e) On the basis of written representations received from thedirectors as on March 31 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2018 from being appointed as a director in termsof Section 164 (2) of the Act; and f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to my seprate Report in "Annexure B". My report expressan unmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting. g) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i) The Company does not have any pending litigations forwhich provision have not been made which would impact its financial position. ii) TheCompany has made provision as required under the applicable law or accounting standardsfor material foreseeable losses if any. iii) There were no amounts which were required tobe transferred to the Investor Education and Protection Fund by the Company.

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/05/2018 Proprietor
M. No. 132305

Annexure "A" to the Independent Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2018 we reportthat; (i) In respect of its property plant and equipment / Fixed Assets: (a) The Companyhas maintained proper records showing full particulars including quantitative details andsituation of property plant and equipment / fixed assets.

(b) As per the information and explanations given to us all the assets have not beenphysically verified by the management during the year but there is a regular programme ofverification which in our opinion is reasonable having regard to the size of the companyand the nature of its assets. No material discrepancies 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 of Inventory:

(a) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals. In our opinion the frequency of verification isreasonable. As informed to us there were no material discrepancies noticed on verificationbetween the physical stocks and the book records and any discrepancies found has beenproperly dealt within the books of accounts.

(iii) The company has granted loan unsecured loan to one company covered in theregister maintained u/s. 189 of the Companies Act : (a) Receipt of the principal amountand interest are also regular.

(b) In respect of the said loans and interest thereon their are no overdue amounts.iv) In our 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 and guarantees and securities given. v) According to theinformation and explanation given to us the company has not accepted any deposit from thepublic during the year. Therefore the provisions of clause (v) of paragraph 3 of the orderare not applicable to the company. vi) The central government has prescribed maintenanceof cost records under section 148(1)(d) of the companies act 2013 in respect of certainmanufacturing activities of the company. Company has obtained cost audit report for thefinancial year 2016-17 during the year. We have broadly reviewed the accounts and recordsof the company in this connection and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however carried outdetailed examination of the same. vii) (a) The company is generally regular in depositingthe undisputed statutory dues including Provident Fund Employees State Insurance IncomeTax Wealth Tax Sales Tax Goods and Service Tax Custom Duty Excise Duty Service TaxValue Added Tax Cess and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of afore mentioned dues were outstanding as at 31St March 2018 for a period ofmore than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of Income Tax Wealth Tax Sales Tax Goods and Service Tax Custom Duty ExciseDuty Service Tax Value Added Tax Cess and any other statutory dues which have not beendeposited with the appropriate authorities on account of any dispute.

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to financial institutions or banks. Asthere are no debentures the question of repayment does not arise.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and in our opinion and according to theinformation and explanations given to us the Term loans have been applied for the purposefor which they were obtained.

(x) According to the information and explanation 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 not applicable.

(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 and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(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.

(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) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/05/2018 Proprietor
M. No. 132305

Annexure "B" to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

I have audited the internal financial controls over financial reporting of M/S. SHREEBHAVYA FABRICS LIMITED ("the Company") as of 31 March 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year endedthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls 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'). Theseresponsibility include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

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 of Accounting 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 FinancialConrols both issued by the Institute of Chartered Accountants of India. Those Standardsand the Guidance Note require that I comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated 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 or 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 judgement 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 fiiancial 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 of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thCompany'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.

Opinion

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 were operating effectively as at 31 March 2018 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 Reporing issued by the Institute of CharteredAccountants of India.

As per our Report of Even Date
For and on Behalf of
For Abhishek Kumar & Associates
Chartered Accountants
Firm Regn. No. 130052W
Place : Ahmedabad (CA. Abhishek Agarwal)
Date : 30/05/2018 Proprietor
M. No. 132305