Mar 31, 2023
Report on the Audit of Standalone Financial Statements
1. We have audited the accompanying standalone Ind AS financial statements of Bhansali Engineering Polymers Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement, the Statement of Changes in Equity for the year ended on that date, and a summary of the significant accounting policies and other explanatory information.
Opinion
2. In our opinion and to the best of our information and according to the explanations given to us, the accompanying standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ), in the manner so required and give a true and fair view in conformity with Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2023, the profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements Section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our audit report.
Sr. No. |
Key Audit Matters |
Auditorâs Response |
1 |
Inventory Valuation Styrene & ACN Monomers are the major imported raw materials of the Company which accounted for 59% of the total inventory lying with company as on 31st March, 2023. There being no domestic manufacturers for Styrene & ACN Monomers, the said raw materials are imported by the Company, therefore subject to high risk of price fluctuations and foreign currency exchange rate volatility. The volatility in the prices of Styrene & ACN Monomers can significantly impact the valuation of not only Raw materials but also other items of inventory. We have considered this as a key audit matter due to the significance of the said Monomers in the amount of inventory. |
Principal Audit Procedures We have reviewed the method followed by the company to value the Raw materials and other items lying in Stock at the end of the year. We have also reviewed the valuation of Styrene & ACN Monomers along-with other monomers and sub-raw materials in the SAP software based on the Inventory valuation policy and the exchange rates adopted by the Company to value its Inventories. |
5. The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the Standalone Financial Statements
6. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal & Regulatory Requirements
8. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. 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 (including other comprehensive income), the Cash Flow statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e) On the basis of written representations received from the Directors as on 31st March, 2023, taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2023 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financials control over financial reporting of the Company and the operative effectiveness of such controls, refer to our separate report in âAnnexure IIâ.
g) With respect to the matters to be included in the Auditorâs Report in accordance with the requirements of Section 197(16) of the Act as amended,
In our opinion and to the best of our information and according to the explanation given to us, the remuneration paid/ provided by the Company to its Directors during the year is in accordance with the provisions of Section 197 read with Schedule V to the Act.
h) With respect to the other matters to be included in the Auditorâs 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 litigations, on its financial position in its Standalone financial statements.
ii. The Company does not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. As per the management representation we report,
(a) no funds have been advanced or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities (âIntermediariesâ),with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate beneficiaries.
(b) no funds have been received by the Company from any person(s) or entities, including foreign entities (âFunding Partiesâ),with the understanding that the such Company shall whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or provide guarantee, security or the like on behalf of the Ultimate beneficiaries.
(c) Based on the audit procedures performed, we report that nothing has come to our notice that has caused us to believe that the representations given under sub-clause (i) and (ii) of Rule 11(e) by the management contain any material mis-statement.
i) The dividends declared and paid by the Company during the year is in compliance with Section 123 of the Act.
For and on behalf of Azad Jain & Co
Chartered Accountants FR. No.: 006251C
Partner M.No. : 400600
Place : Mumbai
Dated : 21st May, 2023
UDIN No.: 23400600BGZHHL5090
Mar 31, 2022
Bhansali Engineering Polymers LimitedReport on the Audit of Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Bhansali Engineering Polymers Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2022, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement, the Statement of Changes in Equity for the year ended on that date, and a summary of the significant accounting policies and other explanatory information.
Opinion
2. I n our opinion and to the best of our information and according to the explanations given to us, the accompanying standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ), in the manner so required and give a true and fair view in conformity with Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2022, the profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis of Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements Section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our audit report.
Sr. No. |
Key Audit Matter |
Auditorâs Response |
1. |
Inventory Valuation and Management Due to the materiality of the value of Inventory for the year ended 31st March, 2022 and significant movement of raw material between ports and plants, we identified this matter as key in our audit. |
Principal Audit Procedures Assessment of the design, implementation and operational effectiveness of the relevant controls in place for inventory management and measurement process. Evaluation of the inventory costing methodology and valuation policy established by management, including compliance with the applicable accounting standard. Assessing the analysis and assessment made by the management with respect to physical verification of the Inventories. Verification of the determination of net realizable value on a representative sample basis. |
Information Other than the Standalone Financial Statements and Auditorâs Report thereon
5. The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
I n connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Financial Statements
6. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
7. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠I dentify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal & Regulatory Requirements
8. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.
9. 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) I n 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 (including other comprehensive income), the Cash Flow statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d) I n our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e) On the basis of written representations received from the Directors as on 31st March, 2022, taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2022 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financials control over financial reporting of the Company and the operative effectiveness of such controls, refer to our separate report in âAnnexure IIâ.
g) With respect to the other matters to be included in the Auditorâs 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 litigations, on its financial position in its Standalone financial statements.
ii. The Company does not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
For and on behalf of Azad Jain & Co
Chartered Accountants F.R. No.: 006251C
Partner M. No. : 400600
Place: Mumbai
Dated: 23rd April, 2022
UDIN NO: 22400600AHQJKE4639
Mar 31, 2018
1. Report on the Indian Accounting Standards (Ind AS) Standalone Financial Statements
We have audited the accompanying Ind AS standalone financial statements of Bhansali Engineering Polymers Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement, the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
2. Managementâs Responsibility for the Ind AS Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation of these Ind AS standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting standards) Rules,2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Ind AS Standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS Standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operative effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS standalone financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the accompanying Ind AS standalone financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018 and its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
5. Other Matter
The comparative financial information of the company for the year ended 31st March,2017 and the transition date opening balance sheet as at 1st April,2016 prepared in accordance with Ind AS included in these Ind AS Standalone financial statements have been audited by the predecessor auditor who had audited the statutory standalone financial statements for the years ended 31st March,2017 and 31st March,2016. The predecessor auditor had expressed an unmodified opinion on the comparative financial information and the opening balance sheet vide report dated 16th April,2017.
Our opinion is not qualified in respect of these matters.
6. Report on Other Legal & Regulatory Requirements
I As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.
II 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 (including other comprehensive income), the Cash Flow statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid Ind AS standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
e) On the basis of written representations received from the Directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financials control over financial reporting of the company and the operative effectiveness of such controls, refer to our separate report in Annexure II
g) With respect to the other matters to be included in the Auditorâs 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 litigations, if any on its financial position in its Ind AS Standalone financial statements.
ii. The Company does not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE I TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 7 under the heading of âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
1 a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, a major portion of the fixed assets has been physically verified by the management during the year in a phased periodical manner which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of Immovable properties are held in the name of Company.
2 a) The inventories were physically verified by the management during the year except goods in transit and those lying with third parties. In respect of inventory lying with third parties, these have substantially been confirmed by them.
b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of the above stocks followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
c) As explained to us, the discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.
3. As informed to us, the company has not granted any loans secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Hence paragraph (a), (b) & (c) of Clause 3 (iii) of the Order are not applicable.
4. In our opinion and according to the information and explanations given to us, the company has not granted any loans or provided any guarantees or security in respect of any loan(s) to any party covered under Section 185 of the Act. In respect of Investments made in Body Corporate by the Company, the provisions of Section 186 of the Act, has been complied with.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Section 73, 74, 75 and 76 of the Act and the Rules framed thereunder to the extent notified.
6. We have broadly reviewed the books of account maintained by the company in respect of products, pursuant to the Companies (Cost Records and Audit) Rules, 2014 as amended and prescribed by the Central Government under sub section (1) of Section 148 of the Act. We are of the opinion that, prima facie, the cost records and accounts have been maintained by the Company. However, we are not required to carry out and have not carried out any detailed examination of such accounts and records.
7. a) In our opinion and according to the information and explanations given to us and the records of the Company examined by us, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Custom Duty, GST, Excise Duty, Cess, Service Tax and any other statutory dues have been generally regularly deposited in time with the appropriate authorities and there are no undisputed statutory dues payable at the year-end for a period of more than six months from the date they became payable.
b) In our opinion and according to the information and explanations given to us and the records of the Company examined by us, there are no dues outstanding in respect of Income Tax, Sales Tax, Custom Duty, Excise Duty, GST, Service Tax, Cess and any other statutory dues on account of any dispute.
8. According to the information and explanations given to us, the Company has repaid all its borrowings taken from Banks and there is no loan outstanding as on the Balance sheet date. The company has not taken any loans or borrowings from financial institution, government and debenture-holders.
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and has not availed any term loans during the year under audit. Hence the provisions of clause 3 (ix) of the Order is not applicable to the Company.
10. During the course of our examination of the books and records of the company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. In our opinion and according to information and explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to information and explanations given to us, the Company is not a Nidhi Company, hence the provisions of Clause 3 (xii) of the Order is not applicable to the company.
13. In our opinion and according to information and explanations given to us, transactions with related parties are in compliance with sections 177 and 188 of Act wherever applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the Clause 3 (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him. Hence the provisions of Clause 3 (xv) the Order is not applicable to the Company.
16. According to information and explanations given to us, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the Clause 3 (xvi) of the Order is not applicable to the Company.
ANNEXURE II TO THE INDEPENDENT AUDITORâS REPORT
(Refereed to in paragraph 6(II)(F) of the Independent Auditorâs Report of even date on the Ind AS standalone financial statements of Bhansali Engineering Polymers Limited on the Internal Financial Controls under clause (i) of Sub- section 3 of section 143 of the Companies Act, 2013 (âthe Actâ))
We have audited the internal financial controls over financial reporting of Bhansali Engineering Polymers Limited as of March 31, 2018 in conjunction with our audit of the Ind AS standalone financial statements of the company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by the Institute of Chartered Accountants of India and deemed to be prescribed u/s 143 (10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls system over financial reporting included obtaining an understanding of internal financial controls system over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depends upon the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transaction and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For and on behalf of
Azad Jain & Co
Chartered Accountants
F.R. No.: 006251C
Rishabh Verdia
Partner
M. No.: 400600
Place : Mumbai
Dated : 13th April, 2018
Mar 31, 2017
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Bhansali Engineering Polymers Limited (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
2. The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operative effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs directors, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the accompanying standalone financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal & Regulatory Requirements
6. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.
7. 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 standalone financial statements comply with the Accounting Standards 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 the Directors as on 31st March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a Director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financials control over financial reporting of the company and the operative effectiveness of such controls, refer to our separate report in âAnnexure IIâ.
g) With respect to the other matters to be included in the Auditorâs 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 litigations on its financial position in its financial statements.
ii. The Company does not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has made the requisite disclosures in its Financial Statements as to the holdings as well as the dealing in specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company.
ANNEXURE I TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 6 under the heading of âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
1 a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, a major portion of the fixed assets has been physically verified by the management during the year in a phased periodical manner which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. As informed to us no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of Immovable properties are held in the name of Company.
2 a) The Physical verification of inventories has been conducted at reasonable intervals by the management during the year.
b) In respect of inventory lying with Third Parties, these have been substantially confirmed by them.
c) As explained to us, the discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.
3. As informed to us, the company has not granted any loans secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Hence paragraph (a), (b) & (c) of Clause 3 (iii) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the company has not granted any loans or provided any guarantee(s) or security in respect of any loan(s) to any party covered under Section 185 of the Act. In respect of Investments made in Body Corporate by the Company, the provisions of Section 186 of the Act, has been complied with.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Section 73, 74, 75 and 76 of the Act and the Rules framed thereunder to the extent notified.
6. We have broadly reviewed the books of account maintained by the company in respect of products, pursuant to the Companies (Cost Records and Audit) Rules, 2014 as amended and prescribed by the Central Government under sub section (1) of Section 148 of the Act, we are of the opinion that, prima facie, the cost records and accounts have been maintained by the Company. However, we are not required to carry out and have not carried out any detailed examination of such accounts and records.
7. a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Custom Duty, Excise Duty, Cess, Service Tax and any other statutory dues have been generally regularly deposited in time with the appropriate authorities and there are no undisputed statutory dues payable at the year-end for a period of more than six months from the date they became payable.
b) In our opinion and according to the information and explanations given to us, there are no dues outstanding in respect of Income Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax and any other statutory dues on account of any dispute.
8. According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings taken from Bank as at the Balance sheet date. The Company does not have any borrowings from Financial Institutions and it has not issued any debenture as at the balance sheet date.
9. The Company has not raised any monies by way of initial public offer or further public offer (including debt instruments) and has not availed any term loans during the year under audit. Hence the provisions of clause 3 (ix) of the Order is not applicable to the Company.
10. During the course of our examination of the books and records of the company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to information and explanations given to us, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the year, nor have we been informed of any such case by the management.
11. In our opinion and according to information and explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to information and explanations given to us, the Company is not a Nidhi Company, hence the provisions of Clause 3 (xii) of the Order is not applicable to the company.
13. In our opinion and according to information and explanations given to us, transactions with related parties are in compliance with sections 177 and 188 of Act wherever applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the Clause 3 (xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has not entered into any non-cash transactions with directors or persons connected with him. Hence the provisions of Clause 3 (xv) the Order is not applicable to the Company.
16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the Clause 3 (xvi) of the Order is not applicable to the Company.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No.: 112615W
Sushant Mehta
Partner
Place : Mumbai M.No. : 112489
Dated: 16th April, 2017
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Bhansali Engineering Polymers Limited ("the Company") which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss, the Cash Flow Statement for the year then ended, and a summary of
the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act 2013 ("the Act") with
respect to the preparation of these standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the company
and for preventing & detecting fraud & other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls system over financial reporting and the operative
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's directors, as well as
evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the accompanying standalone financial
statements give the information required by the Act, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of
affairs of the Company as at 31st March, 2015 and its profit and its
cash flows for the year ended on that date.
Report on Other Legal & regulatory Requirements
6. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
7. 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 standalone financial statements comply
with the Accounting Standards 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 the Directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015 from being
appointed as a Director in terms of Section 164(2) of the Act.
f) 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 litigations on its
financial position in its financial statements.
ii. The Company does not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 6 under the heading of "Report on Other Legal
and Regulatory Requirements" section of our report of even date)
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year in a phased periodical
manner which, in our opinion, is reasonable having regards to the size
of the company and the nature of its assets. As informed to us no
material discrepancies were noticed on such verification.
2 a) The inventories were physically verified by the management during
the year.
b) In our opinion and according to the information and explanations
given to us , the procedures of physical verification of the above
stocks followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us, the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. As informed to us, the company has not granted any loans secured or
unsecured to Companies, firms and other parties covered in the register
maintained under Section 189 of the Act.
4. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventory, fixed assets and for the sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal control systems.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits during the year and
does not have any unclaimed deposits. Therefore, the provisions of
clause 3 (v) of the Order are not applicable to the company.
6. We have broadly reviewed the books of account maintained by the
company in respect of products, pursuant to the Companies (Cost Records
and Audit ) Rules, 2014 as amended and prescribed by the Central
Government under sub section (1) of Section 148 of the Act, we are of
the opinion that, prima facie, the cost records and accounts have been
maintained by the Company. However, we are not required to carry out
and have not carried out any detailed examination of such accounts and
records.
7. a) In our opinion and according to the information and explanations
given to us, undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and any other statutory dues have
been generally regularly deposited in time with the appropriate
authorities and there are no undisputed statutory dues payable at the
year end for a period of more than six months from the date they became
payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues outstanding in respect of Income Tax,
Wealth Tax , Sales Tax, Custom Duty, Excise Duty, Service Tax and any
other statutory dues on account of any dispute other than the
following:-
Name of the Statute Nature of the Amount
Dues (Rs. in lacs)
The Central Excise Act, Service Tax 120.00
1944
The Customs Act, 1962 Custom Duty 295.78
The Income Tax Act,1961 Income Tax 291.76
Name of the Statute Year to which the Forum where
amount relates Dispute is Pending
The Central Excise Act, 2006-2007 CESTAT , Delhi
1944
The Customs Act, 1962 2005 Supreme Court
The Income Tax Act,1961 2010-11 ITAT, Mumbai
c) The company has been regular in transferring amounts to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 and Rules made thereunder within
time.
8. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
9. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions or banks
during the year and does not have any amount outstanding to debenture
holders.
10. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
11. In our opinion and according to the information and explanations
given to us, the company has not availed any term loans during the
year.
12. During the course of our examination of books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No.: 112615W
Sushant Mehta
Partner
Place: Mumbai M.No.: 112489
Date : 30th May, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of Bhansali
Engineering Polymers Limited ("the Company") which comprise the Balance
Sheet as at 31st March, 2014, the Statement of Profit and Loss Account
and the Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211of the Companies Act, 1956 of India ( the "Act")
read with the General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting polices used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014; ii. in the case of the Statement of
Profit and Loss, of the profit for the year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 and on the basis of such checks of
the books and records of the company as we considered appropriate and
according to the information and explanation given to us, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the order.
8. As required by Section 227(3) of the Act, we report that:
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow statement comply with the Accounting Standards notified under
the Act read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013.
e) On the basis of written representations received from the Directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014 from being
appointed as a Director in terms of Section 274(1) (g) of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT Referred to in paragraph 7
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year in a phased periodical
manner which, in our opinion, is reasonable having regards to the size
of the company and the nature of its assets. As informed to us no
material discrepancies were noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year, which has bearing on the going concern assumption.
2 a) The stocks of finished goods, raw materials, stock-in-process and
stores and spares of the Company have been physically verified by the
management during the year.
b) The procedures of physical verification of the above stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us, the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. As informed to us, the company has neither granted nor taken any
loans secured or unsecured to Companies, firms and other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956. Consequently requirements of clause (iii) (a) to (iii) (g)
of paragraph 4 of the Order are not applicable and hence not commented
upon.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control systems.
5 a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements that
needs to be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion, and according to the information and explanations
given to us, there are no transactions made in pursuance of such
contracts or arrangements and exceeding the value of Rupees Five Lacs
in respect of any party during the year, which have been made at prices
which are not reasonable having regard to the prevailing market prices
at the relevant date. .
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under to the extent applicable with regards to the
deposits accepted from the public.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products, pursuant to the rules made by the
Central Government of India for the maintenance of cost records under
section 209 (1) (d) of the Companies Act,1956 and we are of the opinion
that, prima facie, the cost records and accounts have been maintained
by the Company. However, we are not required to carry out and have not
carried out any detailed examination of such accounts and records.
9 a) In our opinion and according to the information and explanations
given to us, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess,
Service Tax and any other statutory dues have been generally regularly
deposited in time with the appropriate authorities and there are no
undisputed statutory dues payable at the year end for a period of more
than six months from the date they became payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues outstanding in respect of Income Tax,
Wealth Tax , Sales Tax, Custom Duty, Excise Duty, Service Tax and any
other statutory dues on account of any dispute other than the
following:-
Name of the
Statute Nature of the Amount Year to which Forum where
Dispute
Dues the amount is Pending
(Rs. in
lacs) relates
The Central
Excise Act,
1944 Service Tax 120.00 2006-2007 CESTAT , Delhi
Customs Act,
1962 Custom Duty 295.78 2005 Supreme Court
The Income
Tax Act,1961 Income Tax 291.76 2010-11 Commissioner of
Income Tax,
Appeals
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of any dues to financial institutions or
banks.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society, therefore, the clause 4 (xiii) of the Order is
not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the Company has not raised any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been used for
long term investment.
18. The Company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4 (xx) of the order are
not applicable to the company.
21. During the course of our examination of books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us , we have neither come across any instance of material
fraud on or by the Company, noticed or reported during the year , nor
have we been informed of such case by the management.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No.: 112615W
Sushant Mehta
Partner
Place : Mumbai M.No. : 112489
Dated : 29th May, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of Bhansali
Engineering Polymers Limited ("the Company") which comprise the Balance
Sheet as at 31st March'' 2013'' the Statement of Profit and Loss Account
and the Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information''
which we have signed under reference to this report.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position'' financial performance and cash flows of the company
in accordance with the Accounting Standards referred to in sub-section
(3C) of section 211of the Companies Act'' 1956 of India ( the "ActÂ).
This responsibility includes the design'' implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement'' whether due to fraud or error.
AuditorÂs Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditorÂs judgment'' including the
assessment of the risks of material misstatement of the financial
statements'' whether due to fraud or error. In making those risk
assessments'' the auditor considers internal control relevant to the
CompanyÂs preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management'' as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us'' the accompanying financial statements
give the information required by the Companies Act'' 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India;
i. in the case of the Balance Sheet'' of the state of affairs of the
Company as at 31st March'' 2013; ii. in the case of the Profit and Loss
Account'' of the profit for the year ended on that date; and iii. in
the case of Cash Flow Statement'' of the cash flows for the year ended
on that date. Report on Other Legal and Regulatory Requirements
7. As required by the Companies (AuditorÂs Report) Order'' 2003 ("the
OrderÂ) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act'' 1956 and on the basis of such checks of
the books and records of the company as we considered appropriate and
according to the information and explanation given to us'' we give in
the Annexure'' a statement on the matters specified in paragraphs 4 and
5 of the order.
8. As required by Section 227(3) of the Act'' we report that:
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet'' Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion'' the Balance Sheet'' Profit and Loss Account and Cash
Flow statement comply with the Accounting Standards referred to in
Section 211(3C) of the Companies Act'' 1956.
e) On the basis of written representations received from the Directors
as on 31st March'' 2013 and taken on record by the Board of Directors''
none of the Directors is disqualified as on 31st March'' 2013 from being
appointed as a Director in terms of Section 274(1) (g) of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORSÂ REPORT
Referred to in paragraph 7 under the heading of "Report on Other Legal
and Regulatory Requirements of our report of even date
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to us'' all the fixed assets have been physically
verified by the management during the year in a phased periodical
manner which'' in our opinion'' is reasonable having regards to the size
of the company and the nature of its assets. As informed to us no
material discrepancies were noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year'' which has bearing on the going concern assumption.
2 a) The stocks of finished goods'' raw materials'' work-in-process and
stores and spares of the Company have been physically verified by the
management during the year.
b) The procedures of physical verification of the above stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us'' the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. As informed to us'' the company has neither granted nor taken any
loans'' secured or unsecured to or from Companies'' firms or other
parties covered in the register maintained under Section 301 of the
Companies Act'' 1956. Consequently'' requirements of clauses (iii.a) to
(iii.g) of paragraph 4 of the Order are not applicable and hence not
commented upon.
4. In our opinion and according to the information and explanations
given to us'' there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory'' fixed assets and for the sale of goods.
During the course of our audit'' we have not observed any continuing
failure to correct major weaknesses in internal control systems.
5 a) According to the information and explanations given to us'' we are
of the opinion that the particulars of contracts or arrangements that
needs to be entered in the register maintained under section 301 of the
Companies Act'' 1956 have been so entered.
b) In our opinion'' and according to the information and explanations
given to us'' there are no transactions made in pursuance of such
contracts or arrangements and exceeding the value of Rupees Five Lacs
in respect of any party during the year'' which have been made at prices
which are not reasonable having regard to the prevailing market prices
at the relevant date. .
6. In our opinion and according to the information and explanations
given to us'' the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A'' 58AA or any
other relevant provisions of the Companies Act'' 1956 and the rules
framed there under to the extent applicable with regards to the deposit
accepted from the public.
7. In our opinion'' the Company has an internal audit system
commensurate with its size and nature of business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products'' pursuant to the rules made by the
Central Government of India for the maintenance of cost records under
section 209 (1) (d) of the Companies Act''1956 and we are of the opinion
that'' prima facie'' the cost records and accounts have been maintained
by the Company. However'' we are not required to carry out and have not
carried out any detailed examination of such accounts and records.
9 a) In our opinion and according to the information and explanations
given to us'' undisputed statutory dues including Provident Fund''
Investor Education and Protection Fund'' Employees State Insurance''
Income Tax'' Sales Tax'' Wealth Tax'' Custom Duty'' Excise Duty'' Cess''
Service Tax and any other statutory dues have been generally regularly
deposited in time with the appropriate authorities and there are no
undisputed statutory dues payable at the year end for a period of more
than six months from the date they became payable.
b) In our opinion and according to the information and explanations
given to us'' there are no dues outstanding in respect of Income Tax''
Wealth Tax '' Sales Tax'' Custom Duty'' Excise Duty'' Service Tax and any
other statutory dues on account of any dispute other than the
following:-
Name of the
Statute Nature of the
Dues Amount Year to
which the Forum where Dispute is
(Rs in lacs)amount
relates Pending
The Central
Excise Act'' Service Tax 120.00 2006-2007 Assistant
Commissioner of
1944 Central Excise''
Bhopal
The Income
Tax Income Tax 240.51 2006-2007 and Commissioner
of Income
Act''1961 2007-2008 Tax'' Appeals
Customs
Act'' 1962 Custom Duty 295.78 2005 Supreme Court
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us'' we are of the opinion that the Company has
not defaulted in repayment of any dues to financial institutions or
banks.
12. According to the information and explanations given to us'' the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares'' debentures and other securities.
13. In our opinion'' the Company is not a chit fund or a nidhi/mutual
benefit fund/society'' therefore'' the clause 4 (xiii) of the Order is
not applicable to the Company.
14. In our opinion'' the Company is not dealing in or trading in shares''
securities'' debentures and other investments.
15. In our opinion and according to the information and explanations
given to us'' the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us'' the company has not raised any term loans during the year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company'' we are of the
opinion that no funds raised on short term basis have been used for
long term investment.
18. The Company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under Section 301 of the Companies Act'' 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through a public issue during
the year. Accordingly'' the provisions of clause 4 (xx) of the order are
not applicable to the company.
21. During the course of our examination of books and records of the
Company'' carried out in accordance with the generally accepted auditing
practices in India'' and according to the information and explanations
given to us '' we have neither come across any instance of material
fraud on or by the Company'' noticed or reported during the year '' nor
have we been informed of such case by the management.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No: 112615W
Sushant Mehta
Partner
Place : Mumbai M.No - 112489
Dated : 26th May'' 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Bhansali Engineering
Polymers Limited as at 31 st March, 2012, the Profit and Loss Account
and the Cash Flow Statement for the year ended on that date, both
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on test basis evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 & 5
of the said Order.
4 Further to our comments in the Annexure referred to in paragraph 3
above, we report that: -
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
as on 31 st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31 st March,
2012 from being appointed as a Director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2012;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
For and on behalf of B. L. Dasharda & Associates Chartered Accountants
F.R. No. 112615W Sushant Mehta Partner Membership No. : 112489 Place :
Mumbai Dated : 29th May, 2012
Statement referred to in paragraph 3 of our report of even date on the
accounts for the year ended 31st March, 2012 of Bhansali Engineering
Polymers Limited.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and
situation of fixed assets.
b) As explained to us, all the fixed assets have been physically
verified by the management during the year in a phased periodical
manner which, in our opinion, is reasonable having regards to the size
of the company and the nature of its assets. As informed to us no
material discrepancies were noticed on such verification.
c) No substantial part of fixed assets has been disposed off during the
year, which has bearing on the going concern assumption.
2. a) The stocks of finished goods, raw materials, work-in-process and
stores and spares of the Company have been physically verified by the
management during the year.
b) The procedures of physical verification of the above stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us, the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. As informed to us, the company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, requirements of clauses (iii.b) to (iii.d) of paragraph 4
of the Order are not applicable and hence not commented upon.
4. As informed to us , the company has not taken any loans, secured or
unsecured, from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently, requirements of clauses 4(iii.e) to (iii.g) of paragraph
4 of the Order are not applicable and hence not commented upon.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control systems.
6 a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements that
needs to be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangement and exceeding the value of Rupees Five Lacs have been made
at prices, which are reasonable having regard to the prevailing market
prices at the relevant time.
7. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under to the extent applicable with regards to the deposit
accepted from the public.
8. In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
9. On the basis of the records produced, we are of the opinion that,
prima facie, the cost records and accounts prescribed by the Central
Government u/s 209(1) (d) of the Companies Act,1956 have been
maintained by the Company. However, we are not required to carry out
and have not carried out any detailed examination of such accounts and
records.
10. a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and any other statutory dues have
been generally regularly deposited in time with the appropriate
authorities and there are no undisputed statutory dues payable at the
year end for a period of more than six months from the date they became
payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues outstanding in respect of Income Tax,
Wealth Tax , Sales Tax, Custom Duty, Excise Duty and Service Tax on
account of any dispute other than the following:-
Nature of the Amount Year to which
the Forum where
Dispute
Name of the
Statute Dues (Rs.in
lacs) amount
relates is Pending
The Central
Excise Act,
1944 Service Tax 2006-2007 Assistant
Commissioner
120 0 (Chhindwara)
The Income
Tax Act,1961 Income Tax 240.51 2006-2007
and Income Tax
Appellate
2007-2008 Tribunal
Customs Act Custom Duty 295.78 2005 Deputy
Commissioner
of Customs
11. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
12. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of any dues to financial institutions or
banks.
13. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
14. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society, therefore, the clause 4
(xiii) of the Order is not applicable to the Company.
15. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
16. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
17. In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year.
18. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been used for
long term investment.
19. The Company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
20. The Company has not issued any debentures during the year.
21. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4 (xx) of the order are
not applicable to the company.
22. According to the information and explanation given to us, During
the year one of the employee of company has committed fraud of Rs. 464.02
lacs by way of embezzlement of goods . The company has initiated legal
action against the employee and terminated the services of the
employee. The company has been able to recover Rs. 251.03 lacs till date.
The management has taken adequate steps to improve the internal control
procedures to prevent such instances of fraud in future by formulating
centralized policies and by periodic audits. We have not come across
any other such instances of fraud on or by the company.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No. 112615W
Sushant Mehta
Place : Mumbai Partner
Dated : 29th May, 2012 Membership No. : 112489
Mar 31, 2011
1. We have audited the attached Balance Sheet of Bhansali Engineering
Polymers Limited as at 31st March, 2011 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date,
both annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on test basis evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the Act), we enclose in
the Annexure a statement on the matters specified in paragraphs 4 & 5
of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that: -
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Statement referred to in paragraph 3 of our report of even date on the
accounts for the year ended 31st March, 2011 of Bhansali Engineering
Polymers Limited.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All fixed assets have not been physically verified by the management
during the year but there is a regular programme of periodical
verification in a phased manner which, in our opinion, is reasonable
having regards to the size of the Company and the nature of its assets.
As informed to us no material discrepancies were noticed on such
verification.
c) No substantial part of fixed assets has been disposed off during the
year, which has bearing on the going concern assumption.
2. a) The stocks of finished goods, raw materials, work-in-process and
stores and spares of the Company have been physically verified by the
management during the year.
b) The procedures of physical verification of the above stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us, the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. a) According to the information and explanations given to us, the
Company has obtained unsecured loan from one director covered in the
register maintained under Section 301 of the Companies Act, 1956.The
maximum amount involved during the year is Rs. 54.12 lacs ( P.Y. Rs.
192 lacs) and the year end outstanding is Rs Nil.
b) The loans were at call and no stipulations had been made regarding
payment of the principal and interest.
c) In our opinion and according to the information and explanations
given to us , the rate of interest, if any, and other terms and
conditions on which above loan was taken is prima facie not prejudicial
to the interest of the Company.
4. As informed to us, the Company has not granted any loans secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Consequently,
requirements of clauses (iii.b) to (iii.d) of paragraph 4 of the Order
are not applicable.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control systems.
6. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that needs to be entered in the register maintained under section 301
of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956 have been made at prices, which are reasonable
having regard to the prevailing market prices at the relevant time.
7. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under to the extent applicable with regards to the deposit
accepted from the public.
8. In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
9. On the basis of the records produced, we are of the opinion that,
prima facie, the cost records and accounts prescribed by the Central
Government u/s 209(1) (d) of the Companies Act,1956 have been
maintained by the Company. However, we are not required to carry out
and have not carried out any detailed examination of such accounts and
records.
10. a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Cess, Service Tax and any other statutory dues have been generally
regularly deposited in time with the appropriate authorities and there
are no undisputed statutory dues payable at the year end for a period
of more than six months from the date they became payable.
b) In our opinion and according to the information and explanations
given to us, there are no dues outstanding in respect of Income Tax,
Wealth Tax , Sales Tax, Custom Duty, Excise Duty and Service Tax on
account of any dispute other than the following:-
Name of the
Statute Nature of the
Dues Amount Year to which Forum where
Dispute
(Rs. in
lacs) the amount is Pending
relates
The Central
Excise Service Tax 120.00 2006-2007 Assistant
Commissioner
Act, 1944 (Chhindwara)
The Income
Tax Income Tax 240.50 2006-2007 and Income Tax
Act,1961 2007-2008 Appellate
Tribunal
11. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
12. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of any dues to financial institutions or
banks.
13. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
14. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society, therefore, the clause 4 (xiii) of the Order is
not applicable to the Company.
15. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
16. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
17. In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year.
18. According to the information and explanations given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been used for
long term investment.
19. The Company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
20. The Company has not issued any debentures during the year.
21. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4 (xx) of the order are
not applicable to the company.
22. Based upon the audit procedures performed and on the basis of
information and explanations provided by the Management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
F.R. No. 112615W
Sushant Mehta
Place : Mumbai Partner
Dated : 26th May, 2011 Membership No. : 112489
Mar 31, 2010
1. We have audited the attached Balance Sheet of Bhansali Engineering
Polymers Limited as at 31st March, 2010 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date,
both annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on test basis evidence supporting the amounts and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956 (hereinafter referred to as the Act), we endose in
the Annexure a statement on the matters specified in paragraphs 4 & 5
of the said Order.
4 Further to our comments in the Annexure referred to in paragraph 3
above, we report that: -
a) We have 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 appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956.
e) On the basis of written representations received from the Directors
as on 31" March, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31s March,
2010 from being appointed as a Director in terms of clause (g) of sub
section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
ii. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii. in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph 3 of our report of even date on the
accounts for the year ended 31st March, 2010 of Bhansali Engineering
Polymers Limited.
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All fixed assets have not been physically verified by the management
during the year but that there is a regular programme of periodical
verification in a phased manner which, in our opinion, is reasonable
having regards to the size of the company and the nature of its assets.
As informed to us no material discrepancies were noticed on such
verification.
c) No substantial part of fixed assets has been disposed off during the
year, which has bearing on the going concern assumption.
2.a) The stocks of finished goods, raw materials, work-in-process,
stores and spare parts of the Company have been physically verified by
the management during the year.
b) The procedures of physical verification of the above stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. As explained
to us, the discrepancies between the physical stocks and the book
stocks were not material and have been properly dealt with in the books
of account.
3. a) According to the information and explanations given to us, the
Company has obtained unsecured loan from one director covered in the
register maintained under Section 301 of the Companies Act, 1956.The
maximum amount involved during the year is Rs 192 lacs and the year end
outstanding is Rs Nil.
b) The loans were at call and no stipulations had been made regarding
payment of the principal and interest.
c) In our opinion and according to the information and explanations
given to us , the rate of interest and other terms and conditions on
which above loan was taken is prima facienot prejudicial to the
interest of the company.
4. As informed to us, the company has not granted any loans secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Consequently,
requirements of clauses (iii.b) to (iii.d) of paragraph 4 of the Order
are not applicable.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control systems.
6. a) According to the information and explanations given to us, we
are of the opinion that the particulars of
contracts or arrangements that needs to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, having regard to the explanation that many of the items
are of a special nature and their prices cannot be compared with
alternative quotations , the transactions made in pursuance of contract
or arrangement entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of five lakh rupees in
respect of any party during the year have been reasonable having regard
to the prevailing market prices at the relevant time.
7. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under to the extent applicable with regards to the deposit
accepted from the public.
8. In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
9. On the basis of the records produced, we are of the opinion that,
prima facie, the cost records and accounts prescribed by the Central
Government u/s 209(1) (d) of the Companies Act,1956 have been
maintained by the Company. However, we are not required to carry out
and have not carried out any detailed examination of such accounts and
records.
10. a) In our opinion and according to the information and
explanations given to us, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess, Service Tax and any other statutory dues have
been generally regularly deposited in time with the appropriate
authorities and there are no undisputed statutory dues payable at the
year end for a period of more than six months from the date they became
payable other than the following:-
Name of the
Statute Nature of the Dues Amount Year to which the
(Rs in lacs) amount relates
The Income
Tax Act, 1961 Income Tax along
with Interest 260.01 2006-2007 and
2007-2008
b) In our opinion and according to the information and explanations
given to us, there are no dues * outstanding in respect of Income Tax,
Wealth Tax , Sales Tax, Custom Duty, Excise Duty and Service Tax
on account of any dispute other than the following:-
Name of the
Statute Nature of the
Dues Amount Year to which Forum where
Dispute
(Rs in lacs) the amount is
Pending
relates
The Central
Excise Service Tax 120.00 2006-2007 Assistant Commissioner
Act, 1944 (Chhindwara)
The Income
Tax Income Tax 53.02 2005-2006 C.I.T. Appeals (Mumbai)
Act,1961
The Income Tax Income Tax 240.50 2006-2007 and Income Tax Appellate
Act,1961 2007-2008 Tribunal
11. The Company does not have accumulated losses as at the end of the
financial year and has not incurred cash losses in the current
financial year. However it had incurred cash losses in the immediately
preceding financial year.
12. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of any dues to financial institutions or
banks.
13. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
14. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society, therefore, the clause 4 (xiii) of the Order is
not applicable to the Company.
15. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
16. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or financial institutions.
17. In our opinion and according to the information and explanations
given to us, the company has not raised any term loans during the year.
18. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investment.
19. The Company has not made any preferential allotment of shares
during the year to any parties or companies covered in the register
maintained under Section 301 of the Companies Act, 1956.
20. The Company has not issued any debentures during the year.
21. The Company has not raised any money through a public issue during
the year. Accordingly, the provisions of clause 4 (xx) of the order are
not applicable to the company.
22. Based upon the audit procedures performed and on the basis of
information and explanations provided by the Management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For and on behalf of
B. L. Dasharda & Associates
Chartered Accountants
B.L. Dasharda
Partner
Place : Mumbai Membership No. : 13708
Dated :30th April, 2010 F.R. No. : 112615W