BALAJI AMINES Auditors Report

INDEPENDENT AUDITOR''''S REPORT



The Members of Balaji Amines Limited Solapur.


Report on the Standalone Financial Statements


We have audited the accompanying standalone Financial Statements of Balaji Amines Limited. ("the Company"), which comprise of the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, and 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


The Company''''s Board of Directors is responsible for the matters stated in Section I34(5) of the Companies Act, 20I3 ("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, 20I4. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds 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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.


Auditor''''s Responsibility


Our responsibility is to express an opinion on these standalone 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 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 stand alone financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the 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 standalone Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''''s Directors, as well as evaluating the overall presentation of the 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 Financial Statements.


Opinion


In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2017, and its profit and its cash flows for the year ended on that date.


Report on Other Legal and Regulatory Requirements


1. As required by the Companies (Auditor''''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ''''A''''a statement on the matters specified in paragraphs 4 and 5 of the Order.


2. As required by Section 143 (3) of the Act, we report that:


a. We have sought and obtained all the information and explanations which to the 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. In the course of the audit, we have not come across any financial transactions or matters that have any adverse effect on the functioning of the company


f. On the basis of the written representations received from the directors as on March 31, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.


g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ''''B''''.


h. 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 does not have any pending litigations which would impact its financial position.


ii. The Company did not have any long term contracts including derivative contracts.


iii. There are no amounts which were required to be transferred to the Investor Education and Protection Fund by the company


iv. The company had provided requisite disclosures in its financial statements as to holdings as well as dealings 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 ''''A'''' TO THE INDEPENDENT AUDITOR''''S REPORT OF EVEN DATE ON THE STAND ALONE FINANCIAL STATEMENTS OF BALAJI AMINES LIMITED [Referred to in para 1 under the heading ''''Report on Other Legal and Regulatory Requirements'''']











































































































l.



a.



The company is maintaining proper records showing full particulars, including quantitative details and details about the situation of Fixed Assets.





b.



These Fixed Assets have been verified by the Management at reasonable intervals. According to information and explanations given to us no material discrepancies have been noticed on such verification.





c.



The title deeds of immovable properties belonging to the company are held in the name of the company.



2.





Physical verification of inventory has been conducted by the management during the year under review at reasonable intervals. According to information and explanation given to us no material discrepancies have been noticed.



3.





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 l89 of the Companies Act, 20l3.



4.





The company has not granted any loans or provided security or guarantees to which provisions of section l85 apply. As regards the investments made by the company the provisions of section l86 have been complied with.



5.





The company has not accepted any Deposits.



6.





In respect of the records maintained by the company in accordance with the Rule made by the Central Government regarding maintenance of Cost Records under the provisions of subsection (l) of section l48 of the Companies Act, 20l3, we have broadly reviewed the same and we are of the opinion that the prescribed accounts and records have been kept and maintained. However, we have not carried out a detailed audit of the same.



7.



a.



The company is regular in depositing undisputed statutory dues including Provident Fund, Employees'''' State Insurance, Income Tax, Sales tax, Service Tax, Customs and Excise Duty or Value Added Tax, Cess and other statutory dues applicable to it with the appropriate authorities.





b.



The company did not incur any dues on account of any dispute in respect of Sales Tax, Customs .


Particulars of disputed demands


A. The following are the disputed demands under the Income Tax Act, l96l


(i) Rs.l7.60 Lakhs (relating to Assessment Year 20l3-l4) in respect of which the appeal is pending before the Commissioner of Income Tax (Appeals) III Pune. The company has in the month of April 20l6 deposited an amount of Rs.2.64 lacs against the above mentioned demand and obtained stay of collection of the balance disputed demand till disposal of the appeal.


(ii) Rs.23l.08 Lakhs (relating to Assessment Year 20l4-l5) in respect of which the appeal is pending before the Commissioner of Income Tax (Appeals) III Pune. The company has in the month of March 20l7 deposited an amount of Rs.34.66 Lakhs against the aforementioned demand and obtained stay of collection of the balance disputed demand till disposal of the appeal.


B. Service Tax


(i) Rs.8.76 Lakhs. The matter is pending in appeal before the First Appellate Authority, viz., Commissioner of Central Excise, Customs and Service Tax (Appeals), Nagpur. An amount of Rs.0.66 Lakhs has been deposited against this disputed demand.


(ii) Rs.l57.40 Lakhs. The matter is pending in appeal before the First Appellate Authority, viz., Commissioner of Central Excise, Customs and Service Tax (Appeals), Nagpur. An amount of Rs.ll.8l Lakhs has been deposited against this disputed demand.



8.





The company has not defaulted in repayment of loans/borrowings from Financial Institutions, Banks. The company does not have any borrowings from Government or Debenture Holders.



9.





The company has not raised any monies by way of any Public Offer or Term Loans during the year under review.



I0.





To the best of our information and according to explanations given to us no fraud by the company or on the company by its officers or employees has been noticed or reported during the year under review.



II.





The overall remuneration paid to the Managing Director and Whole Time Directors and the remuneration paid to each of them taken individually is not in excess of the limits specified under section 197 of the Companies Act, 2013



I2.





The company is not a Nidhi Company.



I3.





The transactions with related parties are in compliance with the provisions of section I77 and I88 of the Companies Act, 2013 and the details have been disclosed in the financial statementsas required by the applicable Accounting Standards.



I4.





The company has not made any preferential allotment or private placement of shares or debentures during the year under review.



I5.





The company has not entered into any non-cash transactions with its Directors or persons connected with them.



I6.





The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, I934.



ANNEXURE ''''B'''' TO THE INDEPENDENT AUDITOR''''S REPORT OF EVEN DATE ON THE STAND ALONE FINANCIAL STATEMENTS OF BALAJI AMINES LIMITED [Referred to in para.2 (g) under the heading


''''Report on Other Legal and Regulatory Requirements''''] Year ended March 31, 2017


Report on the Internal Financial Controls under Clause (i) of subsection 3 of Section 143 of the Companies Act, 2013 ("the Act")


We have audited the internal financial controls over financial reporting of Balaji Amines Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the standalone Financial Statements of the Company for the year ended on that date.


Management''''s Responsibility for Internal Financial Controls


The Company''''s management is responsible for establishing and maintaining 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 company''''s 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 Companies Act, 2013.


Auditors'''' Responsibility


Our responsibility is to express an opinion on the Company''''s 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 "Guidance Note") and the Standards on Auditing, issued by Institute of Chartered Accountants of India and deemed to be prescribed under section 143(10) of the Companies Act, 2013, 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 over financial reporting included obtaining an understanding of internal financial controls 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 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''''s internal financial controls system over financial reporting.


Meaning of Internal Financial Controls Over Financial Reporting


A company''''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A company''''s 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 transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone 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 company''''s assets that could have a material effect on the Financial Statements.


Inherent Limitations of Internal Financial Controls Over Financial Reporting


Because of the inherent limitations of internal financial controls over 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, 2017, 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 V.Sridhar & Co.,


Chartered Accountants


FRN 006206S



Vemulapati Sridhar


Proprietor


ICAI Membership No. 202337



Secunderabad


llth May, 2017.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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