To the Members of
Blue Blends (India) Limited
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Blue Blends
(India) Limited, which comprise the Balance Sheet as at March 31, 2021, the
Statement of Profit & Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "Standalone Financial
Statements").
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 Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2021, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
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 Auditor’s
Responsibilities for the Audit of the 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
there under, 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.
Matters of Emphasis
Attention is drawn to
i) Note No.25 regarding failure of the Company during the year to pay due amount of Rs.
2388.55 lacs on 430 16% Non-Convertible Debentures (NCDs) issued to M/s Edelweiss Stressed
and Troubled Assets Revival Fund-1 (ESTARF-1) and the Notice Dated u/s 13(2) of the
Securities and Reconstruction of Financial Assets and Enforcement of Securities Interest
Act,2002, (SARFAESI Act) issued by them enforcing all the securities provided against such
NCDs.
ii) Many cases under Section 138 of Negotiable Instrument Ac. have been filed against
the Company and its Directors in various courts and which are pending for disposal.
iii) The balances of Sundry debtors, Sundry Creditors, Advances lying in Loans &
Advances Account, Advances taken from parties are taken as appearing in books of account
and these are subject to confirmation by respective parties.
Our opinion is not modified in respect of above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information Other than the Standalone Financial Statements and Auditor’s Report
Thereon
The Company’s 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, Annual Report on CSR activities, Board’s Report including
Annexures to Board’s Report, Corporate Governance and Shareholder’s Information,
but does not include the standalone financial statements and our auditor’s 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.
Management’s Responsibility for the Standalone Financial Statements
The Company’s 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, total
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other 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 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.
In preparing the standalone financial statements, management is responsible for
assessing the Company’s 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 responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
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 auditor’s 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
financial5statements, 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
controls.
• 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 management’s 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
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financial
statements.
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 auditor’s 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 and Regulatory Requirements
1. As required by section 143(3) of the Act, we further 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 purpose 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, the Statement of Profit and Loss including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this
Report are in agreement with the relevant 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 March
31,2021, and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2021, from being appointed as a director in terms of Section
164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in Annexure A to this report;
g) With respect to the other matters to be included in the Auditor’s 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 explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h) With respect to 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 in its Standalone Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts; as
such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company during the year ended March 31,
2021.
2. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of the Act, we
give in "Annexure B" a statement on the matters specified in paragraphs 3
and 4 of the Order.
For JMT & Associates.
Chartered Accountants
(FR No. 104167W)
(Arun S. Jain)
Partner
MembershipNo.043161
UDIN NO - 21043161AAAAEQ5974
Place: Mumbai
Date : 18/06/2021
Annexure - A to Independent Auditors’ Report
Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Require
ments’ section of our report to the Members of Blue Blends (India) Limited ("the
Company") of even date.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Blue
Blends (India) Limited ("the Company") as of 31 March, 2021 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 (‘ICAI’). 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 ICAI 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 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 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 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 31 March 2021, 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 JMT & Associates.
Chartered Accountants
(FR No. 104167W)
(Arun S. Jain)
Partner
MembershipNo.043161
UDIN NO - 21043161AAAAEQ5974
Place: Mumbai
Date : 18/06/2021
Annexure - B to the Independent Auditors’ Report
Referred to in paragraph 2 under ‘Report on Other
Legal and Regulatory Requirements’ section of our report to the Members of Blue
Blends (India) Limited ("the Company") of even date
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of our audit, we report that:
i. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us, the management during the year has physically verified the
fixed assets in a phased periodical manner, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. No material discrepancies were
noticed on such physical 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 the Company.
ii. As explained to us, in our opinion, the management has physically verified
inventories at reasonable intervals during the year and there was no material
discrepancies noticed on such physical verification as compared to the book records.
iii. In respect of the loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the Register maintained under Section 189 of
the Companies Act, 2013:
a. the terms and conditions of the grant of such loans are not prejudicial to the
company’s interest;
b. such loans are payable on demand and receipt of the principal amount and interest ,
if any are regular; and
c. there is no overdue amount of principal and interest in respect of such loans.
iv. In our opinion and according to the information and explanations given to us the
Company has complied with the provisions of sections 185 and 186 of the Act, with respect
to the loans, investments and guarantees made.
v. The Company has not accepted any deposits from the public within the meaning of
Section 73 to 76 of the Companies Act, 2013 and the Companies (Acceptance of Deposits)
Rules, 2014. Accordingly, the provisions of clause 3(v) of the Order are not applicable to
the Company.
vi. As informed to us, the Central Government has not prescribed maintenance of cost
records under sub-section (1) of Section 148 of the Act.
Accordingly, the provisions of clause 3(vi) of the Order are not applicable to the
Company.
vii. In respect of statutory dues:
(a) According to the records of the company, except for the payment of undisputed
income tax payable under the Income Tax Act, 1961, and employees and employers
contributions to Provident Fund and ESIC, in our opinion, the company has been generally
regular in depositing with the appropriate authorities undisputed statutory dues including
Goods and Service Taxes, Customs Duty, cess and any other statutory dues as applicable to
it.
(b) According to the information and explanation given to us, except for the payment of
income tax and employees and employers contributions to Provident Fund and ESIC, the
Company does not have any undisputed amounts payable in respect of Provident Fund,
Employees’ State Insurance, Sales Tax, Goods and Service Taxes, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues
which are in arrears as at 31 March, 2021 for a period of more than six months from the
date they become payable.
(c) According to the information and explanations given to us and based on the records
of the Company examined by us, there are no dues of Income Tax, Service Tax, Goods and
Service Taxes, Sales Tax, Customs Duty Excise Duty and Value Added Tax which have not been
deposited on account of any disputes.
viii. According to the records of the company examined by us and as per the information
and explanations given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank or to its debenture holders during the year.
ix. The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) during the year and term loans raised by it have
been applied for the purposes for which those are raised.
x. Based on our audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and on the basis of information and explanations
given by the management, no fraud by the Company or on the Company by its officers or
employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has paid/provided for managerial
remuneration in accordance with the provisions of section 197 read with Schedule V to the
Companies Act.
xii. In our opinion and according to information and explanations given to us, the
Company is not a Nidhi company and hence the paragraph 3(xii) of the Order is not
applicable to the Company.
xiii. According to information and explanations given to us and based on our
examination of the records of the Company, in our opinion, the transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the
details of such transactions have been disclosed in the Financial Statements as required
by the applicable accounting standards.
xiv. According to information and explanations given to us and based on 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.
xv. According to information and explanations given to us and based on 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 during the year and hence the paragraph
3(xii) of the Order is not applicable to the Company.
xvi. 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 provisions of clause 3(xvi) of the Order are not applicable to the Company.
For JMT & Associates.
Chartered Accountants
(FR No. 104167W)
(Arun S. Jain)
Partner
MembershipNo.043161
UDIN NO - 21043161AAAAEQ5974
Place: Mumbai
Date : 18/06/2021
+91-9892691696
