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Borax Morarji Ltd.

BSE: 506315 Sector: Industrials
NSE: N.A. ISIN Code: INE658B01015
BSE LIVE 12:23 | 09 Dec 45.00 2.50
(5.88%)
OPEN

42.10

HIGH

45.00

LOW

42.00

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 42.10
PREVIOUS CLOSE 42.50
VOLUME 1650
52-Week high 55.25
52-Week low 24.60
P/E
Mkt Cap.(Rs cr) 20.34
Buy Price 43.25
Buy Qty 200.00
Sell Price 45.00
Sell Qty 45.00
OPEN 42.10
CLOSE 42.50
VOLUME 1650
52-Week high 55.25
52-Week low 24.60
P/E
Mkt Cap.(Rs cr) 20.34
Buy Price 43.25
Buy Qty 200.00
Sell Price 45.00
Sell Qty 45.00

Borax Morarji Ltd. (BORAXMORARJI) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT

To

The Members of Borax Morarji Limited. -

Report on the Standalone Financial Statements .

We have audited the accompanying Standalone Financial Statements of Borax MorarjiLimited (‘the Company’) which comprise the Balance Sheet as at March 312015 the Statement of Profit and Loss and the Cash Flow Statement and a summary ofsignificant accounting policies and other explanatory information for the nine monthsperiod then ended.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the standalonefinancial position standalone financial performance and standalone cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the.Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceoil adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error. .

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit. -

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

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Standalone Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the Standalone Financial Statements.

Basis for Qualified Opinion

1 Long Term Loans and Advances include amounts of Rs. 28 Lakhs deposited againstdisputed custom duty of Rs. 44.60 Lakhs levied by the Collector of Customs. Though theCompany is hopeful of recovery of this amount in the absence of appropriate audit evidencewe are unable to determine the extent of recovery possible in this case.

2 No provision has been made against the overdue trade receivables (net of advances)which are outstanding for more than 2 years amounting to 119.25 Lakhs. '

Qualified Opinion .

In our opinion except for the possible effects of the matters described in the Basisfor qualified opinion paragraph and to the best of our information and according to theexplanations given to us the Standalone Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2015 and its Loss and its Cash Flows for the nine months periodended on that date.

Report on Other Legal and Regulatory Requirements '

1) As required by the Companies (Auditor’s Report) Order 2015 issued by theCentral Government of India in terms of sub-section 11 of Section 143 of the CompaniesAct we enclose in the annexure a statement on the matters specified in paragraphs 3 and 4of the Order.

2) As required by section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as appears from our examination of those books.;

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

d) In our opinion the aforesaid Standalone Financial Statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the Directors as on March 312015 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2015 from being appointed as a Director in terms of section 164(2) of theAct:

f) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements - Refer Note 29 to the StandaloneFinancial Statements;

ii The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For K. S. Aiyar & Co
Chartered Accountants
Registration No: 100186W
Rajesh S. Joshi
Place: Mumbai Partner
Date: May29 2015 Membership No.: 38526

ANNEXURE TO THE AUDITORS’REPORT

Referred to in Paragraph 1 on Report on Other Legal and Regulatory Requirements of ourreport.

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets however

the particulars regarding the location of some of the fixed assets of Chemical Divisiontransferred to new manufacturing facility at Dahej Gujarat needs to be updated in thefixed asset register.

(b) A substantial portion of the fixed assets have been physically verified by themanagement during the period under the audit. In our opinion the frequency of verificationis reasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

(ii) (a) The inventories have been physically verified by the management at reasonableintervals during the period under audit. In our opinion the frequency of verification isreasonable.

(b) The procedure of physical verification of inventories followed by the management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanation given to us theCompany is maintaining proper records of inventory. The discrepancy noticed onverification between physical stock and the book records were not material and have beenproperly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to the companiesfirm and other parties covered in the register maintained under section 189 of theCompanies Act Hence the provision of clause (iii) (a) & (b) are not applicable to theCompany.

(iv) In our opinion and according to the information and explanation given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business with regards to purchases of inventory fixed assets and withregard to the sale of goods and services. During the course of our audit no majorweaknesses have been noticed in the internal control.

(v) The Company had accepted deposits prior to the commencement of Companies Act 2013(Earlier deposits) which have remained unpaid as at year end amounting to Rs. 152.47 Lacsand interest due thereon of T 0.72 Lacs. We are informed that these earlier deposits willbe repaid on the respective due dates as per the terms of acceptance of the same in termsof explanation to Rule 19 of the Companies (Acceptance of Deposits) Rules 2014. .

The Company has not accepted any deposits during the year to which the provisions ofsection 73 to 76 of the Companies Act 2013 and Companies (Acceptance of deposits) Rules2014 apply.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the order made by the Central Government of India for the maintenance of cost recordsin respect of boric add under sub-section (I) of section 148 of the Companies Act and areof the opinion that prima facie the prescribed accounts and records have been maintained.We have however not made a detailed examination of the records with a view to determinewhether they are accurate or complete.

(vii) (a) According to the records of the Company and based on our Audit Procedures andaccording to the information and explanation given to us the Company is generally regularin depositing undisputed statutory dues including provident fund employees’ stateinsurance income- tax sales-tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues applicable to it have beengenerally regularly deposited during the period under audit with the appropriateauthorities. According to the information and explanation given to us no disputed amountspayable in respeqt of above were in arrears as at 31sl March2015 for a periodof more than six months from the date on which they became payable.

(b) According to the records of the Company there are no dues of Sales tax Incometax Custom duty Wealth tax Service tax Excise duty and cess which have not beendeposited on account of any disputes except in the case of the following : '

Nature of dues. Year Amount P In Lacs) Forum where dispute is pending
Excise Duty 2003-04 to 2005-06 12.65 Customs Excise and Service Tax Appellate Tribunal
Customs Duty 2002-03 16.60 Collector of Customs

(c) The amount required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesmade there under has been transferred to such fund within time.

(viii) The Company has accumulated losses at the end of the nine months period ended 31stMarch 2015 are more than fifty percent of the net worth as on the said date. The Companyhas incurred cash losses during the under audit and also in the immediately precedingfinancial year.

(ix) In our opinion and according to the information and explanation given to us weare of the opinion that the Company has not defaulted in repayment of dues to anyfinancial institution and bank. The Company has not issued any debentures.

(x) The Company has not given any guarantee for loans taken by others from banks orfinancial institutions.

(xi) In our opinion the term loans have been applied for the purpose for which theloans were obtained.

(xii) To the best of our knowledge and belief and according to the information andexplanation given to us we report that no fraud on or by the Company has been noticed orreported during the year.

For K. S. Aiyar & Co
Chartered Accountants
Registration No: 100186W
Rajesh S. Joshi
Place: Mumbai Partner
Date : May 29 2015 Membership No.: 38526

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