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Borosil Glass Works Ltd.

BSE: 502219 Sector: Industrials
NSE: BOROGLASS ISIN Code: INE666D01014
BSE LIVE 15:43 | 02 Dec 7226.75 -289.15
(-3.85%)
OPEN

7516.00

HIGH

7516.00

LOW

7201.00

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 7516.00
PREVIOUS CLOSE 7515.90
VOLUME 2394
52-Week high 8702.60
52-Week low 2200.00
P/E 32.42
Mkt Cap.(Rs cr) 1669.38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7516.00
CLOSE 7515.90
VOLUME 2394
52-Week high 8702.60
52-Week low 2200.00
P/E 32.42
Mkt Cap.(Rs cr) 1669.38
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Borosil Glass Works Ltd. (BOROGLASS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

BOROSIL GLASS WORKS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Borosil GlassWorks Limited ("the Company") which comprise the Balance sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

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 financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles Generally Accepted in India (Indian GAAPs) including AccountingStandards prescribed under Section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' 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 thereunder.

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 financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the " Annexure A" hereto a statement on thematters specified in the paragraphs 3 and 4 of the Order to the extent applicable.

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 account as required by law have been kept by theCompany 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 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 prescribed under Section 133 of the Act as applicable.

e. On the basis of the written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g. 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 financial statements as referred to in Note No. 28 to the standalonefinancial statements;

ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection Fund by the Company.

For Chaturvedi & Shah
Chartered Accountants
Firm Reg. No. 101720W
R. Koria
Place: Mumbai Partner
Dated: 30th May 2016 Membership No.:-035629

ANNEXURE - A TO INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Borosil GlassWorks Limited on the accounts for the year ended 31st March 2016)

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us all the fixed assets have been physically verified by themanagement. No material discrepancies were noticed on such verification as compared withthe available records.

c. According to the information and explanation provided to us and the records examinedby us and based on the examination of the registered sale deed/conveyance deed we reportthat the title deeds comprising all the immovable properties of land and buildings whichare freehold are held in the name of the Company as at the balance sheet date except thefollowing:-

Particulars Gross Block as at 31st March 2016 Net Block as at 31st March 2016 Remarks
(Rs. in lacs) (Rs. in lacs)
Freehold land at Mumbai 0.12 0.12 The title deeds are in the names of erstwhile Company that merged with the Company under Section 391 to 394 of the Companies Act 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honorable High Court.
Building (Office Gala) at Mumbai 8.85 4.80 Share certificates are in the name of the Company.

In respect of immovable properties of land that have been taken on lease the leaseagreements are in the name of the Company where the Company is the lessee in theagreement.

ii. As explained to us inventories have been physically verified during the year bythe management except for inventories in transit and in our opinion the frequency ofverification is reasonable. Discrepancies noticed on physical verification of theinventories between the physical inventories and book records were not material havingregard to the size of the operations of the Company and the same have been properly dealtwith.

iii. In respect of loans secured or unsecured granted by the company to companiesfirms Limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act. According to the information and explanation given to us:

a. The company has granted secured /unsecured loans to such Companies and in ouropinion the rate of interest and other terms and conditions on which the loans had beengranted were not prima facie prejudicial to the interest of the Company.

b. Except in one case where the repayment terms are not stipulated and loan isconvertible at option and in other case repayment of principal amount and payment ofinterest was stipulated and recovery of which is regular to the extent applicable.

c. The loans given were not due for repayment; therefore the question of overdueamounts does not arise.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 & 186 of the Act asapplicable in respect of grant of loans making investments and providing guarantees andsecurities.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year. Therefore the provisions ofparagraph 3 (v) of the Order are not applicable to the Company.

vi. According to the information and explanations given to us Central Government hasnot prescribed maintenance of cost records under sub-Section (1) of Section 148 of the Actin respect of activities carried on by the Company. Therefore the provisions of paragraph3 (vi) of the Order are not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The company has been generally regular in depositing undisputed statutory duesincluding provident fund EMPLOYEES' state insurance income tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities as applicable during the year. According to the information andexplanations given to us no undisputed amounts payable in respect of such statutory dueswere outstanding as at 31st March 2016 for a period of more than six monthsfrom the date they became payable.

b. Details of dues of Income tax and sales tax /Value added tax aggregating to Rs.36.74 Lacs that have not been deposited on account of disputed matters pending beforeappropriate authorities are as under:

Name of the Statute Nature of the Dues Amount (Rs. in lacs) Period to which the amount relates Forum where dispute is pending
Income-tax Act1961 Income Tax 1.35 AY 2004-05 Assessing Officer
Sales Tax Act Sales Tax 6.52 1997-98 Tribunal
28.34* 2002-03 to 2005-06 Joint Commissioner - Taxes Appeal
0.53 2000-01 and 2002-03 Asst. Commissioner Sales Tax
Total 36.74

(*) Net of amount deposited under protest.

viii. Based on our audit procedures and according to the information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to banks. During the year the Company did not have any loans fromfinancial institutions or by way of debentures.

ix. According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and no term loan was raised during the year. Therefore the provisions ofparagraph 3 (ix) of the order are not applicable to the Company.

x. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and on the basis of information and explanationsgiven by the management no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations give to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provision of section 197 read with schedule V of the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore the provisions of paragraph 3 (xii) of theOrder are not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable Accounting Standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Therefore the provisions of paragraph 3 (xiv) of the Order are not applicableto the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Therefore the provisions ofparagraph 3 (xv) of the Order are not applicable to the Company.

xvi. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Chaturvedi & Shah
Chartered Accountants
Firm Reg. No. 101720W
Place: Mumbai R. Koria
Dated: 30th May 2016 Partner
Membership No:-035629

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date on the standalone financial statements of BorosilGlass Works Limited for the year ended 31st March 2016)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BorosilGlass Works Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note

For Chaturvedi & Shah
Chartered Accountants
Firm Reg. No. 101720W
Place: Mumbai
Dated: 30th May 2016
R. Koria
Partner
Membership No:-035629

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