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Borosil Glass Works Ltd.

BSE: 502219 Sector: Industrials
NSE: BOROGLASS ISIN Code: INE666D01022
BSE LIVE 15:45 | 14 Dec 964.30 -3.40
(-0.35%)
OPEN

970.00

HIGH

982.00

LOW

951.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 970.00
PREVIOUS CLOSE 967.70
VOLUME 10558
52-Week high 1048.00
52-Week low 600.00
P/E 59.05
Mkt Cap.(Rs cr) 2,228
Buy Price 0.00
Buy Qty 0.00
Sell Price 963.05
Sell Qty 3.00
OPEN 970.00
CLOSE 967.70
VOLUME 10558
52-Week high 1048.00
52-Week low 600.00
P/E 59.05
Mkt Cap.(Rs cr) 2,228
Buy Price 0.00
Buy Qty 0.00
Sell Price 963.05
Sell Qty 3.00

Borosil Glass Works Ltd. (BOROGLASS) - Auditors Report

Company auditors report

To the Members of Borosil Glass Works Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS financial statements ofBOROSILGLASS WORKS LIMITED ("the Company") which comprise the Balance Sheet as at31st March2017 Profitand Loss (including Other theStatementComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of state ofaffairs (financial position) profit (financial performance including other comprehensiveincome) cash flows Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed undersection 133 of the Act read with relevant rules issued there under.

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 Standalone IndAS financial statements true and fair view and are free from material misstatementwhether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financialstatements based 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 of the Standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS financial statements are freefrom material misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and the disclosures in the Standalone Ind AS financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the Standalone Ind AS financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of theStandalone Ind AS 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 the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS 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 31st March 2017 and its profit including total comprehensiveincome its cash flows and the Statement of changes in equity for the year ended on thatdate

Other Matters

The comparative financialinformation of the Company for the year ended 31 stMarch 2016 and the transition date opening balance sheet as at 1st April 2015included in these Standalone Ind AS financial statements are based on the previouslyissued statutory financial statements prepared in accordance with the Companies(Accounting Standards) Rules 2006 audited by the predecessor auditor whose report forthe year ended 31st March 2016 and 31st March 2015 dated 30th May2016 and 25th May 2015 respectively expressed an unmodifiedopinion on those financialstatements as adjusted for the differences in the accounting principles adopted by theCompany on transition to the Ind AS which have been audited by us.

Our opinion is not modified in respect of above said matter.

Report on Other Legal and Regulatory Requirements

1. 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 (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act read with relevantrules there under.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2017 from being appointed as a director interms of 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 A";

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:

(a) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS financial statements as referred to in Note no. 37 tothe financial statements.

(b) The Company does not have long term contracts including derivative contracts forwhich there were any material foreseeable losses

(c) There has been no amounts during the year which required to be transferred to theInvestor Education and Protection Fund by the Company;

(d) The Company has provided requisite disclosures in the Standalone Ind AS financialstatements as regards to its holdings and dealings in Specified Bank Notes as defined inthe Notification S.O. 3407 (E) dated 8 th November 2016 of the Ministry of Financeduring the period from 8th November 2016 to 30th December 2016. Based on audit procedureperformed and representations provided to us by the management we report that thedisclosures are in accordance with the books of account maintained by the Company and asproduced to us by the management.

2. 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 ofthe Act we give in "Annexure B" hereto a statement on the mattersspecified paragraphs 3 and 4 of the Order to the extent applicable.

For Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date: 13th May 2017

"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of Borosil Glass Works Limited onthe Standalone Ind AS financial statements for the year ended 31st March 2017)

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 controlsoverfinancial Borosil Glass WorksLimited ("the Company") as of reporting of 31st March 2017 inconjunction with our audit of the Standalone Ind AS financial statements of the Companyfor the year 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 Act.

Auditors' 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 and the Standards on Auditing prescribed under Section 143(10) ofthe Act to the extent applicable to financial controls . Those Standards and theGuidance Note require that we audit of internal comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 a material weakness exists andtesting and evaluating the design and operating overfinancial effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements 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 controls systemover 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 financial reporting tofuture periods are subject to the risk that the controlsover 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 controlsover financial reporting and such internal financial controls over financial reportingoperating effectively as at 31st March 2017 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date: 13th May 2017

"ANNEXURE B" TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Borosil GlassWorks Limited on the Standalone Ind AS financial statements for the year ended 31stMarch 2017)

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 the Company has physically verified all assets. No materialdiscrepancies were noticed on such physical verification as compared with the availablerecords.

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 2017 Net Block as at 31st March 2017 Remarks
(Rs. in lacs) ( Rs. in lacs)
Freehold land at Mumbai (one case) 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 (one case) 8.85 4.67 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. In respect of its inventories: As explained to us inventories except goods intransit have been physically verified during the year by the management. In our opinionthe frequency of verification is reasonable. Discrepancies noticed on physicalverification of the inventories between the physical inventories and book records were notmaterial having regard to the size of the operations of the Company and the same havebeen properly dealt with.

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.

a. In our opinion and according to the information given to us the terms andconditions of the loans given by the Company are prima facie not prejudicial to theinterest of the Company.

b. The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and/ or receipts of interest have been regular as perstipulations.

c. There are no overdue amounts as at the year- end in respect of both principal andinterest.

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& securities.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of clause (v) of paragraph3 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 clause(vi) of paragraph 3 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 2017 for a period of more than sixmonths from the date they became payable

b. Details of dues of Income tax and sales tax / Value added tax aggregating to Rs.32.18 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
Sales Tax Act Sales Tax 6.52 1997-98 Tribunal
25.13* 2002-03 to 2005-06 Joint Commissioner -Taxes Appeal
0.53 2001-01 & 2002-03 Asst. Commissioner Sales Tax
Total 32.18

(*) Net of amount deposited under protest viii. Based on our audit procedures andaccording to the information and explanations given by the management we are of theopinion that as on 31st March 2017 the Company has not defaulted in repaymentof dues to banks. The Company does not have any borrowings from financial institutionsgovernment and debenture holders. ix. According to the information and explanations givento us the Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and no term loan was raised during the year.Therefore the provisions of clause (ix) of paragraph 3 of the Order are not applicable tothe 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 given to us theCompany has paid or provided managerial remuneration in accordance with the requisiteapprovals mandated by the provision of section 197 read with Schedule V to the Act

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of paragraph 3 of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us Company's transactionswith the related parties are in compliance with section 177 and 188 of the Act asapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable Indian 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 clause (xiv) of paragraph 3 of the Order are notapplicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him Therefore the provisions ofclause (xv) of paragraph 3 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 Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date: 13th May 2017