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Butterfly Gandhimathi Appliances Ltd.

BSE: 517421 Sector: Consumer
NSE: BUTTERFLY ISIN Code: INE295F01017
BSE LIVE 14:29 | 05 Dec 193.85 0.85
(0.44%)
OPEN

194.10

HIGH

195.00

LOW

191.00

NSE LIVE 14:29 | 05 Dec 193.55 1.80
(0.94%)
OPEN

195.00

HIGH

195.05

LOW

190.20

OPEN 194.10
PREVIOUS CLOSE 193.00
VOLUME 2738
52-Week high 307.40
52-Week low 138.15
P/E
Mkt Cap.(Rs cr) 346.60
Buy Price 192.90
Buy Qty 10.00
Sell Price 193.85
Sell Qty 55.00
OPEN 194.10
CLOSE 193.00
VOLUME 2738
52-Week high 307.40
52-Week low 138.15
P/E
Mkt Cap.(Rs cr) 346.60
Buy Price 192.90
Buy Qty 10.00
Sell Price 193.85
Sell Qty 55.00

Butterfly Gandhimathi Appliances Ltd. (BUTTERFLY) - Auditors Report

Company auditors report

TO THE MEMBERS OF BUTTERFLY GANDHIMATHI APPLIANCES LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Butterfly GandhimathiAppliances Limited ("the Company") which comprises the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these 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 including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

3. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the "Act" for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

4. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the "Act" and the Rules made thereunder. We conducted ouraudit in accordance with the Standards on Auditing specified under Section 143(10) of"the Act". Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and reasonablenessof the accounting estimates made by the Company’s Directors as well as evaluatingthe overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by ‘theAct’ 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 on that date.

Report on other Legal and Regulatory Requirements

8. As required by the Companies (Auditor’s report) Order 2016 (‘theOrder’) as amended issued by the Central Government of India in terms ofSub-Section (11) of section 143 of ‘the Act’ we give in the "AnnexureA" a statement on the matters specified in paragraphs 3 and 4 of the said Order tothe extent applicable.

9. 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 appears from our examination of those books;

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

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2016 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31st March 2016 from being appointed as a Director in terms of section164(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" and

(g) With respect to 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 explanations give to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statement - Refer Note 24 to the financial statements.

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

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

For RUDHRAKUMAR ASSOCIATES
Chartered Accountants
Registration No: 007033S
(R. Rudrakumar)
Place: Chennai Proprietor
Date: 30th May 2016 Membership No. 019444

ANNEXURE-A TO INDEPENDENT AUDITORS' REPORT (REFERRED TO IN OUR REPORT OF EVEN DATE) TOTHE MEMBERS OF BUTTERFLY GANDHIMATHI APPLIANCES LIMITED.

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

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. No material discrepancies as compared to book records were noticed on suchverification.

(c) The title deeds of immovable properties are held in the name of the company excepta portion of Freehold land situated at Pudupakkam Kanchipuram District in respect ofwhich the transfer of title deeds in the name of the company is pending.

(ii) (a) The management has conducted the physical verification of inventory atreasonable intervals.

(b) The discrepancies noticed on verification between the physical stocks and the bookstocks were not material and have been properly dealt with in the books of account.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of ‘the Act’. Hence the clauses (iii) (a) (b) and (c) of thisparagraph of the Order are not applicable.

(iv) The Company has not granted any loans made investments and provided any guaranteeor security. Hence the provisions of Section 185 and 186 of the "Act" are notapplicable.

(v) The Company has not accepted any deposits from the public. Hence the provisions ofclause (v) of this paragraph of the order are not applicable.

(vi) The Central Government has prescribed maintenance of cost records U/s. 148(1) of‘the Act’. We have broadly reviewed the records maintained by the Companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder the said section and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate or complete.

(vii) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees ‘StateInsurance Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value Added TaxCess and other statutory dues with the appropriate authorities.

(b) The details of the disputed Statutory dues which have not been deposited arecontested in appeals are as under:

Sl. No Name of the Statute Nature of the Dues Amount ( Rs in Lakhs) Forum where the dispute is pending
1. Central Excise Act 1944 Excise Duty Interest and penalty 2907.89 CESTAT Chennai
2. VAT Acts Sales tax 64.70 Appellate Deputy Commissioner
3. ESI Act ESI contribution / interest / damages 19.78 Principal Labour Court Chennai
4. Labour Act Additional Compensation 36.65 Principal Labour Court Chennai

(viii) On this basis of verification of records and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to FinancialInstitutions/Banks.

(ix) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). The moneys raised by way of term loans wereapplied for the purpose for which the term loans were raised.

(x) According to the information and explanations given to us no fraud by the Companyor any fraud on the Company by its officers or employees has been noticed or reportedduring the year.

(xi) The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to the"Act";

(xii) The Company is not a Nidhi Company. Therefore this paragraph of the Order is notapplicable.

(xiii) The transactions with the related parties are in compliance with section 177 andsection 188 of the "Act" and details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Hence this paragraph ofthe Order is not applicable.

(xv) The Company has not entered into any non-cash transactions with Directors orpersons connected with them. Hence this paragraph of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934. Hence this paragraph of the Order is not applicable.

For RUDHRAKUMAR ASSOCIATES
Chartered Accountants
Registration No: 007033S
(R. Rudrakumar)
Place: Chennai Proprietor
Date: 30th May 2016 Membership No. 019444

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ButterflyGandhimathi Appliances Limited ("the Company") as of 31 March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon 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 Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing (the standards) issued byICAI and deemed to be prescribed under section 143(10) of the "Act" to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and the receiptsand expenditures 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For RUDHRAKUMAR ASSOCIATES
Chartered Accountants
Registration No: 007033S
(R. Rudrakumar)
Place: Chennai Proprietor
Date: 30th May 2016 Membership No. 019444

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