The Members of C J.Gelatine Products Limited
1. We have audited the accompanying financial statements of M/s. C J. GelatineProducts Limited which comprise the Balance Sheet as at 31st March 2016 the Statementof Profit & Loss and Cash Flow Statement for the year ended on that date and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The Company's Board Of Directors is responsible for the matters stated in Section134(5) of the Companies ^ct2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. Theresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies: making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords: relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as 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 financial statements are free from materialmisstatement
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risk of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Companys 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 an opinionon whether the Company has in place an adequate internal financial controls system overfinancial reporting and the effectiveness of such controls. 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 the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory
1. As required by the Companies (Auditor's report) Order2015 ("the Order")issued by the Central Government of India in terms of sub-section(11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified inparagraphs 3 and 4 of 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 purpose 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 Statement of Profit & Loss and Cash Flow Statement dealt withit 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 the Companies(Accounts)Rules2014;
e. On the basis of written representations received from the Directors as on March312016 and taken on record by the Board Of Directors none of the Directors isdisqualified as on March 312016 from being appointed as a Director in terms of section164(2) of the Act;
f. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to thebest of our information and according to the explanations given to us:
(a) The Company has disclosed the impact of pending/settled litigations on itsfinancial position in its financial statements - Refer Note 22 to the financialstatements.
(b) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
(c) There has been no delay in transferring amounts if any to the Investor Educationand Protection Fund by the Company.
| ||For R. Kini & Associates |
| ||Chartered Accountants |
| ||Firm Regn. N0.116134W. |
| ||R. Kini |
|Place: Bhopal ||Proprietor |
|Date:14th May2016 ||M. No.021611 |
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred- to in our Report of even date)
1a. The Company is in the process of updating its fixed assets register to show fullparticulars including quantitative details and situation of fixed assets.
b The Company has not carried out physical verification of its fixed assets during theyear pending updation of fixed assets register However the Management has assured thatthe physical verification of fixed assets will be carried out once the fixed assetsregister is updated.
c. During the year the Company has not disposed off a substantial part of the fixedassets.
2a The inventories have been physically verified by the Management during the year. Inour opinion the frequency of verification ' is reasonable.
b In our opinion the procedures of verification of inventories followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c In our opinion the Company has maintained proper records of inventories. Thediscrepancies noticed on physical verification of inventories as compared to book recordswere not material and the same have been properly dealt with in the books of account.
3a. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(ni)(a) and (b) of the Order are not applicable to the Company.
b The Company is regular in repaying the principal amounts as stipulated and has beenregular in the payment of interest in respect of secured Business Loan of Rs 485 00 Lakhsfrom Reliance Capital Limited and unsecured business loans of
Rs.18.33 Lakhs and Rs.12.50 Lakhs taken respectively from Bajaj Finance Limited andTata Capital Financial Services Limited during the current financial year.
4. In our opinion and according to the information and explanations given to us thereare adequate internal - control procedures commensurate with the size of the Company andnature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. During the course of the audit we have not observed any major weakness orcontinuing failure to correct any major weakness in internal controls system of theCompany in respect of these areas.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with provisions ofsections 73 to 76 of the Act and rules framed there under
6. We have been informed that the Central Government has not prescribed maintenance ofcost records under Section 148(1) of the Act for any products of the Company.
7 a According to the information and explanations given to us the Company is generallyregular in depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Service Tax Sales Tax. Wealth Tax etc. with appropriateauthorities However as explained to us the Company is yet to pay arrears of Income Taxof Rs.640465/ - (excluding interest accrued on above) (Previous Year- Rs.640465/-) forAsst. Year 2010-11 and Export Tax of Rs 341330/- (Previous Year- Rs 341330/ -)
b. According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees State Insurance Income Tax Service TaxSales Tax Wealth Tax and other material statutory dues were outstanding at the year endfor a period of more than six months from the date they became payable.
c. According to the information and explanations given to us the amount required to betransferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made there under has beentransferred to such fund within time
8. The Company has no accumulated losses at the end of the financial year and it hasnot incurred cash losses during the current and immediately preceding financial year
9 In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to its bankers The Company did not have anyoutstanding dues to any financial institution or debentures holders during the year.
10. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from Banks or Financial Institutions
11. As verified from the records and according to the information and explanationsgiven to us the Company has raised Mortgage Loan of Rs485 00 Lakhs from Reliance CapitalLimited against the Company's Immovable Properties and unsecured business loans of Rs18.33 Lakhs and Rs 12.50 Lakhs from Bajaj Financial Services Limited and Tata CapitalFinancial Services Limited respectively and has been regular in payment of both principaland interest as per the terms agreed upon.
12 According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with requisite approvals mandated by the provisions of Section 197 read withSchedule V to the Act.
13 In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable
14. According to the information and explanations given to us and based on ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS) 18 Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
15. According to the information and explanations given to us and based on our'examination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.
16. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him Accordingly paragraph 3(xv) of the Order is notapplicable
17. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company
18. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the year
| ||For R. Kini & Associates |
| ||Chartered Accountants |
| ||Firm Regn. No.116134W |
|Place: Bhopal ||R. Kini Proprietor |
|Date:14th May2016 ||M. No 021611 |