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Excel Industries Ltd.

BSE: 500650 Sector: Industrials
NSE: EXCELINDUS ISIN Code: INE369A01029
BSE LIVE 15:40 | 22 Sep 420.70 -3.70
(-0.87%)
OPEN

428.90

HIGH

430.00

LOW

420.00

NSE 15:31 | 22 Sep 421.00 -5.25
(-1.23%)
OPEN

436.85

HIGH

436.85

LOW

419.10

OPEN 428.90
PREVIOUS CLOSE 424.40
VOLUME 640
52-Week high 496.00
52-Week low 299.70
P/E 33.74
Mkt Cap.(Rs cr) 529
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 428.90
CLOSE 424.40
VOLUME 640
52-Week high 496.00
52-Week low 299.70
P/E 33.74
Mkt Cap.(Rs cr) 529
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Excel Industries Ltd. (EXCELINDUS) - Auditors Report

Company auditors report

TO THE MEMBERS OF EXCEL INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Excel IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and Cash Flow Statement for the year then ended 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 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 withaccounting 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 and the Companies (Accounting Standards) Amendment Rules 2016. Thisresponsibility 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.

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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. 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 theamounts and 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner 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 2017 its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As r Section 143(3) of the Act we report that:equired by

(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 ouropinion proper books of account as required by law have been kept by the Company so far asit appears from our examination of those books; (c) The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with thebooks of account; (d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014 and the Companies (Accounting Standards) AmendmentRules 2016; (e) On the basis of written representations received from the directors as onMarch 31 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164(2) of the Act; (f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report; (g) With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company has disclosedthe impact of pending litigations on its financial position in its financial statements– Refer Note 32 to the standalone financial statements; ii. The Company did not haveany long-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There was a delay in transfer to Investor Education andProtection Fund of Rs. 1.27 lacs in respect of proceeds of fractional bonus shares issuedin the earlier years. iv. The Company has provided requisite disclosures in Note 46 tothese standalone financial statements as to the holding of Specified Bank Notes onNovember 8 2016 and December 30 2016 as well as dealings in Specified Bank Notes duringthe period from November 8 2016 to December 30 2016. Based on our audit procedures andrelying on the management representation regarding the holding and nature of cashtransactions including Specified Bank Notes we report that these disclosures are inaccordance with the books of accounts maintained by the Company and as produced to us bythe Management.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh M. Gandhi

Partner

Membership No.: 37924

Place : Mumbai

Date : 26 May 2017

Annexure 1 referred to in paragraph 1 under the heading "Report on other legal andregulatory requirements" of our report of even date.

Re: Excel Industries Limited (‘the Company')

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

(b) Fixed assets have been physically verified by the management during the year and nomaterial discrepancies were identified on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in Property Plant and Equipment are held in thename of the Company. Further three title deeds of immovable properties having gross bookvalue of Rs. 1232.75 lacs (31 March 2016: Rs. 406.75 lacs) included in Property Plantand Equipment are mortgaged with the lenders. As per confirmation from the lenders andinformation provided to us by the management the title deeds are held in the name of theCompany.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of the Order are notapplicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities given in respect of whichprovisions of section 185 and 186 of the Act are applicable and hence not commented upon.

(v) In respect of deposits accepted during the earlier years in our opinion andaccording to the information and explanations given to us directives issued by theReserve Bank of India and the provisions of Section 73 to 76 or any other relevantprovisions of the Act and the rules framed there under to the extent applicable havebeen complied with. We are informed by the management that no order has been passed by theCompany Law Board National Company Law Tribunal or Reserve

Bank of India or any Court or any other Tribunal.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central

Government for the maintenance of cost records under Section 148(1) of the Act relatedto the manufacture of insecticides industrial alcohol fertilizers chemicals and bulkdrugs and are of the opinion that prima facie the specified accounts and recordshave been made and maintained. We have not however made a detailed examination of thesame.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of custom duty of excise value addedtax cess and other statutory dues have generally been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases. (b) Accordingto the information and explanations given to us no undisputed amounts payable in respectof aforesaid dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax custom duty excise duty value added tax and cess on account ofany dispute are as follows:

Name of the statute Nature of dues Amount ( Rs. in Lacs)* Period to which the amount relates Forum where the dispute is pending
Customs Custom Demand 144.88 FY 2011- 13 Commissioner of Appeals of Customs Mumbai
Central Excise Act1944 Excise Duty Demand 21.11 FY 2007-08 Customs Excise and Service Tax Appellate Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 26.78 FY 2008-13 Customs Excise and Service Tax Appellate Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 1.34 FY 2013-15 Customs Excise and Service Tax Appellate Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 3.41 FY 2013-15 Customs Excise and Service Tax Appellate Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 3.41 FY 2014-16 Assistant Commissioner of Central Excise Raigad
Central Excise Act1944 Excise Duty Demand 8.99 FY 2005-10 Customs Excise and Service Tax Appellate Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 22.12 FY 2008-14 Commissioner of Appeals of Central Excise Raigad
Central Excise Act1944 Excise Duty Demand 2.26 FY 2014-16 Assistant Commissioner of Central Excise Raigad
Service Tax (Finance Tax 1994) Service Tax Demand 1.73 FY 2014-15 Assistant Commissioner of Central Excise Raigad
State Excise Act Excise Duty Demand 323.16 FY 2002-17 High Court Mumbai
Income Tax Act1961 Income Tax Demand 818.32 AY 2010-11 to AY 2012-13 Commissioner of Income Tax (Appeals)
MMC Act 1888 Property Tax 45.00 FY 15-16 to FY 16-17 Brihanmumbai Mahanagar Palika

* including penalty/interest and net of amount paid under protest.

(viii) In our opinion and according to the information and explanations given by themanagement Companythe has not defaulted in repayment of dues to financial institution orbanks. As informed the Company does not have any borrowings from government or by way ofdebentures.

(ix) In our opinion and according to the information and explanations given by themanagement the company has utilized the monies raised by way of term loans for thepurposes for which they were raised. According to the information and explanations givenby the management the Company has not raised any money by way of initial public offer /further public offer / debt instruments.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion Companythe is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 of theAct where applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of the Act.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India

Act 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh M. Gandhi

Partner

Membership No.: 37924 Place : Mumbai Date : 26 May 2017

Annexure 2 to the independent auditor's report of even date on the standalone financialstatements of Excel Industries Limited.

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

We have audited the internal financial controls over financial reporting of the companyas of March 31 2017 in conjunction with our audit of the standalone financial statementsof the Company for 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 Reporting(the "Guidance Note") and the Standards on Auditing as specified under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsissued by the Institute of Chartered Accountants of India. 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 depends 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 internal financial controls system overfinancial 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 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 March 31 2017 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 Institute of CharteredAccountants of India.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

per Jayesh M. Gandhi

Partner

Membership No.: 37924

Place : Mumbai

Date : 26 May 2017