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Excel Industries Ltd.

BSE: 500650 Sector: Industrials
NSE: EXCELINDUS ISIN Code: INE369A01029
BSE LIVE 15:40 | 18 Aug 431.60 12.50
(2.98%)
OPEN

418.20

HIGH

432.10

LOW

418.20

NSE 15:30 | 18 Aug 433.50 12.70
(3.02%)
OPEN

417.00

HIGH

436.00

LOW

416.05

OPEN 418.20
PREVIOUS CLOSE 419.10
VOLUME 649
52-Week high 496.00
52-Week low 290.00
P/E 34.61
Mkt Cap.(Rs cr) 543
Buy Price 431.60
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00
OPEN 418.20
CLOSE 419.10
VOLUME 649
52-Week high 496.00
52-Week low 290.00
P/E 34.61
Mkt Cap.(Rs cr) 543
Buy Price 431.60
Buy Qty 500.00
Sell Price 0.00
Sell Qty 0.00

Excel Industries Ltd. (EXCELINDUS) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S 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 2016the 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 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 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. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control 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.

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 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 wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial 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 2016 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure 1" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As r equired 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 and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account; (d) In our opinion theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164 (2) ofthe 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 2" to this report; and (g) With respect to theother matters to be included in the Auditor’s Report in accordance with Rule 11 ofthe Companies (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 disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 32 to the financial statement;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and

Protection Fund by 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 : May 27 2016

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) Certain fixed assets have been physically verified by the management during theyear as per the phased programme of verification over a period of 3 years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in fixed assets are held in the name of theCompany. Further two title deeds of immovable properties having gross book value of Rs.406.75 lacs included in fixed assets are mortgaged with the lenders. As per confirmationfrom the lenders and information provided to us by the management the title deeds areheld in the name of the Company.

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

(iii) (a) During the year the Company has granted loan of Rs. 300 lacs to a whollyowned subsidiary covered in the register maintained under section 189 of the Act. In ouropinion and according to the information and explanations given to us the terms andconditions of the grants and loans are not prejudicial to the interest of the Company.

(b) In respect of loan granted to a wholly owned subsidiary the payment of principaland interest amount has been regular to the extent applicable.

(c) There are no amounts of loans granted to companies firms or other parties listedin the register maintained under section 189 of the Act which are overdue for more thanninety days.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the

Act in respect of loans to directors including entities in which they are interestedand in respect of investments made have been complied with by the Company.

(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 orany 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 undersection 148(1) of the Act related to the manufacture of insecticides industrial alcoholfertilizers and Pharma products and are of the opinion that prima facie thespecified accounts and records have been made and maintained. We have not however made adetailed examination of the same.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees’ state insurance income-taxsales tax service tax customs duty excise duty value added tax cess and othermaterial statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of aforesaid dues were outstanding at the year end for a period ofmore than six months from the date they became payable.

(c) According to the records of the Company the dues outstanding of income-tax salestax service tax custom duty excise duty value added tax and cess on account of anydispute 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 2011-13 Commissioner of Appeals of Customs Mumbai
Central Excise Act 1944 Excise Duty Demand 21.11 2007-08 Customs Excise and Service Tax Appellate
Tribunal Mumbai
Central Excise Act 1944 Excise Duty Demand 26.78 2008-13 Customs Excise and Service Tax Appellate
Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 1.34 2013-14 Customs Excise and Service Tax Appellate
Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 3.41 2014 Customs Excise and Service Tax Appellate
Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 1.79 2015 Assistant Commissioner of Central Excise Raigad
Central Excise Act1944 Excise Duty Demand 8.99 2005-09 Customs Excise and Service Tax Appellate
Tribunal Mumbai
Central Excise Act1944 Excise Duty Demand 22.51 2009-14 Commissioner of Appeals of Central Excise Raigad
Central Excise Act1944 Excise Duty Demand 1.42 2015 Assistant Commissioner of Central Excise Raigad
Service Tax (Finance Tax 1994) Service Tax Demand 2.56 2011-14 Assistant Commissioner of Central Excise Raigad
Service Tax (Finance Tax 1994) Service Tax Demand 0.64 2014-15 Assistant Commissioner of Central Excise Raigad
Service Tax (Finance Tax 1994) Service Tax Demand 1.96 2011-14 Assistant Commissioner of Central Excise Raigad
Service Tax (Finance Tax 1994) Service Tax Demand 1.13 2014-15 Assistant Commissioner of Central Excise Raigad
State Excise Act Excise Duty Demand 294.44 2002-15 High Court Mumbai
Income Tax Act1961 Income Tax Demand 882.27 AY 2010-11 Commissioner of Income Tax (Appeals)
AY 2011-12 &
AY 2012-13

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

(viii) According to information and explanations given by the management we are of theopinion that the Company has not defaulted in repayment of dues to a financial institutionor bank.

(ix) According to the information and explanations given by the management and on anoverall examination of the balance sheet we report that term loans were applied for thepurposes for which they were raised.

(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 on or by the officers and employees ofthe Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management we reportthat the managerial 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 the Company 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.

(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 : May 27 2016

Annexure 2 to the independent auditor’s report of even date on the standalonefinancial statements of Excel Industries Limited.

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

We have audited the internal financial controls over financial reporting of ExcelIndustries Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 controlsboth applicable to an audit of Internal Financial Controls issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 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 that 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 March 31 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 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 : May 27 2016