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Garden Silk Mills Ltd.

BSE: 500155 Sector: Industrials
NSE: GARDENSILK ISIN Code: INE526A01016
BSE LIVE 11:19 | 22 Nov 33.20 -0.55
(-1.63%)
OPEN

33.15

HIGH

33.75

LOW

32.65

NSE 11:10 | 22 Nov 33.00 -0.85
(-2.51%)
OPEN

33.35

HIGH

33.70

LOW

32.80

OPEN 33.15
PREVIOUS CLOSE 33.75
VOLUME 9913
52-Week high 40.90
52-Week low 25.30
P/E
Mkt Cap.(Rs cr) 140
Buy Price 32.80
Buy Qty 300.00
Sell Price 33.20
Sell Qty 111.00
OPEN 33.15
CLOSE 33.75
VOLUME 9913
52-Week high 40.90
52-Week low 25.30
P/E
Mkt Cap.(Rs cr) 140
Buy Price 32.80
Buy Qty 300.00
Sell Price 33.20
Sell Qty 111.00

Garden Silk Mills Ltd. (GARDENSILK) - Auditors Report

Company auditors report

To the Members of Garden Silk Mills Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Garden Silk MillsLimited ("the Company") which comprise the Balance Sheet as at 31st March 2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary 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 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. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; makingjudgments 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.

Auditor's Responsibility

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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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 the 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 is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act 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 its loss 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 issued by the CentralGovernment of India in terms of sub-sechon (11) of section 143 of the Act (hereinafterreferred to as the 'Order') and on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure A a statement on the matters specified in theparagraphs 3 and 4 of the order to the extent applicable.

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 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 ofthose books.

c. The Balance sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on31stMarch 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 the other matters to be included in the Auditor's Report inaccordance with Rulell of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information and accordingto the explanations given to us:

i. The Company has in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements- Refer Note 32(1) to the financial statements.

ii. The Company did not have any long-term contracts including derivatives contracts asat 31st March 2016 hence the question of commenting on any material foreseeable lossesthereon does not arise.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2016.

For NATVARLAL VEPARI & CO.
Chartered Accountants
Firm Registration Number: 123626W
R. N. VEPARI
Partner
Surat 28th May 2016 Membership No.: 6728

Annexure A to the Independent Auditors' Report

Referred to in paragraph 1 under the heading "Report on other legal and otherregulatory requirements" of our Report of even date to the members of Garden SilkMills Limited on the financial statements for the year ended 31st March 2016.

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

situation oftixed assets.

b. As per the information and explanations given to us the fixed assets of the Companyhave been physically verified by the management at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c. According to the information and explanations given to us the original title deedsof immovable properties are mortgaged with banks as securities who has confirmed thesame. On the basis of our examination of the records of the Company as available withjurisdictional revenue authority the title deeds of immovable properties are held in thename of the Company.

(ii) As per the information and explanations given to us the inventories have beenphysically verified by the management at reasonable intervals during the year. In ouropinion the frequency of verification is reasonable and discrepancies noticed on physicalverification of inventories were not material in relation to the operations of the Companyand the same have been properly dealt with in the books of account.

(iii) As per the information and explanations given to us the company has not grantedany loans secured or unsecured to companies firms Limited Liability Partnerships orother parties covered in the register maintained under section 189 of the Act. Thereforethe provisions of clause 3(iii) (iii)(a) and (iii)(b) of the said Order are notapplicable to the Company.

(iv) The Company has neither granted any loans nor provided any guarantees or securityto the party covered under section 185 of the Act nor made any investment covered undersection 186 of the Act.

(v) The Company has not accepted any deposits from the public within the meaning ofsections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

(vi) To the best of our knowledge and explanation given to us the provisions ofmaintenance of cost records under subsection (1) ofSection 148 of the Act are notapplicable to the Company for the financial year 2015-16.

(vii) a) According to the information and explanations given to us and the recordsexamined by us the Company has

generally been regular in depositing with appropriate authorities undisputed statutorydues including provident fund employees' state insurance income-tax sales tax valueadded tax wealth tax customs duty excise duty service tax cess and any otherstatutory dues wherever applicable.

There were no undisputed amounts payable in respect of provident fund employees' stateinsurance sales tax value added tax customs duty cess and other material statutorydues in arrears as at 31st March 2016 for a period of more than six months from the datethey became payable.

b) According to the information and explanations given to us details of dues ofIncome-tax and excise duty / service tax sales tax and cess which have not been depositedas on 31st March 2016 on account of disputes are given below

(Rs. in Lacs)

Name of Statute Nature of dues Amount under dispute* Period to which the amount relates Forum where dispute is pending Amount deposited against the dispute
The Income Tax Act 1961 Income Tax 0.48 2011-12 Income Tax Appellate Tribunal (Ahmedabad) -
The Income Tax Act 1961 Income Tax 132.65 2012-13 Commissioner of Income Tax (Appeals)
Central Excise Act 1944 Excise Duty/ Service Tax 25.00 1994-95 Mumbai High Court 10.00
Central Excise Act 1944 Excise Duty/ Service Tax 114.72 2012-13 Central Excise and Service Tax Appellate Tribunal (Ahmedabad)
Central Excise Act 1944 Excise Duty/ Service Tax 2610.00 2013-14 Central Excise and Service Tax Appellate Tribunal (Ahmedabad)
Central Excise Act 1944 Excise Duty/ Service Tax 523.07 2013-14 Central Excise and Service Tax Appellate Tribunal (Ahmedabad)
Central Excise Act 1944 Excise Duty/ Service Tax 96.61 2012-13 Central Excise and Service Tax Appellate Tribunal (Ahmedabad)
Central Excise Act 1944 Excise Duty/ Service Tax 77.75 2008-09 to 2012-13 Central Excise and Service Tax Appellate Tribunal (Ahmedabad) 2.92
Central Excise Act 1944 Excise Duty/ Service Tax 37.40 2010-11 to 2013-14 Central Excise and Service Tax Appellate Tribunal (Ahmedabad) 1.40
Gujarat Sales Tax Act 1969 Gujarat Sales Tax 80.51 2004-05 The Joint Commissioner of Commercial Tax Appeal (2) Baroda 10.00

^Including penalty wherever applicable

(viii) Based on our audit procedure and as per the information and explanation given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution or bank.

(ix) The Company did not raise any monies by way of initial public offer furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

(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 course of our audit

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 of the Act read with Schedule V to the Act.

(xii) As the Company is not a Nidhi company and the Nidhi Rules 2014 are notapplicable to it the provisions of paragraph 3(xii) of the Order is not applicable to theCompany.

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard 18 Related Party Disclosures specified under section 133 of the Act read withrule 7 of the Companies (Accounts) Rules 2014.According to the information andexplanations give to us and based on our examination of the records of the Company.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly the provisions of clause 3(xiv) of the Order are not applicable to theCompany.

(xv) According to the information and explanations given by the management the Companyhas not entered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) 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. Accordingly the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For NATVARLAL VEPARI & CO.
Chartered Accountants
Firm Registration Number: 123626W
R. N. VEPARI
Partner
Surat 28th May 2016 Membership No.: 6728

Annexure- B to the Independent Auditor's Report

Referred to in paragraph 2(f) under the heading "Report on other legal and otherregulatory requirements" of our Report of even date to the members of Garden SilkMills Limited on the financial statements for the year ended 31st March 2016.

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 Garden SilkMills Limited ("The Company") as on 31st March 2016 in conjunction with ouraudit of the financial statements of 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 under Sectionl43 (10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 and 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 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 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 Institute of CharteredAccountants of India.

For NATVARLAL VEPARI & CO.
Chartered Accountants
Firm Registration Number: 123626W
R. N. VEPARI
Partner
Surat 28th May 2016 Membership No.: 6728