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Garware Polyester Ltd.

BSE: 500655 Sector: Industrials
NSE: GARWARPOLY ISIN Code: INE291A01017
BSE LIVE 15:40 | 22 Nov 209.15 3.75
(1.83%)
OPEN

203.00

HIGH

213.90

LOW

201.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 203.00
PREVIOUS CLOSE 205.40
VOLUME 4746
52-Week high 265.90
52-Week low 112.00
P/E 21.67
Mkt Cap.(Rs cr) 488
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 203.00
CLOSE 205.40
VOLUME 4746
52-Week high 265.90
52-Week low 112.00
P/E 21.67
Mkt Cap.(Rs cr) 488
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Garware Polyester Ltd. (GARWARPOLY) - Auditors Report

Company auditors report

TO THE MEMBERS OF GARWARE POLYESTER LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of GarwarePolyester Limited ("the Company") which comprise 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 informationin which are incorporated the Returns for the year ended on that date audited by thebranch auditors of the Company's branch at London (United Kingdom).

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 with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks 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 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 is sufficient and appropriate toprovide a basis for our audit opinion on the standalone 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 and its profit and its cash flows for the year ended onthat date.

Other Matter

We did not audit the financial statement of one branch included in the standalonefinancial statements of the Company whose financial statements reflect total assets ofRs.36.45 Lakhs as at 31st March 2016 and total revenues of Rs. NIL Lakhs forthe year ended on that date as considered in the standalone financial statements. Thefinancial statements of this branch has been audited by the branch auditor whose reportshave been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of this branch is based solely on the report of suchbranch auditor.

Our Opinion is not modified in respect of this matter.

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 subSection (11) of Section143 of theAct and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 and proper returnsadequate for the purpose of our audit have been received from the branch not visited byus;

c) The reports on the accounts of the branch office of the Company audited undersection 143(8) of the Act by branch auditor have been send to us and have been properlydealt with by us in preparing this report;

d) 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 and with the returnsreceived from the branch not visited by us;

e) 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;

f) On the basis of written representations received from the Directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164(2) of the Act;

g) 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

h) With respect to the 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 the explanations given to us:

(i) The company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements (Refer Note No. 35 to the StandaloneFinancial Statements)

(ii) The company has made provision as required under the applicable law or accountingstandards for the material foreseeable losses if any on long-term contracts includingderivative contracts (Refer Note No.37 to the Standalone Financial Statements)

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/W100057
P. N. Shah Suhas Deshpande
Partner Partner
Membership No. 001738 Membership No. 031787
Place: Mumbai Place: Mumbai
Date: 25th May 2016 Date: 25th May 2016

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all the items over a period of three year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies have been noticedon such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Management has conducted physical verification of the inventories atreasonable intervals. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been appropriately dealt with in thebooks of accounts.

(iii) The Company has not granted secured or unsecured loans to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the provisions of section 73 74 75 and 76or any other relevant provisions of the Act and the Rules framed there under to the extentnotified.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government of India for the maintenance of cost recordsunder section 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and based on therecords of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Sales-tax Service Tax Custom Duty Excise Duty Value Added TaxCess and other material statutory dues as applicable with the appropriate authorities.According to the information and explanations given to us and based on the records of theCompany examined by us in our opinion no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomDuty Excise Duty Value Added Tax Cess and other material statutory dues as applicablewere in arrears as at 31st March 2016 for a period of more than six months fromthe date they became payable.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us the particulars of dues of Income Tax Service Tax SalesTax Customs Duty and Excise Duty Value Added Tax Cess as at 31st March 2016which have not been deposited on accounts of any disputes are as follows:

Name of the Statue Nature of Dues Amount (Rs. in Lakhs) Financial Year for which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 3.57 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 5.85 2011-12 Assistant Commissioner
Central Excise Act 1944 Excise Duty 38.87 1994-95 and 2001-02 Central Excise and Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 4.92 2006-07 High Court
Central Excise Act 1944 Service Tax 5.08 2015-16 Dy Commissioner (Audit) Central Excise Customs & Service Tax

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution bank or government as at the balance sheet date.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. The term loans have been applied for thepurposes for which they were obtained.

(x) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its officers or employees has been noticed orreported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration during the year in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act 2013. (Refer note 29of the financial statements).

(xii) 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.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliances with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any non-cashtransactions with its directors or persons connected with them. Accordingly paragraph3(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.

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/W100057
P. N. Shah Suhas Deshpande
Partner Partner
Membership No. 001738 Membership No. 031787
Place: Mumbai Place: Mumbai
Date: 25th May 2016 Date: 25th May 2016

Annexure - B to the Independent Auditor's Report

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GarwarePolyester Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 Companies Act 2013.

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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial 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 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 unauthorized 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 31st March 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/W100057
P. N. Shah Suhas Deshpande
Partner Partner
Membership No. 001738 Membership No. 031787
Place: Mumbai Place: Mumbai
Date: 25th May 2016 Date: 25th May 2016