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Garware-Wall Ropes Ltd.

BSE: 509557 Sector: Industrials
NSE: GARWALLROP ISIN Code: INE276A01018
BSE LIVE 13:53 | 18 Oct 896.80 -1.90
(-0.21%)
OPEN

891.50

HIGH

905.00

LOW

884.55

NSE 13:38 | 18 Oct 901.90 -1.00
(-0.11%)
OPEN

897.90

HIGH

906.50

LOW

884.85

OPEN 891.50
PREVIOUS CLOSE 898.70
VOLUME 688
52-Week high 994.40
52-Week low 489.00
P/E 21.93
Mkt Cap.(Rs cr) 1,962
Buy Price 896.80
Buy Qty 18.00
Sell Price 899.95
Sell Qty 30.00
OPEN 891.50
CLOSE 898.70
VOLUME 688
52-Week high 994.40
52-Week low 489.00
P/E 21.93
Mkt Cap.(Rs cr) 1,962
Buy Price 896.80
Buy Qty 18.00
Sell Price 899.95
Sell Qty 30.00

Garware-Wall Ropes Ltd. (GARWALLROP) - Auditors Report

Company auditors report

TO THE MEMBERS OF GARWARE-WALL ROPES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Garware-Wall RopesLimited ('the Company') which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the 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 preparationand presentation of these Financial Statements that give a true and fair view of theFinancial Position Financial Performance and Cash Flows of the Company in accordance withthe Accounting 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 Companies (Accounting Standards) Amendment Rules 2016. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate Internal Financial Controls that wereoperating 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 mis-statement whether due to fraudor error.

Auditors' Responsibility

I. Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.

II. 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.

III. We conducted our audit in accordance with the Standards on Auditing specifiedunder Section 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 mis-statement.

IV. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material mis-statement 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.

V. 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;

1. In the case of the Balance Sheet of the State of Affairs of the Company as at 31stMarch 2017

2. In the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

3. In the case of the Cash Flow Statement of the cash flows for the year 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 A a statement on the matters specified in the paragraph3 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 accounts as required by law have been kept by theCompany so far as it appears from our examination of those 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 Accounts.

(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) Rules 2014 and Companies (Accounting Standards) Amendment Rules 2016.

(e) On the basis of the written representations received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 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 Controls over FinancialReporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure B.

(g) 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 Financial Statements.

ii) The Company has made provision as at 31st March 2017 as required under theapplicable law or Accounting Standards for material foreseeable losses if any onlong-term contracts including derivative contracts.

iii)There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company during the year 31st March 2017.

iv)The Company has provided requisite disclosures in its Standalone FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company. Refer Note 47 to the Standalone FinancialStatements.

For Patki & Soman
Chartered Accountants
S. M. Patki
Partner
Pune M. No. 037315
24th May 2017 F. R. No. 107830W

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the Members of theCompany on the Financial Statements for the year ended 31st March 2017 we report that:

i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

b) The Company has a regular programme of physical verification of its Fixed Assets bywhich Fixed Assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain Fixed Assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statement and accruing to information and explanation given bythe management the title deeds of immovable properties are held in the name of theCompany.

ii) a) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) The Company is maintaining proper records of the inventory. The descripanciesnoticed on verification between the physical stocks and the book records were notmaterial.

iii) According to the information and explanation given to us the Company has notgranted secured and unsecured loans to companies firms & other parties covered in theregister maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions of Clause 3(iii)(a) (b) and (c) of the Order are not applicable to the Companyand hence not commented upon.

iv) In our opinion and according to the information and explanations given to us thereare no loans guarantees and securities granted in respect of which provisions of Section185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.

v) In our opinion and according to the information and explanation given to us theCompany has not accepted any deposits from the public.

vi) We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for the maintenance of Cost Records under Section148(1) of the Companies Act 2013 related to the manufacturing of products and are ofthe opinion that prima facie the prescribed accounts and records have been maintained. Wehave not however made a detailed examination of the same.

vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any dues on accountof employees' state insurance and duty of excise.

b) According to the information and explanations given to us there are no undisputedamount payable in respect of provident fund income tax sales tax wealth tax servicetax duty of customs value added tax cess and other material statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

c) According to the records of the Company the dues outstanding of income tax salestax value added tax excise duty and other material statutory dues on account of anydispute are as follows:

Name of the Statute Nature of Dues Forum where Dispute is Pending Period to which Amount relates Amount ( ` Lakhs)
Sales Tax Laws State and Central High Court Delhi 1995-96 11.00
Sales Tax 1996-97 21.52
Deputy Commissioner of Sales Tax (Appeals)- Delhi 1999-00 0.78
2000-01 3.43
2001-02 1.65
2002-03 1.29
Deputy Commissioner of Commercial Tax (Appeals)- Chennai 2006-07 2.00
Central Excise Laws Excise Duty CESTAT Mumbai. 2002-03 14.85
2002-03 12.72
Income Tax Laws Income Tax Supreme Court 2002-03 94.00
2003-04 114.00
Total 277.24

viii) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to any banks. Further the Company does not have any debentures and loanfrom Financial Institution or Government.

ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationgiven by the management the Company has not raised any money by way of initial publicoffer / further public offer / debt instruments and term loans and hence reporting underClause (ix) is not applicable to the Company and hence not commented upon.

x) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationgiven 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) Based on our 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 the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act 2013.

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) Based on our 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 transactions with related parties are in compliance with Section177 and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe notes to the Financial Statements 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 not commented upon.

xv) Based on our 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 the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

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 Patki & Soman
Chartered Accountants
S. M. Patki
Partner
Pune M. No. 037315
24th May 2017 F. R. No. 107830W

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

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 ofGarware-Wall Ropes Limited (“the Company”) as of 31st March 2017 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.

Auditors' 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 both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate Internal Financial Controls over Financial Reporting was established andmaintained and if such controls operated effectively 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 mis-statement 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 31st March 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 Patki & Soman
Chartered Accountants
S. M. Patki
Partner
Pune M. No. 037315
24th May 2017 F. R. No. 107830W