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Godrej Industries Ltd.

BSE: 500164 Sector: Industrials
NSE: GODREJIND ISIN Code: INE233A01035
BSE LIVE 15:46 | 18 Aug 598.15 -6.45
(-1.07%)
OPEN

604.00

HIGH

605.30

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586.00

NSE 15:57 | 18 Aug 598.00 -7.25
(-1.20%)
OPEN

602.80

HIGH

604.50

LOW

586.00

OPEN 604.00
PREVIOUS CLOSE 604.60
VOLUME 15588
52-Week high 699.70
52-Week low 363.90
P/E
Mkt Cap.(Rs cr) 20,116
Buy Price 598.15
Buy Qty 147.00
Sell Price 0.00
Sell Qty 0.00
OPEN 604.00
CLOSE 604.60
VOLUME 15588
52-Week high 699.70
52-Week low 363.90
P/E
Mkt Cap.(Rs cr) 20,116
Buy Price 598.15
Buy Qty 147.00
Sell Price 0.00
Sell Qty 0.00

Godrej Industries Ltd. (GODREJIND) - Auditors Report

Company auditors report

TO THE MEMBERS OF GODREJ INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of GODREJINDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

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 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; making judgments 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 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 andthe disclosures 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 includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Directorsas well as evaluating the overall presentation of 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 March 31 2016 and its profit and its cash flows for the year ended on thatdate.

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 Companies Act 2013 we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the said Order to the extentapplicable.

2. As required by Section 143(3) of the Act we report that : a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss and theCash Flow Statement dealt 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 receivedfrom the Directors of the Company as on March 31 2016 and taken on record by the Board ofDirectors none of the Directors of the Company are disqualified as on March 31 2016from being appointed as a Director in terms of Section 164(2) of the Act. f) With respectto the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report in "AnnexureB". g) With respect to the other matters to be included in the Auditor’sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous : i) The financial statements disclose the impact of pending litigations on thefinancial position of the Company. Refer Note 22 to the Standalone Financial Statements.ii) The Company has made provision as required under the applicable laws or AccountingStandards for material foreseeable losses if any on long term contracts. Refer Notes2.13 and 46 to the Standalone Financial Statements. iii) There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

For KALYANIWALLA & MISTRY

Chartered Accountants

Firm Regn. No.: 104607W

Daraius Z. Fraser

Partner M. No.: 42454

Mumbai: May 25 2016

Annexure A to the Independent Auditor’s Report

The Annexure referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements’ in our Independent Auditors’ Report to the members ofthe Company on the Standalone Financial Statements for the year ended March 31 2016 :

Statement on Matters specified in paragraphs 3 and 4 of the Companies (Auditor’sReport) Order 2016 :

1. Fixed Assets : a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets. b) The Companyhas a programme for physical verification of fixed assets at periodic intervals. In ouropinion the period of verification is reasonable having regard to the size of the Companyand the nature of its assets. The discrepancies noticed on such verification are notmaterial and have been properly dealt with in the books of account. c) According to theinformation and explanations given to us and on the basis of the records of the Companyexamined by us the title deeds of immovable properties are held in the name of theCompany except in four cases of freehold land having an aggregate book value of Rs. 0.64crore where the Management is in the process of obtaining copies of title deeds from theconcerned Authority.

2. The Management has conducted physical verification of inventory at reasonableintervals. The discrepancies noticed on physical verification were not material inrelation to the operations of the Company and the same have been properly dealt with inthe books of account.

3. During the year the Company has not granted any loans secured or unsecured tocompanies firms LLP or other parties covered in the register maintained under Section189 of the Companies Act 2013. Therefore the provisions of sub-clauses (a) (b) and (c)of paragraph 3 (iii) of the Order are not applicable.

4. In our opinion and according to the information and explanations given to us theCompany has not advanced any loans to parties or granted securities covered under section185 of the Companies Act 2013. In our opinion and according to the information andexplanations given to us and records examined by us the provisions of section 186 of theCompanies Act 2013 in respect of loans given guarantees given and investments made havebeen complied with by the Company.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the Rules framed thereunder in respect of the deposits accepted from the public.No order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any Court or any other Tribunal.

6. We have broadly reviewed the books of account and records maintained by the Companyin respect of products covered under the Rules made by the Central Government formaintenance of cost records under sub-section (l) of Section 148 of the Companies Act andare of the opinion that prima facie the prescribed accounts and records have been madeand maintained. We have not however made a detailed examination of the records with aview to determine whether they are accurate or complete.

7. Statutory Dues : a) According to the information and explanations given to us and onthe basis of the records examined by us the Company is regular in depositing undisputedstatutory dues including Provident Fund Employees’ State Insurance Income-taxSales-tax Service Tax Duty of Customs Duty of Excise Value added tax Cess and anyother statutory dues with the appropriate authorities wherever applicable. We have beeninformed that there are no undisputed dues which have remained outstanding as at the lastday of the financial year for a period of more than six months from the date they becamepayable. b) According to the information and explanations given to us there are no duesof Income-tax Sales-tax Service Tax Duty of Customs Duty of Excise Value added tax orCess outstanding on account of any dispute other than the following :

Name of Statute Nature of Dues Amount Rs. ( crores) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty / Service Tax demands relating to disputed classification post manufacturing expenses assessable values etc. which the Company has contested and is in appeals at various levels. 0.41 2002-03 2004-07 2005-08 2007-12 2008-09 2009-10 2009-11 2009-14 2010-11 2011-12 2013-14 Assistant Commissioner
0.73 1993-97 2009-13 2012-14 2013-14 Joint Commissioner
1.18 2008-09 2009-13 2009- 15 2010-11 2011-12 2012-13 2013-14 2013- 15 2014-15 Additional Commissioner
0.01 2006-10 2009-10 Deputy Commissioner
0.14 2010-11 Commissioner
6.77 1993-96 2005-06 2009-10 Commissioner (Appeals)
0.00 2009-10 2012-13 2012- 14 2013-14 2013-15 2014-15 2015-16 Superintendent
3.55 2008-11 2009-13 2010-11 CESTAT
0.28 1997-98 Tribunal
0.04 1995-96 High Court
3.91 1993-97 The Supreme Court
The Customs Act 1962 Custom Duty demands relating to lower charge differential duty classifications etc. 2.63 2010-11 Commissioner (Appeals)
0.26 2003-04 Deputy Commissioner
1.32 1978-93 High Court
VAT Acts of Various States Sales Tax demands relating to purchase tax on Branch Transfer / Disallowance of high sea sales. 0.07 1996-97 1997-98 Sales Tax Officer
0.07 2000-01 Commissioner (Appeals)
11.07 2003-04 2005-06 2010-11 Deputy Commissioner
30.95 2000-01 2002-03 2003- 04 2007-08 2009-10 2011-12 Joint Commissioner
4.51 2003-04 2004-05 2005-06 2006-07 Tribunal
Income-tax Act 1961 Income-tax demands against which the company has preferred appeals. 2.96 A.Y. 2007-08 2010-11 Assessing Officer
13.54 A.Y. 1993-94 1994-95 1995-96 1996-97 1997-98 2012-13 2013-14 CIT
7.13 A.Y. 2006-07 2011-12 Deputy Commissioner
16.74 A.Y. 1986-87 1988-89 1990-91 1991-921996-97 1998-99 2000-01 2001- 02 2002-03 2003-04 ITAT
16.90 A.Y.1989-90 1993-94 1997-98 2000-01 2001- 02 2002-03 High Court
Octroi Octroi demand relating to classification issue on import of Palm 0.03 1997-98 Deputy Commissioner
0.24 1997-03 Tribunal
Stearine and interest thereon. 0.02 1998-99 2000-01 The Supreme Court
Stamp Duty Stamp Duties claimed on certain properties which are under appeal by the Company. 1.82 2000-01 Controlling Revenue Authority

8. According to the information and explanations given to us and based on the documentsand records produced before us there has been no default in repayment of dues to banks.There are no dues to financial institutions Government or debenture holders.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year and the term loans obtained by theCompany were applied for the purpose for which the loans were obtained.

10. During the course of our examination of the books of account and records of theCompany to the best of our knowledge and belief and according to the information andexplanations given to us by the Management no fraud on or by the Company has beennoticed or reported during the year.

11. 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 in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. 13. According to the information and explanations given tous and based on our examination of the records of the Company transactions with relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards. 14. According to the information and explanationsgiven to us and based on our examination of the records of the Company the Company hasnot made any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. 15. According to the information and explanationsgiven to us and based on our examination of the records of the Company the Company hasnot entered into non-cash transactions with Directors or persons connected with him. 16.The Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934.

For KALYANIWALLA & MISTRY

Chartered Accountants

Firm Regn. No.: 104607W

Daraius Z. Fraser

Partner M. No.: 42454

Mumbai: May 25 2016.

Annexure B to the Independent Auditor’s Report

Referred to in paragraph 2(f) ‘Report on Other Legal and RegulatoryRequirements’ in our Independent Auditor’s Report to the members of the Companyon the Standalone Financial Statements for the year ended March 31 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013.

We have audited the internal financial controls over financial reporting of GODREJINDUSTRIES LIMITED ("the Company") as of March 31 2016 in conjunction withour audit 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timely preparationof reliable financial information as required under the Companies Act 2013 (the"Act" or the "Companies Act").

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both issued by the ICAI. 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 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 controlssystem over 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 authorizations 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 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 ICAI.

For KALYANIWALLA & MISTRY

Chartered Accountants

Firm Regn. No.: 104607W

Daraius Z. Fraser

Partner M. No.: 42454

Mumbai: May 25 2016