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Gokul Refoils and Solvent Ltd.

BSE: 532980 Sector: Industrials
NSE: GOKUL ISIN Code: INE020J01029
BSE LIVE 15:40 | 21 Sep 20.65 0.15
(0.73%)
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20.55

HIGH

21.15

LOW

20.45

NSE 15:31 | 21 Sep 20.65 0.10
(0.49%)
OPEN

20.80

HIGH

21.05

LOW

20.10

OPEN 20.55
PREVIOUS CLOSE 20.50
VOLUME 4708
52-Week high 34.00
52-Week low 12.46
P/E
Mkt Cap.(Rs cr) 272
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.55
CLOSE 20.50
VOLUME 4708
52-Week high 34.00
52-Week low 12.46
P/E
Mkt Cap.(Rs cr) 272
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gokul Refoils and Solvent Ltd. (GOKUL) - Auditors Report

Company auditors report

To

The Members

Gokul Refoils & Solvent Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Gokul Refoils &Solvent Ltd (“the company “) which comprise the Balance sheet as at 31st March2016 and Statement of Profit and Loss and the Cash Flow Statement for the year then endedand a 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 preparationof these Standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with the 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 of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements 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.

Auditors’ Responsibilty

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 specified under Section 143 (10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of of such controls. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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 and its profit and its cash flows for the year ended on that date.

EMPHASIS OF MATTER

Without qualifying our opinion attention is drawn to Note no.32 relating to theComposite Scheme of the Arrangement between the Company and Gokul Agro Resources Ltd andGokul Agri International Limited and creditors and their respective shareholderssanctioned by Hon’ble High Court of Gujarat in current year pursuant to which anamount of Rs.Nil relating to current year (Previous year Rs.1756.64 Lakhs) has beendebited to Capital Reserve as per the details given in note no 32.

Had the scheme approved by Hon’ble High Court not prescribed the accountingtreatment as described in note no.32 the accoumulated balance in the Revaluation Reserveaccount as at March 31 2016 would have been higher by Rs. 1756.64 Lakhs the accumulatedbalance in Statement of Profit and Loss as at March 31 2016 would have been lower by Rs.1756.64 lac the balance in Revaluation Reserve would have been Rs. 8081.12 Lakhs asagainst to Rs. Nil and the balance in Capital Reserve would have been Rs. Nil.

However the aggregate balance in Reserves and Surplus as at March 31 2016 would haveremained the same.

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 section143 of the Companies Act 2013 and on the basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to uswe give in the Annexure a statement on the matters specified inparagraph 3 and 4 of the said 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 purpose of our audit.

(b) in our opinion the Company has kept proper books of account as required by law sofar as appears from our examination of the books.

(c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account.

(d) in our opinion the afrosaid 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 written representations receivedfrom the directors as on March 31 2016 taken on record by the Board of Directors noneof the directors is disqualified as on March 31 2016 from being appointed as a directorin terms of section 164 (2) of the Companies Act 2013. (f) With respect to the adequacyof the internal financial controls over financial reporting of Company and the operatingeffectiveness of such controls refer to our separate Report in “Annexure-A”.

(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 the financial position inits financial statements as referred to in note 2 to the financial statements.

(ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses. (iii) There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company during the year ended March 31 2016.

For M. R. PANDHI & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.112360W
Place : Ahmedabad N.R.Pandit
Date : 25th May 2016 Partner
Membership No.033436

ANNEXURE TO AUDITORS’ REPORT

Referred to in paragraph 1 under the heading of “report on other legal andregulatory requirements” of our report of even date. On the basis of such checks aswe considered appropriate and according to the information and explainations given to usduring the course of out audit we report that.

(i) a. The Company has maintained proper records showing full particulars includingquantitative details and location of the fixed assets. b. As explained to us themanagement during the year has physically verified all the fixed assets. According to theinformation and explanations given to us there is a regular programme of verificationwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification. c. Thetitle deeds of the immovable properties as disclosed in note 12 on fixed assets are heldin the name of the company.

(ii)

As explained to us inventories were physically verifiedduring the year by themanagement at reasonable intervals.In our opinionthe frequency ofverification isreasonable.no materialdiscrepancieswerenoticed verification of inventories ascompared to physical the book records As explained to us inventories were physicallyverified during the year by the management at reasonable intervals.In our opinionthediscrepancies were noticed on physicalverification of inventories as compared tofrequencyof the book records

(iii) a. The Company has granted unsecured loan aggregating to Rs. 582.46 Lakhs duringthe year to two companies covered in the register maintained under section 189 of the Act.In our opinion and according to the information and explanations given to us the rate ofinterest and other terms and conditions of grant of such loans are prima facie notprejudicial to the interest of the company. b. As per the information and explanationsgiven to us in respect of loan granted repayment of principal amount is as stipulatedand payment of interest has been regular.

c. In respect of the aforesaid loans there is no amount which is overdue for more thanninety days.

(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 in respect ofloans and investment made granted. The Company has not given any guarantee or provided anysecurity in connection with such loan.

(v) According to the information and explanations given to us the Company has notaccepted any deposit from the public within the meaning of Sections 73 to 76 of the Actand the rules framed thereunder to the extent notified.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under sub-section (1) of Section 148 of theCompanies Act 2013 in respect of its products.We have broadly reviewed the same and are ofthe opinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a viewto determine whether they are accurate or complete.

(vii) a. According to the information and explanations given to us and on the basis ofour examination of the records of the Company apart from certain instances of delays indepositing undisputed statutory dues including Provident Fund Employees’ stateinsurance Income Tax Sales Tax service tax duty of customs duty of excise ValueAdded Tax Cess and other material statutory dues have been regularly deposited during theyear by the Company with the appropriate authorities. b. According to information andexplanation given to us and the records of the company examined by us there are no duesof Value Added Tax which have not been deposited on account of any dispute. Theparticulars of dues of Income tax Entry tax duty of customs / drawback service tax andMunicipal Tax as at 31st March 2016 which have not been deposited on account of disputeare as follows.

Sr. No. Name of Statute Nature of Dues Amt (Rs.in lakhs) Period to which the amount relates Forum Where dispute is pending
1 Income Tax Act 1961 Income Tax (F.Y.07-08) 211.31 2007-08 ITAT Ahmedabad
2 Income Tax Act 1961 Income Tax (F.Y.10-11) 97.06 2010-11 CIT(A) Gandhinagar
3 West Bengal Tax on Entry of Goods in to Local Areas Act 2012 Entry Tax (F.Y 12-13 and F.Y. 13-14) 945.64 2012-13 & 2013-14 Kolkata High court
4 Custom Act 1962 Custom Duty / Duty Drawback 991.60 2013-14 Comm. of Custom Kandla
5 Central Excise Act 1944 Service Tax 277.23 2014-15 Comm. of Central Excise Ahmedabad and Mehsana.
6 Central Excise Act 1944 Service Tax 26.16 2011-12 & 2013-14 Customs Excise and Service Tax Appellate Tribunal Ahmedabad

(viii) In our opinion and according to information and explanations given to us theCompany has borrowed funds from Banks Financial Institution Government or Debentureholders. According to the information and explanations given to us and the records of theCompany examined by us company has not defaulted in repayment of loans and borrowings ordues to any financial institution or bank or Government as at the balance sheet date.Thecompany has not borrowed from debenture holder.

(ix) In our opinion and according to information provided to us the Company has notraised any money by way of initial public offer or further public offer (Including DebtInstruments) and term loans during the year hence not commented upon.

(x) During the course of our examination of books and records of the Company carriedout in accordance with the generally accepted auditing practice in India and according tothe information and explanations given to uswe have neither come across any instance ofmaterial fraud by the company or on the company by its officers or employees have beennoticed or reported during the year nor have we been informed of such case by theManagement.

(xi ) In our opinion and according to information provided to us the company haspaid/provided managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013. (xii) Inour opinion the Company is not a Nidhi Company. Therefore the provisions of clause 3(xii)of the Order are not applicable to the Company and hence not commented upon.

(xiii) The Company has entered into transactions with related parties in compliancewith provisions of Section 177 & 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard (AS) 18”Related Party Disclosures” specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. (xiv) In our opinion andaccording to information and explanations given to us the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Therefore the provisions of clause 3(xiv) of theOrder are not applicable to the Company and not commented upon.

(xv) In our opinion and according to information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him as specifiedunder Section 192 of the Act.Therefore the provisions of clause 3(xv)of the Order are not applicable to the Company and not commented upon.

(xvi) In our opinion and according to information and explanation given to us thecompany is not required to be registered under Section 45-1A of the Reserve Bank of IndiaAct 1934.Therefore the provisions of clause 3(xvi) of the Order are not applicable to theCompany and not commented upon.

For M. R. PANDHI & ASSOCIATES
Chartered Accountants
Firm Registration No.112360W
Place : Ahmedabad N.R.Pandit
Date : 25th May 2016 Partner
Membership No.033436

ANNEXURE - A TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF GOKUL REFOILS & SOLVENT LIMITED.

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 GokulRefoils & Solvent 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)”. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

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“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 Institute ofChartered Accountants of India.

For M. R. PANDHI & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No.112360W
Place : Ahmedabad N.R.Pandit
Date : 25th May 2016 Partner
Membership No.033436