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Gorani Industries Ltd.

BSE: 531608 Sector: Consumer
NSE: N.A. ISIN Code: INE792J01015
BSE LIVE 10:52 | 20 Sep 9.00 -0.30
(-3.23%)
OPEN

9.30

HIGH

9.30

LOW

9.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.30
PREVIOUS CLOSE 9.30
VOLUME 606
52-Week high 16.75
52-Week low 8.45
P/E 10.71
Mkt Cap.(Rs cr) 5
Buy Price 9.00
Buy Qty 1200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.30
CLOSE 9.30
VOLUME 606
52-Week high 16.75
52-Week low 8.45
P/E 10.71
Mkt Cap.(Rs cr) 5
Buy Price 9.00
Buy Qty 1200.00
Sell Price 0.00
Sell Qty 0.00

Gorani Industries Ltd. (GORANIINDS) - Auditors Report

Company auditors report

To the Members of Gorani Industries Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of GoraniIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate Accounting Policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors’ 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Sec 143(10) of the Act. Thosestandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors’ 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 includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the company’s Directors as well as evaluating theoverall 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 31 March 2016 and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (11) of Section 143 ofthe Act we enclosed in the annexure A a statement on the matters specified in paragraphs3 and 4 of the order.

2. As required by Section 143(3) of the Act we report that: a. We have sought andobtained all the informations 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 it appears from ourexamination of those 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 theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. e.On the basis of the written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct. 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 inthe Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanation given to us: i. There is no pending litigation which impact the financialposition of company and to be included in financial statements; ii. The Company did nothave any long term contracts including derivative contracts for which there were anymaterial foreseeable losses; hence no provision was required to be made; and iii. Therewere no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

For: B.D. SHARDA & CO.
Chartered Accountants
Firm Reg. No. 00161C
Place: Indore (B.D. SHARDA)
Date : 30/05/2016 Proprietor
Membership No. 070209

Annexure-A to the Independent

Auditors’ Report

(Referred to in our report of even date)

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

(b) As explained to us fixed assets have been physically verified by the managementduring the year in accordance with the phased programme of verification adopted by themanagement which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. According to the information and explanations given to usno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 10 to the standalone financial statements areheld in the name of the Company.

(ii) In respect of its inventory:

(a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at regular intervals by theManagement. In case of inventories lying with third parties certificates of stocksholding have been received.

(b) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onphysical verification of stocks as compared to book records were not material and havebeen properly dealt with in the books of account.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) In our opinion and according to information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 or 186. Accordingly paragraph 3(iv) of the Order is notapplicable to the Company.

(v) The company has not accepted any deposits from public during the year. Accordinglyparagraph 3(v) of the Order is not applicable to the Company.

(vi) As informed to us the Central Government has not prescribed maintenance of costrecords under subsection (1) of Section 148 of the Act in respect of the activitiescarried on by the Company. Accordingly paragraph 3(vi) of the Order is not applicable tothe Company.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance (ESI) Investor Education andProtection Fund Income-tax Tax deducted at sources Tax collected at sourceProfessional Tax Sales Tax value added tax (VAT) Service Tax Custom Duty Excise DutyCess and other material statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us there were no undisputedamounts payable in respect of Income-tax Wealth Tax Custom Duty Excise Duty sales taxVAT Cess and other material statutory dues in arrears /were outstanding as at 31 March2016 for a period of more than six months from the date they became payable.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitution bank Government or dues to debenture holders.

(ix) According to the records of the company the Company has not raised any money byway of initial public offer or further public offer (including debt instrument) during theyear. In our opinion the term loans raised during the year were applied for the purposefor which those are raised.

(x) Based upon the audit procedures performed and and according to the information andexplanations given to us no material fraud on the Company by its officers or employeesnor any fraud by the 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 the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(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 ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard(AS) 18 Related Party Disclosures specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(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: B.D. SHARDA & CO.
Chartered Accountants
Firm Reg. No. 00161C
Place: Indore (B.D. SHARDA)
Date : 30/05/2016 Proprietor
Membership No. 070209

Annexure-B to the Independent

Auditors’ Report

(Referred to in our report of even date)

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 GoraniIndustries Limited ('the Company') as of March 31 2016 in conjunction with our auditof the standalone 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 controls 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 Companies Act 2013 ("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 were 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 judgment including the assessment of the risks of materialmisstatement 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 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 theinternal control over financial reporting criteria established by the company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For: B.D. SHARDA & CO.
Chartered Accountants
Firm Reg. No. 00161C
Place: Indore (B.D. SHARDA)
Date : 30/05/2016 Proprietor
Membership No. 070209