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Gujarat Alkalies & Chemicals Ltd.

BSE: 530001 Sector: Industrials
NSE: GUJALKALI ISIN Code: INE186A01019
BSE 14:32 | 23 Jan 876.60 -12.60
(-1.42%)
OPEN

894.45

HIGH

899.00

LOW

871.25

NSE 14:17 | 23 Jan 876.30 -14.30
(-1.61%)
OPEN

895.55

HIGH

899.80

LOW

860.55

OPEN 894.45
PREVIOUS CLOSE 889.20
VOLUME 23483
52-Week high 932.35
52-Week low 368.95
P/E 19.15
Mkt Cap.(Rs cr) 6,438
Buy Price 874.55
Buy Qty 15.00
Sell Price 877.00
Sell Qty 57.00
OPEN 894.45
CLOSE 889.20
VOLUME 23483
52-Week high 932.35
52-Week low 368.95
P/E 19.15
Mkt Cap.(Rs cr) 6,438
Buy Price 874.55
Buy Qty 15.00
Sell Price 877.00
Sell Qty 57.00

Gujarat Alkalies & Chemicals Ltd. (GUJALKALI) - Auditors Report

Company auditors report

To The Members of

Gujarat Alkalies and Chemicals Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Gujarat Alkalies and Chemicals Limited ( the Company ) which comprise the BalanceSheet as at 31st March 2017 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company s Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ( the Act ) with respect to the preparationof these standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. In conducting our audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder.

We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the standalone Ind AS financial statements. Theprocedures selected depend on the auditor s judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company s preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company s Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to usthe aforesaid standalone Ind AS financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2017 and its profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended31st March 2016 and the transition date opening balance sheet as at 1st April 2015included in these standalone Ind AS financial statements are based on the previouslyissued standalone financial statements for the years ended March 31 2016 and March 312015 prepared in accordance with the Companies (Accounting Standards) Rules 2006 whichwere audited by us on which we expressed an unmodified opinion dated May 26 2016 and May26 2015 respectively and have been restated to comply with Ind AS. Adjustments made tothe said standalone financial information prepared in accordance with the Companies(Accounting Standards) Rules 2006 to comply with Ind AS have been audited by us.

Our opinion on the standalone financial statements and our report onOther Legal and Regulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our auditreferred to in the Other Matters paragraph above we report to the extent applicable that:a) We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the relevant books ofaccount. d) In our opinion the aforesaid standalone Ind AS financial statements complywith the Indian Accounting Standards prescribed under Section 133 of the Act. e) On thebasis of the written representations received from the directors as on 31st March 2017taken on record by the Board of Directors none of the directors is disqualified as on31st March 2017 from being appointed as a director in terms of Section 164(2) of the Act.f) With respect to the adequacy of the internal financial controls over financialreporting of the Company refer to our separate Report in Annexure A .Our report expressesan unmodified opinion on the adequacy and operating effectiveness of the Company sinternal financial controls over financial reporting. g) With respect to the other mattersto be included in the Auditor s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 as amended in our opinion and to the best of our informationand according to the explanations given to us: i. The Company has disclosed the impact ofpending litigations on its financial position in its standalone Ind AS financialstatements Refer Note 42 to the financial statements. ii. The Company did not have anylong-term contracts including derivative contracts for which there were any materialforeseeable losses. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas provided requisite disclosures in the standalone Ind AS financial statements asregards its holding and dealings in Specified Bank Notes as defined in the NotificationS.O. 3407(E) dated the 8thNovember 2016 of the Ministry of Finance during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures performed andthe representations provided to us by the management we report that thedisclosuresare in accordance with the books of account maintained by the Company.

2. As required by the Companies (Auditor s Report) Order 2016 ( theOrder ) issued by the Central Government in terms of Section 143 (11) of the Act we givein Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Firm s Registration No. 117364W)

Gaurav J. Shah

Place : Gandhinagar Partner Date : May 26 2017 (Membership No.35701)

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

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

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Gujarat Alkalies and Chemicals Limited ( the Company ) as of March 31 2017in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company s management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 safeguarding ofits 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company s internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note ) issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor s judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company s internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company s internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 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 DELOITTE HASKINS & SELLS

Chartered Accountants

(Firm s Registration No. 117364W)

Gaurav J. Shah

Partner (Membership No.35701)

Place : Gandhinagar Date : May 26 2017

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The Company has a program of verification of fixed assets to coverall the items in a phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Certain fixed assets were physically verified by the Management during the year.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed / transferdeed / conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of land and buildings are held in the name of the Company as at thebalance sheet date. Immovable properties of land and buildings whose title deeds have beenpledged as security for loans are held in the name of the Company based on theconfirmations directly received by us from lenders. In respect of immovable properties ofland and buildings that have been taken on lease and disclosed as fixed asset in thefinancial statements the lease agreements are in the name of the Company where theCompany is the lessee in the agreement.In respect of immovable properties of land andbuildings that have been taken on lease and disclosed as fixed asset in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement except the lease deed in respect of Plot No. 3 for the balanceland admeasuring 44032 sq. meters acquired at Dahej having value of Rs.15.86 lacs ispending for execution.

(ii) As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.

(v) According to the information and explanations given to us theCompany has not accepted any deposit during the year and there are no unclaimed deposits.Hence reporting under clause (v) of the CARO 2016 is not applicable.

(vi) The maintenance of cost records has been specified by the CentralGovernment under Section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended prescribed by the Central Government under sub-section (1) ofSection 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) According to the information and explanations given to us inrespect of statutory dues:

(a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees State Insurance Income-tax SalesTax Service TaxCustoms Duty Excise Duty Value Added Tax cess and other materialstatutory dues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of ProvidentFund Employees State Insurance Income-tax Sales Tax Service TaxCustoms Duty ExciseDuty Value Added Tax cess and other material statutory dues in arrears as at March 312017 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax CustomsDuty Excise Duty and Value Added Tax which have not been deposited as on March 31 2017on account of disputes are given below:

Name of the statute Nature of the dues Forum where dispute is pending Period to which the Amount relates

Amount involved (Excluding Interest and Penalty)

Amount Unpaid (Excluding Interest and Penalty)

(Rs. in lacs)

(Rs. in lacs)

Gujarat Sales Tax Act 1969 Purchase Tax Joint Commissioner of Appeals 2000-01 to 2005-06

20431

20431

Gujarat Sales Tax Act 1969 Income Tax Act 1961 Central Sales Tax Income Tax Gujarat Sales Tax Tribunal Commissioner of Income Tax (Appeals) 2002-03 to 2005-06 2009-10 and 2012-13

50 1156

47 1084

Income Tax Act 1961 Income Tax High Court Gujarat 2003-04 2004-05 2005-06 and 2006-07

6862

6862

 

Income Tax Act 1961

Income Tax

Income Tax Appellate Tribunal

2003-04 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

7032

6482

Income Tax

Income Tax

Supreme Court

1998-99

1486

1486

Act 1961

1999-00 2008-09

Finance Act

Service Tax

Central Excise

July 2005 to

345

338

1994

and Service Tax Appellate Tribunal

March 2015

Finance Act 1994

Service Tax

Commissioner (Appeals)

April 2010 to February 2016

93

93

Central Excise Act 1944

Central Excise

Central Excise and Service Tax Appellate Tribunal

2009-10

96

96

Central Excise Act 1944

Central Excise

High Court Gujarat

1996-97 to 2001-02

462

462

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of loans or borrowings tofinancial institutions and banks. The Company has not issued any debentures. The Companyhas not taken any loans or borrowings from Government.

(ix) In our opinion and according to the information and explanationsgiven to us money raised by way of term loans have been applied by the Company during theyear for the purposes for which they were raised. The Company has not raised moneys by wayof public offer. (x) To the best of our knowledge and according to the information andexplanations given to us no fraud by the Company and no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanationsgiven to us the Company has paid managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence reporting underclause (xii) of the CARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 188 and 177 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements etc. asrequired by the applicable accounting standards.

(xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures andhence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or persons connected with him and hence provisions of Section 192 ofthe Companies Act 2013 are not applicable.

(xvi) The Company is not required to be registered under Section 45-Iof the Reserve Bank of India Act 1934.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Firm s Registration No. 117364W)

Gaurav J. Shah

Partner (Membership No.35701)

Place : Gandhinagar Date : May 26 2017