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Gujarat Ambuja Exports Ltd.

BSE: 524226 Sector: Industrials
NSE: GAEL ISIN Code: INE036B01022
BSE LIVE 15:53 | 24 Nov 176.15 15.50
(9.65%)
OPEN

162.10

HIGH

177.45

LOW

160.70

NSE 15:59 | 24 Nov 175.10 13.70
(8.49%)
OPEN

160.40

HIGH

178.00

LOW

160.10

OPEN 162.10
PREVIOUS CLOSE 160.65
VOLUME 71709
52-Week high 185.00
52-Week low 78.85
P/E 17.29
Mkt Cap.(Rs cr) 2,020
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 162.10
CLOSE 160.65
VOLUME 71709
52-Week high 185.00
52-Week low 78.85
P/E 17.29
Mkt Cap.(Rs cr) 2,020
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Ambuja Exports Ltd. (GAEL) - Auditors Report

Company auditors report

To the members of GUJARAT AMBUJA EXPORTS LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the acCompanying Ind AS financial statements of GUJARAT AMBUJA EXPORTSLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that gives a true and fair view of the financialposition financial performance (including other comprehensive income) and cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the Companies(Indian Accounting Standards) Rules 2015 (as amended) under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 financial statements based on ouraudit.

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 there under.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by ICAI. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 2017 and its profit (including Other Comprehensive Income)and its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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 inParagraphs 3 and 4 of the Order.

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 account 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 (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standard specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(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 termsof Section 164 (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 financialpositions in its financial statements – Refer Note No. 37.

II. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

III. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

IV. The Company has provided requisite disclosures in the financial statements as toholding as well as dealings in Specified Bank notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures performed andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced by us by the management– Refer Note No. 52.

For KANTILAL PATEL & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. : 104744W
Jinal Patel
Place: Ahmedabad Partner
Date: 13th May 2017 Membership No. : 153599

"Annexure A"

Annexure referred to in paragraph under the heading "Report on other legal andregulatory requirements" of our report of even date

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

(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties included in property plant andequipment/ fixed assets are held in the name of the Company.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification. Inventories lying with third parties have beenconfirmed by them as at 31st March 2017 and no material discrepancies werenoticed in respect of such confirmations.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usprovisions of Sections 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit form the public within the meaning of Sections 73 to 76 of the Actand the Rules framed under. Therefore the provision of clause 3(v) of the order is notapplicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Companies Act 2013 related to the manufacture of edible oilcotton yarn inorganic chemicals and drugs and pharmaceuticals and are of the opinionthat prima facie the specified accounts and records have generally 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 amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employee stateinsurance income-tax sales tax value added tax duty of customs duty of exciseservice tax cess and other material statutory dues have generally been regularlydeposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at 31stMarch 2017 for a period of more than six months from the date they became payable.

(b) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise value added tax and cess which have not beendeposited as on 31st March 2017 on account of disputes are as follows:

Sr. No. Name of the statute Nature of the dues Amount Period to which the amount relates in crores) Forum where the dispute is pending
(Rs. Rs.Rs.
1 The Income Tax Act 1961
Appeal Preferred by the Department Disallowance of 80-IC Foreign commission 0.56 AY 2012-13 ITAT
Appeal Preferred by the Company Disallowance of 80-IA & Foreign commission 1.64 AY 2013-14 ITCA
2 The Bombay Sales of Motor Spirit Taxation Act 1958 Exemptions 0.017 1997-98 Tribunal
3 The Central Excise Act 1944 Additional Demand 0.03 2005-06 & 2006-07 CESTAT
Service tax on charges 0.009 2010-11 Asst. Commissioner of Excise
Demanding duty on packing material HDPC 0.06 2004-05 CESTAT
4 The Customs Act 1962 Differential Duty 0.04 2003-04 Commissioner of Customs
DEPB license 1.32 2008-09 Commissioner(A)
Recovery of benefits obtained under Focus Market Scheme 1.98 2008-12 DGFT
5 Krishi Upaj Mandi Adhiniyam 1972 Mandi Tax 0.02 2001-02 High Court
6 The Gujarat Sales Tax Act 1969 Purchase Tax 0.04 1997-98 High Court
Disallowance of sales & levy of interest & penalty 0.13 2004-05 Commissioner (Appeals)
Item sold as tax free considered to be taxable item 0.55 2014-15 Commissioner (Appeals)
Item sold as tax free considered to be taxable item 0.51 2014-15 Commissioner (Appeals)
7 Central Sales Tax Act 1956 Disallowance of sales non- Production of ‘C' Forms 0.85 2004-05 Commissioner (Appeals)
8 The Bombay Electricity Duty Act 1958 Additional Demand charges 1.63 2008-09 Consumer Grievances Forum
9 Food & Safety Act. Sub- standard Not meeting food & safety dues 0.05 2015-16 Dist. Magistrate Uttarakhand Food & Safety Tribunal Gandhinagar
0.003 2015-16
Food and Safety Act. Sub-Standard 0.05 2016-17 A.D.M. and Adjudicating officer Meerut
10 Other Motor Accident Claim 0.003 2009-10 Mehsana Motor Accident Claim Tribunal

(viii) Based on our examination of the records and according to information andexplanations given by the management the Company has not defaulted in repayment of duesto the banks. The Company has not taken any loan from financial institution. The Companyhas not obtained any borrowing by way of debentures.

(ix) Based on the information and explanations given by the management and on anoverall examination of the balance sheet we are of the opinion that term loans have beenapplied for the purposes for which they were raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the Ind AS financial statements and according to the information andexplanations given by the management read together with Note No. 51 we are of the opinionthat the managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi Company. Therefore the provisions ofclause 3(xii) of the order is not applicable to the Company.

(xiii) Based on our examination of records of the Company and according to theinformation and explanations given to us the transactions with related parties are incompliance with the Provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Ind AS Financial Statements asrequired by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly provisions of clause 3(xiv) are not applicable to the Company.

(xv) Based on the examinations of the records and according to the information andexplanations given by the management during the year. The Company has not entered intoany non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3(xv) of the order is not applicable.

(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 KANTILAL PATEL & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. : 104744W
Jinal Patel
Place: Ahmedabad Partner
Date: 13th May 2017 Membership No. : 153599

Annexure ‘B'

Annexure to the Independent Auditor's Report of even date on the Ind AS financialstatements of "Gujarat Ambuja Export Limited" Report on the Internal FinancialControls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013(‘'the Act'')

We have audited the internal financial controls over financial reporting of GujaratAmbuja Exports Limited (‘'the Company'') as of 31st March 2017 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable Ind AS financial information as requiredunder 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 deemed tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. 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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 2017based 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 KANTILAL PATEL & CO.
CHARTERED ACCOUNTANTS
Firm Reg. No. : 104744W
Jinal Patel
Place: Ahmedabad Partner
Date: 13th May 2017 Membership No. : 153599