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Gujarat Apollo Industries Ltd.

BSE: 522217 Sector: Engineering
NSE: GUJAPOLLO ISIN Code: INE826C01016
BSE LIVE 15:40 | 22 Sep 243.90 -17.05
(-6.53%)
OPEN

256.90

HIGH

256.90

LOW

240.30

NSE 15:31 | 22 Sep 243.35 -16.80
(-6.46%)
OPEN

264.40

HIGH

264.40

LOW

236.70

OPEN 256.90
PREVIOUS CLOSE 260.95
VOLUME 11152
52-Week high 307.95
52-Week low 118.55
P/E 13.16
Mkt Cap.(Rs cr) 333
Buy Price 0.00
Buy Qty 0.00
Sell Price 243.00
Sell Qty 8.00
OPEN 256.90
CLOSE 260.95
VOLUME 11152
52-Week high 307.95
52-Week low 118.55
P/E 13.16
Mkt Cap.(Rs cr) 333
Buy Price 0.00
Buy Qty 0.00
Sell Price 243.00
Sell Qty 8.00

Gujarat Apollo Industries Ltd. (GUJAPOLLO) - Auditors Report

Company auditors report

To

The Members of

Gujarat Apollo Industries Limited

Report on the Financial Statements

1. We have audited the accompanying standalone Financial statements of GUJARATAPOLLO INDUSTRIES LIMITED ("the company")which comprise of the BalanceSheet as at 31 March 2016 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone Financial Statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor 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 adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the rules made there underincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing issued by ICAIas specified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand 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 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 Company’s Directors as well as evaluating the overallpresentation of the financial statements.

7. 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

8. In our opinion and to the best of our information and according to the explanationsgiven to us the standalone financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its Loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A a statement on thematters specified in the paragraph 3 and 4 of the Order.

10. 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 and the Cash Flow Statementdealt 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 received from the Directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Director is disqualifiedas on 31st March 2016 from being appointed as a Director in terms of Section 164 (2) ofthe 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; and

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 financialposition in its financial statements ; refer note 29 to the ii. In our opinion and as perthe information and explanation provided to us the Company has not entered into anylong-term contracts including derivatives contract requiring provision under applicablelaws or accounting standards for material foreseeable losses. iii. There has been nodelay in transferring amount required to be transferred to Investor Education andProtection Fund by the company.

For DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2016 (Vasant Patel)
Place : Ahmedabad Partner
Membership No. 044612

Annexure – A to Independent Auditors’ Report

The Annexure referred to in our report to the members of GUJARAT APOLLO INDUSTIRESLIMITED for the year ended on 31st March2016 we report that:

(i) a. In our opinion and according to the information and explanation given to us thecompany is maintaining proper records showing full particulars including quantitativedetails and situation of fixed assets;

b. In our opinion the fixed assets have been physically verified by the management atreasonable intervals having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.

c. According to information and explanations given by management the title deed ofimmovable properties include in fixed assets are held in name of the company.

(ii) As explained to us inventories have been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable.

(iii) a. The company has granted loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 the granting of such loans is not prejudicial tothe company interest.

b. The principal and the interest amount is repayable on demand at the discretion ofthe company.

c. In respect of the said loans there are no amounts which are overdue for more thanninety days.

(iv) According to the information and explanation given to us the company has compliedwith the provisions of Section 185 and 186 wherever applicable in respect of loansinvestments guarantees and securities given by the company.

(v) The company has not accepted any deposits from the public.

(vi) To the best of our knowledge and as per the opinion of cost accountants thecentral government has not prescribed the maintenance of cost records under section 148(1)of the Act.

(vii) a. According to the information and explanations given to us the company isregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employee’s state insurance income tax sales tax service tax dutyof customs duty of excise value added tax cess and other material statutory duesapplicable to it.

b. According to the records of the company the dues outstanding of service tax customsduty excise duty sales tax income tax on account of any disputes are as follows:

Nature of Statute Nature of Dispute For the Year Amount (`) Authority
Central Sales Tax and Sales Tax 1997-1998 10.35 Lacs Second Appellate (Hyderabad)
Commercial Tax of Sales Tax 2005-2008 110.86 Lacs Commissioner (Appeals)
Gujarat Sales Tax 2005-2006 47.45 Lacs Joint Commissioner (Appeals)
Sales Tax 2009-2010 34.29 Lacs Sales Tax Tribunal
Sales Tax 2010-2011 10.68 Lacs Joint Commissioner (Appeals)
Central Excise Act 1944

Excise Duty Difference

9.15 Lacs Custom Excise & Service Tax
(Appellate Tribunal)
Service Tax Act Service Tax 2005 -2010 25.03 Lacs Custom Excise & Service Tax
(Appellate Tribunal)
TDS TDS 2007-08 to 13.74 Lacs TDS CPC
2012-13
Total 261.55 Lacs

(viii) In our opinion and according to the management the company has not defaulted inrepayment of dues to banks. The Company has neither issued any debentures nor availed anyloan from institutions or government.

(ix) The company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provision ofClause 3(ix) of the order is not applicable to the company.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations give bythe management we report that no fraud by the company or no fraud on the company by theofficers and employees of the company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remunerations has been paid or provided in accordance with the requisiteapprovals mandate by the provisions of Section 197 read with Schedule V of the Act.

(xii) In our Opinion the company is not a Nidhi Company. Therefore the provisions ofparagraph 3 clause (xii)

of the Order are not applicable to the company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with related parties are in compliance with section 177 and 188 of the Actwhere applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and overall examinationof the balance sheet the company has not made any preferential allotment or privateplacement of shares or fully or partially convertible debentures during the year underreview and hence not commented upon.

(xv) According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim referred to in section 192 of the Act.

(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 DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
(Vasant Patel)
Date : 30.05.2016 Partner
Place : Ahmedabad Membership No. 044612

Annexure – B to Independent Auditors’ Report

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

GUJARAT APOLLO INDUSTRIES LIMITED

We have audited the internal financial controls over financial reporting of GUJARATAPOLLO INDUSTRIES LIMITED ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

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 both 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 applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain evidence about the adequacy of theinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and 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 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 details 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 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 stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For DJNV & Co.
Firm Registration Number: 115145W
Chartered Accountants
Date : 30.05.2016 (Vasant Patel)
Place : Ahmedabad Partner
Membership No. 044612