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Gujarat Borosil Ltd.

BSE: 523768 Sector: Industrials
NSE: GUJBOROSIL ISIN Code: INE059C01022
BSE LIVE 15:40 | 16 Aug 83.10 -0.10
(-0.12%)
OPEN

84.00

HIGH

84.00

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83.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 84.00
PREVIOUS CLOSE 83.20
VOLUME 23960
52-Week high 120.00
52-Week low 66.55
P/E 48.31
Mkt Cap.(Rs cr) 567
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 84.00
CLOSE 83.20
VOLUME 23960
52-Week high 120.00
52-Week low 66.55
P/E 48.31
Mkt Cap.(Rs cr) 567
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Borosil Ltd. (GUJBOROSIL) - Auditors Report

Company auditors report

To the Members of Gujarat Borosil Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of GUJARAT BOROSILLIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary 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 give a true and fair view of state of affairs(financial position) profit (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with relevant rules thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 thereunder. We conducted our audit of the Ind ASfinancial statements in accordance with the Standards on Auditing specified under Section143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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 total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Other Matters

The comparative financial information of the Company for the year ended 31stMarch 2016 and the transition date opening balance sheet as at 1st April 2015included in these Ind AS financial statements are based on the previously issuedstatutory financial statements prepared in accordance with the Companies (Accounting

Standards) Rules 2006 audited by the predecessor auditor whose report for the yearended 31st March 2016 and 31st March 2015 dated 20thMay 2016 and 18th May 2015 respectively expressed an unmodified opinion onthose financial statements as adjusted for the differences in the accounting principlesadopted by the Company on transition to the Ind AS which have been audited by us.

Our opinion is not modified in respect of above said matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes 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(including other comprehensive income) the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account; d) In ouropinion the aforesaid Ind AS financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act read with relevant rules thereunder; 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 financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A"; g) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: (a) The Company has disclosedthe impact of pending litigations on its financial position in its Ind AS financialstatement as referred to in Note no. 37 40 and 41 to the Ind AS financial statements.

(b) The Company does not have long term contracts including derivative contracts forwhich there were any material foreseeable losses.

(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company; (d) The Company has providedrequisite disclosures in the Ind AS financial statements as regards to its holdings anddealings in Specified Bank Notes as defined in the Notification S.O. 3407 (E) dated 8thNovember 2016 of the Ministry of Finance during the period from 8th November2016 to 30th December 2016. Based on audit procedure performed andrepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe management.

2. 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 "Annexure B" hereto a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No: 101720W
R. Koria
Partner
Membership No. 35629
Place: Mumbai
Date: 03-05-2017

"ANNEXURE A" TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of Gujarat Borosil Limited on theInd AS financial statements for the year ended 31st March 2017) Report on theInternal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GujaratBorosil 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.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 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 and the Standards on Auditing prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls. 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 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 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 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No: 101720W
R. Koria
Partner
Membership No. 35629
Place: Mumbai
Date: 03-05-2017

"ANNEXURE B" TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Gujarat BorosilLimited on the Ind AS financial statements for the year ended 31st March 2017)

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the Company has physically verified assets in accordance with aphased program of verification which in our opinion is reasonable having regard to thesize of the Company and nature of its assets. No material discrepancies were noticed onsuch physical verification as compared with the available records. c. According to theinformation and explanations given to us and records examined by us and based on theexamination of the deed provided to us we report that the title deeds of immovableproperties are held in the name of the Company. ii. In respect of its inventories: Asexplained to us inventories have been physically verified during the year by themanagement. In our opinion the frequency of verification is reasonable. Discrepanciesnoticed on physical verification of the inventories between the physical inventories andbook records were not material having regard to the size of the operations of theCompany and the same have been properly dealt with. iii. The Company has not granted anyloans secured or unsecured to companies firms limited liability partnership or otherparties covered in register maintained under section 189 of the Act. iv. The Company hasnot given any loan made investments and provided guarantees and securities during theyear. Therefore the provisions of the clause (iv) of paragraph 3 of the Order are notapplicable to the Company.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of clause (v) of paragraph3 of the Order are not applicable to the Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1) (d) of the act as applicable and are of the opinion that prima facie theprescribed accounts and records have been 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 undisputed statutory duesincluding Provident Fund Income tax Sales tax Service tax Customs Duty Excise DutyValue Added Tax Cess and any other statutory dues with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of such statutory dues were outstanding as at 31st March 2017 for aperiod of more than six months from the date they became payable. b. Details of dues ofDuty of Income Tax Excise Service Tax and Sales Tax aggregating to Rs 1596.23 Lacsthat have not been deposited on account of disputed matters pending before appropriateauthorities are as under:

Name of the Statutes Nature of the Dues Period to which it relates Amounts (Rs in Lacs) (*) Forum where the dispute is pending
Income Tax Act 1961 Income Tax Assessment Year(A.Y) 2012-13 to 2015-16 52.58 CIT (A) Vadodara
A.Y. 2010-12 195.74 ITAT Ahmedabad
A.Y. 2003-04 83.88 Gujarat High Court
Gujarat Sales Tax Act 1969 Sales Tax 2000-01 2002-03 and 2004-05 550.84 Joint Commissioner of Commercial Tax Vadodara
Central Excise Act Excise Duty February 1999 to June 662.05 CESTAT Ahmedabad
1944 2005
Service Tax under Service Tax April 2007 to December 1.47 CESTAT Ahmedabad
Finance Act 1994 2011
From April 2007 to 49.67 Commissioner (Appeal)
September 2016 Surat II
Total 1596.23

* Net of amount paid under protest. viii. Based on our audit procedures and accordingto the information and explanations given by the management we are of the opinion that ason 31st March 2017 the Company has not defaulted in repayment of dues tobanks. The Company does not have any borrowings from financial institutions governmentand debenture holders. ix. According to the information and explanations given to usduring the year the Company has not raised any money by way of initial public offerfurther public offer (including debt instruments) and now term loans raised during theyear. Therefore provisions of clause (ix) of paragraph 3 of the Order are not applicableto the Company. x. Based on our audit procedures performed for the purpose of reportingthe true and fair view of the financial statements and on the basis of information andexplanations given by the management no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year. xi. In our opinion andaccording to the information and explanations given to us the Company has paid orprovided managerial remuneration in accordance with the requisite approvals mandated bythe provision of section 197 read with Schedule V to the Act. xii. In our opinion theCompany is not a Nidhi Company. Therefore the provisions of clause (xii) of paragraph 3of the Order are not applicable to the Company. xiii. According to the information andexplanations given to us Company's transactions with the related parties are incompliance with section 177 and 188 of the Act as applicable and details of suchtransactions have been disclosed in the financial statement as required by the applicableIndian accounting standards. xiv. According to the information and explanations given tous and based on our examination of the records of the Company during the year theCompany has not raised any money by preferential allotment or private placement of shareor debentures. Therefore the provisions of clause (xiv) of paragraph 3 of the Order arenot applicable to the Company. xv. According to the information and explanations given tous during the year the Company has not entered into any non-cash transactions withdirectors or persons connected with him Therefore the provisions of clause (xv) ofparagraph 3 of the Order are not applicable to the Company. xvi. In our opinion andaccording to information and explanations provided to us the Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Shah
Chartered Accountants
Firm Registration No: 101720W
R. Koria
Partner
Membership No. 35629
Place: Mumbai
Date: 03-05-2017