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Gujarat Fluorochemicals Ltd.

BSE: 500173 Sector: Industrials
NSE: GUJFLUORO ISIN Code: INE538A01037
BSE LIVE 19:40 | 19 Oct 712.75 -1.70
(-0.24%)
OPEN

715.00

HIGH

720.00

LOW

709.95

NSE 19:44 | 19 Oct 714.80 0.45
(0.06%)
OPEN

718.00

HIGH

722.00

LOW

710.00

OPEN 715.00
PREVIOUS CLOSE 714.45
VOLUME 3462
52-Week high 866.60
52-Week low 451.00
P/E 45.34
Mkt Cap.(Rs cr) 7,833
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 715.00
CLOSE 714.45
VOLUME 3462
52-Week high 866.60
52-Week low 451.00
P/E 45.34
Mkt Cap.(Rs cr) 7,833
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Fluorochemicals Ltd. (GUJFLUORO) - Auditors Report

Company auditors report

To the Members of Gujarat Fluorochemicals Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements ofGujaratFluorochemicals Limited ("the Company") which comprise the StandaloneBalance Sheet as at 31st March 2016 the Standalone Statement Profitand Loss andthe Standalone Cash Flow Statement for the year then ended and a summary of thesignificant 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's 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 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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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

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 31st 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 (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure I a statement on the matters specified in paragraph 3 and 4 of the said Order.

2. 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss and theStandalone Cash Flow Statement dealt with by this Report are in agreement with the booksof 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 directors isdisqualifiedas on 31 st March 2016 from being appointed as a director in terms of Section164 (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 II.

(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. TheCompany has disclosed the impact of pending litigations on its financialposition in itsfinancial statements see note no. 36 to the standalone financial statements; ii. TheCompany has made provision as required under the applicable law or accounting standardsfor material foreseeable losses on long-term contracts including derivative contracts; andiii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

M. Y. Kulkarni

Partner

Membership No. 035524

Place: Pune

Date: 16th May 2016

Annexure I to Independent Auditor's Report

to the Members of Gujarat Fluorochemicals Limited on the standalone financialstatements for the year ended 31st March 2016 – referred to in paragraph 1 under theheading "Report on Other Legal and Regulatory Requirements" of our report ofeven date.

In term of the Companies (Auditor's Report) Order 2016 ("the Order") on thebasis of information and explanation given to us and the books and records examined by usin the normal course of audit and such checks as we considered appropriate to the best ofour knowledge and belief we state as under:

1. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. The fixed assets have been physicallyverified by the management at reasonable intervals and no material discrepancies have beennoticed on such verification. The title deeds of all immovable properties are held in thename of the Company.

2. The inventories were physically verified by the management at reasonable intervalsduring the year and no material discrepancies were noticed on physical verification ofinventories as compared to book records.

3. The Company has granted unsecured loans to one company covered in the registermaintained under Section 189 of the Companies Act 2013. The terms and conditions of thesaid loans are not prima facie prejudicial to the interest of the Company. The saidparty is regular in repayment of principal and payment of interest as stipulated andthere are no overdue amounts.

4. The Company has complied with the provisions of Section 185 and Section 186 of theAct in respect of investments made or loans given or guarantee or security provided.

5. The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Companies Act 2013 and the Rules framed thereunder and hence the provisions of clause3(v) of the Order are not applicable to the Company.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe Rules made by the Central Government for maintenance of cost records under Section148(1) of the Companies Act 2013 for activities of the Company to which the said Rulesare made applicable and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained.

7. The Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues with theappropriate authorities and no amounts in respect of such statutory dues were in arrearsas at the end of the year for a period of more than six months from the date they becamepayable.

Particulars of dues of sales tax service tax duty of customs duty of excise andvalue added tax which have not been deposited on account of disputes are as under:

Name of the Statute Nature of dues and the period to which the amount relates Amount (Rs. in Lakh) Forum where dispute is pending
Service-tax (Finance Act 1994) Penalty on delay payment of Service tax on Banking & Financial services in respect of External Commercial Borrowings - 10.09.2004 to 30.06.2007 6.85 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Excise Duty on freight recovered from customers - April 2007 to November 2007 363.34 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Cenvat Credit availed on Capital goods - April 2006 to August 2011 51.59 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Excise Duty on freight recovered from customers - April 2012 to December 2012 154.88 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Excise Duty on freight recovered from customers - January 2013 to August 2013 57.72 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Customs Act 1962 Differential duty on Import of Coal on high seas - April 2012 to May 2012 113.04 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Customs Act 1962 Differential duty on Import of Coal on high seas - 17th March 2012 to 28th March 2013 860.53 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Excise Duty on freight recovered from customers September 2013 to May 2014 124.38 Customs Excise and Service Tax Appellate Tribunal Ahmedabad
Central Excise Act 1944 Cenvat Credit availed on Services for setting up of plant November 2013 to October 2014 15.89 Commissioner (Appeals) Central Excise Customs and Service Tax Vadodara
Central Excise Act 1944 Cenvat Credit availed on Gardening and Travel agent service - January 2013 to May 2015 8.72 Commissioner (Appeals-II) Central Excise Customs and Service Tax Surat
Central Excise Act 1944 Excise Duty on freight recovered from customers June 2014 to March 2015 70.42 Commissioner (Appeals-II) Central Excise Customs and Service Tax Surat
Central Excise Act 1944 Cenvat Credit availed on Equipment and Components in respect of Plant installed by Third party 33.01 Commissioner (Appeals-II) Central Excise Customs and Service Tax Surat
Central Excise Act 1944 Interest on Reversal of Cenvat Credit on capital goods 2007-08 & 2008-09 2.20 Commissioner (Appeals-II) Central Excise Customs and Service Tax Surat
Commercial tax Gujarat VAT Proportionate ITC reduced on Capital goods at the rate of 2%. In respect of Ratio of OGS sales to Gross turnover of sales 18.00 Joint Commissioner of Commercial Tax (Appeal)
Commercial tax Gujarat CST Proportionate ITC reduced on Capital goods at the rate of 2%. In respect of Ratio of OGS sales to Gross turnover of sales and Sales to SEZ (Gujarat) at Zero rated tax assessed at full rate of tax at 5%. 49.33 Joint Commissioner of Commercial Tax (Appeal)

There are no dues of income tax which have not been deposited on account of disputes.

8. The Company has not defaulted in repayment of dues to banks or financialinstitutions and the Company did not have any borrowings from Government or by way ofdebentures.

9. The Company has applied the moneys raised by way of term loans for the purposes forwhich the moneys were raised. The Company did not raise moneys by way of initial publicoffer or further public offer (including debt instruments).

10. No fraud by the CompanyorontheCompanybyitsofficers or employees has been noticed orreported during the course of our audit.

11. The Company has complied with the provisions of Section 197 of the Companies Act2013 regarding payment of managerial remuneration.

12. The Company is not a Nidhi Company and hence the provisions of clause 3(xii) of theOrder are not applicable to the Company.

13. All transactions with the related parties are in compliance with Sections 177 and188 of Companies Act 2013 and the details have been disclosed in the standalone financialstatements etc. as required by the applicable accounting

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and hence theprovisions of clause 3(xiv) of the Order are not applicable to the Company.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with them and hence the provisions of clause 3(xv) of the Order are notapplicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934 and hence the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

M. Y. Kulkarni

Partner

Membership No. 035524

Place: Pune

Date: 16th May 2016

Annexure II to Independent Auditor's Report

to the members of Gujarat Fluorochemicals Limited on the standalone financialstatements for the year ended 31st March 2016 – referred to in paragraph 2(f) underthe heading "Report on Other Legal and Regulatory Requirements" of our report ofeven 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 with reference to financial statementsover financial Gujarat Fluorochemicals Limited reportingof ("theCompany") as of 31st March 2016 in conjunction with our audit of thestandalonefinancialstatements 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 control over reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly efficien conduct of its business including adherence to Company'spolicies the safeguarding of its assets the prevention and detection of frauds and anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 audit in accordancewith the Guidance Note and the Standards on Auditing 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 ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to statements system over financialreporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial assessing the risk that amaterial 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 judgement including the assessment of the risks of materialmisstatement of the standalone 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 withreference to standalone financial statements system 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 detail accurately and fairly reflect the transactions and dispositionsof the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and (3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the standalone 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 override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system with reference to financial statements system over financialreporting and such internal financial controls over financial reporting were operatingeffectively as at 31 st March 2016 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 ICAI.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

M. Y. Kulkarni

Partner

Membership No. 035524

Place: Pune

Date: 16th May 2016