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Gujarat Fluorochemicals Ltd.

BSE: 500173 Sector: Industrials
NSE: GUJFLUORO ISIN Code: INE538A01037
BSE LIVE 15:46 | 15 Dec 877.35 3.05
(0.35%)
OPEN

882.00

HIGH

890.00

LOW

870.60

NSE 15:57 | 15 Dec 878.85 4.80
(0.55%)
OPEN

889.00

HIGH

890.00

LOW

875.00

OPEN 882.00
PREVIOUS CLOSE 874.30
VOLUME 5342
52-Week high 959.00
52-Week low 455.10
P/E 41.96
Mkt Cap.(Rs cr) 9,642
Buy Price 878.00
Buy Qty 31.00
Sell Price 0.00
Sell Qty 0.00
OPEN 882.00
CLOSE 874.30
VOLUME 5342
52-Week high 959.00
52-Week low 455.10
P/E 41.96
Mkt Cap.(Rs cr) 9,642
Buy Price 878.00
Buy Qty 31.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Fluorochemicals Ltd. (GUJFLUORO) - Auditors Report

Company auditors report

Independent Auditor's Report

to the members of Gujarat Fluorochemicals Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Gujarat Fluorochemicals Limited ("the Company") which comprise theStandalone Balance Sheet as at 31st March 2017 the Standalone Statement ofProfit and Loss (including Other Comprehensive Income) the Standalone Statement of CashFlows and the Standalone 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 Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards (Ind AS)prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting 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 controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom 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.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified 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 standalone Ind AS financial statements 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 ASfinancial 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 overallpresentation of the standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the 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 including the IndAS of the financial position of the Company as at 31st March 2017 and its financialperformance including other comprehensive income its cash flows and changes in equity forthe year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure I a statement on the matters specified in paragraph 3 and4 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 includingOther Comprehensive Income the Standalone Statement of Cash Flows and the StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting

Standards prescribed under Section 133 of the Act.

(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 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – refer Note 34 to the standalone Ind ASfinancial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards including the Ind AS for material foreseeable losses on long-term contractsincluding derivative contracts refer Note 45

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

iv. The Company has provided requisite disclosures in the standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the books ofaccount maintained by the Company – refer Note 52 to the standalone Ind AS financialstatements.

For Patankar & Associates
Chartered Accountants
Firm's Registration No. 107628W
M Y Kulkarni
Place : Pune Partner
Dated: 29th May 2017 Membership No. 035524

In term of the Companies (Auditor's Report) Order 2016 ("theOrder") on the basis of information and explanation given to us and the books andrecords examined by us in the normal course of audit and such checks as we consideredappropriate to the best of our 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 two companies 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 saidparties are 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 dutyof customs 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 income-tax sales-tax service tax duty of customs dutyof excise and value added tax which have not been deposited on account of disputes are asunder:

Name of the Statute Nature of dues and the period to which the amount relates Amount ( Rs. in Lakh) Forum where dispute is pending
Income Tax Disallowance under section 14A 19068.69 Income Tax Appellate Tribunal
80IA & protective assessment in Ahmedabad.
respect of Slump Sale transaction
treated as short term capital gain –
F.Y. 2011-2012
Central Excise Act 1944 Excise Duty on freight recovered 363.34 Customs Excise and Service Tax
from customers - April 2007 to Appellate Tribunal Ahmedabad
November 2007
Central Excise Act 1944 Cenvat Credit availed on Capital 51.59 Customs Excise and Service Tax
goods - April 2006 to August 2011 Appellate Tribunal Ahmedabad
Central Excise Act 1944 Excise Duty on freight recovered 154.88 Customs Excise and Service Tax
from customers - April 2012 to Appellate Tribunal Ahmedabad
December 2012
Central Excise Act 1944 Excise Duty on freight recovered 57.72 Customs Excise and Service Tax
from customers - January 2013 to Appellate Tribunal Ahmedabad
August 2013
Customs Act 1962 Differential duty on Import of Coal 113.04 Customs Excise and Service Tax
on high seas - April 2013 to May Appellate Tribunal Ahmedabad
2013
Customs Act 1962 Differential duty on Import of Coal 860.53 Customs Excise and Service Tax
on high seas - 17th March 2012 to Appellate Tribunal Ahmedabad
28th March 2013
Central Excise Act 1944 Excise Duty on freight recovered 124.38 Customs Excise and Service Tax
from customers – September 2013 Appellate Tribunal Ahmedabad
to May 2014
Central Excise Act 1944 Cenvat Credit availed on Services 15.89 Customs Excise and Service Tax
for setting up of plant – November Appellate Tribunal Ahmedabad
2013 to October 2014
Central Excise Act 1944 Cenvat Credit availed on 8.72 Commissioner (Appeals-II) Central
Gardening and Travel agent Excise Customs and Service tax
service - January 2013 to May Surat
2015
Central Excise Act 1944 Excise Duty on freight recovered 70.42 Commissioner (Appeals-II) Central
from customers – June2014 to Excise Customs and Service tax
March 2015 Surat
Central Excise Act 1944 Cenvat Credit availed on 33.01 Commissioner (Appeals-II) Central
Equipment and Components in Excise Customs and Service tax
respect of Plant installed by Third Surat
party
Central Excise Act 1944 Interest on Reversal of Cenvat 2.20 Commissioner (Appeals-II) Central
credit on capital goods-2007-08 & Excise Customs and Service tax
2008-09 Surat
Central Excise Act 1944 Cenvat Credit availed on Insurance 2.12 Commissioner (Appeals-II) Central
service for staff and for export of Excise Customs and Service tax
goods Feb-2012 to Dec-2012 Surat
Central Excise Act 1944 Cenvat Credit availed on Insurance 45.90 Commissioner (Appeals-II) Central
auxillary services in relation to Excise Customs and Service tax
exports and staff – December Surat
2013 to August 2014 & from June
2015 to May 2016
Central Excise Act 1944 Excise Duty on freight recovered 78.87 Commissioner (Appeals-II) Central
from customers - April 2015 to Excise Customs and Service tax
January 2016 Surat
Central Excise Act 1944 Cenvat Credit availed on 141.44 Commissioner (Appeals-II) Central
execution of works contract of Excise Customs and Service tax
civil construction – April 2011 to Surat
December 2015
Service Tax Non-payment of Service Tax 90.60 Commissioner (Appeals-II) Central
(Finance Act1994) on Storage and Ware housing Excise Customs and Service tax
Services under RCM - April 2008 Surat
to September2015
Central Excise Act 1944 Interest and Penalty on reversal of 13.85 Commissioner (Appeals-II) Central
Common services availed Excise Customs and Service tax
Vadodara.
Service Tax Non-payment of Service tax on 200.77 Commissioner (Appeals-II) Central
(Finance Act1994) Supply of Intangible services Excise Customs and Service tax
& Management Repair & Vadodara
Maintenance service – May 2008
to March 2015
Central Excise Act 1944 Cenvat Credit availed on Travel 6.39 Commissioner (Appeals-II) Central
agent service CHA GTA Excise Customs and Service tax
Insurance etc. - January 2013 to Vadodara
September 2014.
Central Excise Act 1944 Cenvat Credit availed on Civil 7.68 Commissioner (Appeals-II) Central
construction work on Repairs & Excise Customs and Service tax
Maintenance. – November 2013 to Vadodara
August 2015
Commercial tax Gujarat Proportionate ITC reduced on 18.00 Joint Commissioner of
VAT Capital goods at the rate of 2%.In Commercial Tax (Appeal)
respect of Ratio of OGS sales to
Gross turnover of sales. F.Y. 2011-
2012
Commercial tax Gujarat Proportionate ITC reduced on 49.33 Joint Commissioner of
CST Capital goods at the rate of 2%.In Commercial Tax (Appeal)
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%.
F.Y. 2011-2012
Commercial tax Gujarat Proportionate ITC reduced on 44.88 Joint Commissioner of
VAT Capital goods at the rate of 2%. Commercial Tax (Appeal)
In respect of Ratio of OGS sales
to Gross turnover of sales. F.Y.
2012-2013
Commercial tax Gujarat Disallowance of C Form 00.52 Joint Commissioner of
CST F.Y. 2012-2013 Commercial Tax (Appeal)

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 of debentures.

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 Company or on the Company by its officers or employees has beennoticed or reported 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 standards.

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
Place : Pune Partner
Dated: 29th May 2017 Membership No. 035524

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Gujarat Fluorochemicals Limited ("the Company") as of 31stMarch 2017 in conjunction with our audit of the standalone Ind AS financial statements ofthe Company for 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 (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013 ("the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial 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 standalone financialstatements.

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 the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2017 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.

For Patankar & Associates
Chartered Accountants
Firm's Registration No. 107628W
M Y Kulkarni
Place : Pune Partner
Dated: 29th May 2017 Membership No. 035524