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Gujarat Petrosynthese Ltd.

BSE: 506858 Sector: Industrials
NSE: N.A. ISIN Code: INE636P01011
BSE LIVE 15:02 | 25 Sep 20.90 -0.25
(-1.18%)
OPEN

22.20

HIGH

22.20

LOW

20.90

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 22.20
PREVIOUS CLOSE 21.15
VOLUME 1454
52-Week high 34.45
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 12
Buy Price 20.90
Buy Qty 14.00
Sell Price 0.00
Sell Qty 0.00
OPEN 22.20
CLOSE 21.15
VOLUME 1454
52-Week high 34.45
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 12
Buy Price 20.90
Buy Qty 14.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Petrosynthese Ltd. (GUJPETROSYNTH) - Auditors Report

Company auditors report

To

The Members of

M/s. Gujarat Petrosynthese Ltd

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of M/s GujaratPetrosynthese Ltd (the Company) which comprise the balance sheet as at 31 March 2016 thestatement of profit and loss and the cash flow statement for the year then ended and asummary of significant 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 preparationand presentation of these 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 recordsin accordance with the provisions of the act for safeguarding the assets of the Companyand 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 financial 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 standalone financial statementsbased 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 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 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 statements.

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 31 March 2016 and its profit and its cash flows for the year ended on that date.

Other Matter

As per the Emphasis of matter mentioned in the independent auditor's report of M/SGujarat Polybutenes Private Limited a Wholly owned subsidiary of the company hasaccumulated losses and the net worth is totally erodedeven after induction of freshcapital. The company has incurred net loss/net cash loss during the current & previousyears. The activity of the company is closed from 15-Feb-2016. Thus indicating theuncertainty on going concern however as per company expects to restart operations in nearfuture to make good of the losses.

Our opinion is not modified in respect of the other matters.

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 in theparagraph 3 and 4 of the Order to the extent applicable.

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 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act; and

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 there areno other material matters to be reported.

For SJH & CO.

Chartered Accountants

Firm Regn. No. 012106S

(A. Jagannath Babu)

Chartered Accountant

M.No. 020115

Place : Mumbai

Date : 27th May 2016

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors' Report to the members of M/s.Gujarat Petrosynthese Limited on the standalone financial statements for the year ended 31March 2016 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(ii) In respect of Inventories:

The inventory except goods-in-transit have been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable.

In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business;

In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventory and no material discrepancies werenoticed on physical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans to company firm and any other parties covered in the registermaintained under section 189 Other than its wholly owned subsidiary company M/S GujaratPolybutenes Private Limited an amount of Rs. 390 Lakhs Accordingly the provisions ofSection 189 have been complied.

(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of inventories and fixed assets andwith regards to sale of goods and services. We have not observed any major weakness in theinternal control system during the course of the audit.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of Sections 73 to 76 of the Act and rules framed there under.

(vi) The Central Government has not prescribed the maintenance of cost records by theCompany under section 148(1) of the Companies Act 2013;

(vii) (a) According to the information and explanations given to us and the recordsexamined by us the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax custom duty excise-duty value added tax cess andother statutory dues and there are no undisputed statutory dues outstanding as at 31stMarch 2016 for a period of more than six months from the date they became payable;

(b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However According to the informationand explanations given to us dues that have not been deposited by the Company on accountof disputes are mentioned below:

Name of the Statute Nature of dues Financial Year Amount under dispute Amount paid under protest Forum Where the Dispute is pending
Income Tax Rectification Due F.Y 2007-08 Rs. 94429/- NIL Rectification filed with AO
F.Y 2009-10 Rs. 6332/- Rectification filed with AO
F.Y 2010-11 Rs. 32170/- Rectification filed with AO

(c) According to the information and explanations given to us no amount is required tobe transferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act and rules made there under;

(viii) The Company does not have any accumulated losses at the end of the financialyear and has not incurred cash losses in the financial year.

(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayment of dues to its financialinstitution and bankers. The Company did not have any outstanding debentures during theyear.

(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.

(xi) The Company did not have any term loans outstanding during the year.

(xii) To the best of our knowledge and belief and according to the information given tous no material fraud on or by the Company has been noticed or reported during the courseof our audit.

For SJH & CO.

Chartered Accountants

Firm Regn. No. 012106S

(A. Jagannath Babu)

Chartered Accountant

M.No. 020115

Place : Mumbai

Date : 27th May 2016

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 control over financial reporting of M/s. GujaratPetrosynthese Limited (‘the Company) as of 31st March 2016 in Conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate

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 Financials Reportingissued by the Institute of Chartered Accountants of India(ICAI)These responsibilitiesinclude the design implementation and maintenance of adequate internal controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the company's policies the safe guarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the companies act 2013

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's Internal FinancialControls based on our audit. We conducted our audit in accordance with the Guidance noteon Audit of Internal financial controls over financials reporting (‘the Guidancenote') and the standards on auditing issued by the ICAI and deemed to be prescribed undersection 143(10) of the companies act 2013 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 that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether adequate internal financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects

Our audit involves performing procedure 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 control 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 auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial reporting over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting andpreparation of financial statement for external purpose is accordance with generallyaccepted accounting principles. A company's Internal Financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecord 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 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 Materials misstatements due to error or frauds may occur and not be detectedAlso projections of any evaluation of the internal financial control 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 systems over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting Issued by the Institute of CharteredAccountants of India.

For SJH & CO.

Chartered Accountants

Firm Regn. No. 012106S

(A. Jagannath Babu)

Chartered Accountant

M.No. 020115

Place : Mumbai

Date : 27th May 2016