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Gujarat Petrosynthese Ltd.

BSE: 506858 Sector: Industrials
NSE: N.A. ISIN Code: INE636P01011
BSE 14:28 | 22 Jan 34.70 -1.80
(-4.93%)
OPEN

34.75

HIGH

34.80

LOW

34.70

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 34.75
PREVIOUS CLOSE 36.50
VOLUME 201
52-Week high 36.65
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 34.70
Sell Qty 962.00
OPEN 34.75
CLOSE 36.50
VOLUME 201
52-Week high 36.65
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 34.70
Sell Qty 962.00

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 2017 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 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 a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating 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 2017 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 eroded. The activity of the company isclosed from 15-Feb-2016. These conditions indicate existence of material uncertainty whichcast significant doubt about company’s ability to continue as going concern. Howeverthe Auditor of GPPL confirmed that the financial statements prepared as a going concernare in conformity with generally accepted accounting principles and give true and fairview.

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 2017 ("theOrder") issued by the CentralGovernment of India in terms of sub-section (11) ofsection 143 of the Act we give in the ‘Annexure A’ a statement on the mattersspecified in the paragraph 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 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 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 withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best ofour information and according to the explanations given to us there areno other material matters to be reported.

For SJH & Co
Chartered Accountants
Firm’s registration number: 012106S
Place : Bangalore CA A. Jagannath Babu
Partner
Date : 15th May 2017 Membership number: 020115

ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors’ Report to the members ofM/s. Gujarat Petrosynthese Limited on the standalone financial statements for the yearended 31 March 2017 we report that:

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

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

(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 compiled.

(iv) In our opinion and according to the information and explanations given to usthere is anadequate internal control system commensurate with the size of the Company andthe natureof its business with regard to purchase of inventories and fixed assets and withregards to sale of goods and services. We have notobserved 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 2017 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 ofwealth tax duty of customs and cess which have not been deposited with theappropriateauthorities 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 hasnot 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 ustheCompany has not given any guarantee for loans taken by others from banks orfinancialinstitutions.

(xi) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 08thNov 2016 to 30th Dec 2016. Based on Audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management.-(‘Annexure C’)

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

(xiii To the best of our knowledge and beliefand according to the informationgiven tous no material fraud on or by theCompany has been noticed or reported during the courseof our audit.

DISCLSOURE ON SPECIFIED BANK NOTES (SBNs)- (‘Annexure C’)

During the year the Company had specified bank notes or other denomination note asdefined in the MCA notification G.S.R. 308(E) dated March 31 2017 on the details ofSpecified Bank Notes (SBN) held andtransacted during the period from November 8 2016 toDecember 30 2016 the denomination wise SBNs and other notes as per the notification isgiven below:

GPL -Mumbai
Particulars SBN’s * Other Total
Denomination
Notes
Closing cash in hand as on November 8 2016 85000.00 15282.94 100282.94
(+)Permitted receipts 183000.00 183000.00
(-) Permitted payments 198067.83 198067.83
(-) Amount deposited in Banks 85000.00 85000.00
Closing cash in hand as on December 30 2016. 215.11 215.11
GPL -Bangalore
Particulars SBN’s * Other Total
Denomination
Notes
Closing cash in hand as on November 8 2016 20000.00 5058.85 25058.85
(+)Permitted receipts 80000.00 80000.00
(-) Permitted payments 87363.00 87363.00
(-) Amount deposited in Banks 20000.00 20000.00
Closing cash in hand as on December 30 2016. 17695.85 17695.85

* For the purposes of this clause the term ‘Specified Bank Notes’ shall havethe same meaning providedin the notification of the Government of India in the Ministryof Finance Department of Economic Affairsnumber S.O. 3407(E) dated the 8th November2016.

For SJH & Co
Chartered Accountants
Firm’s registration number: 012106S
CA A. Jagannath Babu
Place : Bangalore Partner
Date : 15th May 2017 Membership number: 020115

ANNEXURE B TO THE AUDITOR’S REPORT

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 2017 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 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 prescribedunder section 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’ judgment 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 overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial reporting over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand preparation 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 2017 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’s registration number: 012106S
CA A. Jagannath Babu
Place : Bangalore Partner
Date : 15th May 2017 Membership number: 020115