You are here » Home » Companies » Company Overview » Gujarat Raffia Industries Ltd

Gujarat Raffia Industries Ltd.

BSE: 523836 Sector: Industrials
NSE: GUJRAFFIA ISIN Code: INE610B01024
BSE LIVE 12:04 | 23 Aug 23.50 -0.45
(-1.88%)
OPEN

23.00

HIGH

23.50

LOW

23.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 23.00
PREVIOUS CLOSE 23.95
VOLUME 184
52-Week high 33.95
52-Week low 11.61
P/E 14.97
Mkt Cap.(Rs cr) 12
Buy Price 23.50
Buy Qty 50.00
Sell Price 24.85
Sell Qty 100.00
OPEN 23.00
CLOSE 23.95
VOLUME 184
52-Week high 33.95
52-Week low 11.61
P/E 14.97
Mkt Cap.(Rs cr) 12
Buy Price 23.50
Buy Qty 50.00
Sell Price 24.85
Sell Qty 100.00

Gujarat Raffia Industries Ltd. (GUJRAFFIA) - Auditors Report

Company auditors report

TO

THE MEMBERS OF GUJARAT RAFFIA INDUSTRIES LIMITED

REPORT ON THE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying financial statements of GUJARAT RAFFIA INDUSTRIESLIMITED ("The Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss Cash Flow Statement for the year then endedand a summary of the significant accounting policies and their explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and profit/loss and its cash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor’s Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

RESPONSIBILITY OF MANAGEMENT FOR THE 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the company’sfinancial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in exercise of powers conferred bysub-section 11 of section 143 of the Act we give in the Annexure-A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

(a) 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.

(b) 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.

(c) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(d) 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 isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (2) of the Act.

(e) With respect to the financial adequacy of the internal financial controls overfinancial reporting of the company and the operating effectiveness of such controls referto our separate report in Annexure-B

(f) 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 does not have any pending litigations as at 31st March 2016which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts asat 31st March 2016 for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2016.

For P G T & Associates.
Chartered Accountants
(Registration No. 116277W)
Sd/-
Chirali S. Shah
Partner Place: Ahmedabad
Membership No.164109 Date: 30th May 2016

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in our independent Auditors’ Report With respect toparagraph 1 of "Report on other Legal and Regulatory Requirements" to themembers of the company on the financial statements for the year ended 31stMarch2016 We report that :

I. In respect of its fixed assets:

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

b) The fixed asset has been physically verified by the management in accordance with aregular programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanation given to us no material discrepancies have been noticed on suchverification.

c) We have inspected the original title deeds of immovable properties of the companyheld as fixed assets which are in the custody of the company. We have obtained third partyconfirmations in respect of immovable properties of the company held as fixed assets whichare in the custody of third parties such as mortgagees. Based on our audit procedures andthe information and explanation received by us we report that all title deeds ofimmovable properties of the company are held in the name of the company. However weexpress no opinion on the validity of the title of the company to these properties.

II. As explained to us the inventories were physically verified by the managementduring the year at reasonable interval. No material discrepancies were noticed on physicalverification stocks as compared to book records.

III. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly the Provisions of clause 3(iii) (a) to (c) of theorder are not applicable to the company and hence not commented upon.

IV. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees security.

V. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 73 section 76 and other relevantprovisions of the companies Act2013 and the Companies(Acceptance of Deposits) Rules2014with regard to the deposits accepted from the members and the public. No order has beenpassed by the National Company Law tribunal or Company Law Board or any court or any otherTribunal with regard to deposits.

VI. Company is not required to maintain cost records in pursuant to the rulesprescribed by the Central Government for maintenance of cost records under sub-section (1)of Section 148 of the Companies Act 2013.

VII. According to the information and explanation given to us in respect of Statutorydues:

a. The company has generally been regular in depositing of undisputed statutory duesincluding Provident fund Employees state insurance Income tax Sales tax Service taxduty of Customs duty of Excise Value added tax Cess and other statutory dues applicableto it with the appropriate authorities and no amount payable were in arrears as at March31 2016 for a period of more than six months from the date they became payable.

b. There are no dues of Income tax Wealth tax Sales tax Value added tax Servicetax Customs duty Excise duty and Cess which have not been deposited with the appropriateauthorities on account of any dispute

VIII. Based on our audit procedures and on the information and explanations given bythe management we are the opinion that the company has not defaulted in repayment ofloans or borrowing to a financial instituti bank and government. The Company has notissued any debentures.

IX. According to the record of the company has not raised any moneys by way of InitialPublic Offer or Furtl Public Offer and term loan have been applied for the purpose forwhich they were raised.

X. Based upon the audit procedures performed and information and explanations given bythe management report that no fraud on the company by its officers or employees nor anyfraud by the company has be noticed or reported during the course of our audit.

XI. Based upon the audit procedures performed and the information and explanationsgiven by the manageme the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandal by the provisions of section 197 read with Schedule Vto the Companies Act;

XII. In our opinion and to the best of our information and according to theexplanation provided by 1 management we are of the opinion that the company is not Nidhihence in our opinion; the requirements Clause 3(xii) of the order do not apply to thecompany.

XIII. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by 1 applicable accounting standards.

XIV. Based upon the audit procedures performed and the information and explanationsgiven by the manageme the company has not made any preferential allotment or privateplacement of shares or fully or par convertible debentures during the year under review.Accordingly the provisions of clause 3 (xiv) of the Ore are not applicable to the Companyand hence not commented upon.

XV. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

XVI. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company anc hence not commented upon.

For P G T & Associates.
Chartered Accountants
(Registration No. 116277W)
Sd/-
Chirali S. Shah
Partner Place: Ahmedabad
Membership No.164109 Date: 30th May 2016

ANNEXURE-B TO THE INDEPENDENT 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 controls over financial reporting of GUJARATRAFFIA INDUSTRIES LIMITED as of March 31 2016 in conjunction with our audit of thefinancial statements 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 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company’s policies the safeguarding 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.

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 on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 includedobtaining an understanding of internal financial controls 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 auditor’s judgement including the assessment of the risks ofmaterial misstatement 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 controlssystem 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 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 P G T & Associates.
Chartered Accountants
(Registration No. 116277W)
Sd/-
Chirali S. Shah
Partner Place: Ahmedabad
Membership No.164109 Date: 30th May 2016