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Gujarat Raffia Industries Ltd.

BSE: 523836 Sector: Industrials
NSE: GUJRAFFIA ISIN Code: INE610B01024
BSE LIVE 19:40 | 19 Oct 47.70 2.20
(4.84%)
OPEN

47.50

HIGH

47.75

LOW

46.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 47.50
PREVIOUS CLOSE 45.50
VOLUME 8046
52-Week high 47.75
52-Week low 12.64
P/E 30.38
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 47.50
CLOSE 45.50
VOLUME 8046
52-Week high 47.75
52-Week low 12.64
P/E 30.38
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Raffia Industries Ltd. (GUJRAFFIA) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

GUJARAT RAFFIA INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GUJARAT RAFFIA INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31/03/2017the Statement of Profit and Loss the Cash Flow Statementfor the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility 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 thepreparation of these 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 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 accountingrecords in accordance with the provisions of the Act for safeguarding of the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial 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 material misstatementwhether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the auditreport under the provisions 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 aboutwhether the 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 materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but notfor the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the financial statements.

Opinion

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 bythe Act in the manner so required and give a true and fair view inconformity with the accounting principles generally a cepted in India of the state ofaffairs of the Company as at 31/03/2017 and its profit /loss and it's cash flowsfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order2016 ("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe Companies Act 2013. We give in the Annexure A statements on the matters specified inparagraphs 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 FlowStatement dealt with by this Report are in agreement with the books of account.

(d) 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.

(e) On the basis of the written representations received from the directors as on 31/03/2017taken on record by the Board of Directors none of the directors is disqualified as 31/03/2017from being appointed as a director in terms of 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 B".

(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.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management.

For M/s V S AGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No :141089W
Sd/-
CA. Shikha Agarwal
Partner Date: 27/05/2017
Membership No. : 066763 Place: AH EDABAD

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

Reports under The Companies (Auditor's Report) Order 2016 (CARO 2016) for the yearended on 31st March 2017

To

The Members of

GUJARAT RAFFIA INDUSTRIES LIMITED

In Respect of Fixed Assets

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

(b) Fixed assets have been physically verified by the management in accordance with aregular programme of verification which in our opinion provided for physicalverification of all the fixed assets at reasonable intervals; According to the informationand explanation given to us no material discrepancies were noticed on such verification.

(c) We have inspected the original title deeds of immovable properties of the companyheld as fixed assets which are in 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 auditprocedures and the information and explanation received by us we report that allthe title deeds of immovable properties are held in the name of the company. However weexpress no opinion on the validity of the title of the company to these properties.

In Respect of Inventories

As explained to us the inventories were physically verified by the management duringthe year at reasonable interval. No material discrepancies were noticed on suchverification.

Compliance under section 189 of The Companies Act 2013

In our opinion and according to the information and explanations given to us thecompany company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly the clauses 3 (a) (b) and (c) are not applicable to the companyand hence not commented upon.

Compliance under section 185 and 186 of The Companies Act 2013

In our opinion and according to the information and explanations given to us thecompany have complied with the provisions of section 185 and 186 of the Companies Act2013 while doing transaction for loans investments guarantees and security.

Compliance under section 73 to 76 of The Companies Act 2013 and Rules framed thereunder while accepting Deposits

In our opinion and according to the information and explanations given to us thecompany have complied with the provisions of section 73 section 76 and other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014 with regards to the deposits accepted from the members and the public. Noorder has been passed by the National Company Law Tribunal or Company Law Board or anyCourt or any other Tribunal with regard to deposits.

Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the main enance of cost records under sub-section (1) ofsection 148 of the Companies Act 2013.

Deposit of Statutory Dues

(a) The company has generally been regular in depositing the undisputed statutory duesincluding provident fund employees` state insurance income tax sales tax wealth taxservice tax custom duty excise duty. Cess and other statutory dues applicable to theCompany with the appropriate authorities. No undisputed amounts payable in respect of theaforesaid statutory dues were outstanding as at the March 31 2017 for a period ofmore 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 Custom Duty Excise duty and cess which have not been deposited with the appropriateauthorities on account of any dispute.

Repayment of Loans and Borrowings

Based on our audit procedures and as per the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto a financial institution bank and Government. The Company has not issued anydebentures.

Utilization of Money Raised by Public Offers and Term Loan For which they Raised

According to the records of the company has not raised any money by way of initialpublic offer or further public offer {including debt instruments) and term loans. Hencethis clause is not applicable.

Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usby the management no such fraud noticed or reported during the year.

Managerial Remuneration

Based on our audit procedures and the information and explanation made available to usby the management Managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act.

Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio

As per information and records available with us The company is not Nidhi Company.

Related party compliance with Section 177 and 188 of companies Act - 2013

In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicableaccounting standards.

Compliance under section 42 of Companies Act - 2013 regarding Private placement ofShares or Debentures

Based on our audit procedures and the information and explanation made available to usby the management the company has not made any preferential allotment / privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly this clause is not applicable to the company and hence notcommented upon.

Compliance under section 192 of Companies Act – 2013

Based on our audit procedures and the information and explanation made available to usby the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly this clause is not applicableto the company and hence not commented upon.

Requirement of Registration under 45-IA of Reserve Bank of India Act 1934

Based on our audit procedures and the information and explanation made availableto us by the management the company is not required to be registered under section45-IA of the Reserve Bank of lndia Act 1934. Accordingly this clause is notapplicable to the company and hence not commented upon.

For M/s V S AGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No. :141089W
Sd/-
CA. Shikha Agarwal
Partner Date: 27/05/2017
Membership No. : 066763 Place: AHMEDABAD

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of GUJARAT RAFFIA INDUSTRIES LIMITED

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 ("The Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Companyfor 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 internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required 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 OverFinancial Reporting (the "Guidance Note") and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence amout the adequacy ofthe internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon onthe auditor's judgment including the assessment of the risks of materialmisstatement 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 controls systemover 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 aintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide rea onable 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 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 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 issues by the Institute of CharteredAccountants of India.

For M/s V S AGARWAL & ASSOCIATES
Chartered Accountants
Firm Reg. No. :141089W
Sd/-
CA. Shikha Agarwal
Partner Date: 27/05/2017
Membership No. : 066763 Place: AHMEDABAD