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Gujchem Distillers India Ltd.

BSE: 506640 Sector: Industrials
NSE: N.A. ISIN Code: INE218N01013
BSE LIVE 12:41 | 14 Sep 245.80 11.70
(5.00%)
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245.80

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245.80

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 245.80
PREVIOUS CLOSE 234.10
VOLUME 10
52-Week high 352.80
52-Week low 147.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 245.80
Sell Qty 10.00
OPEN 245.80
CLOSE 234.10
VOLUME 10
52-Week high 352.80
52-Week low 147.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 245.80
Sell Qty 10.00

Gujchem Distillers India Ltd. (GUJCHEMDISTILL) - Auditors Report

Company auditors report

To the Members of Gujchem Distillers India Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Gujchem Distillers IndiaLimited (the ‘Company’) which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss and the Statement of Cash Flows for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

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 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 read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of 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 materialmisstatement whether 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 and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and 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 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 judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that gives a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and reasonablenessof the accounting 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 toprovide a basis for our 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 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 31stMarch 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (the‘Order’) issued by the Central Government of India in terms of Section 143(11)of the Act we give in the Annexure ‘A’ a Statement on the mattersspecified 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:

(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 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 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 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’;

(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:

1) the Company has disclosed the impact of pending litigations on its financialposition in its financial statements (Refer Note 22 and 23 to the Financial Statements);

2) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

3) there is no amount required to be transferred to Investor Education and ProtectionFund by the Company.

SHARP & TANNAN
Chartered Accountants
Firm's Registration No. 109982W
By the hand of
Milind P. Phadke
Mumbai 26th May 2016 Partner
Membership No. 033013

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1 of our report of even date)

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

(b) As explained to us these fixed assets have been physically verified by themanagement in accordance with a phased programme of verification which in our opinion isreasonable considering the size of the Company and nature of its assets. The frequency ofphysical verification is reasonable and no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties are held in the name of the Company.

(ii) According to the information and explanation given to us the Company did notcarry any inventory during the year. Accordingly the Paragraph 3(ii) of the order is notapplicable to the Company.

(iii) According to the information and explanations give to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly the Paragraph 3(iii) of the order is not applicable to the Company.

(iv) According to the information and explanations given to us and the records examinedby us the Company has not given loans made investments provided guaranties and securitywhich requires compliance of the provisions of Sections 185 and 186 of the Act.Accordingly the Paragraph 3(iv) of the Order is not applicable to the Company.

(v) According to the information and explanations given to us and the records examinedby us the Company has not accepted any deposits during the year. Accordingly theParagraph 3(v) of the Order is not applicable to the Company.

(vi) According to the information and explanations given to us as there are nomanufacturing activities carried out during the year the requirements of maintenance ofcost records under Section 148(1) of the Act are not applicable to the Company.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees’ state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess and any other statutory dues where applicable to theappropriate authorities. According to the information and explanations given to us thereare no arrears of outstanding statutory dues as at the last day of the financial year fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records examinedby us the particulars of duty of excise as at 31st March 2016 which have not beendeposited on account of a dispute pending are as under:

Nature of the Statute Nature of the disputed dues (Rs. lakhs) Period to which the amount relates Forum where dispute is pending
The Central Excise and Salt Act 1944 Excise duty 16.62 1985-86 & 1986-87 A.O. Central Excise Department

(viii) According to the information and explanations given to us and as per the recordsof the Company examined by us the Company has not defaulted in repayment of loans orborrowings to financial institutions and banks. The Company has not taken any loans orborrowings from Government. The Company has not issued any debentures. Accordingly theParagraph 3(viii) of the Order is not applicable to the Company.

(ix) According to the information and explanations given to us the Company has notraised monies by way of initial public offer or further public offer (including debtinstruments) or term loans. Accordingly the Paragraph 3(ix) of the Order is notapplicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyfraud by the Company or any fraud on the Company by its officers or employees noticed orreported during the year nor have we been informed of such case by management.

(xi) According to the information and explanations given to us the managerialremuneration has been paid or provided in accordance with the approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanations given to us the Company is not aNidhi company.

Accordingly the Paragraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with Sections 177 and 188 of the Act whereapplicable and the relevant details have been disclosed in the financial statements etc.as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year.

Accordingly the Paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him duringthe year. Accordingly compliance with the provisions of Section 192 of the Act is notapplicable to the Company.

(xvi) According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

SHARP & TANNAN
Chartered Accountants
Firm's Registration No. 109982W
By the hand of
Milind P.Phadke
Mumbai 26th May 2016 Partner
Membership No. 033013

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2(f) of our report of even date)

We have audited the internal financial controls over financial reporting of GujchemDistillers India Limited (the ‘Company’) as of 31st March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon 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 Reporting (the‘Guidance Note’) issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(the ‘Act’).

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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial 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 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 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 issued by theICAI.

SHARP & TANNAN
Chartered Accountants
Firm's Registration No. 109982W
By the hand of
Milind P.Phadke
Mumbai 26th May 2016 Partner
Membership No. 033013