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Narmada Gelatines Ltd.

BSE: 526739 Sector: Industrials
NSE: SHAWGELTIN ISIN Code: INE869A01010
BSE LIVE 15:40 | 18 Oct 168.85 8.10
(5.04%)
OPEN

159.20

HIGH

170.00

LOW

159.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 159.20
PREVIOUS CLOSE 160.75
VOLUME 13415
52-Week high 179.80
52-Week low 112.00
P/E 14.92
Mkt Cap.(Rs cr) 102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 159.20
CLOSE 160.75
VOLUME 13415
52-Week high 179.80
52-Week low 112.00
P/E 14.92
Mkt Cap.(Rs cr) 102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Narmada Gelatines Ltd. (SHAWGELTIN) - Auditors Report

Company auditors report

The Members of Narmada Gelatines Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Narmada Gelatines Limited ("theCompany") which comprise the Balance Sheet as at March 31 2016 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant 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 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 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 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 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016; (b) In the case of the Statement of Profit and Loss of the profit for theyear ended on that date; and (c) In the case of the Cash Flow Statement of the cash flowsfor 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') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe enclose in the Annexure-A a statement on the matters specified in paragraphs 3 and 4of the said Order to the extent applicable to the company.

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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of accounts;

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 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;

f. with respect to the adequacy of internal financial controls over the financialreporting of the Company and the operating effectiveness of such controls refer 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:

i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 28 to the financial statements;

ii. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For T R Chadha & Co LLP
Chartered Accountants
Firm Regn. No: 006711N/N500028
Pramod Tilwani
Place : Jabalpur (Partner)
Date: 26 th May 2016 Membership Number: 76650

Annexure - A to the Auditors’ Report

(Referred to in Paragraph 1 of our Report of even date)

(i) (a) The Company has maintained proper records to show full particulars includingquantitative details and situtation of fixed assets.

(b) As per the information and explanation given to us the company has physicallyverified its fixed assets during the financial year 2013-14. As explained to us themanagement verifies the fixed assets once in three years as per the program which in ouropinion is reasonable having regard to the size of the company and nature of the assets.

(c) According to the information and explanation given to us and on the basis ofexamination of records of the Company the title deeds of immovable properties are held inthe name of the Company.

(ii) The inventory (except inventory in transit the subsequent confirmation of whichhas been obtained) has been physically verified by the management during the year. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and records were not material in relation to theoperation of the company and the same have been properly dealt with in the books ofaccount.

(iii) As informed to us the Company has not granted any Loans Secured or Unsecured toCompanies Firms or other parties covered in the Register maintained under Section 189 ofthe Companies Act 2013. Accordingly Clauses (iii) (a) (b) and (c) of Para 3 of theCompanies (Auditor’s Report) Order 2016 are not applicable to the Company.

(iv) As informed to us the Company has not given any loans guarantees securities andnot made any investments covered under sections 185 and 186 of the Companies Act 2013.Accordingly clause (iv) of Para 3 of the Companies (Auditor’s Report) Order 2016 isnot applicable to the Company.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the goods manufactured by the Company.

(vii) (a) According to the books and records as produced and examined by us inaccordance with generally accepted auditing practices in India the Company has generallybeen regular in depositing its undisputed statutory dues in respect of Provident FundEmployees State Insurance dues Investor Education and Protection Fund Income Tax WealthTax Service Tax Custom Duty Excise Duty Cess and other material statutory dues asapplicable with the appropriate authorities in India during the year.

(b) The details of dues of Income Tax / Excise Duty /Sales Tax not deposited on accountof dispute along with the amounts involved and the forum where dispute is pending is givenas under:

Nature Amount Forum at which pending
in lacs
Income Tax 71.27 High Court
36.09 Commissioner
Excise Duty 241.63 High Court
14.15 CESTAT
14.01 Commissioner / Additional Commissioner
Sales Tax

23.85

Commercial Tax Appellate Tribunal

(viii)The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyclause (ix) of paragraph 3 of the Companies (Auditor’s Report) Order 2016 is notapplicable.

(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

Accordingly clause (xii) of paragraph 3 of the Companies (Auditor’s Report)Order 2016 is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv)According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly clause (xv) ofparagraph 3 of the Companies (Auditor’s Report) Order 2016 is not applicable.

(xvi)The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For T R Chadha & Co LLP
Chartered Accountants
Firm Regn. No: 006711N/N500028
Pramod Tilwani
Place : Jabalpur (Partner)
Date: 26 th May 2016 Membership Number: 76650

Annexure - B to the Auditors' Report

(Referred to in Paragraph 2 f. of our Report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of NarmadaGelatines Limited ("the Company") as of 31 March 2016 in conjunction with ouraudit of the financial 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 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 audit opinion on the Company's internal financial controls system overfinancial 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 31 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 T R Chadha & Co LLP
Chartered Accountants
Firm Regn. No: 006711N/N500028
Pramod Tilwani
Place : Jabalpur (Partner)
Date: 26 th May 2016 Membership Number: 76650