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Borosil Glass Works Ltd.

BSE: 502219 Sector: Industrials
NSE: BOROSIL ISIN Code: INE666D01022
BSE 00:00 | 20 Aug 304.35 -2.55
(-0.83%)
OPEN

308.80

HIGH

311.45

LOW

304.00

NSE 00:00 | 20 Aug 304.65 -3.55
(-1.15%)
OPEN

309.70

HIGH

312.00

LOW

303.55

OPEN 308.80
PREVIOUS CLOSE 306.90
VOLUME 35953
52-Week high 397.90
52-Week low 190.40
P/E 53.96
Mkt Cap.(Rs cr) 2,812
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 308.80
CLOSE 306.90
VOLUME 35953
52-Week high 397.90
52-Week low 190.40
P/E 53.96
Mkt Cap.(Rs cr) 2,812
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Borosil Glass Works Ltd. (BOROSIL) - Auditors Report

Company auditors report

TO THE MEMBERS OF

Borosil Glass Works Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of BOROSIL GLASSWORKS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2018 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year ended and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "Standalone financial statements").

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 preparation ofthese Standalone financial statements that give a true and fair view of financialposition financial performance including other comprehensive income cash flows andstatement of changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued there under.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalonefinancial 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the rules made there under.

We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe Standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone 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 31st March 2018 and its profit including other comprehensive incomeits cash flows and the statement of changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Standalone financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read with relevant rulesthere under.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof 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 A" ;

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:

(a) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements as referred to in Note no. 36 to thestandalone financial statements;

(b) The Company does not have long term contracts including derivative contracts forwhich there were any material foreseeable losses;

(c) There has been no delay during the year in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in "Annexure B" hereto a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

For Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date : 30th May 2018

"ANNEXURE A" TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of Borosil Glass Works Limited onthe Standalone financial statements for the year ended 31stMarch 2018)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BorosilGlass Works Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the Standalone financial statements of the Company for theyear 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding 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 Act.

Auditor's 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 prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.

For Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date: 30th May 2018

"ANNEXURE B" TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Borosil GlassWorks Limited on the Standalone financial statements for the year ended 31stMarch 2018) i.In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us all the fixed assets have been physically verified by theManagement. No material discrepancies were noticed on such physical verification ascompared with the available records.

c. According to the information and explanation provided to us and the records examinedby us and based on the examination of the registered sale deed/ conveyance deed we reportthat the title deeds comprising all the immovable properties of land and buildings whichare freehold are held in the name of the Company as at the balance sheet date. In respectof immovable properties of land that have been taken on lease the lease agreements are inthe name of the Company where the Company is the lessee in the agreement.

ii. In respect of its inventories:

As explained to us inventories except goods in transit have been physically verifiedduring the year by the management. In our opinion the frequency of verification isreasonable. Discrepancies noticed on physical verification of the inventories between thephysical inventories and book records were not material having regard to the size of theoperations of the Company and the same have been properly dealt with.

iii. In respect of loans secured or unsecured granted by the Company to Companiesfirms Limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act.

a. In our opinion and according to the information given to us the terms andconditions of the loans given by the Company are prima facie not prejudicial to theinterest of the Company.

b. The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and/ or receipts of interest have been regular as perstipulations.

c. There are no overdue amounts as at the year- end in respect of both principal andinterest.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 & 186 of the Act asapplicable in respect of grant of loans making investments and providing guarantees& securities.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of clause (v) of paragraph3 of the Order are not applicable to the Company.

vi. According to the information and explanations given to us Central Government hasnot prescribed maintenance of cost records under sub-Section (1) of Section 148 of the Actin respect of activities carried on by the Company. Therefore the provisions of clause(vi) of paragraph 3 of the Order are not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The Company has been generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax goods and service taxsales-tax service tax duty of customs duty of excise value added tax cess and anyother statutory dues to the appropriate authorities as applicable during the year.According to the information and explanations given to us no undisputed amounts payablein respect of such statutory dues were outstanding as at 31st March 2018 for aperiod of more than six months from the date they became payable.

b. Details of dues of Income tax sales tax / Value added tax and Goods and Service taxaggregating to Rs. 110.59 Lacs that have not been deposited on account of disputed matterspending before appropriate authorities are as under:

Name of the Statute Nature of the Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act Sales Tax/ VAT* 6.52 1997-98 Maharashtra Sales Tax Tribunal
1956 and Sales Tax Acts of Various States 36.05 2010-11 The Appellate Deputy Commissioner of Commercial Tax - Central
12.79 2013-14 Additional Commissioner Grade 2 Appeal
Income Tax Act 1961 Income Tax 55.23 2014-15 Commissioner of Income Tax (Appeals)
Total 110.59

(*) Net of amount deposited under protest. viii. Based on our audit procedures andaccording to the information and explanations given by the management we are of theopinion that as on 31st March 2018 the Company has not defaulted in repaymentof dues to banks. The Company does not have any borrowings from financial institutionsgovernment and debenture holders.

ix. According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and no term loan was raised during the year. Therefore the provisions ofclause (ix) of paragraph 3 of the Order are not applicable to the Company.

x. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and on the basis of information and explanationsgiven by the management no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid or provided managerial remuneration in accordance with the requisiteapprovals mandated by the provision of section 197 read with Schedule V to the Act.

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of paragraph 3 of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us Company's transactionswith the related parties are in compliance with section 177 and 188 of the Act asapplicable and details of such transactions have been disclosed in the financialstatements as required by the applicable Indian accounting standards.

xiv. According to the information and explanations given 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. Therefore the provisions of clause (xiv) of paragraph 3 of the Order are notapplicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Therefore the provisions ofclause (xv) of paragraph 3 of the Order are not applicable to the Company.

xvi. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Pathak H.D. & Associates

Chartered Accountants

Firm Registration No: 107783W

Gyandeo Chaturvedi

Partner

Membership No. 046806

Place: Mumbai

Date: 30th May 2018