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Gujarat Narmada Valley Fertilizers & Chemicals Ltd.

BSE: 500670 Sector: Agri and agri inputs
NSE: GNFC ISIN Code: INE113A01013
BSE 00:00 | 18 Mar 295.65 -11.70
(-3.81%)
OPEN

309.55

HIGH

310.00

LOW

293.00

NSE 00:00 | 18 Mar 296.55 -10.20
(-3.33%)
OPEN

308.40

HIGH

309.55

LOW

293.05

OPEN 309.55
PREVIOUS CLOSE 307.35
VOLUME 94459
52-Week high 506.75
52-Week low 237.95
P/E 4.71
Mkt Cap.(Rs cr) 4,595
Buy Price 295.00
Buy Qty 50.00
Sell Price 295.65
Sell Qty 100.00
OPEN 309.55
CLOSE 307.35
VOLUME 94459
52-Week high 506.75
52-Week low 237.95
P/E 4.71
Mkt Cap.(Rs cr) 4,595
Buy Price 295.00
Buy Qty 50.00
Sell Price 295.65
Sell Qty 100.00

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) - Auditors Report

Company auditors report

TO THE MEMBERS OF GUJARAT NARMADA VALLEY FERTILIZERS & CHEMICALS LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of GujaratNarmada Valley Fertilizers & Chemicals Limited ("the Company") whichcomprise the Balance Sheet as at March 31 2018 the Statement of Profit and Lossincluding the Statement of Other Comprehensive Income the Cash Flow Statement and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting 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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial control that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the Ind AS financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS 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 Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe 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 March 31 2018 its profit including other comprehensive income its cash flows andthe changes in equity 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 sub-section (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

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 it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Indian Accounting Standards) Rules2015 as amended;

(e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of section 164 (2) ofthe 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 2" to this report;

(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 standalone Ind AS financial statements – Refer Note 36 to thestandalone Ind AS 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 S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sukrut Mehta
Place of Signature: Ahmedabad Partner
Date: April 23 2018 Membership Number: 101974

Annexure 1 referred to in paragraph on Report on Other Legal and RegulatoryRequirements of our report of even date of Gujarat Narmada Valley Fertilizers &Chemicals Limited for the year ended March 31 2018

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

(b) The Company has a program of verification of property plant and equipment to coverall the items in a phased manner over a period of 3 years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain fixed assets were physically verified by the management during theyear. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the Company. In respect of immovable properties of land that have been taken onlease and disclosed as property plant and equipment (Note 4) in the financial statementsthe lease agreements are yet to be entered in the name of the Company although theCompany is the lessee as per the arrangement.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(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 Companies Act 2013.Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Order 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 not advanced loans to directors / to a Company in which the Director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In our opinion and according to the information and explanations givento us provisions of section 186 of the Companies Act 2013 in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) .Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 related to the manufacture of fertilizer andindustrial products and are of the opinion that prima facie the specified accounts andrecords have been made and maintained. We have not however made a detailed examinationof the same.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Income-Tax Sales-Tax Service Tax Customs DutyExcise Duty Value Added Tax Goods and Service Tax cess and other material statutorydues applicable to it. The provision of employees' state insurance is not applicable tothe Company.

(b) There were no undisputed amounts payable in respect of Provident Fund Income-taxSales Tax Service Tax Customs Duty Excise Duty Value Added Tax Goods and Service Taxcess and other material statutory dues in arrears as at March 31 2018 for a period ofmore than six months from the date they became payable.

(c) According to the records of the Company the dues outstanding of Excise DutyService Tax Customs Duty Sales Tax and Value Added Tax on account of any dispute are asfollows:

Name of Statute Nature of dues Forum where dispute is pending Period to which the amount relates Amount involved (Rs. in Crores) Amount Unpaid* (Rs. in Crores)
Central Excise Act 1944 Excise Duty CESTAT 1997-2002 1.93 1.19
Ahmedabad 2002-2005 0.06 0.01
2010-2016 1.03 0.95
Commissioner Appeals Vadodara 2015-2016 0.52 0.50
Supreme Court New Delhi 2003-2005 12.14 5.69
Finance Act 1994 Service Tax CESTAT Ahmedabad 2011-2014 22.37 19.24
Customs Act 1962 Customs Duty Commissioner Appeals –Customs Mumbai 2005-2008 123.57 118.57
Central Sales Tax Act Gujarat Value added Tax tribunal 2006-2007 12.41 11.91
1994/Gujarat Ahmedabad 2007-2008 17.19 16.69
Value Added Tax Act 2004 Joint Commissioner of Commercial Tax Vadodara 2008-2011 28.49 20.36
Value Added Tax/Central 2012-2013 12.08 5.19
Maharashtra VAT Act 2002 Sales Tax/ Entry Tax Joint Commissioner of Sales Tax Pune 2010-2011 0.05 0.05
Madhya Pradesh VAT Act 2002 VAT Appellate Authority Bhopal 2015-2016 0.11 0.10

* Net of amounts paid under protest

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and the government. The Company has not issued any debentures.

(ix) According to the information and explanations given by the management the Companyhas not raised any money way of initial public offer / further public offer / debtinstruments and term loans hence reporting under clause (ix) of the Order is notapplicable to the Company and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud / materialfraud on the Company by the officers and employees of the Company has been noticed orreported during the year.

(xi) According to the information and explanations given by the management the Companyhas not paid / provided managerial remuneration during the year and hence reporting underclause (xi) of the Order is not applicable to the Company and hence not commented upon.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) of the Order are notapplicable to the Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sukrut Mehta
Place of Signature: Ahmedabad Partner
Date: April 23 2018 Membership Number: 101974