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Gabriel India Ltd.

BSE: 505714 Sector: Auto
NSE: GABRIEL ISIN Code: INE524A01029
BSE 00:00 | 18 Sep 111.45 -1.90
(-1.68%)
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113.50

HIGH

113.50

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110.25

NSE 00:00 | 18 Sep 111.35 -2.10
(-1.85%)
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OPEN 113.50
PREVIOUS CLOSE 113.35
VOLUME 4880
52-Week high 139.90
52-Week low 40.25
P/E 41.13
Mkt Cap.(Rs cr) 1,600
Buy Price 111.05
Buy Qty 29.00
Sell Price 111.45
Sell Qty 50.00
OPEN 113.50
CLOSE 113.35
VOLUME 4880
52-Week high 139.90
52-Week low 40.25
P/E 41.13
Mkt Cap.(Rs cr) 1,600
Buy Price 111.05
Buy Qty 29.00
Sell Price 111.45
Sell Qty 50.00

Gabriel India Ltd. (GABRIEL) - Auditors Report

Company auditors report

To the Members of

GABRIEL INDIA LIMITED

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying financial statements of Gabriel India limited("the Company”) which comprise the Balance Sheet as at March 31 2020 and theStatement of Profit and loss (including Other comprehensive income) Statement of changesin equity and Statement of cash flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

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 March312020 and profit changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 ("the Act”). Ourresponsibilities under those Standards are further described in the auditor'sresponsibilities for the audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the code of ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the act and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the code of ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We invite attention to Note No. 49 to the financial statements regarding theuncertainties arising out of the outbreak of COVID-19 pandemic and the assessment made bythe management on its business and financial statements including provision forimpairment of financial assets for the year ended March 31 2020 and also the futureimpact on supply chains and consumer demand. This assessment and the outcome of thepandemic is as made by the management and is highly dependent on the circumstances as theyevolve in the subsequent periods. The impact therefore in future periods may bedifferent from the estimates made as on the date of approval of these financial results.Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. these matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matters Response to Key Audit Matters
Revenue recognition Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
Revenue is measured at the fair value of the consideration received or receivable as reduced by estimated customer returns rebates discounts and other similar allowances.
• Understanding the policies and procedures applied to revenue recognition as well as compliance therewith including an analysis of the effectiveness of controls related to revenue recognition processes.
Accumulated experience is used to estimate and provide for the discounts and returns. the volume discounts are assessed based on anticipated sales. Further timing of revenue recognition is dependent on the shipping terms agreed with customers in relation to passing of risk and rewards of ownership.
• Analysing and discussing with management significant contracts including contractual terms and conditions related to discounts incentives and rebates.
• Selected a sample of continuing and new contracts and performed the following procedures:
The application of the new revenue accounting standard (Ind AS 115) involves significant judgements/material estimates relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period.
a. read analysed and identified the distinct performance obligations in these contracts.
b. compared such performance obligations with that identified and recorded by the Company.
Reference: c. reviewed contracts terms to determine the transaction price including any variable consideration to determine the appropriate transaction price for computing revenue and to test the basis of estimation of the variable consideration.
Refer notes 1.2.8 to the Financial Statements.
• Performing operations cut-off procedures for a sample of revenue transactions at year end in order to conclude on whether they were recognized at the moment the related goods or services actually took place.
• Analysing other adjustments and credit notes issued after the reporting date.
Performing analytical procedures on entries in the ledger related to revenue.
Recording of price variation in respect of customer and vendor agreements requires evaluation of contractual terms and estimation of amounts to be recognised as revenue and cost of purchases Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
• Understanding the policies and procedures applied to recognition of revenue and purchase costs due to price variations including an analysis of the effectiveness of controls related to revenue recognition processes.
Contracts with customers and vendors contain clauses that require variation in prices of materials to be passed on to the customer and vendors. Further price variations may be subject to negotiations with customers and vendors.
Management is required to analyse terms of contracts and assess the quantum and likelihood of such price variations to be passed on to customers or claimed by vendors. Reference: • Read agreements with customers and vendors to evaluate terms relating to price variation.
Tested the computation of provision for price variation recorded by the Company as at the end of the financial year for completeness.
Refer notes 1.2.8 (1) and 1.2.16 (1) to the Financial Statements.

Information Other than Ind AS Financial Statements and Auditor's Report thereon

The Company's board of directors is responsible for the other information. The otherinformation comprises the information included in Company's board report but does notinclude the financial statements and our auditor's report thereon.

Our opinion on Ind AS financial statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's board of directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance (changes in equity)and cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those board of directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withstandard on auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with standard on auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls system in place and the operating effectivenessof such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

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 2013 we give in the "Annexure-B” a statement on the matters specifiedin 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 at March31 2020 taken on record by the board of directors none of the directors are disqualifiedas at March 31 2020 from being appointed as a director in terms of Section 164 (2) of theact.

(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:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Indian Accounting Standards financial statements.

ii. The Company has made provision as required under the applicable law or IndianAccounting Standard for material foreseeable losses if any on long term contractsincluding derivative contracts;

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

For B.K. Khare & Co.
Chartered Accountants
Firm's registration no. 105102W
Ravi Kapoor
Partner
Membership no. 040404
UDIN : 20040404AAAAEJ8826
Mumbai May 19 2020

Annexure "A" to the Independent Auditor's Report of Even Date on theFinancial Statements of Gabriel India Limited

(Referred to in paragraph under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

We have audited the internal financial controls over financial reporting of GabrielIndia Limited ("the Company”) as of March 31 2020 in conjunction with our auditof the Ind AS 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 ("the ICAI”). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under 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 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 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 comply

with 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 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:

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

ii. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and

iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 2020 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 ICAI.

For B.K. Khare & Co.
Chartered Accountants
Firm's registration no. 105102W
Ravi Kapoor
Partner
Membership no. 040404
UDIN : 20040404AAAAEJ8826
Mumbai May 19 2020

Annexure "B" to the Independent Auditor's Report of Even Date on theFinancial Statements of Gabriel India Limited

(Referred to in paragraph under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

1) i. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and investmentproperties.

ii. The Company has a regular programme of physical verification of its property plantand equipment and investment properties by which the property plant and equipment andinvestment properties are verified by the management according to a phased programmedesigned to cover all the items over a period of two years. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with the policy the Company hasphysically verified certain property plant and equipment and investment properties duringthe year and no discrepancies were noticed in respect of assets verified during the year.

iii. According to the information and explanations given by the management and therecords examined by us the title deeds of immovable properties included in propertyplant and equipment are held in the name of the Company.

2) The inventory has been physically verified by the management during the year. in ouropinion the frequency of verification is reasonable. No material discrepancies were notedon such physical verification. Inventories lying with third parties have been confirmed bythem as at March 31 2020 and no material discrepancies were noticed in respect on suchconfirmations.

3) 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 act.

4) According to information and explanations given to us the Company has not grantedany loans made investments or provided guarantees or securities and accordingly reportingunder clause (iv) of CARO 2016 is not applicable to the Company.

5) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 73 74 75 and 76 or any otherrelevant provisions of the act and the rules framed there under to the extent notifiedwith regard to deposits accepted from the public. According to the information andexplanations given to us no order has been passed by NCLT or Reserve Bank of India or anycourt or tribunal on the Company in respect of aforesaid deposits.

6) The Central Government has not specified the maintenance of cost records undersub-section (1) of the Section 148 of the Act for any of the products/Services rendered bythe Company.

7) According to the information and explanation given to us in respect of statutorydues:

i. The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State insurance Income-tax Goods and Services taxcustoms duty and other material statutory dues applicable to it to the appropriateauthorities.

ii. There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income tax Goods & Service Tax Sales tax Service tax Customsduty Excise duty Value Added Tax (VAT) Cess and other material applicable statutorydues as at March 31 2020 for a period of more than six months from the date they becomepayable.

iii. According to the information and explanations given to us and records of theCompany examined by us particulars of dues of Income Tax Goods & Service Tax SalesTax Service Tax Customs Duty Excise Duty Value added Tax and Cess which have not beendeposited as on March 31 2020 on account of disputes are as under:

Name of the Statute Nature of Dues Amount involved (H Millions) Period to which the amount relates Forum where dispute is pending
Central Excise Act 1944 Excise Duty 4.43 FY 2016-17 Appellate Authority Upto Commissioner's / Revisionary Authorities level
1.35 FY 2011-14 Appellate Authority-
43.59 FY 2003-07 Appellate Authority- Tribunal
49.88 FY 2015-18 Appellate Authority- Upto Commissioner's / Revisionary Authorities level
Central Sales Tax Act and Local Sales Sales Tax and VAT 34.06 FY 2008-17 Appellate Authority- Upto Commissioner's / Revisionary Authorities level
tax 2.43 FY 2004-07 Appellate Authority- Tribunal
Entry Tax 14.53 FY 2011-18 High Court
Service Tax (Finance Act 1994) Service Tax 9.26 FY 2005-18 Appellate Authority- Tribunal
Income Tax Act Income Tax 12.26 FY 2008-12 High Court
1961 7.23 FY 2011-12 ITAT
2.68 FY 2013-14 CIT(A)
4.31 FY 2016-17 CIT(A)
Income Tax-TDS 0.01 FY 2008-17 Income Tax Officer

8) On the basis of examination of relevant records and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to a bank.The Company does not have any loan/dues towards any financial institution or debentureholders or government.

9) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) and has notobtained any term loans during the year. Accordingly paragraph 3 (ix) of the Order is notapplicable to the Company.

10) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or no material fraud on the Company by its officers oremployees nor have any instances of material fraud been reported to us by the managementduring the year.

11) According to the information and explanations given to us and based on ourexamination of records of the Company the Company has paid/ provided for managerialremuneration in accordance with the provisions of section 197 read with schedule V to theact.

12) In our opinion and according to information and explanation given to us theCompany is not a Nidhi Company and the Nidhi rules 2014 are not applicable to itaccordingly reporting under clause (xii) of CARO 2016 is not applicable to the Company.

13) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the notes to the IND AS financial statements as required by theapplicable Indian accounting standards.

14) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and accordingly reportingunder clause (xiv) of CARO 2016 is not applicable to the Company.

15) Based on the information and explanations given to us during the year the Companyhas not entered into any noncash transactions with its directors or persons connected withhim and hence provisions of section 192 of the act are not applicable.

16) According to the information and explanation given to us the provisions of section45-1 of the Reserve Bank of India act 1934 are not applicable to the Company. accordinglyreporting under clause (xvi) of CARO 2016 is not applicable to the Company.

For B.K. Khare & Co.
Chartered Accountants
Firm's registration no. 105102W
Ravi Kapoor
Partner
Membership no. 040404
UDIN : 20040404AAAAEJ8826
Mumbai May 19 2020