You are here » Home » Companies » Company Overview » Garware Polyester Ltd

Garware Polyester Ltd.

BSE: 500655 Sector: Industrials
NSE: GARWARPOLY ISIN Code: INE291A01017
BSE 12:02 | 22 Oct 235.50 15.90
(7.24%)
OPEN

224.95

HIGH

236.00

LOW

221.05

NSE 05:30 | 01 Jan Garware Polyester Ltd
OPEN 224.95
PREVIOUS CLOSE 219.60
VOLUME 2938
52-Week high 290.00
52-Week low 185.75
P/E 6.84
Mkt Cap.(Rs cr) 549
Buy Price 232.50
Buy Qty 50.00
Sell Price 235.35
Sell Qty 22.00
OPEN 224.95
CLOSE 219.60
VOLUME 2938
52-Week high 290.00
52-Week low 185.75
P/E 6.84
Mkt Cap.(Rs cr) 549
Buy Price 232.50
Buy Qty 50.00
Sell Price 235.35
Sell Qty 22.00

Garware Polyester Ltd. (GARWARPOLY) - Auditors Report

Company auditors report

ON STANDALONE IND AS FINANCIAL STATEMENTS

To

The Members of

Garware Polyester Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of GarwarePolyester Limited (‘the Company') which comprise the balance sheet as at 31stMarch 2018 the statement of

Profit and Loss (including other comprehensive income) the cash flow statement and thestatement of changes in equity for the year then policies and other ended and a summary ofsignificant explanatory information (herein after referred to as ‘standalone Ind ASfinancial statements').

Management's Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting

Standards (Ind AS) specified under Section 133 of the Act read with relevant rulesissued thereunder. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and 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 standalone Ind AS financial statements that give a true and fair view and are freefrom 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 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the standalone Ind

AS financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of thefinancial position of the Company as at 31st March 2018 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

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 section143(11) of the Act we give in the Annexure A a statement

. onthemattersspecifiedinthe paragraph 3 and 4 ofthe 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 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 theProfitand Loss the Statement

Cash Flow Statement and the Statement of Changes in Equity dealt with by this Reportare in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with relevantrule issued thereunder; (e) On the basis of the written representations received from thedirectors as on 31st March 2018 taken on record by the

Board of Directors none of the director is disqualified as on 31st March2018 from being appointed as a director in terms of

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 with respect tofinancial statements refer to our separate report in "Annexure B"; and(g) With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 28 to the standalone IndAS financial statements;

(ii) The Company has made provision as required under the applicable law or accountingstandard for material foreseeable losses if any on long-term contracts includingderivative contracts; and (iii) There has been no delay in transferring amounts requiredto be transferred to the Investor Education and Protection

Fund by the Company.

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/ W100057
P. N. Shah Sandeep D. Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: May 29 2018 Date: May 29 2018

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all the items over a period of three year which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by management during the year and no material discrepancies have been noticed onsuch verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The Management has conducted physical verification of the inventories atreasonable intervals. The discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been appropriately dealt with in thebooks of accounts.

(iii) The Company has not granted any loans secured or unsecured to

Companies Firms Limited Liability Partnerships or other parties covered in theregister maintained under Section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public as per the provisions of section 73 74 75 and 76or any other relevant provisions of the Act and the Rules framed there under to the extentnotified.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government of India for the maintenance of cost recordsunder section 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us and based on therecords of the Company examined by us in our opinion the Company is regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Sales-tax Service Tax Custom Duty Excise Duty Value Added TaxGoods and Service Tax Cess and other material statutory dues as applicable with theappropriate authorities.

(a) According to the information and explanations given to us and based on the recordsof the Company examined by us in our opinion no undisputed amounts payable in respect ofProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomDuty Excise Duty Value Added Tax Goods and Service Tax Cess and other materialstatutory dues as applicable were in arrears as at 31st March 2018 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us and based on the recordsof the Company examined by us the particulars of dues of Income Tax Service Tax SalesTax Customs Duty and Excise Duty Value Added Tax Goods and Service Tax Cess as at 31stMarch 2018 which have not been deposited on accounts of any disputes are as follows:

Name of the Statue Nature of Dues Amount (Rs In Lakhs) Financial Year for which amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 3.57 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 1628.43* 2011-12 to 2013-14 Assessing Officer
Central Excise Act 1944 Excise Duty 31.40 2001-02 Central Excise and Service Tax Appellate Tribunal
Central Excise Act 1944 Excise Duty 4.92 2006-07 High Court
Central Excise Act 1944 Service Tax 4.25 2015-16 Dy Commissioner (Audit) Central Excise Customs & Service Tax

* Adjusted by assessing officer against MAT credit entitlement which is in dispute.

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to any financial institution bank or government as at the balance sheet date.

(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year. The term loans have been applied for thepurposes for which they were obtained.

(x) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its officers or employees has been noticed orreported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the

Company has paid/provided for managerial remuneration during the year in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act 2013. (Refer Note 23 of the financial statements).

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with section 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 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.

(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 any non-cashtransactions with its directors or persons connected with them. Accordingly paragraph3(xv) of the Order is not applicable.

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

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/ W100057
P. N. Shah Sandeep D. Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: May 29 2018 Date: May 29 2018

Annexure - B to the Independent Auditor's Report

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

Garware Polyester Limited ("the Company") as of 31st March2018 in conjunction with our audit of the standalone Ind AS financial statements of theCompany 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 Reporting issued by theInstitute of Chartered Accountants of India (‘ICAI'). These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

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 on Audit of Internal Financial Controls over Financial Reportingissued by ICAI

(the "Guidance Note") and the Standards on Auditing prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlswith respect to financial statements . Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting withrespect to financial statements was established and maintained and if such controlsoperated 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 procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 2018based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial Reporting issued by the Instituteof Chartered Accountants of India.

For Manubhai & Shah LLP For Kirtane & Pandit LLP
Chartered Accountants Chartered Accountants
FRN: 106041W/ W100136 FRN: 105215W/ W100057
P. N. Shah Sandeep D. Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: May 29 2018 Date: May 29 2018