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Garware Polyester Ltd.

BSE: 500655 Sector: Industrials
NSE: GARWARPOLY ISIN Code: INE291A01017
BSE 00:00 | 03 Mar 697.45 28.40
(4.24%)
OPEN

680.00

HIGH

724.95

LOW

680.00

NSE 05:30 | 01 Jan Garware Polyester Ltd
OPEN 680.00
PREVIOUS CLOSE 669.05
VOLUME 35799
52-Week high 775.00
52-Week low 132.00
P/E 14.05
Mkt Cap.(Rs cr) 1,620
Buy Price 685.00
Buy Qty 38.00
Sell Price 697.45
Sell Qty 285.00
OPEN 680.00
CLOSE 669.05
VOLUME 35799
52-Week high 775.00
52-Week low 132.00
P/E 14.05
Mkt Cap.(Rs cr) 1,620
Buy Price 685.00
Buy Qty 38.00
Sell Price 697.45
Sell Qty 285.00

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 Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of GarwarePolyester Limited (‘the Company') which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss

(including Other Comprehensive Income) the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended and notes to the Standalone FinancialStatements including a summary of information (herein significant after referred to as‘the Standalone Financial Statements').

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing

(SAs) specified under Section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements Section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of theStandalone Financial Statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of

Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial

Statements of the current period. These matters were addressed in the context of ouraudit of the Standalone Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determinedthat the matters described below to be the Key Audit Matters to be communicated in theReport:

Sr. Key Audit Matters No. Auditor's Response (Audit Procedures followed)
1. Evaluation of Tax matters Principal Audit Procedures
The Company has some Direct & Indirect tax matters which involve judgment to determine possible outcome of these tax assessments. Refer Note 10 (a) & 28(a) to the Standalone Financial Statements. We have carried out detailed review of all pending tax assessments.
Obtained details of completed tax assessments and demands from the management for the year ended 31st March 2020.
We involved our internal experts to verify the management's underlying assumptions in estimating the tax provisions and the possible outcomes of disputes.
Our internal experts also considered legal precedence and other rulings in evaluating management's position on these tax matters & legal position.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report CorporateGovernance and

Shareholder's Information but does not include the Standalone Financial Statements andour auditor's report thereon. Our opinion on the Standalone Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information we are required to report that fact. We have nothing to reportin this regard.

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 Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate implementation andmaintenance of 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.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility for the Audit of the Standalone Financials Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone 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 to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related doubt on the to events or conditions that may cast significant

Company's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of theStandaloneFinancialStatementsmaybeinfluenced.Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant internal control that we identifyduring 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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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

Section 143(11) of the Act we give in the Annexure A a statement

on the matters specified in the paragraphs 3 and 4 of the order to the extentapplicable.

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 the Statement ofProfit and Loss including Other Comprehensive Income Statement of Changes in Equity andthe Statement of Cash Flow dealt with by this Report are in agreement with the books ofaccount; (d) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; (e) On the basis of the written representations receivedfrom the directors as on 31st March 2020 taken on record by the Board of Directors noneof the director is disqualified as on 31st March 2020 from being appointed as a directorin 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 refer to ourseparate report in

"Annexure B";

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of

Section 197(16) of the Act as amended we report that In our opinion and to the bestof our information and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofSection 197 of the Act.

(h) 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) TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone

Financial Statements – Refer Note 28(a) to the Standalone Financial Statements;(ii) The Company has made provision as required under the applicable law or IndianAccounting Standards for material foreseeable losses if any on long-term contractsincluding derivative contracts and (iii) There has been no delay in transferring amountsrequired to 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 Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: June 25 2020 Date: June 25 2020
UDIN: 20001738AAAAAE9706 UDIN: 20044576AAAAIW7674

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 Property Plant & Equipments;

(b) The Company has a program of verification to cover all items of Property Plant& Equipments in a phased manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. Pursuant to the programme a portionof the Property Plant & Equipments have been physically verified by the managementduring the year and no material discrepancies have been noticed on such 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 comprising all the immovable properties of land and buildingwhich are freehold are held in the name of the Company as at the balance sheet date. Inrespect of immovable properties that have been taken on lease and disclosed as PropertyPlant and Equipment in the financial statements the lease agreements are in the name ofthe Company where the Company is the lessee in the agreement.

(ii) The Management has conducted physical verification of the inventories atreasonable intervals during the year. The discrepancies noticed on physical verificationof inventory as compared to book records were not material and have been appropriatelydealt with in the books of accounts.

(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 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) (a) 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 generally regular indepositing the undisputed statutory dues including Provident Fund

Employees' State Insurance Income-tax Custom Duty Goods and Service Tax Cess andother material statutory dues as applicable with the appropriate authorities.

(b) 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 Custom Duty Goods and ServiceTax Cess and other material statutory dues as applicable were in arrears as at 31stMarch 2020 for a period of more than six months from the date they became payable.

(c) 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 2020 which have not been deposited on accounts of any disputes are as follows:

Name of the Statue Nature of Dues Amount (` in Lakhs) Financial Year for which amount relates Forum where the dispute is pending
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

(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 the banks financial institutions and government. The company does not havedues to debenture holders 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.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly reporting as per paragraph 3(xii) of theOrder is not required. (xiii) According to the information and explanations given to usand based on our examination of the records of the Company transactions with relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Standalone Financial Statements asrequired 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.

(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 reporting asper paragraph 3(xv) of the Order is not required.

(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 Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: June 25 2020 Date: June 25 2020
UDIN: 20001738AAAAAE9706 UDIN: 20044576AAAAIW7674

Annexure - B to the Independent Auditor's Report

The Annexure referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" Section of our report of even date

We have audited the internal financial controls over financial reporting

Garware Polyester Limited ("the Company") as of 31st March 2020 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 Board of Directors of the Company are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in 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. 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 prescribedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 Standalone 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 Standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone 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 (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on theStandalone 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 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 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 Welling
Partner Partner
Membership No. 001738 Membership No. 044576
Place: Mumbai Place: Mumbai
Date: June 25 2020 Date: June 25 2020
UDIN: 20001738AAAAAE9706 UDIN: 20044576AAAAIW7674

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