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Ginni Filaments Ltd.

BSE: 590025 Sector: Industrials
NSE: GINNIFILA ISIN Code: INE424C01010
BSE 00:00 | 14 Nov 17.35 -0.60
(-3.34%)
OPEN

17.95

HIGH

17.95

LOW

17.30

NSE 00:00 | 14 Nov 17.35 -0.50
(-2.80%)
OPEN

18.00

HIGH

18.00

LOW

17.30

OPEN 17.95
PREVIOUS CLOSE 17.95
VOLUME 4545
52-Week high 46.95
52-Week low 14.65
P/E 23.45
Mkt Cap.(Rs cr) 123
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.95
CLOSE 17.95
VOLUME 4545
52-Week high 46.95
52-Week low 14.65
P/E 23.45
Mkt Cap.(Rs cr) 123
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ginni Filaments Ltd. (GINNIFILA) - Auditors Report

Company auditors report

To

The Members of Ginni

Filaments Limited

Report on the IndAS Financial Statements

We have audited the accompanying Ind AS financial statements of Ginni FilamentsLimitedfthe Company") which comprise the Balance Sheet as at March 312018 theStatement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of changes in equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the IndAS 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 Ind-AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (IndAS) prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015as amended and other accounting principles generally accepted in India.

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 Ind ASfinancial 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 Ind AS financial statements basedon 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 Ind AS 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 Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd 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 Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the 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 Ind AS financial statements. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IndAS financial statements give the information required by theAct 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 312018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Other Matter

The financial statements of the Company for the year ended March 312017 were auditedby predecessor auditor who vide their report dated May 12 2017 expressed an unmodifiedopinion on those financial statements.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 (including Other ComprehensiveIncome) the Statement of Cash Flow and the Statement of Changes in Equity dealt with bythis report are in agreement with the relevant books of account.

d. In our opinion the aforesaid IndAS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

e. On the basis of the written representations received from the directors as on March312018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312018 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 Ind AS financial statements - Refer note 37 to

the 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;

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

Place: Noida

Date: May 29 2018

Annexure "A" to the Independent Auditor's Report

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

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 GinniFilaments Limited ("the Company") as of March 312018 in conjunction with ouraudit of 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 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 Companies Act 2013("theAct"). 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 of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (‘the Guidance Note') and theStandards on Auditing issued by ICAI and deemed to be prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgement including the assessment of the risks ofmaterial misstatement 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

Place: Noida

Date: May 29 2018

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

i. In respect of the Company's property plant & equipment: -

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

b. The Company has a program of verification to cover all the items of property plantand equipment in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certainproperty plant and equipment were physically verified by the management during the year.According to the information and explanations given to us no material discrepancies werenoticed 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 of immovable properties areheld in the name of the Company.

ii. The inventories were physically verified during the year by the management atreasonable intervals except for inventories lying with third parties where confirmationshave been received by the management and discrepancies noticed if any during thephysical verification were accounted for in the books of account.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013.

iv. As informed to us the company has not given any loan made investments givenguarantees and securities to any person or party covered under Section 185 and 186 of theCompanies Act 2013.

v. According to the information and explanations given to us the Company has notaccepted any deposit and hence reporting under paragraph 3(v) of the Order is notapplicable.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been made and maintained.Howeverwe have not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

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

(a) The Company has been regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales tax service tax customsduty excise duty value added tax goods and service tax cess and other materialstatutory dues applicable to it with the appropriate authorities and there are noundisputed statutory dues payable for a period of more than six months from the date theybecome payable as at March 312018.

(b) According to the records and information & explanation given to us the dues inrespect of income tax duty of custom duty of excise goods & service tax and valueadded tax that have not been deposited with the appropriate authorities on account of anydispute and the forum where the dispute is pending are given below -

(Rs. in Lakhs

Nature of Statute Nature of dues Forum where dispute is pending Period(s) to which the amount relates Amount involved Amount Paid
The Central Excise Act 1944 Excise duty CESTAT New Delhi 17072015 to 20.072015 34.53 0.90
Income Tax Act 1961 TDS Assessing Officer Agra AY 2007-08 to AY 2009-10 1.34 Nil
UP Tax on Entry of Goods into Local Areas Act 2007 Entry Tax High Court Allahabad FY 1999-2000 to 2000- 01 and FY 2003-04 to 2004-05 47.39 36.02
Income Tax Act 1961 Income Tax CIT (Appeal) AY 2015-2016 AY 2016-2017 AY 2017-2018 536.12 266.54

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitution banks and government and dues to debenture holders.

ix. In our opinion and according to the information and explanations given to us moneyraised by way of the term loans have been applied by the Company during the year for thepurposes for which they were raised. The Company has not raised any money by way ofinitial public offer / further public offer (including debt instruments) during thecurrent year.

x. According to the information and explanations given to us and to the best of ourknowledge no fraud by the Company and no material fraud 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/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company and hence reporting under paragraph 3(xii) ofthe Order is not applicable.

xiii. In our opinion and according to the information and explanation and records madeavailable by the company the Company has complied with the provision of Section 177 and188 of the Companies Act 2013 where applicable for all transactions with the relatedparties and the details of related party transactions have been disclosed in the financialstatements as required by the applicable accounting standards.

xiv. According to the information and explanation given to us company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures and hence reporting under paragraph 3(xiv) of the Order is not applicable tothe Company.

xv. According to the information and explanations given to us and based on theexamination of the records of the company the Company has not entered into any non-cashtransactions with its directors or persons connected with him and hence reporting underparagraph 3(xv) of the Order is not applicable.

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

For Doogar & Associates

Chartered Accountants

Firm Registration No. 000561N

Vardhman Doogar

Partner

Membership No. 517347

Place: Noida

Date: May 29 2018