The Members of
Gujarat Apollo Industries Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone Financial statements of GUJARATAPOLLO INDUSTRIES LIMITED ("the company") which comprise of the BalanceSheet as at 31 March 2017 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provision of the Act for safeguarding of the assets of the Companyand for preventing and detecting the 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 control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. We have taken into account the provisions of the Act and the rules made there underincluding the accounting standards and matters which are required to be included in theaudit report.
5. We have conducted our audit in accordance with the Standards on Auditing issued byICAI as specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us the standalone 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 31stMarch 2017 and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the " Order") and on the basis of such checks of the books andrecords of the company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A a statement on the matters specifiedin the paragraph 3 and 4 of the Order.
10. 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 standalone Financial Statements comply with theAccounting 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 received from the Directors as on 31stMarch 2017 taken on record by the Board of Directors none of the Director is disqualifiedas on 31st March 2017 from being appointed as a Director in terms of Section 164 (2) ofthe Act.
f. with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure B; and
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 the aforesaid financial statements; refer note 29 to the Standalone FinancialStatements;
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 amount required to be transferred toInvestor Education and Protection Fund by the company.
iv. The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period From 8 November2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company Refer Notes 36 to the standalone financial statements.
For DJNV & Co. Firm Registration Number: 115145W
(Vasant Patel) Partner
Membership No. 044612
Date : 30.05.2017 Place : Ahmedabad
Annexure A to Independent Auditors' Report
The Annexure referred to in our report to the members of GUJARAT APOLLO INDUSTRIESLIMITED for the year ended on 31st March 2017 we report that: (i) a. In our opinionand according to the information and explanation given to us the company is maintainingproper records showing full particulars including quantitative details and situation offixed assets; b. In our opinion the fixed assets have been physically verified by themanagement at reasonable intervals having regard to the size of the company and the natureof its assets. No material discrepancies were noticed on such verification. c. Accordingto information and explanations given by management the title deed of immovableproperties included in fixed assets are held in name of the company.
(ii) As explained to us inventories have been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable.
(iii) (a) The company has granted loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 the granting of such loans is not prejudicial tothe company interest.
(b) The principal and the interest amount are repayable on demand at the discretion ofthe company. (c) In respect of the said loans there are no amounts which are overdue formore than ninety days.
(iv) According to the information and explanation given to us the company has compliedwith the provisions of Section 185 and 186 wherever applicable in respect of loansinvestments guarantees and securities given by the company.
(v) The company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of cost records undersub-section (1) of section 148 of the Companies Act and prima facie the prescribedcost records have been maintained. We have however not made a detailed examination of costrecords with a view to determine whether they are accurate or complete. (vii) a. Accordingto the information and explanations given to us the company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund employee'sstate insurance income tax sales tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues applicable to it. No undisputedamounts payable in respect of the aforesaid statutory dues were outstanding as at 31stMarch 2017 for a period of more than six months from the date they became payable. b.According to the information and explanations given to us there are no dues which havenot been deposited by the company on account of disputes except for the following:
|Nature of Statute ||Nature of Dispute ||For the Year ||Amount (`) ||Authority |
|Central Sales Tax and ||Sales Tax ||1997-1998 ||10.35 Lacs ||Second Appellate (Hyderabad) |
|Commercial Tax of ||Sales Tax ||2005-2008 ||110.86 Lacs ||Commissioner (Appeals) |
|Gujarat ||Sales Tax ||2005-2006 ||47.45 Lacs ||Joint Commissioner (Appeals) |
| ||Sales Tax ||2009-2010 ||34.29 Lacs ||Sales Tax Tribunal |
| ||Sales Tax ||2010-2011 ||10.68 Lacs ||Joint Commissioner (Appeals) |
|Service Tax Act ||Service Tax ||2005 -2010 ||25.03 Lacs ||Custom Excise & Service Tax |
| || || || ||(Appellate Tribunal) |
|TDS ||TDS ||2007-08 to ||13.74 Lacs ||TDS CPC |
| || ||2012-13 || || |
|Total || || ||252.40 Lacs || |
(viii) In our opinion and according to the management the company has not defaulted inrepayment of dues to banks. The Company has neither issued any debentures nor availed anyloan from institutions or government.
(ix) The company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provision ofClause 3(ix) of the order is not applicable to the company.
(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the company or no fraud on the company by theofficers and employees of the company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management themanagerial remunerations has been paid or provided in accordance with the requisiteapprovals mandate by the provisions of Section 197 read with Schedule V of the Act.
(xii) In our Opinion the company is not a Nidhi Company. Therefore the provisions ofparagraph 3 clause (xii) of the Order are not applicable to the company and hence notcommented upon.
(xiii) According to the information and explanations given by the managementtransactions with related parties are in compliance with section 177 and 188 of the Actwhere applicable and the details have been disclosed in the notes to the financialstatements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and overall examinationof the balance sheet the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.
(xv) According to the information and explanations given by the management the companyhas not entered into any non-cash transactions with directors or persons connected withhim referred to in section 192 of the Act.
(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the company.
For DJNV & Co. Firm Registration Number: 115145W
(Vasant Patel) Partner
Membership No. 044612
Date : 30.05.2017 Place : Ahmedabad
Annexure B to Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 ofthe Companies Act 2013 ("theAct")
To the members of
GUJARAT APOLLO INDUSTRIES LIMITED
We have audited the internal financial controls over financial reporting of GUJARATAPOLLO INDUSTRIES LIMITED ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 "Guidance Note").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.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We have conducted our audit inaccordance with the Guidance Note and the Standards on Auditing both issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 evidence about the adequacy of theinternal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and 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 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 details 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.
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 2017 based on theinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.
|For DJNV & Co. |
|Firm Registration Number: 115145W |
|Chartered Accountants |
|(Vasant Patel) |
|Membership No. 044612 |
|Date ||: 30.05.2017 |
|Place ||: Ahmedabad |