You are here » Home » Companies » Company Overview » Gujarat Raffia Industries Ltd

Gujarat Raffia Industries Ltd.

BSE: 523836 Sector: Industrials
NSE: GUJRAFFIA ISIN Code: INE610B01024
BSE 00:00 | 02 Dec 31.65 0
(0.00%)
OPEN

33.30

HIGH

33.30

LOW

31.65

NSE 00:00 | 03 Dec 32.45 0.40
(1.25%)
OPEN

31.10

HIGH

33.45

LOW

31.10

OPEN 33.30
PREVIOUS CLOSE 31.65
VOLUME 469
52-Week high 86.95
52-Week low 11.79
P/E 11.59
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.30
CLOSE 31.65
VOLUME 469
52-Week high 86.95
52-Week low 11.79
P/E 11.59
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Raffia Industries Ltd. (GUJRAFFIA) - Auditors Report

Company auditors report

To the members of

GUJARAT RAFFIA INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements Disclaimer of Opinion

We were engaged to audit the accompanying standalone financial statements of GUJARATRAFFIA INDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet asat 31st March 2020 the statement of Profit and Loss (including other comprehensiveincome) the statement of changes in equity and statement of Cash Flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

We do not express an opinion on the accompanying financial statements of the entity.Because of the significance of the matter described in the Basis for Disclaimer of Opinionsection of our report we have not been able to obtain sufficient appropriate auditevidence to provide a basis for an audit opinion on these financial statements.

Basis for Disclaimer of Opinion

Although the Company has adopted Indian Accounting Standard (Ind AS) notified underSection 133 of the Companies Act 2013 from the Financial year 2018-19 the variouseffects as envisaged in Ind AS 101 and other applicable Ind AS have not been given in thebooks of account of Financial year 2018-19 or Financial year 2019-20. It is not possibleto reasonably estimate or quantify the impact of the aforesaid omission on theprofitability or the Balance Sheet of the Company.

We conducted our audit of standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013.Our responsibilities 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 Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Emphasis on matter

We draw attention to Note No. 25(12) to the standalone financial statements asregarding management evaluation of COVID-19 impact on the future performance of thecompany.

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 standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matter to be communicated in our report -

1. Key Audit Matter - GST reconciliation

As at 31st March 2020 balances with revenue authorities and unpaid duties and taxesbeing GST as per books of account and GST returns are pending for reconciliation.

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 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 total comprehensive income changes in equity and cashflows of the Company in accordance with Ind AS and other 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 statement 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.

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 with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

a) As described in the Basis of Disclaimer of Opinion paragraph and Key audit mattersparagraph we sought but were unable to obtain all the information and explanations whichto the best of 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 except for the mattersas referred to in Basis for Disclaimer of Opinion paragraph.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account except for the matters as referred to inBasis for Disclaimer of Opinion paragraph.

d) In our opinion the aforesaid standalone financial statements due to the mattersreferred in the Basis for Disclaimer of Opinion paragraph do not comply with the IndianAccounting 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 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (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 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 does not have any pending litigations which would impact its financialposition.

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.

For Chandabhoy & Jassoobhoy
Sd/-
Place : Ahmedabad Partner
Date : 25th July 2020 Chartered Accountants
Membership No. 100932
Firm Regn. No. 101648W

"ANNEXURE A” REFERRED TO IN THE AUDITORS REPORT TO THE MEMBERS OF GUJARAT

RAFFIA INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2020

i. The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets. The management has certified thephysical verification of the fixed assets at reasonable intervals. No significantdiscrepancy was noticed on such verification. The title deeds of the immovable propertiesare held in the name of Company.

ii. The stock of goods has been physically verified during the year at reasonableintervals by the management. The discrepancies noticed on verification between thephysical stocks and the book records were not material and have been properly dealt within the books of account.

iii. The Company has granted unsecured loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. The terms and conditions of such loans are not prejudicial to theinterest of the Company. There are no express stipulations as to repayment of principal orinterest. The loans are not overdue for repayment.

iv. In respect of loans investments guarantees and security the provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with.

v The Company has not accepted any deposits within the meaning of section 73 to 76 orany other relevant provisions of the Companies Act 2013.

vi. The maintenance of cost records has not been specified by the Central Governmentunder sub section (1) of section 148 of the Companies Act 2013.

vii. To the best of our knowledge and according to the information and explanationsgiven to us the Company has been generally regular in depositing the undisputed statutorydues consisting of Provident fund Employees' state insurance income tax sales taxservice tax customs duty excise duty value added tax cess and other statutory dueswith the appropriate authorities. There are no dues in respect of income tax sales taxservice tax customs duty excise duty or value added tax which have not been deposited onaccount of any dispute.

viii. The Company has not defaulted in repayment of loans or borrowings to a financialinstitutions bank Government or dues to debenture holders.

ix. In our opinion the money raised by way of initial public offer or further publicoffer (including debt instruments) and term loans were applied for the purpose for whichthose were raised.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or any fraud on the Company by its officers and employeeshas been noticed or reported during the year.

xi. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

xii. The Company is not a Nidhi Company as defined in section 406 of the Companies Act2013.

xiii. In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Companies Act 2013 and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

xv. In case of non-cash transactions with directors or persons connected with him ifany the provisions of section 192 of the Companies Act 2013 have been complied with.

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

For Chandabhoy & Jassoobhoy
Sd/-
Place : Ahmedabad Date : 25th July 2020 Partner Chartered Accountants
Membership No. 100932
Firm Regn. No. 101648W

"ANNEXURE B" REFERRED TO IN THE AUDITORS REPORT TO THE MEMBERS OF GUJARATRAFFIA INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH 2020

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GUJARATRAFFIA INDUSTRIES LIMITED ("the Company") as of 31st March 2020 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. 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.

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 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 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Qualified Opinion

According to the information and explanation given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2020 :

a) Although the Company has adopted Indian Accounting Standard (Ind AS) notified underSection 133 of the Companies Act 2013 from the Financial year 2018-19 the variouseffects as envisaged in Ind AS 101 and other applicable Ind AS have not been given in thebooks of account of Financial year 2018-19 or Financial year 2019-20.

A 'material weakness' is deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual financial statement will not beprevented or detected on timely basis.

In our opinion except for the effects/possible effects of the material weaknessesdescribed above on the achievement of the objective of the control criteria the Companyhas maintained in all material respects an adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2020 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

We have considered the material weaknesses identified and reported in determining thenature timing and extend of the audit tests applied in our audit of year ended March 312020 financial statements of the Company and these material weaknesses does affect ouropinion on the financial statements of the Company.

For Chandabhoy & Jassoobhoy

Sd/-
Place : Ahmedabad Partner
Date : 25th July 2020 Chartered Accountants
Membership No. 100932
Firm Regn. No. 101648W

.