Gujarat Foils Ltd.
|BSE: 531410||Sector: Metals & Mining|
|NSE: N.A.||ISIN Code: INE587F01017|
|BSE 00:00 | 03 Dec||Gujarat Foils Ltd|
|NSE 05:30 | 01 Jan||Gujarat Foils Ltd|
|BSE: 531410||Sector: Metals & Mining|
|NSE: N.A.||ISIN Code: INE587F01017|
|BSE 00:00 | 03 Dec||Gujarat Foils Ltd|
|NSE 05:30 | 01 Jan||Gujarat Foils Ltd|
TO THE MEMBERS OF GUJARAT FOILS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of GUJARAT FOILS LIMITED("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the 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 the financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe Accounting 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 provisions of the Act for safeguarding the assets of the Companyand 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 ofaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
i. in the case of the balance sheet of the state of affairs of the Company as at 31stMarch 2017;
ii. in the case of the statement of profit and loss of the loss of the Company for theyear ended on that date; and
iii. in the case of the cash flow statement of the cash flows for the year ended onthat date.
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 sub-section (11) of section 143 ofthe Act we give in the Annexure - A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a. we have sought & obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 financial statements comply with the AccountingStandards specified under section 133 of the Companies Act 2013 read with rule 7 of theCompanies (Accounts) Rules 2014 as amended;
e. on the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act;
f. with respect to the adequacy of the internal financial control 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 has disclosed the impact of pending litigations on its financialposition in its financial statement as stated in Note - 25 to the Financial Statements.
ii. The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any as required on long term contractsincluding derivative contracts;
iii. No amount is required to be transferred to Investor Education and Protection Fundin accordance with the relevant provisions of the Companies Act 2013 and rules made thereunder.
h. The company has disclosed in Note - 30 to the accounts of details regardingSpecified Banks Notes properly.
The Annexure - A referred to in paragraph 1 under the heading "Report on other andregulatory requirements" of our report of even date
i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
(b) Fixed Assets have been physically verified by the management in the phasedperiodical manner which in our opinion is reasonable having regard to the size of thecompany and the nature of its Assets. No material discrepancies were noticed on suchverification.
(c) The title deeds of immovable properties are held in the name of the company;
ii) The Inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable and no material discrepancies werenoticed on such verification.
iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
iv) In respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with to the extent applicable.
v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public in pursuance to sections 73 to 76 orany other relevant provisions of the Companies Act 2013 and the rules framed there under.
vi) Maintenance of Cost Records has been specified by the Central Government under subsection (1) of Section 148 of the Companies Act 2013. These accounts and records havebeen so made and maintained. However we have not made a detailed examination of the CostRecords with a view to determine whether they are accurate or complete.
vii) a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund employees 'state Insurance Sales tax Service Tax custom duty excise duty valueadded tax cess and other material statutory dues applicable to it except income taxduring the year.
According to the information and explanations given to us no undisputed amountspayable in respect of service tax sales tax custom duty excise duty or value added taxand cess were in arrears as at 31st March 2017 for a period of more than six months fromthe date they became payable except Income tax which are due for more than six monthsamounting Rs. 29000000/- for the financial year 2013-14 and Rs. 30480090/- for thefinancial year 2014-15.
b) There is a demand of Rs 10 87 88625/- on account of VAT & CST assessment forthe financial Years 2007-2008 to 20112012 which are pending with Appellate Authority.However Rs 83 75000/- has already been paid against same.
viii) According to records of the company the company has defaulted in repayment ofloans or borrowings to financial institutions and banks till 31st March 2017the details are as follows:
Ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) and the money raised by way of term loans were appliedfor the purposes for which those were raised.
x) No any fraud by the company or any fraud on the company by its officers or employeeshas been noticed or reported during the year.
xi) The Managerial Remuneration has been paid / provided in accordance with theprovisions of section 197 read with schedule V to the Companies Act 2013
xii) The company is not a Nidhi Company. Accordingly Clause (xii) of paragraph 3 ofthe Order are not applicable to the Company.
xiii) The Company has entered into transactions with the related parties in compliancewith section 177 and 188 of the companies Act 2013 and the details of such transactionhave been disclosed in the Financial statements as required by the applicable accountingstandards;
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) According to the information and explanations given to us the Company has notentered into non- cash transactions with directors or persons connected with them;
xvi) The Company is not required to be registered under section 45-IA of the RBI Act1934.
Annexure to the Independent Auditor's Report
Annexure-B referred to in paragraph 2(f) under "Report on other legal andregulatory requirements" of our report of even date)
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 Control over financial reporting of GujaratFoils Limited ("the Company") as of 31st March 2017 in conjunctionwith our audit of the financial statements of the Company for the year then ended.
Management Responsibility for the 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 andprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the iCAi. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the ICAI.