| We have audited the accompanying financial statements of GUJARAT FOILS
LIMITED ("the Company") which comprise the Balance Sheet as at 31
March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, 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 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation and presentation of the financial statements that gives a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the Accounting Principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Financial
Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and gives a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
ii. in the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
iii. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 3 and 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 best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account;
d. in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Companies Act,
2013, read with rule 7 of the Companies (Accounts) Rules, 2014, as
amended;
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of Section 164 (2) of the Act; and
f. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statement as stated in Note - 24 to
the Financial Statements.
ii. The company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
as required on long term contracts including derivative contracts;
iii. No amount required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made there under.
Annexure to the Independent Auditor's Report
The Annexure referred to in our Independent Auditor's Report to the
members of the Company on the financial statements for the year ended
31st March 2015. We report that:
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) Fixed Assets have been physically verified by the management in the
phased periodical manner, which in our opinion is reasonable having
regard to the size of the company and the nature of its Assets. No
material discrepancies were noticed on such verification.
ii) (a) The Inventory has been physically verified during the year by
the management. In our opinion the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on such verification.
iii) The company has not granted any loan secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in such internal control system.
v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
in pursuance to sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under.
vi) We have broadly reviewed the cost records maintained by the company
pursuant to the Companies (Cost Records & Audit)
Rules, 2014 as amended, prescribed by the Central Government u/s 148 of
the Companies Act, 2013, and are of the opinion that, prima facie, the
prescribed cost records have been made and maintained. We have,
however, not made a detailed examination of the cost records 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 in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
sales tax, wealth-tax, custom duty, excise duty, value added tax, cess,
service tax and other material statutory dues applicable to it, except
income tax during the year.
According to the information and explanations given to us, no
undisputed amounts payable in respect of service tax, wealth-tax, sales
tax, custom duty, excise duty or value added tax and cess were in
arrears, as at 31st March, 2015 for a period of more than six months
from the date they became payable except income tax which are due for
more than six months amounting Rs. 2,90,00,000/- for the financial year
2013-2014.
b) There is a demand of Rs. 8,48,91,363/- on account of VAT & CST
assessment for the financial years 2007-08 to 2010-11 which are pending
with Appellate authority. However Rs. 23,75,000/- has already been paid
against the same;
c) No amount is required to be transferred to Investor Education and
Protection Fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made there under.
viii) The company does not have accumulated losses at the end of
financial year 2014-15 and the company has not incurred any cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
ix) According to records of the company, the company has not defaulted
in repayment of dues to financial institutions or banks or
debenture holders till 31st March, 2015.
x) According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xi) The term loans obtained by the company have been applied for the
purposes for which they were raised.
xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For H R Agarwal & Associates
Chartered Accountants
Firm's Registration Number: 323029E
(Hari Ram Agarwal, FCA)
Partner
Membership number: FCA 057625
Place: Mumbai
Date: 29th May, 2015
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