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« Jun 13
Auditor's Report (Gillette India) Year End : Jun '14
1.  We have audited the accompanying financial statements of Gillette
 India Limited (the Company), which comprise the Balance Sheet as at
 June 30, 2014, the Statement of Profit and Loss and the Cash Flow
 Statement for the year then ended, and a summary of the significant
 accounting policies and other explanatory information.
 
 Management''s Responsibility for the Financial Statements
 
 2.  The Company''s Management is responsible for the preparation of
 these financial statements that give a true and fair view of the
 financial position, financial performance and cash flows of the Company
 in accordance with the Accounting Standards notified under the
 Companies Act, 1956 (the Act) (which continue to be applicable in
 respect of Section 133 of the Companies Act, 2013 in terms of General
 Circular 15/2013 dated 13th September, 2013 of the Ministry of
 Corporate Affairs) and in accordance with the accounting principles
 generally accepted in India.  This responsibility includes the design,
 implementation and maintenance of internal control 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.
 
 Auditors'' Responsibility
 
 3.  Our responsibility is to express an opinion on these financial
 statements based on our audit. We conducted our audit in accordance
 with the Standards on Auditing issued by the Institute of Chartered
 Accountants of India. Those Standards require that we comply with the
 ethical requirements and plan and perform the audit to obtain
 reasonable assurance about whether the financial statements are free
 from material misstatement.
 
 4.  An audit involves performing procedures to obtain audit evidence
 about the amounts and the 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 the internal control relevant to the
 Company''s preparation and fair presentation of the financial statements
 in order to design audit procedures that are appropriate in the
 circumstances, but not for the purpose of expressing an opinion on the
 effectiveness of the Company''s internal control. An audit also includes
 evaluating the appropriateness of the accounting policies used and the
 reasonableness of the accounting estimates made by the Management, as
 well as evaluating the overall presentation of the financial
 statements.
 
 5.  We believe that the audit evidence we have obtained is sufficient
 and appropriate to provide a basis for our audit opinion.
 
 Opinion
 
 6.  In our opinion and to the best of our information and according to
 the explanations given to us, the aforesaid financial statements give
 the information required by the Act in the manner so required and give
 a true and fair view in conformity with the accounting principles
 generally accepted in India:
 
 (a) in the case of the Balance Sheet, of the state of affairs of the
 Company as at June 30, 2014;
 
 (b) in the case of the Statement of Profit and Loss, of the profit of
 the Company for the year ended on that date; and
 
 (c) in the case of the Cash Flow Statement, of the cash flows of the
 Company for the year ended on that date.
 
 Emphasis of Matter
 
 7.  Further, as reported for the previous year ended June 30, 2013, the
 Company had provided and since paid excess commission amounting to Rs. 24
 lakhs (including service tax of Rs. 3 lakhs).  The Company''s application
 to the Central Government for waiver is yet to be approved by the
 Central Government.
 
 Our opinion is not qualified in respect of this matter.
 
 Report on Other Legal and Regulatory Requirements
 
 8.  As required by the Companies (Auditor''s Report) Order, 2003 (the
 Order) issued by the Central Government in terms of Section 227(4A) of
 the Act, we give in the Annexure a statement on the matters specified
 in paragraphs 4 and 5 of the Order.
 
 9.  As required by Section 227(3) of the Act, we report that:
 
 (a) We have obtained all the information and explanations which to 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 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 Balance Sheet, the Statement of Profit and
 Loss, and the Cash Flow Statement comply with the Accounting Standards
 notified under the Act (which continue to be applicable in respect of
 Section 133 of the Companies Act, 2013 in terms of General Circular
 15/2013 dated 13th September, 2013 of the Ministry of Corporate
 Affairs).
 
 (e) On the basis of the written representations received from the
 directors as on June 30, 2014 taken on record by the Board of
 Directors, none of the directors is disqualified as on June 30, 2014
 from being appointed as a director in terms of Section 274(1)(g) of the
 Act.
 
 ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT (Referred to in paragraph
 8 under ''Report on Other Legal and Regulatory Requirements'' section of
 our report of even date)
 
 In our opinion and according to the information and explanations given
 to us, the nature of the Company''s business/activities during the year
 are such that clauses xi, xii, xiii, xiv, xvi, xix and xx of paragraph
 4 of the Order are not applicable to the Company.  In respect of the
 other clauses, we report as under:
 
 (i) In respect of its fixed assets:
 
 a.  The Company has maintained proper records showing full particulars,
 including quantitative details and situation of fixed assets.
 
 b.  The fixed assets were physically verified during the year by the
 Management in accordance with a regular programme of verification
 which, in our opinion, provides for physical verification of all the
 fixed assets at reasonable intervals. According to the information and
 explanations given to us no material discrepancies were noticed on such
 verification.
 
 c.  During the Financial Year, in our opinion, a substantial part of
 fixed assets has not been disposed off by the Company.
 
 (ii) In respect of its inventories:
 
 a.  As explained to us, the inventories were physically verified during
 the year by the Management at reasonable intervals.
 
 b.  In our opinion and according to the information and explanations
 given to us, the procedures of physical verification of inventories
 followed by the Management were reasonable and adequate in relation to
 the size of the Company and the nature of its business.
 
 c.  In our opinion and according to the information and explanations
 given to us, the Company has maintained proper records of its
 inventories and no material discrepancies were noticed on physical
 verification.
 
 (iii) The Company has neither granted nor taken any loans, secured or
 unsecured, to/from companies, firms or other parties covered in the
 Register maintained under Section 301 of the Companies Act, 1956.
 
 (iv) In our opinion and according to the information and explanations
 given to us, having regard to the explanations that some of the items
 purchased are of special nature and suitable alternative sources are
 not readily available for obtaining comparable quotations, 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 and fixed assets and the sale of goods and services. During
 the course of our audit, we have not observed any major weakness in
 such internal control system.
 
 (v) To the best of our knowledge and belief and according to the
 information and explanations given to us, there are no contracts or
 arrangements that needed to be entered in the Register maintained in
 pursuance of Section 301 of the Companies Act, 1956.
 
 (vi) According to the information and explanations given to us, the
 Company has not accepted any deposit from the public during the year
 within the meaning of the provisions of Sections 58A & 58AA or any
 other relevant provisions of the Companies Act, 1956.
 
 (vii) In our opinion, the Company has an adequate internal audit system
 commensurate with the size of the Company and the nature of its
 business.
 
 (viii) We have broadly reviewed the cost records maintained by the
 Company, as prescribed by the Central Government under Section
 209(1)(d) of the Act and are of the opinion that prima facie the
 prescribed cost records have been maintained and are being made up. We
 have, however, not made a detailed examination of the cost records with
 a view to determine whether they are accurate or complete.
 
 (ix) According to the information and explanations given to us and
 according to the books and records as produced and examined by us, in
 our opinion:
 
 a.  The Company has generally been regular in depositing undisputed
 statutory dues including provident fund, investor education and
 protection fund, employees'' state insurance, income tax, sales tax,
 wealth tax, service tax, customs duty, excise duty, cess and other
 material statutory dues as applicable to it with the appropriate
 authorities.
 
 b.  There were no undisputed amounts payable in respect of provident
 fund, investor education and protection fund, employees'' state
 insurance, income tax, sales tax, wealth tax, service tax, customs
 duty, excise duty, cess and other material statutory dues in arrears as
 at June 30, 2014 for a period of more than six months from the date
 they became payable.
 
 c.  As at June 30, 2014, the following are the particulars of dues on
 account of income tax, sales tax, wealth tax, service tax, customs
 duty, excise duty and cess, matters that have not been deposited on
 account of any disputes:
 
 Name of     Nature     Forum where    Period to which       Amount
 Statute     of Dues    Dispute          the Amount          Involved
                        is Pending        Relates*        (Rs. in lakhs)
 
 The Central Excise     Appellate
                        Authority -     1994 - 98, 2002-      17 355
 Excise Act, duty       upto Commis
                         -sioners/      03, 2004, 2008 –
 1944                   Revisional 
                        authorities     June 2014
                        level
 
                        Customs, Excise
                        and             1994-98                  150
                        Service Tax 
                        Appellate       2004-07
                        Tribunal
 
                        High Court      1991                       9
 
             Sub-total                                        17 514
 
 Finance 
 Act,        Service    Appellate 
                        Authority -     2001-02, 2004,         1 591
 1994        tax        upto Commiss 
                        -ioners/        2005-06, 2007-08
                        Revisional
                        authorities     to June 2013
                        level
 
             Sub-total                                         1 591
 
 Customs 
 Act,       Custom      Appellate 
                        Authority -     2005-07, 2000-01,      1 588
 1962       Duty        upto Commiss
                         -ioners/       2013
                        Revisional 
                        authorities
                        level
 
                        Customs, Excise
                          and           1996                      27
                        Service Tax 
                        Appellate
                        Tribunal
 
             Sub-total                                         1 615
 
 Sales 
 Tax        Sales Tax   Appellate 
                        Authority -     1999-00 to 2010-       1 275
 and Lawsas and VAT     upto Commi
                        - ssioners/      11
 per 
 statutes               Revisional 
                        authorities
 applicable             level
 in various
 states
 
                        Appellate 
                        Authority       1997-98, 1999-00,         36
                        -Tribunal       2002-05, 2006-10
 
                        High Court      2005-06                   60
 
            Sub-total                                          1 371
 
 The Income  Income     Income Tax 
                        Appellate       2006-07,2008-09        6 197
 Tax Act,    Tax        Tribunal
 1961
 
            Sub-total                                          6 197
 
 *generally, the year refers to the period April to March.
 
 Out of the total disputed dues aggregating Rs. 28 288 lakhs as above, Rs. 6
 197 lakhs has been stayed for recovery by the relevant authorities.
 
 (x) The Company does not have accumulated losses at the end of the
 financial year and the Company has not incurred cash losses during the
 financial year covered by our audit and in the immediately preceding
 financial year.
 
 (xi) According to the information and explanations given to us, the
 Company has not given guarantee for loans taken by others from banks
 and financial institutions.
 
 (xii) In our opinion and according to the information and explanations
 given to us, and on an overall examination of the Balance Sheet of the
 Company, we report that funds raised on short-term basis have, prima
 facie, not been used during the year for long-term investment.
 
 (xiii) During the year the Company has not made any preferential
 allotment of shares to the parties and companies covered in the
 Register maintained under Section 301 of the Companies Act, 1956.
 
 (xiv) To the best of our knowledge and according to the information and
 explanations given to us, no fraud by the Company and no significant
 fraud on the Company has been noticed or reported during the year.
 
                                  For DELOITTE HASKINS & SELLS LLP
 
                                             Chartered Accountants
 
                        (Firm''s Registration No. 117366W/W-100018)
 
                                                    Shyamak R Tata
 
                                                         (Partner)
 MUMBAI, August 12, 2014                   (Membership No. 038320)
 
 
Source : Dion Global Solutions Limited
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