We have audited the accompanying financial statements of GUJARAT FOILS
LIMITED (the Company) which comprise the Balance Sheet as at 31 March
2014, 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
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) read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. 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.
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
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 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 entity''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, 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.
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 give a true and fair
view in conformity with the accounting principles generally accepted in
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014; and
ii. in the case of the statement of profit and loss, of the profit 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, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
2. 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 purpose of our
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. in our opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards notified under the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September, 2013 of
the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013 ; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Annexure to the Independent Auditor''s Report
The Annexure referred to in our report to the members of GUJARAT FOILS
LIMITED (the Company) for the year ended 31st March, 2014. We report
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) The fixed assets of the company have been physically verified by
the management during the year in a 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 physical verification.
(c) The Company has not disposed of any substantial/major part of fixed
assets during the year therefore the question of affecting the going
concern principle of the company do not arises.
ii) (a) Physical verification of inventory has been conducted at
reasonable intervals during the year by the management.
(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 are reasonable and adequate in relation to
the size of the company and the nature of the business.
(c) The company has maintained proper records of inventory. No material
discrepancies were noticed on physical verification of inventories as
compared to the book records.
iii) (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order, are not applicable.
(e) According to the information and explanations given to us, the
Company has taken unsecured loans from three companies covered in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year as well as the year end balance
of loans taken from such parties was Rs. 38,79,60,873/-.
(f) The rate of interest and other terms and conditions on which loans
taken by the company, as explained, are not prima facie prejudicial to
the interest of the company.
(g) Payment of the principal amount and interest, wherever applicable,
are also regular.
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, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
v) (a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act have been so entered.
(b) The transactions made in pursuance of contracts or arrangements
entered in the register under section 301 have been made at prices
which are reasonable having regard to prevailing market prices at the
vi) The company has not accepted any deposits from the public which
falls within the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956. Therefore the Provisions of
Clause (vi) of paragraph 4 of the Order are not applicable to the
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records has been prescribed by the
Central Government under Section 209 (1) (d) of the Companies Act, 1956
and such accounts and cost records have been made and maintained.
ix) (a) The company is generally 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, Custom Duty, Excise Duty, Cess and other
statutory dues with the appropriate authorities, except delay in some
(b) There are no dues of Income tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty or Cess outstanding on account of any
x) The company has no accumulated losses as at 31st March, 2014 and the
company has not incurred any cash loss in the financial year covered by
our audit and in the immediately preceding financial year.
xi) The company has not defaulted in repayment of dues to any financial
institutions or banks.
xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund or a nidhi / mutual benefit fund
/society. Accordingly, Clauses (xiii) (a) to (d) of paragraph 4 of the
Order are not applicable to the Company.
xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
xv) According to the information & explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) The term loans were applied for the purpose for which the loans
xvii) In our opinion and according to the information and explanations
given to us, there are no Funds raised on a short term basis which have
been used for long term investment.
xviii) The company has made preferential allotment of Preference shares
to parties and companies covered in the register maintained under
section 301 of the Act.
xix) The Company has not issued any debentures during the year.
xx) The company has not raised any funds by way of public issue during
xxi) No fraud on or by the company has been noticed or reported during
For H R Agarwal & Associates
Firm''s Registration Number: 323029E
(CA. Hari Ram Agarwal)
Membership number: FCA 057625
Date: 19th May, 2014