We have audited the accompanying financial statements of Gujarat Raffia
Industries Limited (the Company), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and 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 Section 134(5) of the Companies Act, 2013 (the Act) with respect
to 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 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 of the assets of the Company and
for 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 the 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.
AUDITORS'' RESPONSIBILITY :
Our responsibility is to express an opinion on these standalone
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 misstatements.
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 standalone
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 of the state of affairs of the Company as
at 31st March, 2015, its profit and its 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 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
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 standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on 31 March, 2015, 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.
f. In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor''s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
iii. There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
Annexure to Auditors'' Report
Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' of our Report of even date to the members of Gujarat
Raffia Industries Limited on the accounts of the company for the year
ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and Explanations given to us during the course of
our audit, we report that:
i. In respect of its fixed assets :
a) The company has maintained proper records showing full particulars
including quantitative details and situation of the fixed assets on the
basis of available information.
b) As explained to us, the fixed assets are physically verified by the
management according to a phased programme designed to cover all the
items over a period, which in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, apportion of the fixed assets has been physically
verified by the Management during the year and no material
discrepancies between the book stock and the physical inventory have
ii. In respect of its Inventories :
a) As explained to us, inventory has been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanation
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 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 inventories.
As explained to us, there was no material discrepancy noticed on
physical verification of inventories as compared to the book records.
iii. In respect of loans, secured or unsecured, granted or taken by
company to/from companies, firms or other parties covered in the
register maintained under section 189 of the Companies Act, 2013:
a) The principal amounts are repayable over varying periods and
interest is payable annually, both at the discretion of the Company.
b) In respect of the said loans and interest thereon, there are no
iv. In our opinion and according to the information & explanations
given to us, there are adequate internal control systems which
commensurate with the size of the company & nature of its business for
purchase of inventory,
- fixed assets and also for the sales of goods and services. Further,
on the basis of our examination of our books and records of the
Company, and according to the information and explanation given to us,
we have neither come across nor have been informed of any continuing
failure to correct major weaknesses in the aforesaid internal control
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (v) of paragraph 3 of the CARO 2015 are not
applicable to the Company.
vi. According to the information and explanations given to us, the
Companies (Cost Records and Audit) Rules, 2014 prescribed by the
Central Government under Section 148(1 )(d) of the Companies Act, 2013
are not applicable to the company for the year under review.
vii. In respect of Statutory Dues :
(a) According to the records of the company and information and
explanations given to us, the Company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
employees state insurance (ESI), Investor Education and Protection Fund
Income-tax, Tax deducted at sources, Tax collected at source,
Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it, with the appropriate authorities.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Income-tax, Wealth
Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material
statutory dues in arrears /were outstanding as at 31 March, 2015 for a
period of more than six months from the date they became payable except
Sr. Nature of the Statute Nature of Dues
1. The industrial Dispute Labour Matter
2. Employee''s State Insurance ESIC
Sr. Nature of the Statute Forum where the Unpaid
No. matter is pending Amt.(Rs.)
1. The industrial Dispute Labour Court, Ahmedabad 35,000/-
2. Employee''s State Insurance ESI Tribunal, Ahmedabad 2,00,000/-
(c) According to the information and explanations given to us, There
has not been an occasion in case of the Company during the year under
report to transfer any sums to the Investor Education and Protection
Fund. Therefore, the question of reporting delay in transferring such
sums does not arise as at 31st March, 2015, hence, clause 3(vii)(c) of
the Order is not applicable to it.
viii. On the basis of information and explanations given to us and on
the basis of records produced before us, the company does not have any
accumulated loss at the end of the year and has not incurred cash
losses in the relevant financial year and in the immediately preceding
ix. According to the records of the company examined by us and on the
basis of the information and explanations given to us, the company has
not defaulted in repayment of dues to any bank as at the balance sheet
date. The company has not taken loans from financial institutions and
has not issued debentures during the period under review.
x. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loan taken by
others from bank or financial institution hence the provision of this
clause is not applicable to the company.
xi. In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which the
loans were obtained.
xii. To the best-ef''our knowledge and according to the information and
explanations given to us, no fraud by the Company and.no material fraud
on the Company has been noticed or reported during the year.
For P G T & Associates
(Firm Reg. No.: 116277W)
(Pradeep G Tulsian)
Place : Ahmedabad Partner
Date : 27/05/2015 Membership No.: 100968