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Gujarat Raffia Industries Ltd.

BSE: 523836 Sector: Industrials
NSE: GUJRAFFIA ISIN Code: INE610B01024
BSE 00:00 | 24 Apr Gujarat Raffia Industries Ltd
NSE 05:30 | 01 Jan Gujarat Raffia Industries Ltd
OPEN 6.71
PREVIOUS CLOSE 7.06
VOLUME 150
52-Week high 15.45
52-Week low 6.71
P/E 4.09
Mkt Cap.(Rs cr) 4
Buy Price 6.71
Buy Qty 75.00
Sell Price 10.81
Sell Qty 590.00
OPEN 6.71
CLOSE 7.06
VOLUME 150
52-Week high 15.45
52-Week low 6.71
P/E 4.09
Mkt Cap.(Rs cr) 4
Buy Price 6.71
Buy Qty 75.00
Sell Price 10.81
Sell Qty 590.00

Gujarat Raffia Industries Ltd. (GUJRAFFIA) - Auditors Report


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Company auditors report

TO

THE MEMBERS OF

GUJARAT RAFFIA INDUSTRIES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GUJARAT RAFFIA INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at 31/03/2019 theStatement of Profit and Loss for the year then ended and a summary of the significantaccounting 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 preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor's Responsibility

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 thereunder.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31/03/2019 and its profit /loss for the year ended on that date.

Report on Other Legal and Regulatory Requirements

This report doesn't include a statement on the matters specified in paragraph 3 and 4of the companies (Auditor's Report) Order 2016 issued by the Central Government of Indiain terms of sub section (11) of section 143 of the Companies Act 2013. Since in ouropinion and according to the information and explanation given to us the said order isnot applicable to the company.

As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss dealt with by this Report arein agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on31/03/2019 taken on record by the Board of Directors none of the directors isdisqualified as 31/03/2019 from being appointed as a director in terms of Section 164 (2)of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".

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 refer to ourseparate report in "Annexure B". in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For M/s V S AGARWAL & ASSOCIATES

Chartered Accountants

Firm Reg. No. :141089W SD/-

CA. Shikha Agarwal Partner

Membership No. : 066763

Date: 29/05/2019

Place: AHMEDABAD

"Annexure A" to the Independent Auditor's Report of even date on theStandalone Financial Statements of GUJARAT RAFFIA INDUSTRIES LIMITED

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 controls over financial reporting of GUJARATRAFFIA INDUSTRIES LIMITED ("The Company") as of March 31 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence amount the adequacyof the internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reportingassessing the risk that a material weakness exists and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend upon on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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.

Opinion

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 March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issues by the Institute of CharteredAccountants of India.

For M/s V S AGARWAL & ASSOCIATES

Chartered Accountants

Firm Reg. No. :141089W Sd/-

CA. Shikha Agarwal

Partner

Membership No. : 066763

Date: 29/05/2019

Place: AHMEDABAD

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT Reports under The Companies (Auditor'sReport) Order 2016 (CARO 2016) for the year ended on

31st March 2019

To

The Members of

GUJARAT RAFFIA INDUSTRIES LIMITED

1) In Respect of Fixed Assets

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Fixed assets have been physically verified by the management in accordance with aregular programme of verification which in our opinion provided for physicalverification of all the fixed assets at reasonable intervals; According to the informationand explanation given to us no material discrepancies were noticed on such verification.

(c) We have inspected the original title deeds of immovable properties of the companyheld as fixed assets which are in custody of the company. We have obtained third partyconfirmations in respect of immovable properties of the company held as fixed assets whichare in the custody of third parties such as mortgagees. Based on our audit procedures andthe information and explanation received by us we report that all the title deeds ofimmovable properties are held in the name of the company. However we express no opinionon the validity of the title of the company to these properties.

2) In Respect of Inventories

As explained to us the inventories were physically verified by the management duringthe year at reasonable interval. No material discrepancies were noticed on suchverification.

3) Compliance under section 189 of The Companies Act 2013

In our opinion and according to the information and explanations given to us by thecompany company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly the clauses 3 (a) (b) and (c) are not applicable to the company andhence not commented upon.

4) Compliance under section 185 and 186 of The Companies Act 2013

In our opinion and according to the information and explanations given to us thecompany have complied with the provisions of section 185 and 186 of the Companies Act2013 while doing transaction for loans investments guarantees and security.

5) Compliance under section 73 to 76 of The Companies Act 2013 and Rules framed thereunder while accepting Deposits

In our opinion and according to the information and explanations given to us thecompany have complied with the provisions of section 73 section 76 and other relevantprovisions of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014 with regards to the deposits accepted from the members and the public. No order hasbeen passed by the National Company Law Tribunal or Company Law Board or any Court or anyother Tribunal with regard to deposits.

6) Maintenance of cost records

The Company is not required to maintain cost records pursuant to the Rules made by theCentral Government for the maintenance of cost records under sub-section (1) of section148 of the Companies Act 2013.

7) Deposit of Statutory Dues

(a) The company has generally been regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax wealth taxservice tax custom duty excise duty Goods and Services Tax Cess and other statutorydues applicable to the Company with the appropriate authorities. No undisputed amountspayable in respect of the aforesaid statutory dues were outstanding as at the March 312019 for a period of more than six months from the date they became payable.

(b) There are no dues of Income tax Wealth tax Sales tax Value added tax Servicetax Custom Duty Excise duty Goods and Services Tax and cess which have not beendeposited with the appropriate authorities on account of any dispute.

8) Repayment of Loans and Borrowings

Based on our audit procedures and as per the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto a financial institution bank and Government. The Company has not issued anydebentures.

9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised

According to the records of the company has not raised any money by way of initialpublic offer or further public offer {including debt instruments) and term loans. Hencethis clause is not applicable.

10) Reporting of Fraud During the Year

Based on our audit procedures and the information and explanation made available to usby the management no such fraud noticed or reported during the year.

11) Managerial Remuneration

Based on our audit procedures and the information and explanation made available to usby the management Managerial remuneration has been paid or provided in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act.

12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio As perinformation and records available with us The company is not Nidhi Company.

13) Related party compliance with Section 177 and 188 of companies Act - 2013

In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.

14) Compliance under section 42 of companies act 2013 regarding private placement ofshares of Debentures Based on our audit procedures and the information and explanationmade available to us by the management the company has not made any preferentialallotment/ private placement of shares or full or partially convertible debentures duringthe year under review. Accordingly this clause is not applicable to the company and hencenot commented upon.

15) Compliance under section 192 of companies act 2013 Based on our audit proceduresand the information and explanation made available to us by the management the companyhas not entered into any non cash transactions with directors or persons connected withhim. Accordingly this clause is not applicable to the company and hence not commentedupon.

16) Requirement of registration under 45-IA of Reserve Bank of India Act 1934

Based on our audit procedures and the information and explanation made available to usby the management the company is not required to be registered under section 45-IA ofReserve Bank of India Act 1934. Accordingly this clause is not applicable to the companyand hence not commented upon.

For M/s V S AGARWAL & ASSOCIATES

Chartered Accountants

Firm Reg. No. :141089W

Sd/-

CA. Shikha Agarwal

Partner

Membership No. : 066763

Date: 29/05/2019

Place: Ahmedabad