Mar 31, 2023
Gravita India Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Gravita India Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors as referred to in paragraph 15 below, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained together with the audit evidence obtained by the other auditors, in terms of their reports referred to in paragraph 15 of the Other Matter section below is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5. We have determined the matter described below to be the key audit matters to be communicated in our report.
Key audit matter |
How our audit addressed the key audit matter |
|
Revenue recognition |
Our audit work included, but was not limited to, the following procedures: |
|
Refer note 24 to the standalone financial statements. The Revenues of the Company consists primarily of sale of products and is recognized when control of products being sold is transferred to the customer and |
a) b) c) |
Assessed the appropriateness of the Company''s revenue recognition accounting policies in accordance with Ind AS 115 - Revenue from contracts with customers; Tested the design and operating effectiveness of the general IT control environment and the manual controls for recognition of revenue; Performed substantive analytical procedures on revenue |
there is no unfulfilled obligation. |
which included ratio analysis, product mix analysis, |
|
Revenue is measured at fair value |
customer analysis, etc.; |
|
of the consideration received or receivable and is accounted |
d) |
Tested, on a sample basis, sales transactions to the underlying supporting documentation which includes |
for net of rebates and trade discounts. |
goods dispatch notes and shipping documents; |
|
Revenue recognition process also involves certain key judgements relating to identification of distinct performance obligations, determination of |
e) |
Reviewed, on a sample basis, sales agreements and the underlying contractual terms related to delivery of goods and rebates to assess the Company''s revenue recognition policies with reference to the requirements of the applicable accounting standards; |
transaction price of the identified |
f) |
Obtained supporting documentation for a sample of credit |
performance obligations and |
notes issued after the year end to determine whether the |
|
the appropriateness of revenue |
transaction was recognized in the correct accounting |
|
recognized. |
period; |
|
The Company also focuses on |
g) |
Performed other substantive audit procedures including |
revenue as a key performance |
obtaining debtor confirmations on a sample basis and |
|
measure, which could create |
reconciling revenue recorded during the year with statutory |
|
an incentive for overstating |
returns; |
|
revenue. |
i) |
Tested manual journal entries impacting revenue including |
Considering the materiality of |
credit notes, claims etc., which were material or irregular in |
|
amounts involved and significant |
nature with supporting documents and evaluated business |
|
judgements involved, the same |
rationale thereof; and |
|
has been considered as a key |
j) |
Ensured the adequacy and appropriateness of disclosures |
audit matter for the current year''s |
made in the standalone financial statements in accordance |
|
audit. |
with the requirements of Ind AS 115. |
Information other than the Standalone Financial Statements and Auditor''s Report thereon
6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there''re is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The accompanying standalone financial statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. 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.
8. In preparing the financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls;
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
⢠Conclude on the appropriateness of Board of Directors'' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern; and
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
15. The standalone financial statements include the Company''s share in the net loss of '' 0.12 crores for the year ended 31 March 2023, in respect of share of loss from partnership firm in which the Company has invested, whose financial statements have not been audited by us. These financial statements have been audited by the other auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of this partnership firms, and our report in terms of sub-section (3) of Section 143 of the Act in so far as it relates to the aforesaid partnership firms, is based solely on the report of such other auditors.
Our opinion above on the standalone financial statements, and our report on other legal and regulatory requirements below, are not modified in respect of the above matters with respect to our reliance on the work done by and the reports of the other auditors.
Report on Other Legal and Regulatory Requirements
16. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
17. As required by the Companies (Auditor''s Report) Order, 2020 (''the Order'') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
18. Further to our comments in Annexure A, as required by section 143(3) of the Act based on our
audit, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements;
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 standalone financial statements dealt with by this report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 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 with reference to financial statements of the Company as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure B wherein we have expressed an unmodified opinion; and
g) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. the Company, as detailed in note 35(a) to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2023;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2023;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023;
iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed
in note 52(viii) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 52(ix) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.
v. As stated in note 37 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2023 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend; and
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting software for maintaining their books of account, to use such an accounting software which has a feature of audit trail, with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial year.
For Walker Chandiok & Co LLP
Chartered Accountants Firm''s Registration No.: 001076N/N500013
Manish Agrawal
Partner
Place: Jaipur Membership No.: 507000
Date: 01 May 2023 UDIN: 23507000BGYERC9185
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Gravita India Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting 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 thereunder and the Order issued under Section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the other auditors on separate financial statements of partnership firms referred to in the sub-paragraph (a) of the Other Matters paragraph below, the aforesaid standalone Ind AS 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 Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
(a) The standalone Ind AS financial statements include the Companyâs share of net profit of RS.329.75 lacs for the year ended 31st March, 2018 in respect of 4 partnership firms, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these partnership firms, is based solely on the reports of the other auditors.
Our opinion on the standalone Ind AS financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of this matter.
(b) The comparative financial information for the year ended 31st March, 2017 and the transition date opening balance sheet as at April 01, 2016 in respect of 4 partnership firms included in this Standalone Ind AS financial statements prepared in accordance with the Ind AS have been audited by the other auditors.
Our opinion on the standalone Ind AS financial statements is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and 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 including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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 financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of SubSection 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Gravita India Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the âGuidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note.
(i) (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 explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land, are held in the name of the Company as at the balance sheet date. Immovable properties of freehold land disclosed as fixed assets in the financial statement whose title deeds have been pledged as security for loans, are held in the name of the Company based on the confirmation received by us from lenders.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to one of its wholly owned subsidiary company, in respect of which:
a. The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest, as these loans are given to a wholly owned subsidiary to support and promote the Companyâs trade and its supplements.
b. The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c. There is no overdue amount remaining outstanding as at the year-end.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 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) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Goods and Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable.
(c) There are no dues of Sales Tax, Service Tax and Customs Duty which have not been deposited as on 31st March, 2018 on account of disputes. Details of dues of Income-tax, Value Added Tax and Excise Duty which have not been deposited as on 31st March, 2018 on account of disputes are given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is pending |
Period to which the amount relates (Financial Year) |
Amount Involved* (Rs. in lacs) |
Amount Unpaid (Rs. in lacs) |
Income Tax Act, 1961 |
Income tax |
Appellate authority upto Commissionersâ level |
2007-2010 |
22.50 |
-^ |
The Rajasthan Value Added Tax Act, 2003 |
Value Added Tax |
Appellate Authority upto Commissionersâ level |
201 1-2012 |
4.54 |
4.54 |
The Finance Act, 1994 |
Service Tax |
Appellate Authority upto Commissionersâ level |
2010-2015 |
53.09 |
49.11$ |
The Central Excise Act, 1944 |
Excise Duty |
Appellate Authority upto Commissionersâ level |
2013-2014 |
9.80 |
9.80 |
* Amount as per demand orders including interest and penalty wherever quantified in the order. A Amount paid under protest RS.22.50 Lacs.
$ Amount paid under protest RS.3.98 Lacs.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions. The Company has not taken any loan or borrowing from government and has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of the term loans have been applied by the Company during the year for the purposes for which they were raised, other than temporary deployment pending application of proceeds. The Company has not raised amount by way of further public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or Directors of its subsidiary companies or persons connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firmâs Registration No.015125N)
Vijay Agarwal
Place: Jaipur (Partner)
Date: May 28, 2018 (Membership No. 094468)
Mar 31, 2017
To
The Members of GRAVITA INDIA LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of GRAVITA INDIA LIMITED ("the Companyâ), which comprise the Balance Sheet as at March 31, 2017, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation of these standalone 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 prescribed under Section 133 of the Act, as applicable.
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 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 standalone financial statements that give a true and fair view and are free from material mis-statement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
In conducting 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 of the standalone financial statements 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 standalone financial statements are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material mis-statement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the 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 standalone financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their report referred to in Other Matter paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 March 31, 2017, and its profit and its cash inflows for the year ended on that date.
Other Matter
The standalone financial statements include the Company''s share of net profit of H529.45 lacs for the year ended March 31, 2017 in respect of three partnership firms, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these partnership firms, is based solely on the reports of the other auditors.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report:
a) We have sought and 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 aforesaid standalone financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, as applicable.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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 financial reporting of the Company, and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) 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 standalone
financial statements. Refer Note 29 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses - Refer Note 45 to the standalone financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company- Refer Note 46 to the standalone financial statements.
iv. The Company has provided requisite disclosures in the standalone financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
We have audited the internal financial controls over financial reporting of GRAVITA INDIA LIMITED ("the Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material mis-statement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material mis-statements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(i) (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 explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land, are held in the name of the Company as at the balance sheet date. Immovable properties of freehold land disclosed as fixed assets in the financial statement whose title deeds have been pledged as security for loans, are held in the name of the Company based on the confirmation received by us from lenders. In respect of immovable properties of land that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
(c) There are no dues of Customs Duty and Service Tax which have not been deposited as on March 31, 2017 on account of disputes. Details of dues of Income-tax, Value Added Tax and Excise Duty which have not been deposited as on March 31, 2017 on account of disputes are given below:
Name of statute |
Nature of dues |
Forum where dispute is pending |
Period to which the amount relates |
Amount Involved* Jin lacs) |
Amount Unpaid Jin lacs) |
Income Tax Act, 1961 |
Income tax |
Appellate authority up to Commissioner level |
2007-13, 2014-15 |
51.53 |
31.46 |
Central Excise Act, 1944 |
Excise Duty |
Appellate Authority up to Commissioner level |
2009-10 |
1.68 |
- |
The Rajasthan Value Added Tax Act, 2003 |
Value Added Tax |
Appellate Authority up to Commissioner level |
2011-12 |
4.54 |
4.54 |
*Amount as per demand orders including interest and penalty wherever quantified in the order.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year.
(vi) The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 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) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employee''s State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks and financial institutions. The Company has not taken any loan or borrowing from government and has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, money raised by way of the term loans have been applied by the Company during the year for the purposes for which they were raised, other than temporary deployment pending application of proceeds. The Company has not raised amount by way of initial public offer/ further public offer (including debt instruments) during the year.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 188 and 177 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or Directors of its subsidiary companies or persons connected with them and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins & Sells
Chartered Accountants
(Firm''s Registration No. 015125N)
Vijay Agarwal
Place: Jaipur (Partner)
Date: May 15, 2017 (Membership No. 094468)
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
GRAVITA INDIA LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, 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 Standalone 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 standalone 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 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 mis-statement, whether due to fraud or
error.
Auditor's 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
thereunder.
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 mis-statement.
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 mis-statement 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 the 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 obtained by us and the audit
evidence obtained by the other auditors in terms of their reports
referred to in sub-paragraph (a) of the Other Matters paragraph below,
is sufficient and appropriate to provide a basis for our audit opinion
on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Other Matters
The standalone financial statements include the Company's share of net
profit of Rs. 1,160.34 lacs for the year ended March 31, 2015 in
respect of 3 partnership firms, whose financial statements have not
been audited by us. These financial statements have been audited by
other auditors whose reports have been furnished to us by the
Management and our opinion on the standalone financial statements, in
so far as it relates to the amounts and disclosures included in respect
of these partnership firms, is based solely on the reports of the other
auditors. Refer Note 41 to the financial statements.
Our opinion is not modified in respect of this matter.
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 in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order
2. 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 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 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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(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 statements - Refer Note 29 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses. Refer Note 45 to the financial statements.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company. Refer Note 46 to
the financial statements.
Annexure to the Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(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
explanation given to us, no material discrepancies were noticed on such
verification.
(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 not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(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 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) According to the information and explanations given to us, the
Company has not accepted any deposit during the year.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended prescribed by the Central Government under sub-section (1)
of Section 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) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
(c) There are no dues in respect of Custom Duty Wealth Tax, Sales Tax,
Excise Duty and Cess which have not been deposited on account of any
dispute. Details of dues of Income-tax, Service Tax, Value Added Tax
which have not been deposited as on March 31, 2015 on account of
disputes are given below:
Name of statute Nature of dues Forum where dispute is
pending
Income tax Act, 1961 Income Tax Appellate Authority upto
Commissioner level
Finance Act, 1994 Service Tax Appellate Authority upto
Commissioner level
Finance Act, 1994 Service Tax Appellate Authority upto
Commissioner level
The Rajasthan Value Value Added Tax Appellate Authority upto
Added Tax Act, 2003 Commissioner level
Name of statute Period to which the Amount involved*
amount relates (Rs. in lacs)
Income tax Act, 1961 2010-11 10.21
Finance Act, 1994 2010-11 and 14.61
2011-12
Finance Act, 1994 2014-15 0.79
The Rajasthan Value 2011-12 4.54
Added Tax Act, 2003
* includes interest and penalty, wherever applicable.
(d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
thereunder.
(viii) 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.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions and banks. The Company has not issued any
debentures.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained.
(xii) To the best of 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 DELOITTE HASKINS & SELLS
Chartered Accountants
Firm's Registration No. 015125N
Sd/-
Vijay Agarwal
Jaipur Partner
May 23, 2015 Membership No. 094468
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Gravita India
Limited which comprise the Balance Sheet as at 31st March 2013, 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 referred to in Sub-Section (3C) of Section 211
of the Companies Act, 1956 ("the ActÂ). 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 mis-statement,
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 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 mis-statement 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.
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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read together with
the Significant Accounting Policies and notes thereon give the
information required by the Companies Act, 1956 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 Balance Sheet, of the state of affairs of the Company
as at March 31, 2013;
b) In the case of Statement of Profit & Loss, of the profit of the
Company for the year ended on that date and
c) In the case of 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
OrderÂ), 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
Order.
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
audit;
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
books and proper returns adequate for the purpose of our audit have
been received from the branches not visited by us;
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
account and the returns from the branches;
d. In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956.
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, fixed assets have been physically verified by
the management 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
verification, as per the explanations provided to us.
(c) In our opinion and according to the information and explanation
given to us, there is no substantial disposal of fixed assets during
the year.
2. In respect of its inventories:
(a) As explained to us, the inventories have been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
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 its
inventories. As explained to us no material discrepancies were noticed
on verification between the physical stocks and the book records.
3. In respect of loans secured or unsecured, taken or granted by the
Company to/from companies, firms or other parties covered in the
register maintained u/s 301 of the Companies Act, 1956:
a) As per information and explanations provided to us, the Company has
given following loans :
(Rs. in Lacs)
Name Nature Loan
Given Maximum
Amount Balance as on
outstan
ding
during 31st March, 2013
the year
Gravita
Ghana
Limited Subsidiary 832.00 832.00 72.47
Gravita
Senegal SAU Subsidiary 579.00 579.00 520.32
Gravita Exim
Limited Subsidiary 1854.00 1,060.18 769.23
Noble Build
Estate
Private
Limited Subsidiary 200.00 209.23 204.62
Gravita
Energy
Limited Subsidiary 0.75 5.68 2.59
b) In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been given to the parties listed
in the register maintained u/s 301 of the Companies Act, 1956 are not
prima facie prejudicial to the interest of the Company.
c) In our opinion and according to the information and explanations
given to us the receipt of the principal amount and nterest as per
terms of the agreement are regular. No Interest has been charged from
Gravita Energy Ltd
d) The loan is receivable on demand hence there is no overdue amount in
excess of " 1 Lacs in respect of loans granted to companies, firms or
other parties listed in the register maintained under Section 301 of
Companies Act, 1956
e) According to the information and explanations given to us, the
Company has not taken any loan from parties which are covered in the
register maintained under Section 301 of the Companies Act, 1956.
Consequently , the requirements of Clauses ( iii) (f) and (iii) (g) of
paragraph 4 of the Order are not applicable.
4. 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 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 such internal control
system.
5. In respect of register maintained under Section 301 of the
Companies Act, 1956:
(a) Based on the information and explanations given to us, the
transactions pertaining to contracts and arrangements that need to be
entered into a register in pursuance of Section 301 of the Companies
Act, 1956 have been so entered.
(b) According to information and explanation given to us, there are
transactions of purchases and sales entered in the register maintained
under Section 301 of the Companies Act, 1956 and prices of such are
reasonable having regard to prevailing market prices at the relevant
time as explained to us.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposit from Public and
companies, therefore burden of Compliance of the provision of the
Section 58A and 58AA clause 4(vi) of the Companies Act 1956 do not
arise.
7. In our opinion, the Company has internal audit system commensurate
with the size of the Company and nature of its business.
8. As informed to us, Company is maintaining the cost records as
prescribed under Section 209-(1) (d) of the Companies Act 1956 by the
Central Government for the products of the Company. We have not,
however, carried out the detailed examination of the same.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and the
banks during the year.
12. In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of the clause 4(xiii) of the Order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
16. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, the Company
has raised five new term loans during the year and has applied for the
purpose for which they have been raised.
17. According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that,
prima facie, have been used for the long term investment nor the long
term loan have been used to finance short term assets except for
permanent working capital.
18. During the year the Company has not allotted equity shares on
preferential basis to the parties covered in the register maintained
u/s 301 of the Companies Act, 1956. However the Company has allotted
27552 equity shares to employees on preferential basis under Gravita
ESOP 2011 Scheme.
19. According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures. Accordingly, no security/charge has been created in respect
of debentures issued.
20. The Company has not raised any monies by way of public issue
during the year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Rajvanshi & Associates
Chartered Accountants
Firm Regn. No. : 005069C
Vikas Rajvanshi
Partner
Membership No. : 073670
Place : Jaipur
Date : 28th May 2013
Mar 31, 2012
1. We have audited the accompanying financial statements of GRAVITA
INDIA LIMITED which comprise the Balance Sheet as at 31st March 2012,
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 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 referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956 ("the Act").
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.
2. 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. 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.
3. 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
Order.
4. Further to our comments in annexure referred to in paragraph 3
above 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
audit;
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
books;
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
account;
d. In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis written representations received from the directors as
on 31st March 2012, and taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March 2012, from being
appointed as a director in terms of clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements read together
with the Significant Accounting Policies and notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
ii. In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, fixed assets have been physically verified by
the management 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
verification, as per the explanations provided to us
(c) In our opinion and according to the information and explanation
given to us, there is no substantial disposal of fixed assets during
the year.
(ii) In respect of its inventories:
(a) As explained to us, the inventories have been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
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 its
inventories. As explained to us no material discrepancies were noticed
on verification between the physical stocks and the book records.
(iii) In respect of loans secured or unsecured, taken or granted by the
Company to/from companies, firms or other parties covered in the
register maintained u/s 301 of the Companies Act, 1956:
(a) As per information and explanations provided to us, the Company has
given loan to subsidiary namely Gravita Exim Limited of Rs905.44 lacs
Maximum amount outstanding at any time during the year being Rs421.23
lacs and balance at the year end being Rs287.06 lacs.
(b) In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been given to the parties listed
in the register maintained u/s 301 of the Companies Act, 1956 are not
prima facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us the receipt of the principal amount and interest as per
terms of the agreement are regular.
(d) The loan is receivable on demand hence there is no overdue amount
in excess of Rs1 Lacs in respect of loans granted to companies, firms or
other parties listed in the register maintained under Section 301 of
Companies Act, 1956.
(e) According to the information and explanations given to us, the
Company has taken unsecured loan of Rs2.00 crore from Jalousies India
(P) Limited which is a Company in which directors are interested during
the year and also repayment was made of the same amount which is
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(f) In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been taken from the parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not prima facie prejudicial to the interest of the Company.
(g) In our opinion and according to the information and explanations
given to us the payment of the principal amount was repaid in full
along with interest as per terms of the agreement.
(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 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 such internal control
system.
(v) In respect of Register maintained under Section 301 of the
Companies Act, 1956:
(a) Based on the information and explanations given to us, the
transactions pertaining to contracts and arrangements that need to be
entered into a register in pursuance of Section 301 of the Companies
Act, 1956 have been so entered.
(b) According to information and explanation given to us, there are
transactions of purchases and sales entered in the register maintained
under Section 301 of the Companies Act, 1956 and prices of such are
reasonable having regard to prevailing market prices at the relevant
time as explained to us.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposit from Public and
companies, therefore burden of Compliance of the provisions the Section
58A and 58AA [clause 4(vi)of the Order] of the Companies Act, 1956 do
not arise.
(vii) In our opinion, the Company has internal audit system
commensurate with the size of the Company and nature of its business.
(viii) As informed to us, Company is maintaining the cost records as
prescribed under Section 209(1) (d) of the Companies Act, 1956 by the
Central Government for the products of the Company. We have not,
however, carried out the detailed examination of the same.
(ix) According to the information and explanations given to us and on
the basis of our examination of the books of accounts, the Company has
been regular in depositing undisputed statutory dues including Income
Tax, TDS, Sales-tax, VAT, Custom Duty, Excise Duty, Educational Cess
and any other dues during the year with the appropriate authorities
except in three cases.
Sl
No Particulars Amount
Involved Forum Where dispute
is pending
(Rs in
Lacs)
1. The Sales Tax exemption
claimed by the 20.20 Assistant Commissioner,
Commercial Taxes
Company has been withdrawn
and interest Department Special
Circle-II Jaipur
of Rs 8.69 Lacs was levied by
expatriate order.
2. Rejection of Central Excise
rebate of Rs 4.70 lacs 4.75 Central Excise Appellate
Tribunal,
and refund of Rs0.05 lacs on
exported goods Delhi (CEGAT)
u/s 11B of Central Excise
Act 1944
3. Scrutiny Assessment
Proceedings U/s 143(3) 1.55* CIT (Appeals) III Jaipur
for F.Y 2007-08 A.Y 2008-09
*The Company has paid Rs1.55 Lacs against the same on protest
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and the
banks during the year.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of the clause 4(xiii) of the Order
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
(xvi) According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, the Company
has raised four term loans during the year and has applied for the
purpose for which they have been raised.
(xvii) According to the information and explanation given to us, and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that,
prima facie, have been used for the long term investment nor the long
term loan have been used to finance short term assets except for
permanent working capital.
(xviii) During the year the Company has not allotted equity shares on
preferential basis to the parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
(xix) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures. Accordingly, no security/charge has been created in respect
of debentures issued.
(xx) The Company has issued 36,00,000/- Equity Shares of Face value of
Rs10/- each at a premium of Rs115/- per share during the Financial Year
2010-2011. The end use of proceeds of the fund raised by public issue
has been disclosed by the management in the notes to the accounts which
is duly verified by us.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Rajvanshi & Associates
Chartered Accountants
Firm Regn. No. : 005069C
Vikas Rajvanshi
Partner
Membership No. : 073670
Place : Jaipur
Date : 25th May 2012
Mar 31, 2011
1.We have audited the attached Balance Sheet of GRAVITA INDIA LIMITED
as at 31st March 2011, Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(hereinafter referred to as the Order) issued by the Central
Government of India in terms of sub-section (4A) of Section 227 of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows :->
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 appears from our examination of
those books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of the written representation received from the
directors, and taken on record by the Board of Directors, as on March
31, 2011, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes, give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of Balance Sheet, of the state of affairs of the Company
as at March 31, 2011;
ii) in the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURES TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
(i) In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
(b) As explained to us, fixed assets have been physically verified by
the management 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
verification, as per the explanations provided to us.
(c) In our opinion and according to the information and explanation
given to us, there is no substantial disposal of fixed assets during
the year.
(ii) In respect of its inventories:
(a) As explained to us, the inventories have been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
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 its
inventories. No discrepancies noticed on verification between the
physical stocks and the book records.
(iii) In respect of loans secured or unsecured, taken or granted by the
company to/from companies, firms or other parties covered in the
register maintained u/s 301 of the Companies Act, 1956:
(a) As per information and explanations provided to us, the company has
given loan to three of its subsidiaries namely Floret Tradelink Ltd. of
Rs.48,50,000, Gravita Technomech LLP of Rs.2,96,48,000 and Gravita Exim
Ltd. of Rs.5,66,50,000. Maximum amount outstanding at any time during
the year being Rs.53,02,820, Rs.2,96,48,000 and Rs.2,62,55,246 respectively
and balance at the year end being Rs.5,26,164, Rs.2,96,48,000 and
Rs.1,04,65,646 respectively.
(b) In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been given to the parties listed
in the register maintained u/s 301 of the Companies Act, 1956 are not
prima facie prejudicial to the interest of the company.
(c) In our opinion and according to the information and explanations
given to us the receipt of the principal amount and interest as per
terms of the agreement are regular.
(d) There is no overdue amount in excess of Rs.1 Lacs in respect of loans
granted to companies, firms or other parties listed in the register
maintained under section 301 of Companies Act, 1956.
(e) According to the information and explanations given to us, the
Company has taken unsecured loan of Rs.66,50,000 from two directors
during the year and also repayment was made of the same amount which is
covered in the register maintained under section 301 of the Companies
Act, 1956.
(f) In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been taken from the parties
listed in the register maintained u/s 301 of the Companies Act, 1956
are not prima facie prejudicial to the interest of the company.
(g) In our opinion and according to the information and explanations
given to us the payment of the principal amount and interest as per
terms of the agreement are 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 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 such internal control
system.
(v) In respect of register maintained under Section 301 of the
Companies Act, 1956:
(a) Based on the information and explanations given to us, the
transactions pertaining to contracts and arrangements that need to be
entered into a register in pursuance of section 301 of the Companies
Act, 1956 have been so entered.
(b) According to information and explanation given to us, there are
transactions of purchases and sales entered in the register maintained
under section 301 of the Companies Act, 1956 and prices of such are
reasonable having regard to prevailing market prices at the relevant
time as explained to us.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposit from Public and
companies, therefore burden of Compliance of the provision of Section
58A and 58AA clause 4(vi) of the Companies Act 1956 do not arise.
(vii) In our opinion, the Company has internal audit system
commensurate with the size of the Company and nature of its business.
(viii) As informed to us, Company is maintaining the cost records as
prescribed under Section 209(1) (d) of the Companies Act, 1956 by the
Central Government for the products of the Company. We have not,
however, carried out the detailed examination of the same.
(ix) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been regular in depositing undisputed statutory dues including Income
Tax, TDS, Sales-tax, VAT, Custom Duty, Excise Duty, Educational Cess
and any other dues during the year with the appropriate authorities
except in three cases.
S.
No Particulars Amount
Involved Forum where
(Rs. in Lacs) dispute is pending
1. The Sales Tax exemption claimed
by the company 20.20 Assistant
Commissioner,
has been withdrawn and interest
of Rs.8.69 Lacs Commercial Taxes
Department
was levied by expatriate order. Special Circle-II
Jaipur
2. Disallowance of various
expenses u/s 143(3) of 1.55 C.IT (Appeals) III
JAIPUR
The Income Tax Act 1961
3. Rejection of Central Excise
rebate of 4.70 lacs and 4.75 Central Excise
Appellate
refund of 0.05 lacs on exported
goods u/s 11B of Tribunal, Delhi
(CEGAT)
Central Excise Act 1944
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and the
banks during the year.
(xii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of the clause 4(xiii) of the Order,
are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
(xv) The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
(xvi) According to the information and explanation given to us, and on
an overall examination of the balance sheet of the Company, the company
has raised six term loans during the year and has applied for the
purpose for which they have been raised.
(xvii) According to the information and explanation given to us, and on
an overall examination of the balance sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that,
prima facie, have been used for the long term investment nor the long
term loan have been used to finance short term assets except for
permanent working capital.
(xviii) During the year the company has not allotted equity shares on
preferential basis to the parties covered in the register maintained
u/s 301 of the Companies Act, 1956.
(xix) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures. Accordingly, no security/charge has been created in respect
of debentures issued.
(xx) The Company has issued 36,00,000/- equity shares of Face value of
Rs.10/- each at a premium of Rs.115/- per share during the year. The end
use of proceeds of the fund raised by public issue has been disclosed
by the management in the notes to the accounts which is duly verified
by us.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Rajvanshi & Associates
Chartered Accountants
Vikas Rajvanshi
Partner
Membership No. : 073670
Firm Regn. No. : 005069C
Place : Jaipur
Date : 21st May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of GRAVITA INDIA LIMITED
as at March 31, 2010, Profit and Loss Account and the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 as
amended by the Companies (Auditors Report) (Amendment) order, 2004
(hereinafter referred to as the Order) issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows :->
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 appears from our examination of
those books;
c. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of the written representation received from the
directors, and taken on record by the Board of Directors, as on March
31, 2010, we report that none of the directors is disqualified as on
March 31, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with notes, give
the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: i) in the case of
Balance Sheet, of the state of affairs of the Company as at March 31,
2010;
ii) in the case of Profit & Loss Account, of the profit of the Company
for the year ended of that date and iii) in the case of Cash Flow
Statement, of the cash flows for the year ended on that date.
ANNEXURES TO THE AUDITORS REPORT (Referred to in paragraph 3 of our
report of even date)
1. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b. As explained to us, fixed assets have been physically verified by
the management 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
verification, as per the explanations provided to us.
c. In our opinion and according to the information and explanation
given to us, there is no substantial disposal of fixed assets during
the year.
2. In respect of its inventories:
a. As explained to us, the inventories have been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable having regard to the size of the company and
the nature of its business.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
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 its
inventories. No discrepancies noticed on verification between the
physical stocks and the book records.
3. In respect of loans secured or unsecured, taken or granted by the
company to/from companies, firms or other parties covered in the
register maintained u/s 301 of the Companies Act, 1956:
a. As per information and explanations provided to us, the company has
given loan to two of its subsidiaries namely Floret Tradelink Pvt. Ltd.
And Gravita Exim Ltd., maximum amount outstanding at any time during
the year being Rs. 10,10,830 and Rs. 65,00,000 and balance at the year
end being Rs. 10,10,830 and NIL
b. According to the information and explanations given to us, the
Company has taken unsecured loan of Rs. 80 Lacs from two directors
during the year and also repayment was made which is covered in the
register maintained under section 301 of the Companies Act, 1956.
c. In our opinion, the rate of interest, where applicable and other
terms & conditions on which loans have been taken from the parties
listed in the register maintained u/s 301 of the companies Act, 1956
are not prima facie prejudicial to the interest of the company.
4. 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 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 such internal control
system.
5. In respect of register maintained under section 301 of the
companies act, 1956:
a. Based on the information and explanations given to us, the
transactions pertaining to contracts and arrangements that need to be
entered into a register in pursuance of section 301 of the Companies
Act, 1956 have been so entered.
b. According to information and explanation given to us, there are
transactions of purchases and sales entered in the register maintained
under section 301 of the Companies Act, 1956 and prices of such are
reasonable having regard to prevailing market prices at the relevant
time as explained to us. Details of such transactions are as under:
S.
No. Name of Party Transaction Type Amount (Rs. in Lacs)
1. Gravita Exim Limited Sales 21.91
Purchases 4.15
Purchases - DEPB
License 0.46
2. Navam Lanka Limited Purchase 296.13
3. Gravita Honduras S.A. Sales 37.98
4. Florate Tradelink
Private Limited Sales 21.36
5. Penta Exim Limited Sales 73.90
Sales-DEPB 1.23
Purchases 338.58
(i) In our opinion and according to the information and explanations
given to us, the Company has accepted deposit from Public and
companies. The company has been duly complying with the provision the
section 58A and 58AA clause 4(vi) of the Companies Act 1956.
(ii) In our opinion, the company has internal audit system commensurate
with the size of the Company and nature of its business.
(Mi) As informed to us, Company is maintaining the cost records as
prescribed under Section 209-(l) (d) of the Companies Act 1956 by the
central government for the products of the Company. We have not,
however, carried out the detailed examination of the same.
(iv) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been regular in depositing undisputed statutory dues including Income
Tax, TDS, Sales-tax, VAT, Custom Duty, Excise Duty, Educational Cess
and any other dues during the year with the appropriate authorities.
(v) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and also in the immediately preceding
financial year.
(vi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and the
banks during the year.
(vii) In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
(viii) The Company is not a chit fund / nidhi / mutual benefit fund /
society. Therefore, the provisions of the clause 4(xiii) of the order,
are not applicable to the company.
(ix) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
company.
(x) The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion the terms and
conditions thereof are not prima facie prejudicial to the interest of
the company.
(xi) According to the information and explanation given to us, and on
an overall examination of the balance sheet of the Company, the company
has raised two term loans during the year and has applied for the
purpose for which they have been raised.
(xii) According to the information and explanation given to us, and on
an overall examination of the balance sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that,
prima facie, have been used for the long term investment nor the long
term loan have been used to finance short term assets except for
permanent working capital
(xiii) During the year the company has allotted equity shares on
preferential basis to the parties covered in the register maintained
u/s 301 of the Companies Act, 1956 the price at which these equity
shares have been issued has been stated by the management not being
prejudicial to the company, as per explanations provided.
(xiv) According to the information and explanation given to us, during
the period covered by our audit report, the Company has not issued any
debentures. Accordingly, no security/charge has been created in respect
of debentures issued.
(xv) The Company has not raised any money through a public issue during
the year.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Rajvanshi & Associates
Chartered Accountants
Sd/-
Vikas Rajvanshi
Partner
Membership No. : 073670
Place : Jaipur
Date : 04.08.10