Mar 31, 2023
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Granules India Limited (âthe Companyâ), which comprise the Balance sheet as at March 31, 2023, the Statement of Profit and Loss, including the statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013, as amended (âthe Actâ) 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, 2023, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the âCode of Ethics'' issued
by the Institute of Chartered Accountants of India 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 is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key audit matters |
How our audit addressed the key audit matter |
Revenue recognition (as described in Note 2 (m) of the standalone financial statements) |
|
Revenue from sale of goods is recognized when control of the |
Our audit procedures, among others included the following: |
goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. |
⢠Assessed the Company''s revenue recognition policy in terms of Ind AS 115 (âRevenue from Contracts with Customersâ). ⢠Obtained an understanding, assessed the design and tested the |
Control is usually transferred, in accordance with the delivery terms |
operating effectiveness of key internal controls related to revenue |
agreed with the customers. |
recognition. |
The point at which control passes is determined based on the terms |
⢠We selected sample of transactions (including year-end testing of |
and conditions by each customer arrangement i.e., upon shipment, |
cut-off transactions) and tested the underlying documents, including |
delivery to, upon receipt of goods by the customer. The risk is, |
customer contracts / sales order, invoices and shipping documents |
therefore, that revenue may not get recognized in the correct period. |
to assess and analyze the timing of recognition of revenue and |
Accordingly, due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 âRevenue from contracts with customers'', it has been determined to be a key audit matter in our audit of the standalone financial statements. |
contractual terms; Performed analytical procedures and tested journal entries over revenue as compared to previous periods to identify any unusual variances. ⢠Assessed the relevant disclosures made in the standalone financial statements. |
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the standalone financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone financial statements.
We have determined that there are no other key audit matters to communicate in our report.
The Company''s Board of Directors is 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.
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 such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibility of Management for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of 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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone 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 SAs 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.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠I dentify 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 management''s 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 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.
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of 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) I n our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) I n our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(h) 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 has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 26 to the standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, or long-term contracts including derivative contracts - Refer Note 33 to the standalone financial statement;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company;
iv. a) The management has represented that,
to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) The management has represented that, to the best of its knowledge and belief, no funds have been received by the Company from any person or entity, including foreign entities (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been considered reasonable 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.
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.
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.
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 for the financial year ended March 31, 2023 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.
The financial statements of the Company for the year ended March 31, 2022, included in these standalone financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 18, 2022.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â 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;
appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.
v. The final dividend paid by the Company during the year in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
Partner
Membership Number: 102328
UDIN: 23102328BGSBLY6831
Place of Signature: Hyderabad
Date: May 16, 2023
Mar 31, 2022
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Granules India Limited (the âCompanyâ), which comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.
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 Companies Act, 2013 (âActâ) 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 31 March 2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Description of Key Audit Matter Revenue recognition
See note 2(m)(i) to the standalone financial statements
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs 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 together with the ethical requirements that are relevant to our audit of the standalone 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 obtained by us, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
The key audit matter |
How the matter was addressed in our audit |
Revenue from sale of goods is recognised when a promise |
In view of the significance of the matter we applied the following |
in a customer contract (performance obligation) has been |
audit procedures in this area, among others to obtain sufficient |
satisfied by transferring control over the promised goods to the customer. |
appropriate audit evidence: - Assessed the appropriateness of the revenue recognition |
Control is usually transferred upon shipment, delivery to, upon |
accounting policies with the applicable accounting |
receipt of goods by the customer, in accordance with the delivery terms agreed with the customers. |
standards. - We evaluated the design and implementation of key |
We have identified existence of revenue recognition as a key |
internal financial controls with respect to existence of |
audit matter because there are variations in customer contracts. |
revenue recognition and tested operating effectiveness of |
Consequently, there is a risk of revenue being overstated on account of recognition before transfer of control particularly |
such controls on selected transactions. |
due to pressures for achieving the performance targets for the |
- Performed substantive testing, by using statistical sampling, |
year. |
of revenue transactions recorded during the year (including year end cut-off) by checking the underlying documents for testing the existence of revenue. - Tested manual journal entries on revenue recognised during the year, selected considering specific risk-based criteria, to identify unusual transactions. |
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 standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the standalone financial statements and our auditor''s report thereon. The Company''s 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 is a material misstatement therein, we are required to communicate the matter to those charged with governance and take actions as per applicable laws and regulations.
Managementâs and Board of DirectorsâResponsibilities for the Standalone Financial Statements
The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. 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 standalone financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management and 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 intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone 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 SAs 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.
As part of an audit in accordance with SAs, 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 the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements 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.
⢠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.
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.
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.
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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) As required by Section 143(3) ofthe 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 standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows 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 Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 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 and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditor''s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on its financial position in its standalone financial statements - Refer Note 26 to the standalone financial statements.
b) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. - Refer Note 26 to the standalone financial statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d) (i) The management has represented that, to
the best of its knowledge and belief and as disclosed in Note 38(v) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
⢠directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
⢠provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief and as disclosed in Note 38(vi) to the standalone financial statements, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
⢠directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
⢠provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (d)(i) and (d) (ii) contain any material mis-statement.
e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.
(C) With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
Chartered Accountants Firm''s Registration No.: 116231W/W-100024
Partner
Place: Hyderabad Membership No.: 066380
Date: 18 May 2022 UDIN: 22066380AJEJVN5803
Mar 31, 2018
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Granules India Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information. (hereinafter referred to as âstandalone Ind AS financial statementsâ)
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 state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.
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 anc 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.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 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 are also responsible to conclude on the appropriateness of managementâs 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 entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern
We believe that the audit evidence we have obtained 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, 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 accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2018, its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date
Other Matters
The comparative financial information of the Company for the year ended 31 March 2017 prepared in accordance with Ind AS included in this standalone Ind AS financial statements have been audited by predecessor auditor who had audited the financial statements for the relevant period. The report of the predecessor auditor on the comparative financial information dated 11 May 2017 expressed ar unmodified opinion
Our opinion is not modified in respect of these matters
Report on Other Legal and Regulatory Requirements
1. 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 Aâ 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 anc 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, the Cash Flow Statement and Statement of Changes m 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 as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director m 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 and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the other matters to be included m the Auditorâs 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 Ind AS financial statements - Refer Note 26 to the 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
iv. The disclosures in the financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However, amounts as appearing in the audited Standalone Ind AS financial statements for the period ended 31 March 2017 has been disclosed under Note 36
The Annexure A referred to in our Independent Auditorâs Report of even date to the Members of Granules India Limited (âthe Companyâ) on the Standalone Ind AS financial statements for the year ended 31 March 2018, we report that:
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets
(b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are verified in a phased manner over a period of three years. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program a portion of the fixed assets has been physically verifiec by the management, during the year and no material discrepancies have been noticed on such verification
(c) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties as disclosed in Note 3A to these Standalone Ind AS financials statements, are held in the name of the Company.
ii. The inventories, except goods in transit and stocks lying in bonded warehouse, have been physically verified by the management during the year. The discrepancies noticed on physical verification of inventory by management as compared to the book records were not material
iii. The Company has granted unsecured loans to two parties covered in the register maintained under Section 189 of the Companies Act 2013 (âActâ). There are no firms, limited liability partnerships covered in the register maintained under sectior 189 of the Act.
(a) In respect of the aforesaid loans, the terms and conditions under which such loans were granted are not prejudicial to the Companyâs interest.
(b) In respect of the aforesaid loans, the schedule for repayment of principal and payment of interest has been stipulated by the company and the borrower has been regular in the payment of the principal and interest, as stipulated
(c) In respect of the aforesaid loans, there is no amount which is overdue for more than ninety days
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans given and investments made to the extent applicable There are no guarantees given during the year
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under. Accordingly, paragrapRs.3(v) of the Order are not applicable to the Company.
vi. Pursuant to the rules made by the Central Government of India, the company is required to maintain cost records as specified under section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts have been made and maintained. However, we have not made a detailed examination of the records
vii.(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, service tax, sales tax, duty of customs, duty of excise, value added tax, goods and service tax, cess and other material statutory dues have been regularly deposited during the year with the appropriate authorities
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no dues of Income tax, Sales tax, Duty of customs, Duty of excise, Service tax, Goods and service tax and Value added tax which have not been deposited with appropriate authorities on account any dispute, except as following:
Name of the Statute |
Nature of the Dues |
Amount (Rs. In lakhs)* |
Amount paid# (Rs.) |
Period to which the amount relates |
Forum where the dispute is pending |
|||
Income Tax Act, 1961 |
Income tax |
22.08 |
- |
AY 2000-01 |
Honorable High Court of Judicature at |
|||
Income Tax Act, 1961 |
Income tax |
40.43 |
- |
AY 2006-07 |
||||
AY 2008-09 |
Hyderabad for the State of Telangana |
|||||||
Income Tax Act, 1961 |
Income tax |
6.42 |
- |
AY 2008-09 |
and the State of Andhra Pradesh |
|||
Customs Act |
Customs Duty |
32.57 |
- |
FY 1993-94 |
Supreme Court of India |
|||
Chapter V of The |
Penalty |
89.37 |
- |
FY 2002-03 to |
The Customs, Excise and Service Tax |
|||
Finance Act, 1994 |
FY 2006-07 |
Appellate Tribunal (CESTAT) |
||||||
The Central Excise |
Customs Duty |
10.90 |
5 |
FY 1993-94 |
Principle Commissioner of Customs |
|||
Act, 1944 |
|
|||||||
The Central Excise |
CENVAT Credit of |
199.55 |
3 |
FY 2006-07 to FY |
The Customs, Excise and Service Tax |
|||
Act, 1944 |
SAD & Penalty |
|
2009-10 |
Appellate Tribunal (CESTAT) |
||||
The Central Excise |
Excise Duty & |
11.16 |
- |
July 2014 to |
Commissioner (Appeals! |
|||
Act, 1944 |
Penalty |
|
September 2015 |
|||||
The Central Excise |
Excise Duty |
29.89 |
- |
FY 2008-09 to |
The Customs, Excise and Service Tax |
|||
Act, 1944 |
|
2010-11 |
Appellate Tribunal (CESTAT) |
|||||
* Excluding interest, as applicable
# The Company has paid this amount under protest
viii. According to the information and explanation given to us and the records of the Company examined by us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions or bank. The Company did not have any loans or borrowing to Government, nor has it issued any debentures as at the balance sheet date.
ix. The Company has not raised any monies by way of initial public offer or further public offer (including debt instruments). In our opinion, and according to the information and explanations given to us, monies raised by way of term loans have been applied, on an overall basis, for the purposes for which they were obtained
x. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of material fraud by the company or on the Company by its officers or employees notices or reported during the year, nor have we been informed of any such case by the management
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for the managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act
xii. The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, the provisions of Clause 3(xii) of the Order are not applicable to the Company
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable and details of such transactions have been disclosed in the Note 31 of the Standalone Ind AS financial statements, as required by the applicable accounting standards
xiv. The Company has not made any preferential allotment of shares or fully or partly convertible debentures during the year. However, the company has made a private placement of shares through Qualified Institutional Placement (QIP) during the year, in compliance with requirement of Section 42 of Act. The amounts raised have been used for the purpose for which funds were raised
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transaction with the directors or persons connected with him as contemplated under the provisions of Section 192 of the Act. Accordingly, provisions of clause 3(xv) of the Order are not applicable to the Company
xvi. In our opinion and according to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provisions of clause 3(xvi) of the Order are not applicable to the Company
Annexure B
to the Independent Auditorâs Report on the Standalone Ind AS Financial Statements
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Granules India Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended or 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 (âICAIâ). 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 Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 m 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, 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 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated m the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI
for B S R & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 116231W/W-100024
Sriram Mahalingam
Place: Hyderabad Partner
Date: 24 May 2018 Membership Number: 049642
Mar 31, 2017
Green Initiative in the Corporate Governance
As part of the Green Initiative process, the Company has taken an initiative of sending documents like notice calling Annual General Meeting, Corporate Governance Report, Directors Report, Auditors Report, Audited Financial Statements, dividend intimations etc., by email. Physical copies are sent only to those shareholders whose email addresses are not registered with the depositories / Registrar and Transfer Agent and for the bounced-mail cases. Shareholders are requested to register their email id with Registrar and Transfer Agent / concerned Depository to enable the Company to send the documents in electronic form or inform the Company in case they wish to receive the above documents in paper mode independent Auditor''s Report
To the Members of Granules India Limited Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Granules India Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, 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 a summary of significant accounting policies and other explanatory information (herein after referred to as "standalone Ind AS financial statements").
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs (financial position), financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act., read with relevant rules issued there under.
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 the design, implementation and maintenance of adequate internal financial control 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as 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 disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s 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 controls relevant to the Company''s 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 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 Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, 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 accounting principles generally accepted in India including Ind AS, of the financial position of the Company as at March 31, 2017, its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order, 2016 ("the Order") issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure A, 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 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 it appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flow 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 Accounting Standards specified under section 133 of the Act, read with relevant rules issued there under;
(e) On the basis of written representations received from the directors as on March 31, 2017, and 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 B" to this report;
(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 Ind AS financial statements - Refer note 28 C to the 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 were no delay in transferring amounts, required to be transferred, to the the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in Note 48 to these standalone Ind AS financial statements as to holdings as well as dealings of Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our enquiries, test check of the books of account and other details maintained by the Company and relying on the management representation regarding the holding and nature of cash transactions, including Specified Bank Notes, we report that these disclosures are in accordance with the books of accounts maintained by the Company.
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given by the management, the title deeds of immovable properties are held in the name of the company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) The Company has granted loans to parties covered in the register maintained under section 189 of the Companies Act, 2013 ("the Act").
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under section 189 of the Act were not, prima facie, prejudicial to the interest of the Company
(b) In the case of loans granted to the bodies corporate listed in the register maintained under section 189 of the Act, the borrowers have been regular in the payment of the principal and interest as per terms and conditions stipulated.
(c) There are no overdue amounts in respect of the loan granted to a body corporate listed in the register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has prescribed maintenance of cost records under Section 148(1) of the Companies Act, 2013, in respect of manufacturing activities / for the products of the Company. Accordingly, the Company has maintained accounts and records of such activities.
(vii) (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employee State Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and other applicable statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues as at the last day of the year ending March 31, 2017 for period of more than six months from the date they became payable .
(b) Reference is invited to Note No. 28 C regarding pending litigations with various authorities in respect of Income tax, Customs Duty, Service tax, Sales Tax, Excise Duty, Cess.
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to any financial institution, bank or government or debenture holders during the year
(ix) According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer / further public offer / debt instruments) and money raised by way of term loans were applied for the purpose for which the loans were obtained.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the Standalone Ind AS financial statements and according to the information and explanations given by the management, we report that no fraud by or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given by the management and based on our verification, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given by the management and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the Standalone Ind AS financial statements, as required by the applicable accounting standards.
(xiv) During the year, the Company has converted the warrants of 1,14,01,000 at H95.30, which were issued to promotors and promotor group entities, into equity shares of Rupee 1 each. The company has complied with the requirement of section 42 of the Companies Act 2013 for the allotment of warrants / shares and has applied the funds received there from for the purpose for which the funds were raised.
(xv) According to the information and explanations given by the management, and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us, The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure to the Independent Auditor''s report of even date on the Standalone Ind AS financial statements of Granules India Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of Granules India Limited ("the Company") as of March 31, 2017 in conjunction with our audit of the Standalone Ind AS financial statements of the Company for the period 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 (''ICAI''). 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 the 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 Note") and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 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 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 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, 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.
For Kumar & Giri
Chartered Accountants
FRN 001584S
J Bhadra Kumar
Place: Hyderabad Partner
Date: May 11, 2017 Membership Number:025480
Mar 31, 2016
1. We have audited the accompanying standalone financial statements of
Granules India Limited ("the Company"), which comprises the Balance
Sheet as at March 31, 2016, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors are 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 accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the 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 misstatement, whether due to
fraud or error.
Auditor''s Responsibility
3. 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, issued by the
Institute of Chartered Accountants of India, as 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 misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial controls 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. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the 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, 2016, its Profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the ''Annexure
A'', a statement on the matters specified in paragraphs 3 and 4 of the
Order.
8. 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
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 it 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 aforesaid standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on March 31, 2016, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 2016, 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 B''.
(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 disclosed the impact of pending litigations on its
financial position in its standalone financial statements - Refer Note
2.40 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.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the period and no material discrepancies were identified on such
verification.
(c) Based on our audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and
according to the information and explanations given by the management,
title deeds of all the immovable properties are held in the name of the
Company.
(ii) (a) The Inventories of raw materials, packing materials,
consumables, stores, work-in-progress and finished goods have been
physically verified during the year at regular intervals by the
management.
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business. In respect of finished goods
lying with the consignees, the certificate given by the management is
relied upon.
(c) The company is maintaining the proper records for recording the
inventory and the discrepancies noticed on verification of stocks as
compared to books were not material and have been properly dealt with
in the books of accounts.
(iii) The Company has granted loans to parties covered in the register
maintained under section 189 of the Act and complied with the
provisions of the said Act..
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
185 and 186 of Act, in respect of loans, investments, guarantees, and
security to the extent applicable to it.
(v) According to the information and explanations given to us, the
company has not accepted any deposits from the public within the
meaning of section 73 to 76 of the Act and the rules framed thereunder.
Therefore, the provisions of clause 3(v) of the order are not
applicable to the Company.
(vi) The Central Government has prescribed maintenance of cost records
under the provisions of Section 148(1) of the Companies Act, 2013 in
respect of manufacturing activities of the company. The company has
maintained accounts and records of such activities.
(vii) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income tax, Wealth Tax, Sales tax, Service
tax, Customs Duty, Excise Duty, Cess and other applicable statutory
dues with the appropriate authorities. According to the information and
explanations given to us no undisputed amounts payable in respect of
outstanding statutory dues as at the last day of the year ending
31.03.2016 for period exceeding 6 months from the date they became
payable.
(b) Reference is invited to Note No.2.40 regarding pending litigations
with various authorities in respect of Income- tax, Customs duty, Sales
tax, Service tax, Excise duty, Cess.
(viii) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution, bank, Government or
debenture holders as at the Balance Sheet date.
(ix) According to the information and explanations given to us and
based on our verification, the Company has not raised moneys by way of
public issue and moneys raised by way of term loans were applied for
the purpose for which the loans were obtained.
(x) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
(xi) In our opinion, the managerial remuneration has been paid or
provided in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V of the Companies Act,
2013.
(xii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause
3(xii) of the Order are not applicable to the Company.
(xiii) In our opinion, all the transactions with the related parties
are in compliance with section 177 and 188 of the Act, where applicable
and the details have been disclosed in the notes to the financial
statements as required by applicable accounting standards.
(xiv) During the year, the Company has made preferential allotment of
warrants to promotors and promotor group entities numbering 40,95,230
warrants Rs. 84.91 each and 1,86,56,000 warrants Rs. 95.30 each totalling
to Rs.21256.43 lakhs. Out of the said warrants, a total of 40,95,230 at
Rs.84.91 each and 72,55,000 at Rs.95.30 each were converted into equity
shares of Rs.1/- each. The company has complied with the requirement of
section 42 of the Companies Act 2013 for the allotment of
warrants/shares and has applied the funds received there from for the
purpose for which the funds were raised.
(xv) According to the information and explanations given to us and on
an overall examination of the financial statements of the Company, we
report that the Company has not entered into any non-cash transaction
with directors or persons connected with him.
(xvi) In our opinion, the Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act, 1934.
For Kumar & Giri
Chartered Accountants
FRN 001584S
Sd/-
J.Bhadra Kumar
Partner
Membership No.025480
Place: Hyderabad
Date: April 28, 2016
Mar 31, 2015
1. We have audited the accompanying financial statements of Granules
India Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the 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.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these 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, issued by the
Institute of Chartered Accountants of India, as 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 misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at March 31, 2015, its Profit, and its cash flows for the year ended on
that date.
Report on OtherLegal and Regulatory Requirements
7. As required by the Companies (Auditor's report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
8. 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
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 it 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 aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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 reported correctly in its financial statements
regarding pending litigations.
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the period and no material discrepancies were identified on such
verification.
(ii) (a) The stocks of raw materials, consumables, stores, work-in-
progress and finished goods have been physically verified during the
year at regular intervals by the management.
(b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business. In respect of finished goods
lying with the consignees, the certificate given by the management is
relied upon.
(c) The company is maintaining the proper records for recording the
inventory and the discrepancies noticed on verification of stocks as
compared to books were not material and it has been properly dealt with
in the books of account.
(iii) According to the information and explanations given to us, 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. Accordingly, the provisions of clause 3
(iii) (a) to (b) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has prescribed maintenance of cost records
under the provisions of Section 148(1) of the Companies Act, 2013 in
respect of manufacture activities of the company. The company has
maintained accounts and records of such activities.
(vii) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income tax, Customs Duty, Wealth Tax, Sales
Tax, Excise Duty, Cess and other applicable statutory dues with the
appropriate authorities. According to the information and explanations
given to us no undisputed amounts payable in respect of outstanding
statutory dues as at the last day of the year ending 31.03.2015 for
period exceeding 6 months from the date they became payable.
(b) Reference is invited to Note No.2.41 regarding pending litigations
with various authorities in respect of Income-tax, Customs duty, Wealth
tax, Sales tax, Service tax, Excise duty, Cess.
(c) According to the information and explanations given to us, the
company has transferred amounts required to be transferred as per the
provisions of Investor Education and Protection Fund in accordance with
the relevant provisions of the Companies Act and rules made thereunder.
(viii) The company has been in existence for a period of more than Five
years and it has not incurred any cash losses in the financial year and
in the immediately preceding financial year and the company does not
have any accumulated losses.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
Balance Sheet date.
(x) The company has extended corporate guarantee to Financial
Institutions for the Term Loans taken by one its Joint Venture company
M/s. Granules Omnichem Private Limited and basing on the information
and explanation furnished before us the terms and conditions of such
loans are not prejudicial to the interest of the company.
(xi) Based on the information and explanations given to us, term loans
were applied for the purpose for which the loans were obtained.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
for Kumar & Giri
Chartered Accountants
Firm Registration No. 001584S
Sd/-
J. Bhadra Kumar
Place: Hyderabad Partner
Date: April 27, 2015 Membership No. 25480
Mar 31, 2013
1. We have audited the attached Balance Sheet of M/s Granules India
Limited, Hyderabad as on March 31, 2013 and the Profit and Loss Account
and Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company''s 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. Audit also includes assessing
the accounting principles used and significant estimates made by the
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 (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) 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) & (4) above:
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 the Law have
been kept by the Company so far as it appears from our examination of
such books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in 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 comply with the requirements of the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on March 31, 2013, from
being appointed as directors 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 Balance Sheet, Profit & Loss
Account and Cash Flow Statement 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 so far as it relates to the Balance Sheet, of the state of
affairs of the Company as on March 31, 2013.
ii) in so far as it relates to the Profit & Loss Account, of the Profit
of the Company for the year ended on that date.
iii) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
(I) Fixed Assets
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets of the
Company.
b) The Physical verification of fixed assets is being carried out as
per the program drawn up and to the extent the physical verification is
carried out, no material discrepancies were noticed on such
verification.
c) There was no disposal of a substantial part of fixed assets during
the year.
(II) Inventory
a) The stocks of raw materials, consumables, stores, work-in-progress
and finished goods have been physically verified during the year at
regular intervals by the management.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. In respect of finished goods
lying with the consignees, the certificate given by the management is
relied upon.
c) The discrepancies noticed on verification of stocks as compared to
books were not material and it has been properly dealt with in the
books of account.
(III) Loans taken / granted
According to the information and explanations given to us, the Company
has neither taken nor granted any loans, secured or unsecured to/from
companies, firms or other parties covered in the register maintained
under Sec.301 of the Companies Act, 1956.
(IV) Internal control
a) In our opinion and according to the information and explanations
given to us, the internal control procedures are being strengthened on
a continuous basis so as to be commensurate with the size of the
Company and the nature of its business for the purchase of inventory
keeping in view of the expansion.
b) There are no major weaknesses in the internal control procedures.
(V) Section 301
Necessary entries were made in the register maintained under Sec. 301
of the Companies Act, 1956.
(VI) Public Deposits
The Company has not accepted any deposits from the public.
(VII) Internal Audit
The Company has an internal audit system so as to be commensurate with
its size and the nature of its business.
(VIII) Cost Records
The Central Government has prescribed maintenance of cost records in
respect of manufacture of API products and formulations. The Company
has made and maintained account and records of such activities.
(IX) Statutory Dues
a. The Company is regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income tax. Customs Duty, Wealth Tax, Sales Tax, Excise
Duty, Cess and other applicable statutory dues with the appropriate
authorities. According to the information and explanations given to us
no undisputed amounts payable in respect of outstanding statutory dues
as at the last day of the year ending 31.03.2013 for period exceeding 6
months from the date they became payable.
b. According to the records of the Company, the dues outstanding of
Income tax. Customs Duty, Wealth Tax, Sales Tax, Excise Duty, Cess on
account of any dispute, are as follows:
Name of the statute Nature of dues Rs. in Lakhs
The Customs Act, 1962 Duty demand on Imports 32.57
under DEEC
The Customs Act, 1962 Duty demand on export 10.90
obligations
Service Tax Penalty on Service Tax 89.37
matters
The Central Excise Act, Duty and Penalty on 205.55
1944 CENVAT availment
The Income Tax Act, 1961 Tax demand on transfer 721.39
pricing & other matters
The Income Tax Act, 1961 Tax demand on transfer 508.99
pricing & other matters
Name of the Statute Period for
which the Forum where dispute
amount
relate is pending
The Customs Act 1962 1993-94 High Court, Andhra Pradesh
The Customs Act 1962 1993-94 Commissioner of Customs,
Chennai
Service Tax 2002-07 CESTAT, Bangalore
The Central Excise Act 1944 2006-09 CESTAT, Bangalore
The Income Tax Act 1961 2006-07 & ITAT, Hyderabad
2007-08
The Income Tax Act 1961 2008-09 DRP, Hyderabad
(X) Accumulated losses / cash losses
The Company has no accumulated losses as on 31st March, 2013.
(XI) Repayment of Dues
According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
Balance Sheet date.
(XII) Loans & Advances
The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(XIII) Chit - Fund companies/ Nidhi/Mutual benefit societies
The provisions of special statute relating to chit fund companies and
the provisions of Nidhi or mutual benefit fund/ societies are not
applicable to the Company.
(XIV) Financing Companies
The Company is not dealing or trading in shares, securities and other
investments.
(XV) Guarantee for Loans
The Company has not given any guarantee for loans taken by others to
banks or financial institutions.
(XVI) Term Loans
In our opinion and according to the information and explanations given
to us, the term loans are applied for the purpose for which the loans
were obtained.
(XVII) Usage of Funds
According to the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, we report that no
funds raised on short- term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(XVIII) Preferential Allotments
The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Sec. 301
of the Companies Act, 1956.
(XIX) Creation of Securities
The Company has not issued any debentures during the year; hence, the
question of creation of securities does not arise.
(XX) Public Issue
The Company has not raised any money through Public Issue.
(XXI) Fraud
According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For M/s KUMAR & GIRI
Chartered Accountants
Firm Reg No: 001584S
J. Bhadra Kumar
Place: Hyderabad Partner
Date: April 25, 2013 Membership No. 25480
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Granules India
Limited, Hyderabad as on March 31, 2011 and the Profit and Loss Account
and Cash Flow Statement of the Company for the year ended on that date,
annexed thereto. These financial statements are the responsibility of
the Company's 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. Audit also includes assessing
the accounting principles used and significant estimates made by the
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 (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of section 227 (4A) 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 the above, our comments are as under:
a) Reference is invited to Note No. B (3) under Schedule No. R
regarding dues to micro, small and medium enterprises
5. Further to our comments in the Annexure referred to in paragraph
(3) & (4) above:
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 the Law have
been kept by the Company so far as it appears from our examination of
such books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in 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 comply with the requirements of the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on March 31, 2011, from
being appointed as directors 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 Balance Sheet, Profit & Loss
Account and Cash Flow Statement 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 so far as it relates to the Balance Sheet, of the state of
affairs of the Company as on March 31, 2011
ii) in so far as it relates to the Profit & Loss Account, of the Profit
of the company for the year ended on that date
iii) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph (3) of our report of even date
(I) FIXED ASSETS
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets of the
Company.
b) The Physical verification of fixed assets is being carried out as
per the program drawn up and to the extent the physical verification is
carried out, no material discrepancies were noticed on such
verification.
(II) INVENTORY
a) The stocks of raw materials, consumables, stores, work-in-progress
and finished goods have been physically verified during the year at
regular intervals by the management.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. In respect of finished goods
lying with the consignees, the certificate given by the management is
relied upon.
c) The discrepancies noticed on verification of stocks as compared to
books were not material and it has been properly dealt with in the
books of account.
(III) LOANS TAKEN / GRANTED
According to the information and explanations given to us, the Company
has neither taken nor granted any loans, secured or unsecured to/from
companies, firms or other parties covered in the register maintained
under sec. 301 of the Companies Act, 1956.
(IV) INTERNAL CONTROL
a) In our opinion and according to the information and explanations
given to us, the internal control procedures are being strengthened on
a continuous basis so as to be commensurate with the size of the
Company and the nature of its business for the purchase of inventory
keeping in view of the expansion.
b) There are no major weaknesses in the internal control procedures.
(V) SECTION 301
Necessary entries were made in the register maintained under sec. 301
of the Companies Act, 1956.
(VI) PUBLIC DEPOSITS
The Company has not accepted any deposits from the public.
(VII) INTERNAL AUDIT
The Company has an internal audit system so as to be commensurate with
its size and the nature of its business.
(VIM) COST RECORDS
The Central Government has prescribed maintenance of cost records in
respect of manufacture of API products and formulations. The Company
has made and maintained account and records of such activities.
(IX) STATUTORY DUES
The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income tax,
Customs Duty, Wealth Tax, Sales Tax, Excise Duty, Cess and other
statutory dues with the appropriate authorities. There are no arrears
of outstanding statutory dues as at the last day of the year ending
31.03.2011 for period exceeding 6 months from the date they became
payable, excepting an amount of Rs. 11.49 lakhs representing unpaid
dividend.
(X) ACCUMULATED LOSSES / CASH LOSSES
The Company has no accumulated losses as on March 31, 2011.
(XI) REPAYMENT OF DUES
According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
Balance Sheet date.
(XII) LOANS & ADVANCES
The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(XIII) CHIT - FUND COMPANIES/ NIDHI/MUTUAL BENEFIT SOCIETIES
The provisions of special statute relating to chit fund companies and
the provisions of Nidhi or mutual benefit fund/ societies are not
applicable to the Company.
(XIV) FINANCING COMPANIES
The Company is not dealing or trading in shares, securities and other
investments.
(XV) GUARANTEE FOR LOANS
The Company has not given any guarantee for loans taken by others to
banks or financial institutions.
(XVI) TERM LOANS
In our opinion and according to the information and explanations given
to us, the term loans are applied for the purpose for which the loans
were obtained.
(XVII) USAGE OF FUNDS
According to the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, we report that no
funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
(XVIII) PREFERENTIAL ALLOTMENTS
The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under sec. 301
of the Companies Act, 1956.
(XIX) CREATION OF SECURITIES
The Company has not issued any debentures during the year; hence, the
question of creation of securities does not arise.
(XX) PUBLIC ISSUE
The Company has not raised any money through Public Issue.
(XXI) FRAUDS
According to the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the year.
For M/s KUMAR & GIRI
Chartered Accountants
Firm Reg No: 001584S
Sd/-
J. Bhadra Kumar
Place: Hyderabad Partner
Date: April 29, 2011 Membership No. 25480
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Granules India
Limited, Hyderabad as on March 31, 2010 and the Profit and Loss Account
and Cash Flow Statement of the Company 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. Audit also includes assessing
the accounting principles used and significant estimates made by the
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 (Auditorsà Report) Order, 2003 issued
by the Central Government of India in terms of section 227(4A) 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 the above, our comments are as under:
a) Reference is invited to Note No. B (3) under Schedule No. R
regarding dues to micro, small and medium enterprises.
b) Reference is invited to Note No. B (19) under Schedule No. R
regarding confirmation of balances.
5. Further to our comments in the Annexure referred to in paragraph
(3) & (4) above:
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 it appears from our examination of such
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in 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 comply with the requirements of the Accounting Standards
referred to in sub-section (3C) of Section 211 of the Companies Act,
1956.
e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the Directors are disqualified as on March 31, 2010, from
being appointed as directors 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 Balance Sheet, Profit & Loss
Account and Cash Flow Statement 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 so far as it relates to the Balance Sheet, of the state of
affairs of the Company as on March 31, 2010.
ii) in so far as it relates to the Profit & Loss Account, of the Profit
of the Company for the year ended on that date.
iii) in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph (3) of our report of even date
I) Fixed Assets
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets of the
Company.
b) The physical verification of fixed assets is being carried out as
per the programme drawn up and to the extent the physical verification
is carried out, no material discrepancies were noticed on such
verification.
II) Inventory
a) The stocks of raw materials, consumables, stores, work-in-progress
and finished goods have been physically verified during the year at
regular intervals by the management.
b) The procedures of physical verification of stocks followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business. In respect of finished goods
lying with the consignees, the certificate given by the management is
relied upon.
c) The discrepancies noticed on verification of stocks as compared to
books were not material and it has been properly dealt with in the
books of account.
III) Loans Taken / Granted
According to the information and explanations given to us, the Company
has neither taken nor granted any loans, secured or unsecured to/from
companies, firms or other parties covered in the register maintained
under sec.301 of the Companies Act, 1956.
IV) Internal Control
a) In our opinion and according to the information and explanations
given to us, the internal control procedures are being strengthened on
a continuous basis so as to be commensurate with the size of the
Company and the nature of its business for the purchase of inventory
keeping in view of the expansion.
b) There are no major weaknesses in the internal control procedures.
V) Section 301
Necessary entries were made in the register maintained under sec.301 of
the Companies Act, 1956.
VI) Public Deposits
The Company has not accepted any deposits from the public.
VII) Internal Audit
The Company has an internal audit system so as to be commensurate with
its size and the nature of its business.
VIII) Cost Records
The Central Government has prescribed maintenance of cost records in
respect of manufacture of API products and formulations. The Company
has made and maintained account and records of such activities.
IX) Statutory Dues
The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income tax,
Customs Duty, Wealth Tax, Sales Tax, Excise Duty, Cess and other
statutory dues with the appropriate authorities. There are no arrears
of outstanding statutory dues as at the last day of the year ending
March 31, 2010 for period exceeding 6 months from the date they became
payable, excepting an amount of Rs.11.47 lakhs representing unpaid
dividend.
X) Accumulated Losses / Cash Losses
The Company has no accumulated losses.
XI) Repayment of Dues
There are minor delays in repayment of dues to banks.
XII) Loans & Advances
The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
XIII) Chit Fund Companies/ Nidhi/Mutual Benefit Societies
The provisions of special statute relating to chit fund companies and
the provisions of Nidhi or mutual benefit fund / societies are not
applicable to the Company.
XIV) Financing Companies
The Company is not dealing or trading in shares, securities and other
investments.
XV) Guarantee for Loans
The Company has not given any guarantee for loans taken by others to
banks or financial institutions.
XVI) Term Loans
The term loans are applied for the purpose for which the loans were
obtained.
XVII) Usage of Funds
According to the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, we report that no
funds raised on short- term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
XVIII) Preferential Allotments
The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under sec.301
of the Companies Act, 1956.
XIX) Creation of Securities
The Company has not issued any debentures during the year; hence, the
question of creation of securities does not arise.
XX) Public Issue
The Company has not raised any money through Public Issue.
XXI) Fraud
According to the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For M/s Kumar & Giri
Chartered Accountants
Firm Reg. No. 001584S
J. Bhadra Kumar
Place: Hyderabad Partner
Date: May 5, 2010 Membership No. 25480
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