Excel Industries Ltd.
You can view full text of the latest Director's Report for the company.
ISIN No INE369A01029 52Wk High (Rs.) 1922 BV (Rs.) 423.58 FV (Rs.) 5.00
Bookclosure 09/08/2018 52Wk Low (Rs.) 586 EPS (Rs.) 58.78 P/E (X) 23.26
Mkt Cap. (Rs. Cr.) 1,718.48 P/BV (X) 3.23 Div Yield (%) 0.91 Mkt Lot 1
2017-03

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Excel Industries Limited (“the Company”), which comprise the balance sheet as at March 31, 2017, the statement of Profit and Loss and cash FIow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The company's board of directors is responsible for the matters stated in section 134(5) of the companies Act, 2013 (“the Act”) with respect to the preparation of these 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 and the companies (Accounting standards) Amendment rules, 2016. 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 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 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.

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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the company's Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

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, 2017, its profit, and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the companies (Auditor's report) order, 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 1 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, and cash Flow statement 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 Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016;

(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 2” 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 financial statements - Refer Note 32 to the standalone financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There was a delay in transfer to Investor Education and Protection Fund of Rs.1.27 lacs in respect of proceeds of fractional bonus shares issued in the earlier years.

iv. The Company has provided requisite disclosures in Note 46 to these standalone financial statements as to the holding of Specified Bank Notes on November 8, 2016 and December 30, 2016 as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on our audit procedures 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 and as produced to us by the Management.

Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and regulatory requirements” of our report of even date. Re: Excel Industries Limited (‘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 year and no material discrepancies were identified on such verification.

(c) According to the information and explanations given by the management, the title deeds of immovable properties included in Property, Plant and Equipment are held in the name of the company. further, three title deeds of immovable properties having gross book value of ' 1,232.75 lacs (31 March 2016:' 406.75 lacs) included in Property, Plant and Equipment are mortgaged with the lenders. As per confirmation from the lenders and information provided to us by the management, the title deeds 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) According to the information and explanations given to us, the company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act. Accordingly, the provisions of clause 3(iii)(a), (b) and (c) of the order are not applicable to the company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities given in respect of which provisions of section 185 and 186 of the Act are applicable and hence not commented upon.

(v) In respect of deposits accepted during the earlier years, in our opinion and according to the information and explanations given to us, directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under, to the extent applicable, have been complied with. We are informed by the management that no order has been passed by the company law board, National company law Tribunal or reserve bank of India or any court or any other Tribunal.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the central Government for the maintenance of cost records under section 148(1) of the Act related to the manufacture of insecticides, industrial alcohol, fertilizers, chemicals and bulk drugs and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

(vii) (a) undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of income-tax, sales-tax, service tax, custom duty, excise duty, value added tax and cess on account of any dispute, are as follows:

Name of the statute

Nature of dues

Amount (Rs.in Lacs)*

Period to which the amount relates

Forum where the dispute is pending

customs

custom Demand

144.88

FY 2011- 13

commissioner of Appeals of customs, Mumbai

central Excise Act,1944

Excise Duty Demand

21.11

FY 2007-08

customs, Excise and service Tax Appellate Tribunal, Mumbai

central Excise Act,1944

Excise Duty Demand

26.78

FY 2008-13

customs, Excise and service Tax Appellate Tribunal, Mumbai

central Excise Act,1944

Excise Duty Demand

1.34

FY 2013-15

customs, Excise and service Tax Appellate Tribunal, Mumbai

central Excise Act,1944

Excise Duty Demand

3.41

FY 2013-15

customs, Excise and service Tax Appellate Tribunal, Mumbai

central Excise Act,1944

Excise Duty Demand

3.41

FY 2014-16

Assistant commissioner of central Excise, raigad

central Excise Act,1944

Excise Duty Demand

8.99

FY 2005-10

customs, Excise and service Tax Appellate Tribunal, Mumbai

central Excise Act,1944

Excise Duty Demand

22.12

FY 2008-14

commissioner of Appeals of central Excise, raigad

central Excise Act,1944

Excise Duty Demand

2.26

FY 2014-16

Assistant commissioner of central Excise, raigad

service Tax (Finance Tax, 1994)

service Tax Demand

1.73

FY 2014-15

Assistant commissioner of central Excise, raigad

state Excise Act

Excise Duty Demand

323.16

FY 2002-17

High court, Mumbai

Income Tax Act,1961

Income Tax Demand

818.32

AY 2010-11 to AY 2012-13

commissioner of Income Tax (Appeals)

MMc Act, 1888

Property Tax

45.00

FY 15-16 to FY 16-17

Brihanmumbai Mahanagar Palika

* including penalty/interest and net of amount paid under protest.

(viii) I n our opinion and according to the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institution or banks. As informed, the company does not have any borrowings from government or by way of debentures.

(ix) I n our opinion and according to the information and explanations given by the management, the company has utilized the monies raised by way of term loans for the purposes for which they were raised. 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.

(x) Based upon the 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, we report that no fraud by the company or no fraud on the company by the officers and employees of the company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.

(xii) I n our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management, 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 the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.

(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in Section 192 of the Act.

(xvi) According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm Registration Number: 324982E/E300003

perJayesh M. Gandhi

Partner

Membership No.: 37924

Place : Mumbai

Date : 26 May 2017