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Company Information

Home » Market » Company Information

Ester Industries Ltd.

Oct 19, 03:55
39.90 -1.10 ( -2.68 %)
 
VOLUME : 10218
Prev. Close 41.00
Open Price 40.40
TODAY'S LOW / HIGH
39.85
 
 
 
40.45
Bid PRICE (QTY.) 39.95 (25)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
33.65
 
 
 
78.00
Oct 19, 03:47
40.00 -1.05 ( -2.56 %)
 
VOLUME : 29997
Prev. Close 41.05
Open Price 40.70
TODAY'S LOW / HIGH
39.85
 
 
 
41.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 40.00 (160)
52 WK LOW / HIGH
34.00
 
 
 
77.90
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Market Cap. ( ₹ ) 333.58 Cr. P/BV 1.18 Book Value ( ₹ ) 33.97
52 Week High/Low ( ₹ ) 78/34 FV/ML 5/1 P/E(X) 63.04
Bookclosure 24/09/2018 TTM EPS ( ₹ ) 1.54 Div Yield (%) 0.00
AUDITOR'S REPORT
You can view full text of the latest Director's Report for the company.
Year End :2016-03 

INDEPENDENT AUDITOR'S REPORT

To the members of Ester Industries Limited Report on the financial statements

We have audited the accompanying standalone financial statements of Ester Industries Limited ("the Company"), which comprise 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 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 . 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 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 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, 2016, 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) 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 is 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 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 27 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Re: Ester Industries Limited ('the Company')

Annexure referred to in paragraph 1 of our report of even date under section 'Report on other legal and regulatory requirements'

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets No material discrepancies were noticed on such verification

(c) According to information and explanations given by the management, the title deeds of immovable properties included in fixed assets are held in the name of the Company It has been explained to us that the title deeds and possession letters of the freehold land and building has been given as security (mortgage and charge) against the term loans and working capital loans taken from banks and that original title deeds are kept with the lead Bank-Bank of India and Tata Capital Financial Services Ltd, as security for the lenders and therefore the same could not be made available to us for our verification and has also not been independently confirmed by the banks

(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 Companies Act, 2013 . 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.

Name of the Statute

Nature of Dues

Amount (Rs. in lacs)

Period to which the amount relates

Forum where dispute is pending

Central Excise Act, 1944

Dispute on MODVAT credit taken on chips used in yarn and on exempted clearance of chips. Demand raised for duty on removal of PET Chips in custody

30.04

July 87 to June 93 and Jan 95

Commissioner Central Excise (Noida)

Central Excise Act, 1944

Dispute on MODVAT credit taken on inputs and Capital Goods used in chips which were cleared at NIL duty.

173 . 86

March 90 to Feb 92 and Oct 94 to Feb 95

Commissioner (Appeals), Central Excise Ghaziabad

Central Excise Act, 1944

Dispute on disallowance of MODVAT on TEG as documents were more than six months old.

4.80

March 92

Customs, Excise, Service Tax Appellate Tribunal (Delhi)

The Customs Act, 1962

Demand for Custom Duty forgone on value based advance license .

57.71

June 93 to April 95

Commissioner/Additional Commissioner Customs (DEEC) Mumbai

(iv) In our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act 2013 in respect of investments made have been compiled by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 and 186 of the Companies Act, 2013 are applicable .

(v) The Company has not accepted any deposits from the public.

(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 Companies Act, 2013, related to the manufacture of polyester films and engineering plastics 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 material 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 provident fund, employees' state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other material statutory 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, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:

(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to a financial institution and banks . The Company does not have any dues outstanding to debenture holders

Name of the Statute

Nature of Dues

Amount (Rs. in lacs)

Period to which the amount relates

Forum where dispute is pending

Central Excise Act, 1944

Demand on PET Chips waste cleared at nil rate of duty. MEG received under chapter X after rescinding of Notification No. 34/87 CE . Inadmissibility of MODVAT credit against PBT Chips and Polyester films .

4.57

July 93 to May 94 and Feb to Aug 2000

Deputy Commissioner Central Excise, Rampur

Central Excise Act, 1944

Demand raised on account of differences in stocks as per physical and book records .

7.72

November 1992

Commissioner Meerut II

Central Excise Act, 1944

Reversal of Cenvat credit availed on HSD.

206.92

March 1994 to February 1997 and March 1997 to March 1998

High Court, Delhi

Central Excise Act, 1944

Demand on shortages on inputs on department physical verification

3.09

July 2010

Assistant Commissioner, Rampur

The Customs Act, 1962

Dispute on disallowance of remission on MEG lost in Transit and utilization of MODVAT credit

32.99

June 87 to Oct 88, March 91 to May 91 and 1993

Assistant Commissioner, Rampur

Finance Act, 1944

Demand for short payment of Service Tax against brokerage and commission

13 . 54

F. Y. 2011-12

Additional Commissioner, Meerut

Income Tax Act, 1961

Dispute on Disallowance of advertisement expenditure pursuant to Rule 6B of IT Rules, 1962 by ITAT

1.16

A . Y. 1993-94 to 1997-98

Income Tax - Assessing officer

Income Tax Act, 1961

Dispute on Disallowances of club expenditure on the contention that expenses not incurred wholly and exclusively for the business needs .

0.47

A . Y. 1993-94 to 1994-95

Income Tax - Assessing officer & Commissioner of Income Tax (Appeals) Delhi

Income Tax Act, 1961

Dispute on Disallowances of 50% of entertainment expenses on the contention of non participation of the employee for incurring such expenditure

5.10

A . Y. 1993-94 to 1997-98

Income Tax - Assessing officer

Income Tax Act, 1961

Dispute on disallowances of expenses relating to previous year

14 . 68

A . Y. 1993-94 to 1997-98

Income Tax - Assessing officer

Income Tax Act, 1961

Dispute on disallowances of excess depreciation claimed by company, commission paid to agent, club expenses, provision for doubtful debts and expenses incurred on earning exempt income by invoking section 14A of the Act

16 . 94

A . Y. 2004-05 to 2005-06

Income Tax Appellate Tribunal, Delhi

Income Tax Act, 1961

Dispute on disallowances of excess depreciation claimed by company, bonus provision, expenses incurred on earning exempt income by invoking section 14A of the Act

18 .15

A.Y. 2006-07 to A.Y. 2013-14

Commissioner of Income Tax (Appeals) Delhi & Income Tax Appellate Tribunal, Delhi


(ix) In 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. The Company has not raised any money way of initial public offer / further public offer / debt instruments during the year.

(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 / material fraud on the company by the officers and employees of the Company has been noticed or reported during the year

(xi) 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, we report that the Company has paid managerial remuneration which is over and above the amount mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013, by Rs . 16. 31 lacs as at March 31, 2016 . As represented to us the Company has applied

to the Central Government seeking approval for the managerial remuneration paid in excess and pending receipt of the same has not taken any steps to recover the excess amount so paid:

Name of the Managing Director to whom remuneration is provided or paid which is not in accordance with section 197

Amount involved (in excess of the limit prescribed)

Amount due for recovery as at Balance sheet date

Steps taken to recover the amount

Mr. Arvind Kumar Singhania

16.31 lacs

16.31 lacs

The Company has applied to the Central Government seeking approval for the managerial remuneration paid in excess. Refer no. 28 of the financial statements

(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 Companies Act, 2013 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 by the management, the Company has complied with provisions of section 42 of the Companies Act, 2013 in respect of the preferential allotment or private placement of shares during the year According to the information and explanations given by the management, we report that the amounts raised, have been used for the purposes for which the funds were raised

(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 Companies Act, 2013 .

(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.

(xii) In 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.

We have audited the internal financial controls over financial reporting of Ester Industries Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date . Management's responsibility for internal financial controls The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 .

Annexure 2 to the Independent Auditor's report of even date on the Standalone Financial Statements of Ester Industries Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

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, 2016, 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 S.R. Batliboi & Co. LLP

Chartered Accountants ICAI

Firm Registration Number: 301003E/E300005

per Atul Seksaria

Place of Signature : New Delhi Partner

Date : May 25, 2016 Membership Number: 086370