| We have audited the accompanying financial statements of THE GAEKWAR
MILLS LTD which comprises of Balance Sheet as at 31st March, 2014 and
the Statement of Profit and Loss and the Cash Flow Statement for the
year ended on that date and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated 13th September 2013
issued by the Ministry of Corporate Affairs in respect of Section 133
of the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
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 Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:-
(i) in the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss Account of the
profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows for the
year.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order, 2003, (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 (hereinafter to referred to as ('the
Act') we give in the Annexure a statement on the matters specified in
paragraph 4 and 5 of the said order.
2. As required by section 227(3) of the Act, we report that:
(i.) 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;
(ii.) In our opinion, proper books of account as required by law have
been kept by the Company, so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from branches not visited by us;
(iii.) The Balance Sheet, Statement of Profit and Loss Account and Cash
Flow statement dealt with by this report are in agreement with the
books of account;
(iv.) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow Statement comply with the Accounting Standards notified under
the Act read with General Circular l5/2013 dated 13th September 2013
issued by the Ministry of Corporate Affairs in respect of Section 133
of the Companies Act, 2013.
(v.) On the basis of written representations received from the
directors, as on 31st March, 2014, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
(vi.) Since the Central Government has not issued any notification as
to the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
REFERRED TO IN PARAGRAPH 3 OF OUR AUDITOR REPORT OF EVEN DATE
As required by the Companies (Auditors Report) Order, 2003 issued under
section 227(4) of the Companies Act, 1956, we make on the basis of such
checks the books and records as we considered appropriate, the
following statement on such of the matters specifies in the said order
as are applicable to the Company:
i) (a) The Company has only Fixed Asset in form of land. The Company
has maintained proper records to show full particulars including
quantitative details and situation of the land.
i (b) The Company has not disposed off any Fixed Asset during the year.
ii. The Company does not carry any stock of finished goods, stores,
spare parts and raw materials. In view of foregoing the provisions of
4(ii) of the order is not applicable.
iii. The company has not taken or granted any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register under section 301 of the Companies Act, 1956. Therefore the
provisions of clause 4 (iii) (a) to (g) are not applicable to the
Company.
iv. Having regard to the fact that there was no operation during the
year, the internal control procedures were commensurate with the size
of the Company.
v. The Company has not entered into any transactions within pursuance
of any contract or arrangements entered in the register maintained
under section 301 of the Companies Act, 1956. Therefore the provisions
of clause 4(v) (a) & (b) are not applicable to the Company.
vi. The Company has not accepted any deposits from the public.
Accordingly clause 4 (vi) of the order is not applicable.
vii. The company did not have an internal audit system as there were no
operations during the year.
viii. The Company did not carry on any activity during the year and
hence question of maintenance of cost records as prescribed under
section 209 (1) (d) of the Companies Act, 1956 does not arise.
ix. According to the records of the Company examined by us and the
information and explanation given to us, the company is regular in
depositing statutory dues with the appropriate authorities, as
determined by the Scheme of Compromise/Arrangement under section 391 to
393 of the Companies Act, 1956, sanctioned by the Hon. Bombay High
Court vide its order dated 10th September, 2009 and modified by its
orders dated 6th January, 2010, 7th January, 2010 and 8th April 2010.
x. The Company has incurred a cash loss and its accumulated losses at
the end of the financial year are more than 50% of its net worth.
xi. According to the records of the Company examined by us and the
information and explanation given to us, the company has not defaulted
in the payment of dues to any financial institution, banks or debenture
holders as determined by the Scheme of Compromise/Arrangement under
section 391 to 393 of the Companies Act, 1956, sanctioned by the Hon.
Bombay High Court vide its order dated 10th September, 2009 and
modified by its orders dated 6th January, 2010, 7th January, 2010 and
8th April 2010.
xii. In our opinion and according to the information and explanation
given to us, the Company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures or any other
securities.
xiii. The Company is not a chit fund or nidhi/mutual benefit
fund/society, therefore the provisions of clause 4 (xiii) of the
Companies (Auditors Report) order 2003 are not applicable to the
Company.
xiv. According to information and explanation given to us, the Company
has no dealing or trading in shares, securities, debentures and other
investments, therefore the provisions of clause 4 (xiv) of the
Companies (Auditors Report) order 2003 are not applicable to the
Company.
xv. According to information and explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
xvi. According to information and explanation given to us, no new term
loans were raised during the year.
xvii. According to information and explanation given to us, and on
overall examination of the balance sheet of the Company, we report that
no funds raised on short-term basis have been used for long term
investment.
xviii. The Company has not made preferential allotment of shares to
parties and companies covered in register maintained under Section 301
of the Act.
xix. According to the scheme of Compromise/Arrangement under section
391 to section 393 of the Companies Act, 1956, for the revival of the
company, as sanctioned by the Hon. Bombay High Court, the company has
allotted 500 Non Convertible Debentures (Series B) of face value of Rs.
1,00,000/- aggregating to Rs.5,00,00,000/- during the year.
xx. The Company has not raised any money through a public issue during
the year.
xxi. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
our audit.
FOR M.D. PANDYA & ASSOCIATES
Chartered Accountants
Reg No 107325 W
(M. D. PANDYA)
Partner.
Mem no 033184
PLACE: MUMBAI
DATE: 30th May, 2014
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