| We have audited the accompanying financial statements of M$s. Gemmia
Oiltech (India) Limited ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
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 the
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 the 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 the 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 the 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.
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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date of 31st March, 2014;
(c) in the case of the Statement of cash flow of the Company for the
year ended on that date of 31st March, 2014;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(i) "We are unable to express our opinion on the value of investments
held in overseas subsidiaries due to non availability of financial
statements, audit reports thereon or the degree of control exercised by
this Company as a holding company"
(ii) "Subject to impairment of trade receivables to the extent of
Rs.15.34 Crores"
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, 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 Act.
Annexure A
(Referred to in paragraph 3 of our report of even date)
1. Fixed Assets
The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets and has
been periodically verified by the management during the year. None of
the fixed assets were revalued during the year. The company has not
disposed any part of the Fixed Assets during the year
2. Inventory
The company does not carry any inventory as on balance sheet date.
3. Loan to / from directors and interested parties
a) The Company has granted loans during the year to its two
subsidiaries and the two parties listed in the Register maintained
under Section 301 of the Companies Act, 1956. The maximum amount given
during the year is Rs 1,36,37,258 and the year end balance is Rs
2,57,68,727
b) The Company has taken unsecured loans from two parties register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs 27,40,001 and the year ended
balance of loans received from such parties was Rs.1,29,72,154
According to the information and explanations provided to us, the rate
of interest and other terms and conditions of loans given by the
Company, are prime facie not prejudicial to the interest of the
Company.
The principal amounts are repayable on demand and there is no repayment
schedule. Interest is not charged during the year.
During the year, there have been repayments towards principal. No
Interest is provided on any loan account. In the absence of proper loan
agreements and any other terms and conditions on which loan taken, we
are unable to comment on the regularity of repayment of principal and
payment of interest.
4. Internal Control
In our opinion and according to the information and explanations given
to us, the internal control procedures are adequate with the size of
the company and the nature of its business, for the purchase of
inventory, fixed assets and the sale of goods and services.
5. Transaction covered by section 301
To the best of our knowledge and belief and according to the
information and explanations given to us, the company has not entered
into any of contracts or arrangements referred to in section 301 of the
Companies Act, 1956.
In our opinion and according to the information and explanations given
to us, the company has not made sales and service aggregating during
the period to Rs. 500000/- or more in respect of each party, in
pursuance of contracts or agreements referred to in under section 301
of the Companies Act 1956.
6. Deposits from Public
The Company has not accepted any deposit in violation of Section 58A of
the Companies Act, 1956.
7. Internal Audit
In our opinion and according to the information and explanations given
to us, the company did not have an internal audit system commensurate
with the size and nature of the business.
8. Cost Accounting Records
The Provision of section 209(1)(d) of the Companies Act, 1956 regarding
maintenance of cost records is not applicable to the company.
9. Statutory Dues
According to the information and explanations given to us, the company
is not regular In depositing undisputed statutory dues with the
appropriate authorities in respect of:
The undisputed dues which are outstanding for more than six months as
at the Balance Sheet date from the date they became payable were as
follows.
More than Six Months
Nature of Due In Rs.
VAT 82 576
ROC Fee 90 00 000
Income Tax (AY 2012-13) 20 27 800
Income Tax (Pr.Yrs) 41 97 774
10. Cash Losses
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred
a cash loss during the financial year and the cash losses as at the end
of the financial year is less than Fifty per cent of the Net worth.
11. Repayment of dues
The Company has defaulted in repayment of dues to the banks.
12. Loans and Advances on the basis of securities
The company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. Applicability of provisions to Chit fund, Nidhi/mutual benefit
fund/societies
The company is not a chit fund or a nidhi /mutual benefit fund/society
hence the clause (xiii) of the Companies (Auditor's Report) Order 2003
is not applicable to the company.
14. Trading in shares, securities debentures and other investments
As per information's and explanations provided the Company is not
dealing or trading in shares, securities, debentures and other
investments.
15. Guarantee given for others
According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions. Accordingly clause (xv) of the Order is not
applicable.
16. End use of term loans
According to the information and explanations given to us, the company
has not obtained term loan during the year.
17. Preferential allotment of shares
The company has not made any preferential allotment to a person
referred in sec 301 of the Act. The price at which the allotment is
made is not prejudicial to the interest of the company.
18. Debentures
The company has not issued any debenture during the period covered by
our audit. Accordingly clause 4(xix) of the order is not applicable.
19. End use of public issue proceeds
The company has not raised funds by public issue during the year.
20. Reporting of Frauds
According to the information and explanations given to us, no
significant fraud on or by the company, that causes a material
misstatement to the financial statements, has been noticed or reported
during the year.
For R. Ravindran & Associates
Chartered Accountants
Firm Registration No. 003222S
Sd/-
R. Ravindran
Proprietor
M. No. 023829
Chennai, 30th May, 2014 | 