| We have audited the attached Balance sheet of Gopal Iron & Steels Co.
(Gujarat) limited as at 31st March 2014 and also annexed Profit and
Loss Account for the year ended on that date and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standard 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. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
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.
We further report that
(1) 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.
(2) In our opinion, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
(3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956
read with general circular15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
(5) In our opinion and based on information and explanations given to
us, none of the directors is disqualified as on 31-03-2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2014;
(b) In the case of the Profit and Loss Account of the Loss for the year
ended on that date; and
(c) In the case of the Cash Flow Statement of the Cash flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN DATE
OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2014
On the basis of such checks as we considered appropriate and the terms
of the information and explanations given to us, we state that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative and situation of fixed assets.
(b) As explained to us fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals in a phased verification program, which in our opinion is
reasonable looking to the size of the company and the nature of its
business. According to the information and explanation given to us no
material discrepancies were noticed on such verification.
(c) In our opinion, the company has not disposed off any substantial
part of its fixed assets so as to effect in it going concern.
2. (a) As explained to us, inventories have been physically verified by
the management at the end of the year.
(b) In our opinion and according to the information and given to us the
procedure followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of the business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to from companies, firms, or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(a) The company has not granted or taken any loans secured or unsecured
to companies, firms or other parties cover in the register maintained
under Section 301 of the Companies Act, 1956 during the year.
(b) In our opinion and according to the information and given to us,
the rate of interest, whenever applicable and other terms and
conditions in respect of loans given taken by the company are not prima
facie prejudicial to the interest of the company.
(c) In respects of loans taken by the Company from two parties, the
loan is interest free and are payable on demand, In respect of loans
taken by the company from other parties, the interest and principal
amount is payable on demand.
(d) In respect of loans taken by the company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and given to us,
there are adequate internal control procedures commensurate with the
size of company and the nature of its business with regard to purchase
of inventory, fixed assets and for sale of goods. During the course of
audit, no major weakness in internal control had come to notice.
5. (a) On the basis of the audit procedure performed by us, and
according to the information and explanations given and representations
given to us, we are of the opinion that, the transactions in which
directors were interested as contemplated under Section 297 and sub-
section (6) of Section 299 of the Companies Act, 1956 and which were
required to be entered in the register maintained under Section 301 of
the said Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registered maintained u/s 301 of the
Companies Act, 1956 exceeding the value of rupees five lacs in respect
of any party during the year have been made at parties which are
reasonable having regards to prevailing market prices of at that time.
6. The company has not accepted any deposit from public cover u/s 58A
of the Companies Act 1956 read along with companies (Acceptance of
deposits) rules 1973 and the directive issued by the Reserve Bank of
India.
7. The employees of the company have conducted the internal audit.
However the same is required to be strengthened.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, it has been generally
regularly deposited undisputed statutory dues including Provident Fund,
Income tax, Sales Tax, Wealth Tax, Excise Duty and other statutory dues
with the appropriate authorities. According to the information and
explanation given to us no disputed amount payable in respect of the
aforesaid dues were outstanding as at 31st March, 2014 for a period of
more than six months from the date of becoming payable.
(b) According to the information and explanation given to us, there is
no any disputed demand outstanding during the year under preview except
mentioned below:
Sr Nature of Dues Year Amount Involved
1 Sales Tax 2002-2003 Rs. 29.11 Lacs
2006-2007 Rs. 3.64 Lacs
2009-2010 Rs. 21.54 Lacs
2 Excise Duty 1998-1999 Rs. 33.53 Lacs
1999-2000 _
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses both, in the financial
year under report and the immediately preceding year.
11. On the basis of the records examined by us and the information and
explanation given to us, the company has not defaulted in payment of
dues to financial institutions, banks or debenture holders.
12. As examined 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.
13. In our opinion, the company is not a chit fund or a nidhi
fund/mutual benefit fund/society. Therefore, clause 4(xiii) of the
Companies (Auditor's Report order 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading is respect of
shares, securities debentures and other investments. According to the
provision of clause 4 (xiv) of the companies (Auditor Report) order
2003 are not applicable to the company.
15. According to the information and explanation given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. The company has raised any term loan during the year.
17. According to the information and explanation given to us and on
overall examination of the financial statements of the company and
after placing reliance on the reasonable assumption made by the company
for classification of long term and short term usage's of funds, we are
of the opinion that, prima-facie, long term funds have not been
utilized for short term purposes.
18. The companies have not made any preferential allotment of shares of
parties and companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not issued any money by way of public issue, during
the year.
21. According to the information and explanation given to us, and to
the best of our knowledge and benefit, no fraud on or by the Company,
has been noticed or by the company, during the year that clauses the
financial statements to be materially misstated.
Place: Ahmedabad
Date: 31-05-2014
For Mehul Kanani & Co.
Chartered Accountants
(Mehul Kanani)
Proprietor
Membership No. 138121 |