| We have audited the accompanying financial statements of G.G.
Automotive Gears Limited, which comprise the Balance Sheet as at March
31, 2014, and 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
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. 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.
Auditor's 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 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 at March 31, 2014;
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the 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, 2003 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:
a. 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;
b. 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 ;
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 Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. 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.
ANNEXURE REFERRED TO IN POINT 1 OF REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS OF THE REPORT OF THE AUDITORS ON THE ACCOUNTS OF G.G.
AUTOMOTIVE GEARS LIMITED FOR THE YEAR ENDED 31st MARCH, 2014
1 (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A major portion of the assets has been physically verified by the
management in accordance with the phased programme of verification
adopted by the company. In our opinion, the frequency of verification
is reasonable. To the best of our knowledge, no material discrepancies
have been noticed on such verification.
(c) Based on our scrutiny of records of the company and the information
and explanations received by us, we report that there is nothing which
affect going concern concept of the company.
2 (a) The inventory has been physically verified by the management
during the year at reasonable intervals. In our opinion, the frequency
of verification is reasonable.
(b) The procedure followed by the management for physical verification
of stocks is reasonable and adequate in relation to the size of the
company and nature of its business.
(c) On the basis of our examination of stock records, we are of the
opinion that the record of stocks is fair and proper in accordance with
the normally accepted accounting principles and no material
discrepancies were noticed on physical verification.
3 (a) The company has not granted/raised unsecured loans to/from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the terms and conditions of the unsecured loans taken by
the company are not prima facie prejudicial to the interest of the
company.
(c) According to the information and explanations given to us, we do
not find any terms and conditions as far as repayment is concerned.
(d) There is no overdue amount of loans taken from companies, firms or
other parties listed in the registers maintained under section 301 of
the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our random checking,
no major weaknesses have been noticed in the internal controls.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act have been entered into the register
required to be maintained under that section. (b) In our opinion and
according to the information available the transactions made in
pursuance of such contracts or arrangements have been made at prices,
which are reasonable, having regard to the prevailing market prices at
the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
or any other relevant provisions of the Act and the rules framed there
under.
7. In our opinion, the company has adequate internal audit system
commensurate with the size and nature of its business.
8. The company is covered under the clause regarding maintenance of
cost records as prescribed by the Central Government under section 209
(1) (d) of the Companies Act, 1956 and according to the cost auditor's
report the company has maintained proper accounts and records for the
same.
9. (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, employees' state insurance, income tax, sales
tax, wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it. (b) According to the records of the
company, there are no dues of sales tax, service tax, custom
duty/wealth tax, excise duty/cess on account of any dispute except
income tax to the tune of Rs. 24,22,840/- for A.Y. 2001-02 which has
not been deposited since the matter is in appeal before I.T.A.T./C.I.T.
at Mumbai.
10. The company is not a sick industrial company within the meaning of
Sick Industrial Companies (Special Provisions) Act, 1985.
11. According to information and explanation given to us the company
has not defaulted in repayment of dues to any financial institution or
bank. The company has not issued any debentures.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. Being a Manufacturing company, the provision of any special
statute applicable to nidhi/mutual benefit fund/societies is not
applicable to the company.
14. There were no dealing or trading in shares, securities, debentures
and other investments held by the company.
15. The company has not given any guarantee to any bank or financial
institution for loan taken by others.
16. The term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us and on
an 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.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
19. There was no debenture issue during the year.
20. No money was raised by public issues by the company during the
year under audit. 21 No fraud on or by the company has been noticed or
reported during the year.
For Shah Gandhi & Company
Chartered Accountants
Firm's Registration Number: 109569W
Kamlesh Mehta
Partner
Membership Number: 036323
Place: MUMBAI
Date: 30.05.2014
|