| We have audited the accompanying financial statements of Gujchem
Distillers 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
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 Section 211(3C) of the
Companies Act, 1956 read with the General Circular No.15/ 2013 dated
13th September, 2013 of the Ministry of Corporate Affairs with respect
to 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.
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 but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal control. 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:
(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 Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in 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 and as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order') issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956, 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 Companies Act, 1956, we report
that:
a) we have obtained all 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 appears from our examination of those
books;
c) the Balance Sheet, the 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, the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
referred to in Section 211 (3C) of the Companies Act, 1956 read with
the General Circular No.15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs with respect to Section 133 of the
Companies Act, 2013; and
e) on the basis of the written representations received from directors
of the Company 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
Section 274 (1)(g) of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 of our report of even date)
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, all the 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) The Company has not disposed of any substantial part of its fixed
assets during the year so as to affect its going concern status.
(ii) (a) As explained to us, the Company did not carry any inventory
during the year. Accordingly, the Clauses 4(ii) (a), (b) and (c) of the
Order are not applicable to the Company.
(iii) (a) According to the information and explanations given to us,
the Company has not granted any loans, secured or unsecured, to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the Clauses
4(iii) (b), (c) and (d) of the Order are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies
and firms covered in the register maintained under Section 301 of the
Companies Act, 1956. The Company has taken an unsecured interest-free
loan from a director amounting to Rs. 1.50 lacs and has been repaid
during the year. The terms and conditions are prima facie not
prejudicial to the interest to the Company. There is no balance
outstanding at the year-end.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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 audit, we have neither come across nor
have been informed of any continuing failure to correct major
weaknesses in internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
that need to be entered in the register maintained under Section 301 of
the Companies Act, 1956, have been entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contract or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year.
(vi) In our opinion and according to the information and explanations
given to us, during the year the Company has complied with the
provisions of Section 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975. During the year, no
order has been passed by the Company Law Board, National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vii) The Company had appointed an independent firm of chartered
accountants as internal auditors up till for the year 1993-94. Due to
stoppage of the manufacturing activities of the Company, the internal
audit function has not been carried out since then.
(viii) As there are no manufacturing activities carried out during the
year, the requirements of the maintenance of cost records under Section
209(1 )(d) of the Companies Act, 1956 are not applicable to the
Company.
(ix) (a) According to the information and explanations given to us, in
our opinion, the Company has been regular in depositing undisputed
statutory dues including investor education and protection fund, income
tax, wealth tax, sales tax, vat, custom duty, excise duty, service tax
and cess, wherever applicable, with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
customs duty, excise duty, service tax and cess were in arrears, as at
31st March, 2014 for a period of more than six months from the date
they become payable.
(c) According to the information and explanations given to us, the
following disputed dues have not been deposited since the matters are
pending with the relevant forum are:
Nature of Statute Nature of the dues Amount Period to which
(Rs. lakhs) the amount
relates
Central Excise Central Excise 16.62 1985-86 &
and Salt Act 1986-87
Nature of Statute Forum where
dispute is pending
Central Excise A.O.
and Salt Act Central Excise
Department
(x) The accumulated losses of the Company are not more than fifty
percent of its net worth. The Company has not incurred cash losses
during the financial year and in the immediately preceding financial
year.
(xi) According to the information and explanations given to us and as
per the records of the Company examined by us, the Company has not
defaulted in repayment of dues to banks. The Company did not have any
outstanding dues to any financial institutions. The Company has not
issued any debentures. Accordingly, the Paragraph 4(xi) of the Order
is not applicable to the Company.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly,
the Clause 4(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us, the
provisions of any special statute applicable to chit fund / nidhi /
mutual benefit fund / societies are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the Clause 4(xiv) of the Order is not
applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, the Clause 4(xv) of the Order
is not applicable to the Company.
(xvi) According to the information and explanations given to us, the
Company has not availed any term- loan during the year. Accordingly,
the Clause 4(xvi) of the Order is not applicable to the Company.
(xvii) According to the information and explanations 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) According to the information and explanations given to us, 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. Accordingly, the Clause 4
(xviii) of the Order is not applicable to the Company.
(xix) The Company has not issued any debentures during the year.
Accordingly, the Clause 4(xix) of the Order is not applicable to the
Company.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the Clause 4(xx) of the Order is not applicable to
the Company.
(xxi) During the course of our examination of books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
SHARP & TANNAN
Chartered Accountants
Firm's Registration No. 109982W
By the hand of
Milind P.Phadke
Ahmedabad, 9th May, 2014 Partner
Membership No. 033013 |