| We have audited the accompanying standalone financial statements of
Gujarat Metallic Coal & Coke Limited ("the Company"), which comprise
the Balance Sheet as at March 31, 2015, the Statement of Profit and
Loss and the Cash Flow Statement for six months period then ended, and
a summary of significant accounting policies and other explanatory
information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules,
2014. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 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 internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March,
2015, and its profit and its cash flows for six months period ended on
that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and 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, 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 aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164(2) of the Act;
f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us, we report as under :
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There has been no delay in transferring amounts, required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date to the members
of Gujarat Metallic Coal & Coke limited for six months period ended
March 31, 2015.
(I) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) The fixed assets have been physically verified by the management
during the period in a phased manner, 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.
(II) (a) The inventories have been physically verified by the
management at reasonable intervals during the period. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory and
shortage/excess noticed on physical verification, referred in Note No.
31, as compared to book records, have been properly dealt with in the
books of account.
(III) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties except current account transactions
covered in the register maintained under section 189 of the Companies
Act, 2013. Accordingly, sub-clauses (a) & (b) of clause (iii) of
paragraph 3 of the Order are not applicable to the Company.
(IV) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in the aforesaid internal control system.
(V) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits. Therefore, the
directives issued by the Reserve Bank of India and the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act
and rules framed thereunder are not applicable to the Company.
(VI) According to the information and explanation given to us,
maintenance of cost records have not been prescribed by the Central
Government under Section 148 (1) of the Companies Act, 2013 for the
business carried on by the Company.
(VII) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, in our opinion
the Company has been generally regular in depositing with the
appropriate authorities undisputed statutory dues including provident
fund, employees' state Insurance, Income tax, sales tax, wealth tax,
service tax, duty of custom, duty of excise, value added tax, cess and
other material statutory dues to the extent applicable to it. There is
no undisputed amounts payable as at 31st March, 2015 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
were no dues in respect of income tax, sales tax, wealth tax, service
tax, duty of customs, duty of excise, value added tax and cess that
have not been deposited with the appropriate authorities on account of
any dispute other than those as mentioned here-in-below:
Name of The Nature of dues Amount
statute (Rs. in '000)
I.Tax Act, 1961 Income Tax 263
I.Tax Act, 1961 Income Tax 7
Name of The Period to which the Forum where the
statute amount relates dispute is pending
I.Tax Act, 1961 FY:2005-06 CIT (Appeals)
I.Tax Act, 1961 FY:2004-05 DC Circle-2
(c) According to the information and explanations given to us, there
has been no delay in transferring amounts, required to be transferred
to the Investor Education and Protection Fund by the Company.
(VIII) The Company has no accumulated losses as at 31st March, 2015 and
the Company has not incurred cash losses in the financial period
covered by our audit report and in the immediately preceding financial
year.
(IX) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
financial institutions, banks or debenture holders, the details are
given below:-
(Rs. in Lacs)
Particulars Delays up Delays Total
to 30 days 31-90 days
Term Loan from bank 70.00 - 70.00
Interest Liabilities 15.45 14.48 29.93
(X) 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.
(XI) According to the information and explanations given to us, the
term loans obtained by the Company were applied for the purpose for
which such loans were obtained.
(XII) Based on the audit procedures and according to the information
and explanations given to us, no fraud on or by the Company has been
noticed or reported during the course of our audit.
For N. C. Banerjee & Co.
Chartered Accountants
Firm Regn. No.302081E
A. Paul
Place : Kolkata Partner
Date : 30th May, 2015 Membership No. 06490
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