| We have audited the accompanying financial statements of G.S. Auto
International Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, and the Statement of Profit & 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
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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with 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 of 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 the design, implementation and
maintenance of adequate internal control 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 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, issued by the
Institute of Chartered Accountants of India, as 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 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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 financial
statement.
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 of the state of affairs of the Company as at March 31, 2015, its
loss and its 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, 2015 ("the
order") issued by the Central Governments of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure 1 a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 ,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 aforesaid 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:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial Statements - Refer Note 34 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure 1 referred to in paragraph 1 under the heading "Report on
other legal and regulatory requirements" of our report of even date:
Re: G.S. Auto International Limited ("the Company")
(i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation, of its fixed
assets.
b) The fixed assets of the Company have been physically verified by the
Management in accordance with a planned program of physical
verification which, in our opinion is reasonable having regard to the
size of the Company and the nature of its assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of accounts. In our opinion, the frequency of
physical verification is reasonable.
(ii) a) The inventory of the Company has been physically verified by
the management during the year. In our opinion the frequency of the
verification is reasonable. Inventories lying with outside parties have
been confirmed by them as at year end.
b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory.
Discrepancies noticed on physical verification of Inventories were not
material and have been properly dealt with in the books of accounts.
(iii) The Company has not granted any loans, secured or unsecured, to
any of the companies, firms or other parties covered in the register
maintained under section 189 of the Act. Therefore the provisions of
the clause 3(iii) (a) and (b) of the said order are not applicable to
the Company.
(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 &
services. During the course of our audit, we have not observed any
major weakness or continuing failure to correct any major weakness in
the internal control system of the Company in respect of these areas.
(v) The Company has not accepted any deposits with in the meanings of
Section 73 of the Act and rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government, for the
maintenance of cost records under section 148(1) of the Companies Act,
2013, related to the manufacture of auto components and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination
of the records maintained as aforesaid.
(vii) a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income Tax, Wealth tax, Service tax,
Customs Duty, Excise Duty, Value Added Tax, Cess and other material
statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, wealth tax, service tax, Sales
Tax, customs duty, excise duty, Value Added Tax, cess and other
material statutory dues were outstanding at the year end, for a period
of more than six months from the date they became payable.
c) According to the records of the Company, the dues outstanding of the
Income Tax on account of any dispute , are as follows:-
Name of the Nature of period to which Amount Forum where
Statute the dues it relates (Rs.in Lacs) dispute is
pending
Income Tax Income Tax 2009-10 342.89 Commissioner
Act, 1961 Including
interest (Appeals)
as appli-
cable
Income Tax Income Tax 2009-10 12.20 Commissioner
Act, 1961 Including
interest (Appeals)
as appli-
cable
d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under.
viii. The Company has no accumulated losses at the end of the financial
year and the Company has incurred cash losses during the current
financial year but has not incurred any cash loss during the
immediately preceding financial year.
ix. Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any financial
institution or bank.
x. According to the information and explanations given to us the
Company has given counter guarantees/corporate guarantees on behalf of
its group companies, to the banks or financial institutions during the
year. The terms and conditions whereof, in our opinion are not prima
facie prejudicial to the interest of the Company.
xi. Based on the information and explanations given to us by the
management, term loans were applied for the purposes for which the
loans were obtained.
xii. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations give by the management , we report
that no fraud on or by the Company, has been noticed or reported during
the year.
For NANDA & BHATIA
Chartered Accountants
ICAI Firm Registration Number: 004342N
Sd/-
P.C.S. VIRDI
Ludhiana: 14th August, 2015 Partner
Membership Number: 17056 |