INDEPENDENT AUDITORS REPORT
AUDITORS REPORT TO THE MEMBERS OF GMMCO LTD
1. Report on the Financial Statements :
We have audited the attached financial statements of GMMCO LIMITED as at 31st
March 2014, which comprise the Balance Sheet as at 315t March 2014 and the
Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date,
and a summary of significant accounting policies and other explanatory information.
2. Managements 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 ("the Act"). 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.
3. Auditors Responsibility:
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with 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 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 auditors
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 Companys 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 entitys 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.
4. 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 Statement of Profit and Loss , 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.
5. Report on Other Legal and Regulatory Requirements :
As required by the Companies (Auditors Report) Order 2003 (as amended) issued by the
Central Government of India in terms of sub section (4A) of Section 227 of the Companies
Act 1956, we give in the Annexure a statement on the matters specified in paragraph 4
& 5 of the said Order.
Further to our comments in the Annexure referred to above, 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 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 and proper returns adequate
for the purposes of our audit have been received from the branches not visited by us .
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 and with the returns received
from the branches not visited by us .
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report comply with the Accounting Standards referred to in
sub section (3C) of Section 211 of the Companies Act, 1956 .
e) On the basis of the written representations received from the directors as on 31st
March 2014 and taken on record by the Board of Directors, we report that none of the
directors are disqualified as on 31st March 2014 from being appointed as a
director in terms of clause (g) of sub section (1) of section 274 of the Companies Act
1956.
FOR SINGHI a CO
Chartered Accounants
Firm Regn.No. 302049E
(SUDESH CHORARIA)
Partner
Membership No.204936
1, Philips Street, Chennai 600 001
The 14th day of May2014
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in our Report of even date on the financial statements of GMMCO LIMITED as
at and for the ended 31st March 2014)
i) a) The Company has maintained proper records to show full particulars including
quantitative details and situation of its Fixed Assets.
b) The Fixed Assets of the Company are physically verified by the management according
to a phased programme to cover all the items over a specified period, which, in our
opinion, is reasonable having regard to the size of the company and the nature of its
assets. Pursuant to the said programme, physical verification of Fixed Assets was carried
out by the management. As informed to us, no material discrepancies were observed in
respect of those Fixed Assets which have been verified during the year.
c) The Company has not disposed off any substantial part of fixed assets during the
year.
ii) a) The management has conducted Physical verification of Inventories at all its
locations at reasonable intervals during the year.
b) The procedures of physical verification of stock followed by the Management are, in
our opinion, reasonable and adequate in relation to the size of the Company and nature of
its business.
c) The company is maintaining proper records of inventory. As far as we can ascertain
and according to the information and the explanations given to us, the discrepancies
noticed between the physical stocks and book stocks were not material and the same have
been properly dealt with in the books of account.
iii) a) As per the information and explanations provided to us, the company has not
granted any loans, secured or unsecured, to companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956 and hence the
requirements of sub clauses (b) to (d) of clause (iii) of the Order are not applicable.
b) As per the information & explanations provided to us, the company has not taken
any loans, secured or unsecured, from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956 and hence the
requirements of sub clauses (f) and (g) of clause (iii) of the Order are not applicable.
iv) On the basis of checks carried out during the course of audit and as per
explanations given to us, in our opinion, there is 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
our Audit, no major weakness has been noticed in the internal control system in respect of
these areas .
v) As per the information and explanations given to us, no transactions have been
undertaken during the year in pursuance of contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies Act, 1956 .
vi) In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits to which the directives of the Reserve Bank of India
and the provisions of Section 58-A, 58-AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under apply .
vii) In our opinion, the company has an internal audit system commensurate with the
size and nature of its business
viii) The Company has maintained proper Cost records as prescribed by the Central
Government under Section 209 (1)(d) of the Companies Act 1956 for the Diesel Generating
Sets manufactured / Assembled by it, but no detailed examination of such records have been
carried out by us.
ix) a) The company has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess
and other material statutory dues with the appropriate authorities
b) According to the information and explanations given to us and the books and records
examined by us, there was no undisputed amount outstanding as on 31.03.2014 in respect of
Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other material
statutory dues 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 (net of Advances) in respect
of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, Cess
etc., on account of any dispute, are as follows.
| State |
Name of the Statute |
Nature of Dues |
Amount Rs. in Lacs |
Period to which the amount relates |
Forum where dispute pending |
| Pondicherry |
PGST Act 1967 |
Entry tax on interstate purchases |
88.44 |
1998- 99 to 1999- 2000 |
High Court Chennai through Pondicherry Genset Mfg Association |
| New Delhi |
C.S.T. Act 1956 |
C/D Forms pending collection / Sales Return Rejected |
1.35 |
1986-87 and 1990-91 |
Asst Commissioner Delhi |
| Bihar |
C.S.T. Act 1956 |
C/D Forms pending collection / Sales Return Rejected / Kit disassembly charged to tax |
0.62 |
1982-83, 1984-85, 1988-89 |
Dy. Commissioner of Commercial Taxes Dhanbad / Commissioner of Commercial Taxes, Patna |
| Madhya Pradesh |
C.S.T. Act 1956 |
Appeal for Waiver of interest & penalty/credit notes rejected, C/D forms pending |
14.05 |
1993-94 and 1995-96 to 1998-99, 2000-01, 2002-03, 2007-08, 2009-10 |
Appellate Dy Commissioner of Commercial Taxes, Satna and MP Comml. Tax Appellate
Board, Bhopal |
| Madhya Pradesh |
MP Commercial Tax Act, 1944 |
Appeal for Waiver of interest ft penalty/ local forms demanded for exempted TO,
defective forms rejected |
486.03 |
1993-94 , 1995- 96 , 1996- 97 2002-03 2007-08 2009- 10 2010- 11 |
Appellate Dy Commissioner of Commercial Taxes, Satna MP Commercial Tax Appellate Board
Bhopal |
| Kerala |
C.S.T Act 1956 |
Want of Check post copy of DN, Pending C/D forms |
6.76 |
2000-01 a 2004-05 2009-10 |
Appellate Asst. Commissioner, Ernakulam |
| Kerala |
KGST Act 1963 |
Warranty a Exemption on EOU disallowed |
2.98 |
2004-05 |
Appellate Asst. Commissioner, Ernakulam |
| Andhra Pradesh |
APGST Act, 1957 |
Enhanced rate of Tax |
28.77 |
2003- 04 a 2004- 05 |
Dy Commissioner, Appeals |
| Andhra Pradesh |
C.S.T. Act 1956 |
Pending C/D Forms |
15.27 |
2008- 09 2009- 10 |
Dy commissioner, Appeals a Addl Deputy Commissioner Appeals |
| West Bengal |
C.S.T. Act 1956 |
Turnover dispute / pending C/D forms |
5.00 |
1986-87, 1992-93 & 1996-97 |
Asst Comm. Of Commercial Taxes, W.Bengal |
| West Bengal |
Bengal Finance (Sales Tax) Act, 1941 |
Tax on enhanced turnover / pending local forms |
6.74 |
1986-87 a 1992-93 |
Asst Comm. Of Commercial Taxes, W.Bengal |
| Uttar Pradesh |
C.S.T. Act 1956 |
Wrong classification of goods / higher rate of tax |
11.34 |
1997- 98 to 1998- 99 |
Dy Commissioner, Noida |
| State |
Name of the Statute |
Nature of Dues |
Amount Rs. in Lacs |
Period to which the amount relates |
Forum where dispute pending |
| Uttar Pradesh |
U.P. Trade Tax Act |
Higher Rate of Tax demanded |
3.43 |
1998-99 |
Dy Commissioner, Noida |
| Silvassa |
C.S.T Act 1956 |
Pending C/D Forms |
0.36 |
2000-01 |
Comm. Of ST Dadra & Nagar Haveli |
| New Delhi |
Consumers Protection Act 1986 |
Claim for compensation or replacement of DG set |
5.75 |
2007-08 |
National Consumer Disputes Redressal commission, N Delhi |
| New Delhi |
Consumers Protection Act 1986 |
Claim for compensation or replacement of 424 Back hoe loader |
11.50 |
2007-08 |
National Consumer Disputes Redressal commission, N Delhi |
| Goa |
VAT. Act 2005 |
Form XXX Disallowed |
3.26 |
2009-10 |
Addl Commissioner (Appeals) Goa |
| Karnataka |
CST Act 1956 |
C/D Form pending,Sales Return disallowed |
9.67 |
2007-08 |
Joint Commissioner of Commercial Taxes Appeals Mysore |
| Tamilnadu |
Service Tax |
Company paying Sales Tax on Machinery Rental Income, but department claiming Service
Tax on the same. |
256.34 |
2008-09 to 2010-11 |
CESTAT, Chennai |
| Maharashtra |
Service Tax |
Company paying Sales Tax on Machinery Rental Income, but department claiming Service
Tax on the same. |
134.78 |
2008- 09 to 2009- 10 |
CESTAT, Mumbai |
| Mysore |
Central Excise 1944 |
Excise Duty liable to be paid excessively collected from customers on clearances of
inputs as such under Rule 3 (5) of CENVAT Credit Rules |
4.64 |
May 2008 to July 2012 |
Commissioner of Central Excise (Appeals), Mysore |
x) The Company has no accumulated losses and has not incurred cash losses in the
current financial year and in the immediately preceding financial year.
xi) Based on our audit procedures, and as per the information and explanations given to
us by the management, the company has not defaulted in repayment of dues to financial
institutions and banks.
xii) According to the information and explanations given to us and based on the
documents and records produced to us, the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund /
society and hence , the provisions of clause 4 (xiii) of the Order are not applicable.
xiv) In our opinion, the company is not dealing or trading in shares, securities,
debentures and other investments, and hence, the provisions of clause 4 (xiv) of the Order
are not applicable.
xv) According to the information and explanations given to us, the company has given
Corporate Guarantees of Rs.2965.55 Lacs for availing of banking facility by its wholly
owned subsidiary from banks or financial institutions. However, the terms and conditions
thereof are not prejudicial to the interest of the company.
xvi) According to the information and explanations given to us by the management, the
term loans availed by the company have been applied for the purpose for which they were
raised.
xvii) On the basis of our examination of the Cash flow statement, it appears that the
funds raised on short-term basis have not been used for long-term purposes.
xviii) During the year, the company has not made any preferential allotment of shares.
xix) The company did not have any outstanding debentures during the year.
xx) The company has not raised any money by way of public issue during the year.
xxi) 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
given to us by the management, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
FOR SINGHI & CO
Chartered Accounants
Firm Regn.No. 302049E
(SUDESH CHORARIA)
Partner
Membership No.204936
1, Philips Street, Chennai 600 001
The 14th day of May2014
+91-9892691696
