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TO THE MEMBERS OF
GEMMIA OILTECH (INDIA) LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Mrs. Gemmia Oiltech (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 the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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.
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 the 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 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 the 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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.
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 at31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date of 31st March, 2014;
(c) in the case of the Statement of cash flow of the Company for the year ended on that date of 31st March, 2014;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003("the Order") 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:
(i) " We are unable to express our opinion on the value of investments held in overseas subsidiaries due to non availability of financial statements, audit reports thereon or the degree of control exercised by this Company as a holding company"
(ii) "Subject to impairment of trade receivables to the extent of Rs.15.34 Crores"
(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 it appears from our examination of those books.
(c) The Balance Sheet, 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, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is 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 Act.
|For R Ravindran & Associates|
|Firm Registration No. 003222S|
|Membership No 23829|
|Chennai, 30th May, 2014|
(Referred to in paragraph 3 of our report of even date)
1. Fixed Assets
The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets and has been periodically verified by the management during the year. None of the fixed assets were revalued during the year. The company has not disposed any part of the Fixed Assets during the year
The company does not carry any inventory as on balance sheet date.
3. Loan to / from directors and interested parties
a) The Company has granted loans during the year to its two subsidiaries and the two parties listed in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount given during the year is Rs 1,36,37,258 and the year end balance is Rs 2,57,68,727
b) The Company has taken unsecured loans from two parties register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs 27,40,001 and the year ended balance of loans received from such parties was Rs.1,29,72,154
According to the information and explanations provided to us, the rate of interest and other terms and conditions of loans given by the Company, are prime facie not prejudicial to the interest of the Company.
The principal amounts are repayable on demand and there is no repayment schedule. Interest is not charged during the year.
During the year, there have been repayments towards principal. No Interest is provided on any loan account. In the absence of proper loan agreements and any other terms and conditions on which loan taken, we are unable to comment on the regularity of repayment of principal and payment of interest.
4. Internal Control
In our opinion and according to the information and explanations given to us, the internal control procedures are adequate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and the sale of goods and services.
5. Transaction covered by section 301
To the best of our knowledge and belief and according to the information and explanations given to us, the company has not entered into any of contracts or arrangements referred to in section 301 of the Companies Act, 1956.
In our opinion and according to the information and explanations given to us, the company has not made sales and service aggregating during the period to Rs. 500000/- or more in respect of each party, in pursuance of contracts or agreements referred to in under section 301 of the Companies Act 1956.
6. Deposits from Public
The Company has not accepted any deposit in violation of Section 58A of the Companies Act, 1956.
7. Internal Audit
In our opinion and according to the information and explanations given to us, the company did not have an internal audit system commensurate with the size and nature of the business.
8. Cost Accounting Records
The Provision of section 209(1)(d) of the Companies Act, 1956 regarding maintenance of cost records is not applicable to the company.
9. Statutory Dues
According to the information and explanations given to us, the company is not regular In depositing undisputed statutory dues with the appropriate authorities in respect of:
The undisputed dues which are outstanding for more than six months as at the Balance Sheet date from the date they became payable were as follows.
|Nature of Due||More than Six Months In Rs.|
|ROC Fee||90 00 000|
|Income Tax (AY 2012-13)||20 27 800|
|Income Tax (Pr.Yrs)||41 97 774|
10. Cash Losses
As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred a cash loss during the financial year and the cash losses as at the end of the financial year is less than Fifty per cent of the Net worth.
11. Repayment of dues
The Company has defaulted in repayment of dues to the banks.
12. Loans and Advances on the basis of securities
The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
13. Applicability of provisions to Chit fund, Nidhi/mutual benefit fund/societies
The company is not a chit fund or a nidhi /mutual benefit fund/society hence the clause (xiii) of the Companies (Auditors Report) Order 2003 is not applicable to the company.
14. Trading in shares, securities debentures and other investments
As per informations and explanations provided the Company is not dealing or trading in shares, securities, debentures and other investments.
15. Guarantee given for others
According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly clause (xv) of the Order is not applicable.
16. End use of term loans
According to the information and explanations given to us, the company has not obtained term loan during the year.
17. Preferential allotment of shares
The company has not made any preferential allotment to a person referred in sec 301 of the Act. The price at which the allotment is made is not prejudicial to the interest of the company.
The company has not issued any debenture during the period covered by our audit. Accordingly clause 4(xix) of the order is not applicable.
19. End use of public issue proceeds
The company has not raised funds by public issue during the year.
20. Reporting of Frauds
According to the information and explanations given to us, no significant fraud on or by the company, that causes a material misstatement to the financial statements, has been noticed or reported during the year.
|For R. Ravindran & Associates|
|Firm Registration No. 003222S|
|M. No. 023829|
|Chennai, 30th May, 2014|