INDEPENDENT AUDITORS REPORT
To
The Members of
Gujarat Metallic Coal & Coke Ltd.
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, 2017, 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.
Managements Responsibility for the Standalone Financial Statements
The Companys 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 flow 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 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 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.
Auditors 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
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 financial control relevant to the Companys preparation of the
financial statements that give a true and fair view 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 Companys 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 March 31, 2017, its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report) Order, 2016 ("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" 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 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, 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,
2017, and taken on record by the Board of Directors, none of the directors are
disqualified as on March 31,2017 from being appointed as a director in terms of Section
164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in Annexure-"B".
g. With respect to the other matters to be included in the Auditors 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 does 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 the amounts, required to be transferred,
to the Investor Education and Protection Fund by the Company.
(iv) The Company has provided requisite disclosures in the financial statements as to
holdings as well as dealings in Specified Bank Notes as defined in the Notification
S.O.3407(E) dated 8thNovember, 2016 of the Ministry of Finance, during the period from 8th
November 2016 to 30th December 2016. Based on audit procedures and relying on management
representation we report that the disclosures are in accordance with the books of accounts
maintained by the Company and as produced to us by the Management (Refer Note No.28 of the
financial statements).
|
For N. C. Banerjee & Co. |
|
Chartered Accountants |
|
(Firm Regn.No: 302081E) |
|
CA B.Basu |
| Place : Kolkata |
Partner |
| Date : 30th May, 2017 |
Membership No. 012748 |
ANNEXURE - A 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 on the standalone financial statements for the year ended
March 31, 2017]
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of its fixed assets
(b) The Company has a regular programme of physical verification of its fixed assets by
which fixed assets are verified in a phased manner during the year. No material
discrepancies were noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the Company and the
nature of its assets.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(ii) The inventories have been physically verified by the management at reasonable
intervals during the year. In our opinion, the frequency of verification is reasonable. We
were explained that the discrepancies noticed during the 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 companies, firms,
LLPs or other parties covered in the register maintained under section 189 of the
Companies Act, 2013. Accordingly, sub-clauses (a), (b) and (c) 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, the
Company has complied with the provisions of section 185 and 186 of the Act, with respect
to the loans and investments made.
(v) The Company has not accepted any deposits from the public; hence the provisions of
clause-(v) of the Order are not applicable.
(vi) In our opinion and according to the information and explanations given to us, cost
records as prescribed by the Central Government under Section 148(1) of the Companies Act,
2013 is not applicable to the Company.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, in our opinion the company has been
generally regular in depositing with appropriate authorities undisputed statutory dues
including provident fund, employees state insurance, income-tax, sales tax, duty of
excise, value added tax, duty of customs, service tax, cess and other material statutory
dues.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income tax, sales tax, value added tax, duty of
customs, service tax, cess and other material statutory dues were in arrears as at 31
March 2017 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, value added tax, duty of customs, service tax, cess
which have not been deposited with the appropriate authorities on account of any dispute
other than those as mentioned here-in-below:
| Name of the statute |
Nature of dues |
Amount (Rs.in Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
2.66 |
FY: 2005-06 |
CIT (Appeals) |
| Income Tax Act, 1961 |
Income Tax |
53.53 |
FY: 2011-12 |
CIT (Appeals) |
(viii) In our opinion and according to the information and explanations given to us,
the Company has defaulted in repayment of loans and borrowings to bank, the details of
which are given below:
(Rs. in Lacs)
| Particulars |
Delays upto 30 days |
91-180 days |
Beyond 180 days |
Total Amount |
| Term Loan from Bank |
70.00 |
70.00 |
401.02 |
541.02 |
| Interest Liabilities |
- |
51.00 |
225.82 |
276.82 |
(ix) The Company did not raise any money by way of initial public offer or further
public offer (including debt instruments) during the year. In our opinion and according to
the information and explanations given to us, the Company has applied the term loans for
the purposes for which they were raised.
(x) According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or reported during
the course of our audit.
(xi) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has paid/provided managerial
remuneration in accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or convertible debentures during the year.
Accordingly, paragraph 3(xiv) of the Order is not applicable.
(xv) According to the information and explanations given to us and based on our
examination of the records of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with them. Accordingly, paragraph 3(xv)
of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act 1934.
|
For N. C. Banerjee & Co. |
|
Chartered Accountants |
|
(Firm Regn.No: 302081E) |
|
CA B.Basu |
| Place : Kolkata |
Partner |
| Date : 30th May, 2017 |
Membership No.012748 |
+91-9892691696
