INDEPENDENT AUDITORS
To
The members of
Gujarat NRE Mineral Resources Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Gujarat NRE Mineral Resources
Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and
a summary of significant accounting policies and other explanatory information.
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 subsection (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.
Auditors Responsibility
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
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 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 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.
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 loss 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.
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:
a) we have 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 Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
subsection (1) of section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to the rate at which
the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any
Rules under the said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
|
For N.C.Banerjee & Co. |
|
Chartered Accountants |
|
(Registration No. : 302081E) |
|
A. Paul |
| Place : Kolkata |
(Partner) |
| Dated : 23rd June, 2014 |
Membership No. 06490 |
Annexure to 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
1. (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
during the year, which in our opinion is reasonable, having regard to the size of the
company and nature of its assets. No material discrepancies were noticed on such
verification.
(c) The Company has not disposed off a substantial part of its fixed assets during the
year and the going concern status of the Company is not affected.
2. As informed to us the Company did not have any inventory at any time during the year
under review. Hence the subclauses (a) (b) & (c) of clause (ii) of paragraph 4 of the
Order are not applicable to the Company.
3. The Company has neither granted nor taken any loans, secured or unsecured to or from
companies, firms or other parties covered in register maintained under Section 301 of the
Companies Act, 1956. Accordingly, sub-clauses (a), (b), (c), (d), (e), (f) & (g) of
clause (iii) of paragraph 4 of the Order are not applicable to the Company.
4. 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
nature of its business with regard to purchase and sale of securities. Further, on the
basis of our examination of the books and records of the Company, and according to the
information and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the aforesaid internal
control system.
5. (a) According to the information and explanations given to us, the transactions made
in pursuance of contracts or arrangements that need to be entered in the register
maintained under Section 301 of the Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the transactions made in
pursuance of contracts or arrangements that need to be entered in the register maintained
under Section 301 of the Companies Act, 1956 and exceeding the value of Rs.5 lacs in
respect of each party during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public. Therefore, the provisions
of clause (vi) of the Order are not applicable to the Company.
7. In our opinion, the Company has an internal audit system commensurate with the size
and nature of its business.
8. According to the information and explanations given to us, maintenance of cost
records have not been prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 for the business carried on by the Company.
9. (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 appropriate authorities undisputed statutory dues including
provident fund, Investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material
statutory dues to the extent applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, sales tax, wealth tax, service tax, customs duty and
excise duty were in arrears as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there were no dues in
respect of income tax, sales tax, wealth tax, service tax, customs duty, excise duty 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 statute |
Nature of Dues |
Amount (Rs. in ’000) |
Period to which the amount relates |
Forum where the dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
2810 |
FY:2007-08 |
ITAT |
| Income Tax Act, 1961 |
Income Tax |
3725 |
FY:2010-11 |
CIT (Appeals) |
10. The Company has no accumulated losses as at 31st March, 2014. The Company has
incurred cash losses in the financial year covered by our audit report and the Company has
not incurred cash losses in the immediately preceding financial year.
11. In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. The Company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations given to us, the
Company is not a chit fund or a nidhi/mutual benefit fund/society.
14. In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of the transactions and contracts in respect of
dealing or trading in shares, securities, debentures and other investments and timely
entries have been made therein. The shares, securities, debentures and others investments
have been held by the Company in its own name.
15. In our opinion and according to the information and explanations given to us, the
terms and conditions on which the Company has given guarantees for loans taken by others
from banks and/or financial institutions are not prima facie prejudicial to the interests
of the Company.
16. According to the information and explanations given to us, the term loans obtained
by the Company were applied for the purposes for which such loans were obtained.
17. According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we are of opinion that no funds raised on
short-term basis have been used for long-term investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties and companies
covered in the register maintained under section 301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company has not issued any secured
debenture.
20. During the year covered by our audit report, the Company has not raised any money
by way of public issues.
21. 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 year.
|
For N.C.Banerjee & Co. |
|
Chartered Accountants |
|
(Registration No. : 302081E) |
|
A. Paul |
| Place : Kolkata |
(Partner) |
| Dated : 23rd June, 2014 |
Membership No. 06490 |
+91-9892691696
