| We have audited the accompanying financial statements of Gujarat Carbon
and Industries Limited, which comprise of the Balance Sheet as at 31st
March, 2015, and the Profit and Loss Account and the 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
Management 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 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.
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
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 the 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 control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Board of 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 financial
statements.
Basis for qualified opinion
1. We invite your attention to Note No.14 a. of notes forming part of
financial statements regarding the accounts being prepared on a going
concern basis. However, there is no alternative proposal to promote any
other activity.
2. Accounting Standard 9 - "Revenue Recognition", the details and
effect of which have been disclosed in paragraph 7 below. Further the
disclosure requirements of AS 22 'Accounting for Taxes on Income' have
not been followed regarding composition and accounting of deferred tax
assets/ liabilities as on Balance Sheet date.
3. Note No. 14 d. regarding non provision of interest on certain
inter-corporate deposits, the impact of which is not determined.
Opinion
Subject to above basis of qualification paragraph, in our opinion and
to the best of our information and according to the explanations given
to us, the aforesaid 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 31st March, 2015;
(b) in the case of the Profit and Loss Account, of the loss for the
year ended on that date.;
(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 (Auditor's Report) Order, 2015 ("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
statement on the matters specified in the 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 Income & Expenditure, and the
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 the written representations received from the
executive committee members as on 31st March, 2015 taken on record by
the management, none of the Board members is disqualified as on 31st
March, 2015 from being appointed as a member of the Board 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 does not have any pending litigations which would
impact its financial position.
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 to Auditors' Report
(Referred to in paragraph under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified at the yearend by the
management. The discrepancies noticed on such verification, which were
not significant, have been properly dealt with in the books of account.
(ii) The Company does not have any inventories during the year.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act.
(iv) In our opinion and according to the information and explanations
given to us there are adequate internal control systems commensurate
with the size of the Company and the nature of its activities for
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) The Company has not accepted deposits from the public.
(vi) The maintenance of cost records has not been prescribed by the
Central Government under sub-section (1) of section 148 of the
Companies Act.
(vii) (a) The Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
other material statutory dues applicable to it. There were no arrears
as at 31st March, 2015 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 are
no dues of sales tax or wealth tax or service tax or duty of customs or
duty of excise or value added tax or cess which have not been deposited
as on 31st March, 2015 on account of any dispute. Details of dues of
Income tax which have not been deposited as on 31st March, 2015 are as
under:
Name of the Nature of Amount under Period to
the dispute is
Statute dues dispute which it
(Rs. In lacs) relates
Income tax
Act, 1961 Income tax 19.79 A.Y. 2002-2003
Income tax
Act, 1961 Income tax 24.98 A.Y. 2003-2004
Name of the Forum where
Statute pending
Income tax
Act, 1961 Reverted to AO by ITI for review
Income tax
Act, 1961 High Court of Gujarat
There are no amounts that are required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 2013 and rules made there under.
(viii) In our opinion, the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has incurred cash
losses during the current financial year covered by our report and also
in the immediately preceding financial year.
(ix) On the basis of records examined by us and the information and
explanations given to us, the Company has not borrowed any funds during
the year from financial institution or bank.
(x) According to the information and explanations given to us the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) The Company has not obtained any term loans during the year.
(xii) According to the information and explanations given to us no
fraud on or by the Company has been noticed or reported during the
course of audit.
For Ramanlal G Shah & Co.
Chartered Accountants
Firm Registration No 108517W
(Vivek S. Shah)
Place: Ahmadabad Partner
Date: 23rd May, 2015 Membership No. 112269 |