Mar 31, 2014
We have audited the attached Balance sheet of Gopal Iron & Steels Co.
(Gujarat) limited as at 31st March 2014 and also annexed Profit and
Loss Account for the year ended on that date and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standard generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
We further report that
(1) 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.
(2) In our opinion, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
(3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956
read with general circular15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
(5) In our opinion and based on information and explanations given to
us, none of the directors is disqualified as on 31-03-2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, 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, 2014;
(b) In the case of the Profit and Loss Account of the Loss for the year
ended on that date; and
(c) In the case of the Cash Flow Statement of the Cash flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN DATE
OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2014
On the basis of such checks as we considered appropriate and the terms
of the information and explanations given to us, we state that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative and situation of fixed assets.
(b) As explained to us fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals in a phased verification program, which in our opinion is
reasonable looking to the size of the company and the nature of its
business. According to the information and explanation given to us no
material discrepancies were noticed on such verification.
(c) In our opinion, the company has not disposed off any substantial
part of its fixed assets so as to effect in it going concern.
2. (a) As explained to us, inventories have been physically verified by
the management at the end of the year.
(b) In our opinion and according to the information and given to us the
procedure followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of the business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to from companies, firms, or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(a) The company has not granted or taken any loans secured or unsecured
to companies, firms or other parties cover in the register maintained
under Section 301 of the Companies Act, 1956 during the year.
(b) In our opinion and according to the information and given to us,
the rate of interest, whenever applicable and other terms and
conditions in respect of loans given taken by the company are not prima
facie prejudicial to the interest of the company.
(c) In respects of loans taken by the Company from two parties, the
loan is interest free and are payable on demand, In respect of loans
taken by the company from other parties, the interest and principal
amount is payable on demand.
(d) In respect of loans taken by the company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and given to us,
there are adequate internal control procedures commensurate with the
size of company and the nature of its business with regard to purchase
of inventory, fixed assets and for sale of goods. During the course of
audit, no major weakness in internal control had come to notice.
5. (a) On the basis of the audit procedure performed by us, and
according to the information and explanations given and representations
given to us, we are of the opinion that, the transactions in which
directors were interested as contemplated under Section 297 and sub-
section (6) of Section 299 of the Companies Act, 1956 and which were
required to be entered in the register maintained under Section 301 of
the said Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registered maintained u/s 301 of the
Companies Act, 1956 exceeding the value of rupees five lacs in respect
of any party during the year have been made at parties which are
reasonable having regards to prevailing market prices of at that time.
6. The company has not accepted any deposit from public cover u/s 58A
of the Companies Act 1956 read along with companies (Acceptance of
deposits) rules 1973 and the directive issued by the Reserve Bank of
India.
7. The employees of the company have conducted the internal audit.
However the same is required to be strengthened.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, it has been generally
regularly deposited undisputed statutory dues including Provident Fund,
Income tax, Sales Tax, Wealth Tax, Excise Duty and other statutory dues
with the appropriate authorities. According to the information and
explanation given to us no disputed amount payable in respect of the
aforesaid dues were outstanding as at 31st March, 2014 for a period of
more than six months from the date of becoming payable.
(b) According to the information and explanation given to us, there is
no any disputed demand outstanding during the year under preview except
mentioned below:
Sr Nature of Dues Year Amount Involved
1 Sales Tax 2002-2003 Rs. 29.11 Lacs
2006-2007 Rs. 3.64 Lacs
2009-2010 Rs. 21.54 Lacs
2 Excise Duty 1998-1999 Rs. 33.53 Lacs
1999-2000 _
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses both, in the financial
year under report and the immediately preceding year.
11. On the basis of the records examined by us and the information and
explanation given to us, the company has not defaulted in payment of
dues to financial institutions, banks or debenture holders.
12. As examined to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures, or any other securities.
13. In our opinion, the company is not a chit fund or a nidhi
fund/mutual benefit fund/society. Therefore, clause 4(xiii) of the
Companies (Auditor''s Report order 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading is respect of
shares, securities debentures and other investments. According to the
provision of clause 4 (xiv) of the companies (Auditor Report) order
2003 are not applicable to the company.
15. According to the information and explanation given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. The company has raised any term loan during the year.
17. According to the information and explanation given to us and on
overall examination of the financial statements of the company and
after placing reliance on the reasonable assumption made by the company
for classification of long term and short term usage''s of funds, we are
of the opinion that, prima-facie, long term funds have not been
utilized for short term purposes.
18. The companies have not made any preferential allotment of shares of
parties and companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not issued any money by way of public issue, during
the year.
21. According to the information and explanation given to us, and to
the best of our knowledge and benefit, no fraud on or by the Company,
has been noticed or by the company, during the year that clauses the
financial statements to be materially misstated.
Place: Ahmedabad
Date: 31-05-2014
For Mehul Kanani & Co.
Chartered Accountants
(Mehul Kanani)
Proprietor
Membership No. 138121
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Gopal Iron and
Steels Co. (Gujarat) Limited which comprise the Balance Sheet as at
March 31, 2013, 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.
Management''s 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. 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have 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 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 control relevant to the Company''s 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, 2013;
(b) in the case of the statement 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
Report on Other Legai and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the companies ("Auditor''s Report) (Amendment) order, 2004
(together 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 read together with note 26 (b) 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, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
(Referred to in paragraph (1) of our report of even date)
1. (a) Fixed Assets register is under compilation.
(b) We are informed by the management that they have verified the fixed
assets during the year. However, in absence of proper fixed assets
register, material discrepancies if any, could not be noticed between
physical verification and book records. Hence, the fixed assets as
appearing in books of account are carried in financial statements.
(c) The Company has not disposed off any major part of the fixed assets
during the year and as such the going concern concept is not affected.
2. (a) As explained to us, the inventory have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory and
the discrepancies noticed on such physical verification between
physical stocks and book records were not material and have been
adequately dealt with in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
company to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has not granted loans to any party hence paragraphs
4(iii) (a), (b), (c), and (d) of Company (Auditors'' Report) Order, 2003
are not applicable to the company.
(b) The company has taken unsecured loan from five parties. The maximum
amount involved during the year was Rs. 1,80,36,663 and the year end
balance of loan taken from such parties isRs. 1,63,63,453.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans taken by the company, are prima facie not prejudicial to
the interest of the company. The principal amount is repayable / repaid
by the company as agreed in contract.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. In respect of contracts or arrangements referred to in Section 301
of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act, have beeji_entered in the register required
to be maintained under that section.
(b) The transactions made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and aggregating during the year to Rupees five lacs or more
in respect of each party, have been made at prices which in our opinion
are prima facie reasonable.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 58
A and 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed there under with regard to the deposits accepted
from the public.
The company has accepted fixed deposits from directors and certain
shareholders by way of unsecured loans pursuant to requirement of
nationalized bank for loans obtained by the company. So long as such
loans are outstanding, is not considered as acceptance of deposit from
the public falling within the purview of section 58A of the Companies
Act, 1956 and the rules framed there under.
We are informed that no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal.
7. The company had no internal audit system during the year.
8. We have broadly reviewed the cost records maintained by the company
pursuant to the rules made by the Central Government for maintenance of
cost records under section 209(l)(d) of the Companies Act, 1956, and
are of the opinion that prima facie, the prescribed records have been
made and maintained. We have not, however made a detailed examination
of records with a view to determine whether they are accurate or
complete.
9. (a) Undisputed statutory dues including provident fund, investor
education & protection fund, employees state insurance, sales tax,
wealth tax, custom duty, excise duty, cess wherever applicable have
been regularly deposited with appropriate authorities though there has
been a slight delay in few cases and in case of income tax and service
tax the delay still continuous in two cases.
(b) According to the information and explanations given to us, no
undisputed amount in respect of aforesaid statutory dues were
outstanding except service tax amounting to Rs. 28,330 and Income tax
amounting to T 12,16,633 as at 31st March, 2013 for a period of more
than six months from the date they become payable.
(c) The disputed statutory dues aggregating to Rs. 78,31,713 have not
been deposited on account of matters pending before appropriate
authorities are as under:
Serial Department Period to which Amount Forum where dispute
No. it relates (Rs.) is pending
01 Gujarat
Sales Tax 2002-2003 29,11,000 Commissioner (A)
2006-2007 3,64,000 Commissioner (A)
2008-2009 12,04,270 Commissioner (A)
02 Central
Excise 1998-1999 19,91,363 Commissioner (A)
1999-2000 13,61,080 Commissioner (A)
Total 78,31,713
10. The company has no accumulated losses and has not incurred any
cash losses during the current financial year or for 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
banks. The company has not obtained any borrowings from financial
institutions or by way of debentures.
12. The Company has not granted loans & advances on the basis of
security by way of pledge of shares and debentures and other
securities.
13. The Company is not a chit fund / Nidhi / Mutual benefit fund /
society to which the provisions of special statute relating to chit
fund are applicable and hence paragraph 4(xiii) of the Order is not
applicable.
14. The Company is not dealing in or trading in shares, securities,
debentures, and other investments and hence paragraph 4(xiv) of the
order is not applicable.
15. The Company has not given guarantee for loans taken by others from
bank or financial institutions.
16. The company has not obtained any term loan during the year.
17. According to the cash flow statement and other records examined by
us and the information and explanations given to us, on over all basis
funds raised on short-term basis, prima facie, has not been used during
the year for long-term investment (fixed assets etc.).
18. . During the year, the company has not made preferential
allotment of shares to parties and companies covered in register
maintained under section 301 of the companies Act 1956.
19. During the year, the company has not issued any debentures and
hence paragraph 4 (xix) of the order is not applicable.
20. During the year, the company has not raised any money by way of
public issue and hence paragraph 4(xx) of the Order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
was noticed or reported during the year.
For KANTILAL PATEL & CO.,
CHARTERED ACCOUNTANTS
Firm Ree. No.l04744Wl
Gopal S. Baldi
Partner
Membership No.:125930
Place: Ahmedabad
Date: June 07, 2013
Mar 31, 2012
We have audited the attached Balance sheet of Gopal Iron & Steels Co.
(Gujarat) limited as at 31st March 2012 and also annexed Profit and
Loss Account for the year ended on that date and also the Cash Flow
Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standard generally
accepted in India.
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 issued by
the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
We further report that
(1)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.
(2) In our opinion, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
(3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956.
(5) In our opinion and based on information and explanations given to
us, none of the directors is disqualified as on 31-03-2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, 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, 2012;
(b) In the case of the Profit and Loss Account of the Profit for the
year ended on that date; and
(c) In the case of the Cash Flow Statement of the Cash flow for the
year ended on that date.
On the basis of such checks as we considered appropriate and the terms
of the information and explanations given to us, we state that:
1.(a) The Company has maintained proper records showing full
particulars including quantitative and situation of fixed assets.
(b) As explained to us fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals in a phased verification program, which in our opinion is
reasonable looking to the size of the company and the nature of its
business. According to the information and explanation given to us no
material discrepancies were noticed on such verification.
(c) In our opinion, the company has not disposed off any substantial
part of its fixed assets so as to effect in it going concern.
2. (a) As explained to us, inventories have been physically verified
by the management at the end of the year.
(b) In our opinion and according to the information and given to us the
procedure followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of the business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventory as compared to book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to from companies, firms, or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(a) The company has not granted or taken any loans secured or unsecured
to companies, firms or other parties cover in the register maintained
under Section 301 of the Companies Act, 1956 during the year.
(b) In our opinion and according to the information and given to us,
the rate of interest, whenever applicable and other terms and
conditions in respect of loans given taken by the company are not prima
facie prejudicial to the interest of the company.
(c) In respects of loans taken by the Company from two parties, the
loan is interest free and are payable on demand, In respect of loans
taken by the company from other parties, the interest and principal
amount is payable on demand.
(d) In respect of loans taken by the company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and given to us,
there are adequate internal control procedures commensurate with the
size of company and the nature of its business with regard to purchase
of inventory, fixed assets and for sale of goods. During the course of
audit, no major weakness in internal control had come to notice.
5. (a) On the basis of the audit procedure performed by us, and
according to the information and explanations given and representations
given to us, we are of the opinion that, the transactions in which
directors were interested as contemplated under Section 297 and sub-
section (6) of Section 299 of the Companies Act, 1956 and which were
required to be entered in the register maintained under Section 301 of
the said Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registered maintained u/s 301 of the
Companies Act, 1956 exceeding the value of rupees five lacs in respect
of any party during the year have been made at parties which are
reasonable having regards to prevailing market prices of at that time.
6. The company has not accepted any deposit from public cover u/s 58A
of the Companies Act 1956 read along with companies (Acceptance of
deposits) rules 1973 and the directive issued by the Reserve Bank of
India.
7. The employees of the company have conducted the internal audit.
However the same is required to be strengthened.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, it has been generally
regularly deposited undisputed statutory dues including Provident Fund,
Income tax, Sales Tax, Wealth Tax, Excise Duty and other statutory dues
with the appropriate authorities. According to the information and
explanation given to us no disputed amount payable in respect of the
aforesaid dues were outstanding as at 31st March, 2012 for a period of
more than six months from the date of becoming payable.
(b) According to the information and explanation given to us, there is
no any disputed demand outstanding during the year under preview except
mentioned below:
Sr Nature of Dues Year Amount Involved
1 Sales Tax 2002-2003 Rs. 29.11 Lacs
2006-2007 Rs. 3.64 Lacs
2 Excise Duty 1998-1999 Rs. 33.53 Lacs
1999-2000
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses both, in the financial
year under report and the immediately preceding year.
11. On the basis of the records examined by us and the information and
explanation given to us, the company has not defaulted in payment of
dues to financial institutions, banks or debenture holders.
12. As examined to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures, or any other securities.
13. In our opinion, the company is not a chit fund or a nidhi fund /
mutual benefit fund / society. Therefore, clause 4(xiii) of the
Companies (Auditor''s Report order 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading is respect of
shares, securities debentures and other investments. According to the
provision of clause 4 (xiv) of the companies (Auditor Report) order
2003 are not applicable to the company.
15. According to the information and explanation given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. The company has raised a term loan for Expansion Project of Tube
Mill and the said term loan was applied for the purpose for which they
were raised.
17. According to the information and explanation given to us and on
overall examination of the financial statements of the company and
after placing reliance on the reasonable assumption made by the company
for classification of long term and short term usage''s of funds, we
are of the opinion that, prima-facie, long term funds have not been
utilized for short term purposes.
18. The companies have not made any preferential allotment of shares
of parties and companies covered in the register maintained u/s 301 of
the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not issued any money by way of public issue,
during the year.
21. According to the information and explanation given to us, and to
the best of our knowledge and benefit, no fraud on or by the Company,
has been noticed or by the company, during the year that clauses the
financial statements to be materially misstated.
Place: Ahmedabad
For Mehul Kanani & Co.
Date: 07-06-2012 Chartered Accountants
(Mehul Kanani)
Proprietor
Membership No. 138121
Mar 31, 2010
We have audited the attached Balance sheet of Gopal Iron & Steels Co,
(Gujarat) limited as at 31st March 2010 and also annexed Profit and
Loss Account for the year ended on that cate and also the Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with auditing standard generally
accepted in India Those standards require that we plan and perform the
audit to obtain reasonable assurance scout whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Centra! Government of India in terms of Section 227 (4A) of the
Companies Act. 1956 we enclose in are Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order
We further report that
1) 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.
2) In our opinion, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
4) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956.
5) In our opinion and based on information and explanations given to
us, none of tne directors is disqualified as on 31-03-2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act. 1956.
6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, 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, 2010;
(b) In the case of the Profit and Loss Account of the Profit for the
year ended on that date; and
(c) In the case of the Cash Flow Statement of the Cash flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN DATE
OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2010
On the basis of such checks as we considered appropriate and the terms
of the information are experiance given to as we share that.
(b) As explained to us fixed assets, according to the practice of the
company, are physically verified by the management at reasonable
intervals in a phased verification program, which in cur opinion is
reasonable looking to the size of the company and the nature of its
business. According to the information and explanation given to us no
material discrepancies were noticed on such verification.
(c) In our opinion, the company has not disposed off any substantial
part of its fixed assets so as to effect in it going concern.
2. (a) As explained to us, inventories have been physically verified by
the management at the end of the year.
(b) In our opinion and according to the information and given to us the
procedure followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of the business.
(c) The company has maintained proper records of inventories. As
explained to us there were no materia! discrepancies noticed on
physical verification of inventory as compared to book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to from companies, firms, or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
(a) The company has not granted or taken any loans secured or unsecured
to companies, firms or other parties cover in the register maintained
under Section 301 of the Companies Act, 1956 during the year.
(b) In our opinion and according to the information and given to us,
the rate of interest. whenever applicable and other terms and
conditions in respect of loans given taken oy the company are not prima
facie prejudicial to the interest of the company.
(c) In respects of loans taken by the Company from three parties, the
loan is interest bearing and are payable on demand.
(d) In respect of loans taken by the company, these are repayable on
demand and therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and given to us,
there are adequate internal control procedures commensurate with the
size of company and the nature of its business with regard to purchase
of inventory, fixed assets and for sale of goods. During the course of
our previous audit, no major weakness in internal control had come to
our notice.
5. (a) On the basis of the audit procedure performed by us, and
according to the information and explanations given and representations
given to us, we are of the opinion that, the transactions in which
directors were interested as contemplated under Section 297 and sub-
section (6) of Section 299 of the Companies Act, 1956 and which were
required to be entered in the register maintained under Section 301 of
the said Act, have been so entered.
(b) in our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registered maintained u/s 301 of the
Companies Act, 1956 exceeding the value of rupees five lacs in respect
of any party during the year have been made at parties which are
reasonable having regards to prevailing market prices of at that time.
6. The company has not accepted any deposit from public cover u/s 58A
of fie Companies Act 1956 read along with companies (Acceptance of
deposits) rules 1973 and the directive issued by the Reserve Bank of
India.
7. The employees of the company have conducted the internal audit. However
the same is required to be strengthened.
8. As per information and explanation given to us the company being a
S.S I Unit is exempt from maintenance of cost records as prescribed by
the Centra! Government u/s 209{1) of the Companies Act 1956 for any of
the products of the company.
9. (a) According to the records of the company, it has been generally
regularly deposited undisputed statutory dues including Provident Fund,
Income tax, Sales Tax. Wealth Tax, Excise Duty and other statutory dues
with the appropriate authorities. According to the information and
explanation given to us no disputed amount payable in respect of the
aforesaid dues were outstanding as at 31st March, 2010 for-a period of
more than six months from the date of becoming payable.
(b) According to the information and explanation given to us, there is
no any disputed demand outstanding during the year under preview except
mentioned below:
Sr Nature of Dues Year Amount Involved
1 Income-Tax 1995-1996 Rs. 38.60 Lacs
1996-1997 Rs. 203.57 Lacs
2 Sales Tax 2002-2003 Rs. 29.1l Lacs
10. The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses both, in the financial
year under report and the immediately preceding year.
11. On the basis of the records examined by us and the information and
explanation given to us, the company has not defaulted in payment of
dues to financial institutions, banks or debenture holders.
12. As examined to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures, or any other securities.
13. In our opinion, the company is not a chit fund or a nidhi fund /
mutual benefit fund / society. Therefore, clause 4(xiii) of the
Companies (Auditors Report) order 2003 is not applicable.
14. In our opinion and according to the information and explanation
given to us, the Company is not dealing in or trading is respect of
shares, securities debentures and other investments. According to the
provision of clause 4 (xiv) of the companies (Auditor Report) order
2003 are not applicable to the company.
15. According to the information and explanation given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. The company has not raised any term loan during the period under
review.
17. According to the information and explanation given to us and on
overall examination of the financial statements of the company and
after placing reliance on (he reasonable assumption made by the company
for classification of long term and short term usages of funds, we are
of the opinion that, prima-facie, long term funcs have not been
utilized for short term purposes.
18. The companies have not made any preferential allotment of shares of
parties and companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not issued any money by way of public issue,
during the year.
21. According to the information and explanation given to us, and to the
best of our knowledge and benefit, no fraud on or by the Company, has
been noticed or by me company, during the year that clauses the
financial statements to be materially misstated.
Place: Ahmedabad
For Jigar S. Shah & Co
Date: 27-05-2010 Chartered Accountants
(Jigar Shah)
Proprietor