Auditor Report of Gujarat Natural Resources Ltd.
Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of GUJARAT NATURAL RESOURCES LIMITED ("the company"),which comprise the Balance Sheet as at 31stMarch 2018, the Statement of Profit and Loss, 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
The Company''s Board of Directors is responsible for the matters 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 the Companies (Indian Accounting Standards) Rules, 2015. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 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 Company''s 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.
Matter of Emphasis:
- The company has some trade receivables, which has been considered as doubtful debts. Accordingly, company has not recognized provision of doubtful debts amounting to 739.71 lacs, as a result thereof the debit balance of profit & loss A/c is understated by the said sum and correspondingly Sundry debtors are overstated by the said sum.
- The company has in past granted/renewed loans and advances to other companies, which has been identified as non- performing asset. Accordingly, company has not recognized any income from the same. In the opinion of directors, the process of recovery is going on and the same is not fully doubtful of recovery. However in our opinion company needs to make provision for such long outstanding nonperforming assets amounting to Rs. 206.17lacs. Due to non-provision in this regard the debit balance of profit & loss account is under stated and balance of loans and advances is overstated by the said sum.
This matter has been already emphasized by previous auditor.
- The company is carrying Pre-Operative Expenses of Rs.3,33,23,499/- as "other non current assets" which in our opinion needs to be written off. And Due to the same Profit &Loss account is under stated. So the amount of Rs. 3,33,23,499/- needs to be written off in the forthcoming financial years.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the matter of emphasis paragraph above, 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 March 31, 2018;
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 (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and an explanation which is to the best of our knowledge and beliefs 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 appears from our examination of those books.
c) The Balance Sheet, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as amended
e) On the basis of written representations received from the directors as on 31 March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor''s Report and to our 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 derivatives contracts for which there were any material foreseeable losses.
iii. There is no amount required to be transferred, to the investor''s education & Protection Fund by the Company.
Reports under The Companies (Auditor''s Report) Order, 2016 (CARO 2016) for the year ended on 31st March 2018
To, The Members of Gujarat Natural Resources Limited
(1) In Respect of Fixed Assets
(a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.
(c) Yes, The Title deeds of Immovable Properties are held in the name of the Company.
(2) In Respect of Inventories
As explained to us, the inventories (excluding inventories with third parties) were physically verified during the year by the Management at reasonable intervals.
(3) Compliance under section 189 of The Companies Act, 2013
The Company has not granted any loan to the parties covered in the register maintained u/s 189 of the companies Act, 2013.
(a) As there is no such loan, question of prejudicially does not arise.
(b) As there is no such loan, question of repayment terms & conditions also does not arise.
(c) There is no overdue amount of loans granted to companies, firms or other parties listed in the register maintained under section 189 of the companies Act, 2013.
(4) Compliance under section 185 and 186 of The Companies Act , 2013
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 Companies Act, 2013 except non charging of interest as provided u/s 186(7) in respect of loans granted by the company
(5) Compliance under section 73 to 76 of The Companies Act, 2013 and Rules framed thereunder while accepting Deposits
According to information and explanations given to us, the Company has not accepted any deposits from public during the year. In respect of unclaimed deposits, the Company has complied with the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made thereunder.
(6) Maintenance of cost records
The Company is not required to maintain cost Records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013.
(7) Deposit of Statutory Dues
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Income-tax, Sales Tax, Wealth Tax, Service Tax, Duty of customs, Duty of excise, Value added tax, Cess and any other material statutory dues with the appropriate authorities.
(b) According to the information and explanations given to us, disputed amount is payable in respect of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess as at 31st March, 2018.
|
Name of Statue |
Nature of Dues |
Disputed Amount Rs |
Period to which the amount Relates |
Forum where dispute is pending |
|
Income Tax |
Penalty - 271B |
92,500 |
A.Y 2010-11 |
CIT(A), Ahmedabad |
(8) Repayment of Loans and Borrowings
The company has not defaulted in repayment of dues to financial institution, bank or debenture holders.
(9) Utilization of Money Raised by Public Offers and Term Loan For which they Raised
Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
(10) Reporting of Fraud During the Year
Based on our audit procedures and the information and explanation made available to us no such fraud noticed or reported during the year.
(11) Managerial Remuneration
Managerial Remuneration of Rs. 18,00,000 has been provided by the Company.
(12) Compliance by Nidhi Company Regarding Net Owned Fund to Deposits Ratio
As per information and records available with us The company is not Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company.
(13) Related party compliance with Section 177 and 188 of companies Act - 2013
Yes, All transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(14) Compliance under section 42 of Companies Act - 2013 regarding Private placement of Shares or Debentures
According to the information and explanations given to us and on the basis of our examination of the record of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon
(15) Compliance under section 192 of Companies Act - 2013
The company has not entered into any non-cash transactions with directors or persons connected with him.
(16) Requirement of Registration under 45-IA of Reserve Bank of India Act, 1934
The company is not required to be registered under section 45-IA of the Reserve Bank of lndia Act.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GUJARAT NATURAL RESOURCES LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018.
For, G M C A & Co.
Chartered Accountants
FRN: 109850W
CA. Mitt S. Patel
Place : Ahmedabad (Partner)
Date : 30/05/2018 Membership No. 163940
Mar 31, 2016
Report on the Financial Statements :
We have audited the accompanying Financial Statements of M/s. GUJARAT NATURAL RESOURCES LIMITED, (the "Company"), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit & Loss and also 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
The Company''s 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 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 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 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 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 appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls 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 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.
Emphasis of Matter:
We draw attention to;
a) Point No. 3 in Note No. 19(II) to the financial statements regarding non-provision of doubtful debts amounting to Rs. 739.71 lacs, as a result thereof the debit balance of profit & loss A/c is understated by the said sum and correspondingly Sundry debtors are overstated by the said sum.
b) Point No. 4 in Note No. 19(II) to the financial statements regarding granting of loans and advances to certain parties in past which have been identified as non-performing asset. Accordingly company has not recognized any income from the same. In the opinion of the directors, the process of recovery is going on and the same is not fully doubtful of recovery. However in our opinion company needs to make provision for such long outstanding non-performing assets amounting to Rs. 206.17 lacs. Due to non-provision in this regard, the debit balance of profit & loss account is under stated and the balance of loans and advances is over stated by the said sum.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company as at 31st March 2016
ii) In the case of Statement of Profit & Loss, of the Loss for the year ended on that date; and
iii) In the case of 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, 2016 ("the Order"), as amended, 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.
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 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 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 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 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 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 has disclosed the impact of pending litigations on its financial position in its financial statements.
ii) In our opinion and as per the information and explanations provides to us, the company has not entered into any long-term contracts including derivative contracts, requiring provision under applicable laws or accounting standards, for material foreseeable losses, and
iii) There are no outstanding amount which is required to be transferred to the Investor Education and Protection Fund by the Company.
"Annexure A" to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
1) (a) In our Opinion, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) As explained to us, the Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) According to the information and explanations given to us and on the basis of our examination of the record of the company, the title deeds of immovable properties are held in the name of the company.
2) The nature of company''s activities are such that clause 3(ii) of the aforesaid order is not applicable to the company.
3) According to the information and explanations given to us, the company has granted Interest free unsecured loans to parties covered in the Register maintained under Section 189 of the Companies Act.
3.1 In respect of the aforesaid loans, the parties are repaying the principal amounts, as stipulated.
3.2 In our opinion and according to the information and explanation given to us, there are no overdue amounts in respect of the transactions listed in Para 3 above.
4) 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 Companies Act, 2013 except non charging of interest as provided u/s 186(7) in respect of loans granted by the company.(Point No. 5(II) of Notes -19)
5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) Maintenance of cost records has not been prescribed by the central government under sub-section (1) of section 148 of the Companies Act, for the activities of the company.
7.1. The company is generally regular in depositing undisputed statutory dues including income tax, sales tax, service tax, value added tax, cess and other statutory dues with the appropriate authorities and we have been informed that there are no arrears of outstanding statutory dues as at the last day of the financial year under audit for a period of more than six months from the date they became payable.
7.2 According to the information and explanations given to us, no undisputed amount is payable in respect of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess as at 31st March, 2016.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to any financial institutions and banks.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the provisions of section 197 read with Schedule V to the Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the Order are not applicable to the Company.
13) According to the information and explanations given to us and on the basis of our examination of the record of the company In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) According to the information and explanations given to us and on the basis of our examination of the record of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15) According to the information and explanations given to us and on the basis of our examination of the record of the company, the company has not entered into any non-cash transactions with directors or persons connected with the company. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
FOR PANKAJ K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 30.05.2016 M. No. 34603
Mar 31, 2015
We have audited the accompanying Financial Statements of M/s. GUJARAT
NATURAL RESOURCES LIMITED, (the "Company"), which comprise the Balance
Sheet as at 31st March 2015, the Statement of Profit & Loss and also
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 :
The Company's Board of Directors is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position and financial performance 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 provision of the Act for safeguarding 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 the
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 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 thereunder.
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
auditor's judgment, including the assessment of the risk of material
misstatement of the financial statement, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
financial controls 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. An audit
also includes evaluating the appropriateness of accounting polices used
and the reasonableness of the accounting estimates made by the
Company's 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.
Emphasis of Matter:
We draw attention to ;
a) Point No. 3 in Note No. 19(II) to the financial statements regarding
non-provision of doubtful debts amounting to Rs. 739.75 lacs, as a
result thereof the debit balance of profit & loss A/c gets understated
by the said sum and correspondingly Sundry debtors are overstated by
the said sum.
b) Point No. 4 in Note No. 19(II) to the financial statements regarding
the company has in past granted/ renewed loans and advances to certain
parties which have been identified as non-performing asset.
Accordingly company has not recognized any income from the same. In the
opinion of the directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non-performing assets
amounting to Rs. 206.17 lacs. Due to non-provision in this regard, the
debit balance of profit & loss account is under stated and the balance
of loans and advances is over stated by the said sum.
c) Further Point No. 5 in Note No. 19(II) to the accompanying financial
statements regarding non charging of Interest on Loans & Advances to
Related Parties and other parties u/s. 186 of the Companies Act, 2013
Opinion :
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2015.
ii) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date and,
iii) In the case of 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, issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act (hereinafter referred to the "Order"), and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the order.
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
purpose of our audit.
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far it appears from our examination of
those books.
c) The Balance Sheet and Statement of Profit & Loss 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 prescribed 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 31st March, 2015, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2015, from
being appointed as a Director 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 has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii) In our opinion and as per the information and explanations provides
to us, the company has not entered into any long-term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses, and
iii) There are no outstanding amount which is required to be
transferred to the Investor Education and Protection Fund by the
Company.
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.
1.1 The Company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets on the
basis of available information.
1.2 We are informed that all the fixed assets have been physically
verified by the management during the year and no material
discrepancies were noticed on such verification.
2. The company's activities are such that this clause of the aforesaid
order is not applicable to the company.
3. According to the information and explanations given to us, the
company has granted Interest free unsecured loans to parties covered in
the Register maintained under Section 189 of the Companies Act.
3.1 In respect of the aforesaid loans, the parties are repaying the
principal amounts, as stipulated.
3.2 In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in Para 3 above.
4. In our opinion and according to the information and explanation
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 fixed assets and for the sale of
services. During the course of audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. According to the information and explanation given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and rules framed there
under.
6. Maintenance of cost records has not been prescribed by the central
government under sub-section (1) of section 148 of the Companies Act,
for the activities of the company.
7.1. The company is generally regular in depositing 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 any other statutory dues with the
appropriate authorities and we have been informed that there are no
arrears of outstanding statutory dues as at the last day of the
financial year under audit for a period of more than six months from
the date they became payable.
7.2 According to the information and explanations given to us and
record of the Company disputed amount payable in respect of Income tax
not deposited with the appropriate authorities are as under:
Name of Statue Nature Disputed Period to
which Forum where
of Dues Amount Rs. the amount
Relates dispute is
pending
Income Tax Act Income Tax 7,77,730/- A.Y. 2012-13 CIT (Appeal),
Ahmedabad
7.3 According to the information and explanation given to us, there are
no outstanding amounts that are required to be transferred to investor
Education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and Rules made thereunder.
8. The Company has no accumulated losses at the end of the financial
year under audit. The company has not incurred any cash losses during
the financial year covered under audit, and also during immediately
preceding financial year.
9. Since the company has not availed any financial assistance from
Bank and / or financial institution and also not issued any debentures,
this clause is not applicable.
10. In our opinion, and according to information and explanations
given to us, the Company has not given guarantee for loans taken by
others from banks or financial institutions.
11. According to the information and explanations given to us, no term
loans were obtained during the year under audit.
12. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
FOR PANKAJ K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 30.05.2015 M. No. 34603
Mar 31, 2014
We have audited the accompanying Financial Statements of M/s. GUJARAT
NATURAL RESOURCES LIMITED (the "Company"), which comprise the Balance
Sheet as at 31st March 2014, the Statement of Profit & Loss and also
the Cash Flow Statement for the year then ended and a summary of
significant accounting polices and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 (the ''Act'') read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013. 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
consider 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.
Emphasis of Matter
We draw attention to
a) Point No. 2 at Additional Notes to Accounts in Notes  20 regarding
non-provision of doubtful debts amounting to Rs. 739.75 lacs, as a
result thereof the debit balance of profit & loss A/c gets understated
by the said sum and correspondingly Sundry debtors is overstated by the
said sum.
b) The company has in past granted/ renewed loans and advances to
certain parties which has been identified as non-performing asset.
Accordingly company has not recognized any income from the same. In the
opinion of the directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non-performing assets
amounting to Rs. 206.17 lacs. Due to non-provision in this regard, the
debit balance of profit & loss account is under stated and the balance
of loans and advances is over stated by the said sum.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2014.
ii) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date and,
iii) In the case of 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, 2003, as
amended by the companies (Auditor''s Report) (amendment) order, 2004
issued by the Central Government of India, in terms of Section 227(4A)
of the Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said 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 accounts 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 & 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 & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013 to the extent applicable.
e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the Directors of
the company are prima facie disqualified as on 31st March 2014 from
being appointed as Directors of the company in terms of clause (g) of
Section 274(1) of the Companies Act, 1956.
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. According to the information and explanation given to us, the
fixed assets records showing full
particulars including quantitative details and situation of fixed
assets are under compilation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the Going Concern status of the
Company is not affected.
2. (a) According to the information and explanations given to us, the
Company has taken/granted
unsecured loans from/to companies covered in the Register maintained
under Section 301 of the Companies Act, 1956;
(i) The company has taken interest free loan from its step down
subsidiary company covered in the Register maintained u/s 301 of the
Companies Act, 1956. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 272.01 lacs). Rs. 252.01 lacs was
payable to this party as at the close of the accounting year.
(ii) (a) The company has granted interest free loan to its wholly owned
and step down subsidiary company covered in the Register maintained u/s
301 of the Companies Act, 1956. The amount involved (i.e. the maximum
amount outstanding during the year was Rs. 5285.48 lacs). Rs. 4310.74
lacs was receivable from this party as at the close of the accounting
year.
(b) The company has also granted interest free loan to One party
covered in the Register maintained u/s 301 of the Companies Act, 1956.
The amount involved (i.e. the maximum amount outstanding during the
year was Rs. 1005.23 lacs). Rs. 892.61 lacs was receivable from this
party as at the close of the accounting year.
(b) According to the information and explanation given to us, the terms
and conditions in respect of unsecured loans taken/granted by the
Company are not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount are on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in clause (a) above.
3. In our opinion and on the basis of test checks carried out by us,
it appears that there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, with regard to purchase of fixed assets and for the sale of
services. During the course of audit, we have neither come across nor
have been informed of any instance of major weaknesses in aforesaid
internal control procedure, which would require corrective action.
4. a. On the basis of the audit procedure performed by us and
according to the information, explanation
and representation given to us, we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of
the Act, have been entered in the register required to be maintained
under that section.
b. In our opinion and according to the information and explanation
given to us, the transaction made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time as per the
information available with the company.
5. According to the information and explanation given to us, the
Company has not accepted any deposits attracting the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules framed there
under.
6. The company did not have any formal internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
7. According to the information given to us by the Management, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for the activities
of the Company.
8. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income-tax, VAT, wealth tax, custom duty,
Service tax, excise duty, cess and any other statutory dues applicable
to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, VAT, wealth tax,
custom duty, service tax, excise duty, cess were in arrears, as at 31st
March, 2014 for a period of more than six months from the date they
became payable.
9. The Company has no accumulated losses as at 31st March 2014. The
company has not incurred any cash losses during the current financial
year and also during immediately preceding financial year.
10. According to the records of the company and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financial year.
11. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
12. In our opinion, the provisions of any special statute applicable
to chit fund or nidhi mutual fund or mutual benefit fund/ societies are
not applicable to the company.
13. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
14. As per the information and explanations given to us, the company
has not given guarantees for loans taken by others from bank during the
year.
15. The company has not availed any term loan facility during the
year.
16. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company for the year under audit, prima faces no funds raised on
short-term basis have been used for long term investment.
17. The Company has not made any preferential allotment of shares
during the year to any parties and companies covered in the register
maintained under Section 301 of the Companies Act 1956.
18. The Company has not issued any debenture during the year.
19. The company has not raised any money by way of public issues
during year.
20. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
21. Clause (ii) of the aforesaid order is not applicable to the
company.
FOR PANKAJ K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 30.05.2014 M. No. 34603
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of M/s. GUJARAT
NATURAL RESOURCES LIMITED (the "Company"), which comprise the Balance
Sheet as at 31st March 2013, the Statement of Profit & Loss and also
the Cash Flow Statement for the year then ended and a summary of
significant accounting polices and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 of India (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
consider 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.
Emphasis of Matter
We draw attention to
a) Point No. 2 at Additional Notes to Accounts in Notes - 20 regarding
non-provision of doubtful debts amounting to Rs. 519.71 lacs, as a
result thereof the debit balance of profit & loss A/c gets understated
by the said sum and correspondingly Sundry debtors is overstated by the
said sum.
b) The company has in past granted/ renewed loans and advances to
certain parties which has been identified as non-performing asset.
Accordingly company has not recognized any income from the same. In the
opinion of the directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non-performing assets
amounting to Rs. 168.65 lacs. Due to non-provision in this regard, the
debit balance of profit & toss account is under stated and the balance
of loans and advances is over stated by the said sum.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying 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.
i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2013.
ii) In the case of Statement of Profit & Loss, of the Profit for the
year ended on that date and,
iii) In the case of 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, 2003, as
amended by the companies (Auditor''s Report) (amendment) order, 2004
issued by the Central Government of India, in terms of Section 227(4A)
of the Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said 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 accounts 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 & 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 & Loss 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 to the extent applicable.
e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the Directors of
the company are prima facie disqualified as on 31st March 2013 from
being appointed as Directors of the company in terms of clause (g) of
Section 274(1) of the Companies Act, 1956.
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. According to the information and explanation given to us, the
fixed assets records showing full particulars including quantitative
details and situation of fixed assets are under compilation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the Going Concern status of the
Company is not affected.
2. (a) According to the information and explanations given to us, the
Company has taken/granted unsecured loans from/to companies covered in
the Register maintained under Section 301 of the Companies Act, 1956;
(i) (a) The company has taken interest free loan from its step down
subsidiary company covered in the Register maintained u/s 301 of the
Companies Act, 1956. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 99.55 lacs). Rs. 99.55 lacs was
payable to this party as at the close of the accounting year.
(b) The Company has taken interest free loans from Five parties covered
in the aforesaid Register. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 179.09 lacs). Rs. NIL were payable
to these parties as at the close of the accounting year.
(ii) (a) The company has granted interest free loan to its wholly owned
subsidiary company covered in the Register maintained u/s 301 of the
Companies Act, 1956. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 4750.70 lacs). Rs. 4510.70 lacs
was receivable from this party as at the close of the accounting year.
(b) The company has also granted interest free loans to Two parties
covered in the Register maintained u/s 301 of the Companies Act, 1956.
The amount involved (i.e. the maximum amount outstanding during the
year was Rs. 465.18 lacs). Rs. 464.23 lacs was receivable from these
parties as at the close of the accounting year.
(b) According to the information and explanation given to us, the terms
and conditions in respect of unsecured loans taken/granted by the
Company are not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount are on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in clause (a) above.
3. In our opinion and on the basis of test checks carried out by us,
it appears that 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 audit, we have neither come
across nor have been informed of any instance of major weaknesses in
aforesaid internal control procedure, which would require corrective
action.
4. a. In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered in the Register maintained under Section 301 of the Companies
Act, 1956.
b. As there are no transactions that need to be entered into the
register maintained under section 301 of the Companies Act, paragraph
4(b) of the order is not applicable.
5. According to the information and explanation given to us, the
Company has not accepted any deposits attracting the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules framed there
under.
6. The company did not have any formal internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
7. According to the information given to us by the Management, the
Central Government has not prescribed the maintenance of cost records
under Section 209(l)(d) of the Companies Act, 1956 for the activities
of the Company.
8. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, VAT, wealth tax, custom duty. Service tax, excise duty,
cess and any other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, VAT, wealth tax,
custom duty, service tax, excise duty, cess were in arrears, as at 31st
March, 2013 for a period of more than six months from the date they
became payable.
9. The company has not incurred any cash losses during the financial
year under audit however the company has incurred cash loss of Rs.
13.72 lacs during the immediately preceding financial year.
10. According to the records of the company and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financial year.
11. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
12. In our opinion, the provisions of any special statute applicable
to chit fund or nidhi mutual fund or mutual benefit fund/ societies are
not applicable to the company.
13. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
14. As per the information and explanations given to us, the company
has not given guarantees for loans taken by others from bank during the
year.
15. The company has not availed any term loan facility during the
year.
16. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company for the year under audit, prima faces no funds raised on
short-term basis have been used for long term investment.
17. The Company has not made any preferential allotment of shares
during the year to any parties and companies covered in the register
maintained under Section 301 of the Companies Act 1956.
18. The Company has not issued any debenture during the year.
19. The company has not raised any money by way of public issues
during year.
20. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
21. Clause (ii) of the aforesaid order is not applicable to the
company.
FOR PANKAD K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 30.05.2013 M. No. 34603
Mar 31, 2012
1. We have audited the attached Balance Sheet of GUJARAT NATURAL
RESOURCES LIMITED Ahmedabad as at 31st March, 2012 and also the
Statement of Profit and Loss and Cash Flow Statement for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
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 from any 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 presentation of
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the companies (Auditor's Report) (amendment) order, 2004
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the annexure a statement on the matters
specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of ou r 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 appears from our examination of such
books;
(c) The Balance Sheet and Statement of Profit & Loss and Cash Flow
Statement dealt with, by this report are in agreement with the books of
accounts.
(d) In our opinion, Balance Sheet and Statement of Profit and Loss and
Cash flow statement dealt with by this report comply with the
Accounting Standard referred to in sub Section (3C) of section 211 of
the Companies Act, 1956 to the extent applicable.
(e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the company are prima facie disqualified as at
31st March 2012 from being appointed as Directors of the company in
terms of Clause (g) of Section 274(1) of the Companies Act,1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the attached accounts subject to the
following qualificatory notes give the information required by the
Companies Act, 1956 in the manner so required.
a) Point No. 2 at Additional Notes to Accounts in Notes - 20 regarding
non-provision of doubtful debts amounting to Rs. 519.71 lacs, as a
result thereof the debit balance of profit & loss A/c gets understated
by the said sum and correspondingly Sundry debtors is overstand by the
said sum.
b) The company has in past granted/ renewed loans and advances to
certain parties which has been identified as non-performing asset.
Accordingly company has not recognized any income from the same. In the
opinion of the directors, the process of recovery is going on and the
same is not fully doubtful of recovery. However in our opinion company
needs to make provision for such long outstanding non-performing assets
amounting to Rs. 138.65 lacs. Due to non provision in this regard, the
debit balance of profit & loss account is under stated and the balance
of loans and advances is over stated by the said sum.
Subject to the above qualificatory notes, the attached accounts give
the information required by the Companies Act, 1956 in the manner so
required and it gives a true and fair view.
(I) In the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March, 2012, and
(ii) In the case of the Statement of Profit & Loss, of the Loss of the
Company for the year ended on that date.
(iii)In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date :
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 of the Auditor's report to the
members of GUJARAT NATURAL RESOURCES LIMITED, on the accounts for the
year ended on 31st March, 2012.
1. a. According to the information and explanation given to us, the
fixed assets records showing full particulars including quantitative
details and situation of fixed assets are under compilation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed
on such physical verification.
c. In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the Going Concern status of the
Company is not effected.
2. (a) According to the information and explanations given to us, the
Company has taken/granted unsecured loans from/to companies covered in
the Register maintained under Section 301 of the Companies Act, 1956;
(I) (a) The company has taken interest free loan from its step down
subsidiary company covered in the Register maintained u/s 301 of the
Companies Act, 1956. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 525.37 lacs). Rs. 87.55 lacs was
payable to this party as at the close of the accounting year.
(b) The Company has taken interest free loans from Three parties
covered in the aforesaid Register. The amount involved (i.e. the
maximum amount outstanding during the year was Rs. 26.64 lacs). Rs.
1.94 lacs were payable to these parties as at the close of the
accounting year.
(ii) (a) The company has granted interest free loan to its wholly owned
subsidiary company covered in the Register maintained u/s 301 of the
Companies Act, 1956. The amount involved (i.e. the maximum amount
outstanding during the year was Rs. 4750.70 lacs). Rs. 4750.70 lacs was
receivable from this party as at the close of the accounting year.
(b) The company has also granted interest free loans to Six parties
covered in the Register maintained u/s 301 of the Companies Act, 1956.
The amount involved (i.e. the maximum amount outstanding during the
year was Rs. 1112.10 lacs). Rs. 28.50 lacs was receivable from these
parties as at the close of the accounting year.
(b) According to the information and explanation given to us, the terms
and conditions in respect of unsecured loans taken/granted by the
Company are not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount are on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no overdue amounts in respect of the
transactions listed in clause (a) above.
3. In our opinion and on the basis of test checks carried out by us,
it appears that 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 audit, we have neither come
across nor have been informed of any instance of major weaknesses in
aforesaid internal control procedure, which would require corrective
action.
4. a. In our opinion and according to the information and explanations
given to us, there are no transactions that need to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
b. As there are no transactions that need to be entered into the
register maintained under section301 of the Companies Act, paragraph
4(b) of the order is not applicable.
5. According to the information and explanation given to us, the
Company has not accepted any deposits attracting the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules framed there
under.
6. The company did not have any formal internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
7. According to the information given to us by the Management, the
Central Government has not prescribed the maintenance of cost records
under Section 209(1)(d) of the Companies Act, 1956 for the activities
of the Company.
8. (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income-tax, VAT, wealth tax, custom duty, Service tax, excise duty,
cess and any other statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, VAT, wealth tax,
custom duty, service tax, excise duty, cess were in arrears, as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
9. The Company has accumulated losses of Rs. 28.03 lacs at the end of
the year, which is less than 50% of Net worth of the Company. Further,
the company has incurred cash loss of Rs. 32.01 lacs during the
financial year covered under audit. However the company has not
incurred any cash loss during the immediately preceding financial year.
10. According to the records of the company and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financia year.
11. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
12. In our opinion, the provisions of any special statute applicable
to chit fund or nidhi mutual fund or mutual benefit fund/ societies are
not applicable to the company.
13. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
14. As per the information and explanations given to us, the company
has not given guarantees for loans taken by others form bank during the
year.
15. The company has not availed any term loan facility during the
year.
16. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company for the year under audit, prima faces no funds raised on
short-term basis have been used for long term investment.
17. The Company has not made any preferential allotment of shares
during the year to any parties and companies covered in the register
maintained under Section 301 of the Companies Act 1956.
18. The Company has not issued any debenture during the year.
19. The company has not raised any money by way of public issues
during year.
20. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the course of our audit.
21. Clause (ii) of the aforesaid order is not applicable to the
company.
FOR PANKAJ K. SHAH ASSOCIATES
Firm Registration No. 107352W
CHARTERED ACCOUNTANTS
(PANKAJ K. SHAH)
Place : Ahmedabad PROPRIETOR
Date : 04.09.2012 M. No. 34603
Mar 31, 2011
1. We have audited the attached Balance Sheet of GUJARAT NATURAL
RESOURCES LIMITED Ahmadabad as at 31st March,2011 and also the Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
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 from any 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 evaluating the overall presentation of financial
statement. We believe that our audit provides a reasonble basis for
our opinion.
3. As required by the Companies (Auditor Report) Order,2003,as amended
by the companies (Auditor's Report) (amendment) order,2004 issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we give in the annexure a statement on the matters specified
in paragraphs 4 & 5 of the said Order.
4.Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best 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 for as appears from examination of such
books;
(c) The Balance Sheet and Profit & Loss Account Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, Balance Sheet and Profit and Loss account and Cash
flow statement dealt with by this report comply with the Accounting
Standard referred to in sub Section(3C) of section 211 of the Companies
Act, 1956 to the extent applicable.
(e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the company are prima facie disqualified as at
31st March 2011 from being appointed as Directors of the company in
terms of Clause (g) of Section 274(1) of the Companies Act,1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the attached accounts subject to the
following qualificatory notes give the information required by the
Companies Act, 1956 in the manner so required.
g) Note No.3 at Schedule - 13 regarding non-provision of doubtful debts
amounting to Rs.260.46 lacs, as a result there of the debit balance of
profit & loss A/c gets understated by the said sum and correspondingly
Sundry debtors, doubtful of recovery not provided for is understand by
the said sum.
h) The company has in past granted/renewal loans and advances to
certain parties which has been Identified as non-performing
asset. Accordingly company has not recognized any income from the same.
In the opinion of the directors, the process of recovery is going on
and the same is not fully doubtful of recovery. However in our opinion
company needs to make provision for such long outstanding
non-performing assets amounting to Rs.136.65 lacs. Due to non-provision
in this regard, the debit balances of profit & loss account is under
stated and the balance of loans and advances is over stated by the said
sum.
Subject to the above qualificatory notes. the attached accounts give
the information referred by the Companies Act.1956 in the manner so
required and it gives a true and fair view.
1) In the case of the Balance Sheet, of the state of the affairs of the
Company as at 31st March, 2011, and
2) In the case of the Profit & Loss Account, of the profit of the
Company for the year ended on that date.
3) In the case of Cash Flow Statement, of the cash flows of the Company
for the year ended on that date:
FOR PANKAJ K. SHAH ASSOCIATES
Firm Regiration No.107352W
CHARTERED ACCOUNTANTS
Place : Ahmedabad
Date : 03.09.2011 (PANKAJ K.SHAH)
PROPRITOR
M.No.34603
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors report to the
members of GUJARAT NATURAL RESOURCES LIMITED, on the accounts for the
year ended on 31st March, 2011.
1.a. According to the information and explanation given to us, the
fixed assets records showing full particulars Including quantitative
details and situation of fixed assets are under complication.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinions reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed
on such physical verification.
c.In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the going Concern status of the
Company is not effected.
2.a. The Inventories lying with the company have been physically
verified by the management to the extent practicable at reasonable
interval during the year or at the year end.
b. In our opinion the procedures of physical verification of
inventories 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 the company is maintaining proper records of
inventories according to the records of the company the discrepancies
noticed on physical verification of stocks as compared to book records
were not material.
3.(a) According to the information and explanations given to us, the
Company has taken/granted unsecured loans from/to companies covered in
the Register maintained under Section 301 of the Companies Act,1956;
(i)(a) The company has taken loan from its wholly owned subsidiary
company covered a in the Register maintained u/s 301 of the Companies
Act. 1956. The amount involved (i.e. the maximum amount outstanding
during the years was Rs.64.00 lacs). Rs. NIL as payable to this party
as at the close of the accounting year.
(b) The Company has taken interest free loans from Four party covered in
the aforesaid Register. The amount involved (i.e. the maximum amount
outstanding during the year was Rs.1001.19 lacs). Rs.458.87 lacs were
payable to these parties as at the close of the accounting year.
(ii)(a) The company has granted loan to its wholly owned subsidiary
company covered in the Register minted u/s 301 of the Companies
Act,1956. The amount involved (i.e. the maximum amount outstanding
during the year was Rs.3154.50 lacs). Rs.3154.50 lacs was receivable
from this party as at the close of the accounting year.
(b) The Company has granted loan to Seven parties in the Register
maintained u/s 301 of the Companies Act,1956.The amount involved (i.e.
the maximum amount outstanding during the year was Rs.1729.58
lacs).Rs.469.54 lacs was receivable from these parties as at the close
of the accounting year.
(b) According to the information and explanation given to us, the terms
and conditions in respect of unsecured loans taken by the Company are
not prima-facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the payment of principal amount are on demand.
(d) In our opinion and according to the information and explanation
given to us, there are no over due amounts in respect of the
transactions listed in clause (a) above.
4. In our opinion and on the basis of test checks carried out by us, it
appears that 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 audit, we have neither come across nor have
been informed of Anya instance of major weakness internal control
procedure, which would require corrective action.
5.a. In our opinion and according to the information and explanations
given to us, there are no transactions that need to be entered in the
Register maintained under Section 301 of the Companies Act,1956.
b. As there are no transactions that need to be entered into register
,maintained under section 301 of the Companies Act, paragraph 4(v)(b)
of the order is not applicable.
6. The Company has not accepted deposits form public.
7. The Company did not have any format internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit in not called for.
8. According to the information given to us by the management the
Central Government has not précised the maintenance of cost records
under Section 209/(1)(d) of the Companies Act, 1956 for the activities
of the Company.
9.(a) The company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor and
protection fund, employees state insurance. income-tax, VAT, wealth
tax, custom duty, Service tax, excise duty, cess and any statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, custom duty,
service tax, excise duty, cess were in arrears, as at 31st March, 2011
for a period of more than six months from the date they became payable.
10. The Company has no accumulated losses and has not incurred any cash
losses during the current financial year and in the immediately
preceding financial year.
11. According to the records of the company, and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financial year.
12. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
13. In our opinion, the provisions of any special statute applicable to
chit fund or nidhi mutual fund or mutual benefit fund/societies are not
applicable to the company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. As per the information and explanations given to us, the company
during the years has not and given guarantees for loans taken by others
form bank.
16. The company has not availed any term loan facility during the year.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet and cash flow statement of the
company for the year under audit, prim faces no funds raised on
short-term basis have been used for long term investment.
18.During the year the company has not made any prudential allotment of
shares to persons covered in the maintained u/s 301 of the Act except
14285285 equity share have been issued to promoters/ non-promoters on
conversion of warrants and OFCD under SEBI Guidelines on Preferential
issue.
19. The company has into issued any debenture during the year.
20. The company has not raised any money by way of public issues during
year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance at fraud
on or by the company as have we been informed of such case by the
management.
FOR PANAKAJ K.SHAH ASSOCIATES
Firm Registration No.107352W
CHARTERED ACCOUNTANTS
Place: Ahmedabad
Date : 03.09.2011
(PANKAJ K.SHAH)
PROPRIETOR
M.No.34603
Mar 31, 2010
1. We have audited the attached Balance Sheet of GUJARAT NATURAL
RESOURCES LIMITED Ahmedabad as at 31st March, 2010 and also the Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the companys management. Our responsibility is to express an
opinion on these financial statements based as on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about weather 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.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we give in the annexure a statement on the matters specified
in paragraphs 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 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 appears from our examination of the
books;
(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
dealt with, by this repor are in agreement with the books of accounts.
(d) In our opinion, Balance Sheet and Profit and Loss account and Cash
flow statement dealt with this report comply with the Accounting
Standard referred to in sub Section 211 (3C) of the Companies Act, 1956
to the extent applicable.
(e) On the basis of the written representations received from the
Directors and taken on record by ihe Board of Directors, we report that
none of the Directors of the company are prima facie disqualified as at
31st March 2010 from being appointed as Directors of the company in
terms of Clause (g) of Section 274(1) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the accounts together with the notes
thereon, give the information required under 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:
(i) In the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March, 2010, and
(ii) In the case of the Profit & Loss Account, of the profit of the
Company for the year ended on tha date.
(iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date :
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors report to the
members of GUJARAT NATURAL RESOURCES LIMITED, on the accounts for the
yearendedon 31st March, 2010.
1. a. According to the information and explanation given to us, the
fixed assets records showing full particulars including quantitative
details and situation of fixed assets are under complilation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the Going Concern status of the
Company is not effected.
2. a. The Inventories lying with the company have been physically
verified by the management to the extent practicable at reasonable
interval during the year or at the year end.
b. In our opinion the procedures of physical verification of
inventories 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 the company is maintaining proper records of
inventories and according to the records of the company the
discrepancies noticed on physical verification of stocks as compared to
book records were not material.
3. a. According to the information & explanations given to us, the
Company has not granted any secured or unsecured loans to any party
listed in the Register required to be maintained under section 301 of
Companies Act, 1956, Accordingly clause 4(iii), (b) (c) & (d) of the
order are not applicable to the company.
b. According to the information & explanations given to us, the
Company has taken interest free unsecured loans from three parties to
be listed in the Register required tobe maintained under section 301 of
the Act. The maximum amount involved during the year was Rs. 310.05
lacs and aggregate outstanding amount of such loan at the year end was
Rs. 310 lacs.
c. In our opinion, the terms and conditions of such loan Is not
prima-facie prejudicial to the interest of the company.
d. In respect of the aforesaid loans, principal amount of loan are
repayable on demand.
e. In respect of the aforesaid loan, there are no overdue amounts.
4. In our opinion and on the basis of test checks carried out by us,
it appears that 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 audit, we have neither come
across nor have been informed of any instance of major weaknesses in
aforesaid internal control procedure, which would require corrective
action.
5. a. In our opinion and according to the information and explanations
given to us, there are no transactions that need to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
b. As there are no transactions that need to be entered into the
register maintained under section 301 of the Companies Act, paragraph
4(v)(b) of the order is not applicable.
6. The Company has not accepted deposits from public.
7. The company did not have any formal internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
8. According to the information given to us by the Management the
Central Government has not prescribed the maintenance of cost records
underSection 209(1)(d) of the Companies Act, 1956forthe activities of
the Company.
9. According to the records of the company, we are of the opinion that
the company has been regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees state insurance, income tax, VAT, wealth
tax, service tax, custom duty, excise duty, Excess and other statutory
dues applicable to it. Based on our audit procedures and according the
information and explanations given to us, and records of the company,
there are not arrears of statutory dues which has remained outstanding
as at 31st March 2010.
10. The company has no accumulated losses and has not incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
11. According to the records of the company, and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financial year.
12. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
13. In our opinion, the provisions of any special statute applicable
to chit fund or nidhi mutual fund or mutual benefit fund/ societies are
not applicable to the company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. As per the information and explanations given to us, the company
during the year has not given guarantees for loans taken by others from
bank.
16. In our opinion, the term loans have been applied forthe purpose
for which they were obtained / raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company for the year under audit, we report that no funds raised on
short-term assets except permanent working capital.
18. The company has made preferential allotment of shares, warrants
and OFCD during the year to outsider under SEBI Guidelines on
Preferential Issue.
19. The Company has not issued any debenture during the year.
20. The company has not raised any money by way of public issues
during year.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the company nor have we beeninformed of such case by the
management.
FOR NAIMISH K. SHAH & CO.
CHARTERED ACCOUNTANTS
(N.K.SHAH)
PROPRIETOR
Place : Ahmedabad.
Date : 04.09.2010
Mar 31, 2009
1. We have audited the attached Balance Sheet of LESHA ENERGY
RESOURCES LIMITED Ahmedabad as at 31st March, 2009 and also the Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the companys management. Our responsibility is to express an
opinion on these financial statements based as on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about weather 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.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we give in the annexure a statement on the matters specified
in paragraphs 4 & 5 of the said Order.
4. Further toourcommentsintheAnnexurereferredto in paragraph 3 above,
we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary forthe 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 appears from our examination of the
books;
(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
dealt with, by this report are in agreement with the books of accounts.
(d) In our opinion, Balance Sheet and Profit and Loss account and Cash
flow statement dealt with this report comply with the Accounting
Standard referred to in sub Section 211 (3C) of the Companies Act, 1956
to the extent applicable.
(e) On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the company are prima facie disqualified as at
31sl March 2009 from being appointed as Directors of the company in
terms of Clause (g) of Section 274(1) of the Companies Act,1956.
(f) In our opinion and to the best of our information and according to
the explanation given to us, the accounts together with the notes
thereon, give the information required under 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:
(i) In the case of the Balance Sheet, of the state of the affairs of
the Company as at 31st March, 2009, and
(ii) In the case of the Profit & Loss Account, of the profit of the
Company for the year ended on that date.
(iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date:
ANNEXURE TO THE AUDITORSREPORT
Annexure referred to in paragraph 3 of the Auditors report to the
members of LESHA ENERGY RESOURCES LIMITED, on the accounts for the year
ended on 31st March, 2009.
1. a. According to the information and explanation given to us, the
fixed assets records showing full particulars including quantitative
details and situation of fixed assets are under complilation.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner which
in our opinion is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the company has not disposed of substantial part of
its fixed assets during the year and the Going Concern status of the
Company is not effected.
2. a. The Inventories lying with the company have been physically
verified by the management to the extent practicable at reasonable
interval during the year or at the year end.
b. In our opinion the procedures of physical verification of
inventories 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 the company is maintaining proper records of
inventories and according to the records of the company the
discrepancies noticed on physical verification of stocks as compared to
book records were not material.
3. a. The Company has not granted any loans, or advances in the
nature of loans to companies, firms or other parties listedin the
registerto be maintained under Section 301 of the Companies Act, 1956.
b. The company has not taken any unsecured loans from any company to be
listed in the Register required to be maintained under section 301 of
the Act.
4. In our opinion and on the basis of test checks carried out by us,
it appears that 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 audit, we have neither come
across nor have been informed of any instance of major weaknesses in
aforesaid internal control procedure, which would require corrective
action.
5. a. In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered in the Register maintained under Section 301 of the Companies
Act, 1956.
b. As there are no transactions that need to be entered into the
register maintained under section 301 of the Companies Act, paragraph
4(v)(b) of the order is not applicable.
6. The Company has not accepted deposits from public.
7. The company did not have any formal internal audit system during
the year under review. In the opinion of the management, the existing
internal control procedures are adequate and hence separate internal
audit is not called for.
8. According to the records of the company, we are of the opinion that
the company has been regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees state insurance,
income tax, VAT, wealth tax, service tax, custom duty, excise duty,
Excess and other statutory dues applicable to it. Based on our audit
procedures and according the information and explanations given to us,
and records of the company, there are no arrears of statutory dues
which has remained outstanding as at 318l March 2009.
9. Ã The company has no accumulated losses and has not incurred any
cash losses during the current financial year and in the immediately
preceding financial year.
10. According to the records of the company, and the information and
explanations given to us, the company has not defaulted in repayment of
dues to a financial institution or bank during the financial year.
11. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares and other
securities.
12. In our opinion, the provisions of any special statute applicable
to chit fund or nidhi mutual fund or mutual benefit fund/ societies are
not applicable to the company.
13. As per the information and explanations given to us, the company
during the year has not given guarantees for loans taken by others from
bank.
14. In our opinion, the term loans have been applied for the purpose
for which they were obtained / raised.
15. According to the information and explanations given to us and on
an overall examination of the balance sheet and cash flow statement of
the company for the year under audit, we report that no funds raised on
short-term assets except permanent working capital.
16. The company has made preferential allotment of shares during the
year to outsides under SEBI Guidelines on Preferential Issue.
17. The Company has not issued any debenture during the year.
18. The company has not raised any money by way of public issues
during year.
19. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the company nor have we been informed of such case by the
management.
FOR NAIMISH K. SHAH & CO.
CHARTERED ACCOUNTANTS
Place : Ahmedabad
Date : 01.09.2009
(N.K.SHAH)
PROPRIETOR
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