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Gujarat Mineral Development Corporation Ltd.

BSE: 532181 Sector: Metals & Mining
NSE: GMDCLTD ISIN Code: INE131A01031
BSE LIVE 15:40 | 14 Dec 156.35 -1.15
(-0.73%)
OPEN

160.00

HIGH

163.50

LOW

155.40

NSE 15:52 | 14 Dec 155.80 -1.40
(-0.89%)
OPEN

160.05

HIGH

160.90

LOW

155.05

OPEN 160.00
PREVIOUS CLOSE 157.50
VOLUME 23900
52-Week high 181.20
52-Week low 89.05
P/E 12.67
Mkt Cap.(Rs cr) 4,972
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 160.00
CLOSE 157.50
VOLUME 23900
52-Week high 181.20
52-Week low 89.05
P/E 12.67
Mkt Cap.(Rs cr) 4,972
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Mineral Development Corporation Ltd. (GMDCLTD) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To

The Members of

Gujarat Mineral Development Corporation Limited Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of Gujarat MineralDevelopment Corporation Limited ("the Company") which comprise the BalanceSheet as at 31st March 2016 the Statement of Profit and Loss the Cash FlowStatement for the year then ended and a summary of the significant accounting policiesand other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 and its profit/loss and its 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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. In terms of Section 143(5) of the Act we give in Annexure '2(i) & 2(ii)' astatement on the directions issued under the aforesaid section by the Comptroller andAuditor General of India.

3. 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 bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofSection 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in 'Annexure B'.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements- Refer Note 2.22 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S.C. Ajmera & Co.
Chartered Accountants
FRN: 002908C
S.C. Ajmera
Place : Ahmedabad Partner
Date : 26.05.2016 M. No. 081398

ANNEXURE TO THE AUDITOR’S REPORT

(Referred to Para (1) our Report of even date)

The Annexure referred to in our report to the members of Gujarat Mineral DevelopmentCorporation Limited ("the Company") for the year ended 31 March 2016.

We report that:

i. In respect of Fixed Assets

a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. The Company has a program of physical verification of its fixed assets by whichfixed assets are verified at reasonable intervals. In accordance with this program fixedassets were verified during the year and discrepancies which were noticed on suchverification were properly dealt with in the books of accounts.

c. The title deeds of immovable properties are held in the name of the company.

ii. In respect of Inventory

a. The physical verification of inventory has been conducted at reasonable intervals bythe Management.

b. The procedure of physical verification of inventory followed by the management isreasonable and adequate in relation to the size of company and the nature of its business.

c. The company has maintained proper records of inventory. The discrepancies noticed onsuch verification between the physical stock and book stock was not material and the samehave been properly dealt with in the books of accounts.

iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Therefore requirement of clauses (iii) of the paragraph 3 of the order is notapplicable to the company.

iv. In respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with.

v. The company has not accepted any deposits during the year as per the directivesissued by the Reserve Bank of India and within the meeting of the provisions of sections73 to 76 and other relevant provisions of the Companies Act and the rules framed thereunder where applicable. Thus the clause (v) of paragraph 3 of the order is notapplicable to the company.

vi. In pursuant to the order made by the Central Government for the maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 the company hasmade and maintained the prescribed accounts and records.

vii. In respect of statutory dues

a. According to the information and explanations given to us and on the basis of ourexamination the company is generally regular in depositing undisputed statutory dueincluding provident fund Investor Education and Protection Fund Employee's StateInsurance Income tax sales tax wealth tax service tax duty of excise value added taxand cess and any other statutory dues with appropriate authorities.

b. The details of excise duty income tax and sales tax not deposited on account ofdispute are as under:

Name of Statute Nature of the Dues Period to which the amount relates Amount ( Rs. In lakh) Forum where dispute is pending
Commercial tax Sales tax/VAT 1993-94 21.78 Hon. High Court
1995-96 98.92 Appellate Tribunal
1997-98 2.45 Appellate Tribunal
Commercial tax CST 1997-98 4.26 Appellate Tribunal
Central Excise Act 1944 Excise duty 2015-16 504.39 Commissioner of Central Excise

viii. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year.

ix. Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations give to us the Company has notpaid/provided for managerial remuneration during the year.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where ever applicable and the details have been disclosed in the Financial Statements etc.as required by the applicable accounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.

xv. According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not entered into non-cashtransactions with directors or persons connected with him during the year.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For S.C. Ajmera & Co.
Chartered Accountants
FRN: 002908C
S.C. Ajmera
Place : Ahmedabad Partner
Date : 26.05.2016 M. No. 081398

ANNEXURE ‘B’ TO THE AUDITORS’ REPORT

Report on Internal Financial Controls over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GujaratDevelopment Mineral Corporation Limited ("the Company") as of March 312016 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S.C. Ajmera & Co.
Chartered Accountants
FRN: 002908C
S.C. Ajmera
Place : Ahmedabad Partner
Date : 26.05.2016 M. No. 081398