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Gallantt Ispat Ltd.

BSE: 533265 Sector: Metals & Mining
NSE: GALLISPAT ISIN Code: INE528K01011
BSE LIVE 12:10 | 04 Dec 173.55 -9.10
(-4.98%)
OPEN

173.55

HIGH

173.55

LOW

173.55

NSE 15:45 | 07 Aug Stock Is Not Traded.
OPEN 173.55
PREVIOUS CLOSE 182.65
VOLUME 1
52-Week high 510.35
52-Week low 173.55
P/E 13.08
Mkt Cap.(Rs cr) 490
Buy Price 0.00
Buy Qty 0.00
Sell Price 173.55
Sell Qty 25449.00
OPEN 173.55
CLOSE 182.65
VOLUME 1
52-Week high 510.35
52-Week low 173.55
P/E 13.08
Mkt Cap.(Rs cr) 490
Buy Price 0.00
Buy Qty 0.00
Sell Price 173.55
Sell Qty 25449.00

Gallantt Ispat Ltd. (GALLISPAT) - Auditors Report

Company auditors report

on Standalone Financial Statements

Report on the financial statements

We have audited the accompanying financial statements of GALLANTT ISPAT LIMITED ('TheCompany') which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information which we have signedunder reference to this report.

Management's Responsibility for the 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 2015. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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 financial statements based on ouraudit.

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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of 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 financial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India.

a) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;

b) in the case of the Statement of Profit & Loss of the Profit of the Company forthe year ended on that date; and

c) in the case of the Cash Flow Statement of the Cash Flows for the year ended on thatdate.

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 a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that :

a) We have sought and obtained all the information and explanations which to the 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(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" and

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 no. 41 & 42 regarding recognition offreight subsidy of ' 3223.77 lacs which is subject to decision of honorable High Court andin case decision comes against the Co. the profit for the year will be reduced by '3223.77 lacs.

ii) The Company did not have any longterm 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.

3. As required by clause d of Rule 11 of Companies (Audit and Auditors) Rules 2014 wereport that Company has provided requisite disclosures in its financial statement as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the company. Refer Note No - 38b.

For Anoop Agarwal & Co.
Chartered Accountants
Firm Reg. no. 001739C
(Amit Kumar Srivastava)
Place: Kolkata Partner
Dated: 04.05.2017 Membership No. 517195

Annexure A to the Independent Auditor's Report to the Shareholders

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2017 we reportthat:

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

(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such physicalverification.

(c) According to the information and explanation given to us the title deeds ofimmovable properties of the Company are held in the name of the Company.

2. The inventories have been physically verified during the year by the management andin our opinion the frequency of verification is reasonable.

As explained to us no material discrepancies were noti ced on physical verificati onof inventories as compared to the book records.

3. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersecti on 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanati ons given to us thecompany has complied with the provisions of secti on 185 and 186 of the Companies Act2013 in respect of loans investment guarantees and security.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year. Therefore the provisions of clause3(v) of the Companies (Auditor's Report) Order 2016 are not applicable to the Company.

6. As per information & explanation given by the management maintenance of costrecords has been prescribed by the Central Government under sub-section (1) of section 148of the Act and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. We have not however made a detailed examination of therecords with a view to determine whether they are accurate and complete.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31 March 2016 for a period of more than six months from the date they became payable. b)According to the information and explanations given to us there are no material dues ofincome tax sales tax service tax custom duty excise duty value added tax and cesswhich have not been deposited with the appropriate authorities on account of any dispute.However according to information and explanations given to us the following dues ofvalue added tax have not been deposited by the Company on account of disputes given below:

Statute Nature of dues Forum where dispute is Pending Period to which the amount relates Amount involved (' in Lakh)
UP VAT ACT 2008 VAT Government of Uttar Pradesh August 2011 to March 2017 8801.58 (Refer Note no. 39)

8. Based on our audit procedures and according to the informati on and explanati onsgiven to us the Company has not defaulted in repayment of loans or borrowing to financialinstitution bank Government or dues to debenture holders. There were no debentureholders at any time during the year.

9. In our opinion and according to the information and explanati ons given to us theCompany has not raised moneys by way of Initial Public offer or further public offer ornew term loans during the year. However the term loans outstanding at the beginning ofthe year have been applied for the purpose for which the loans were raised.

10. To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud on or by the company by its officers oremployees during the year was noticed or reported nor have we been informed of such caseby the management.

11. In our opinion the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act.

12. In our opinion the Company is not a Nidhi company. Therefore the provisions ofclause 3 (xii) of the Companies (Auditor's Report) Order 2016 are not applicable to theCompany.

13. In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review and therefore the provisions of clause 3(ix) ofthe Companies (Auditor's Report) Order 2016 are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us thecompany has not entered in to any non-cash transactions with directors or personsconnected with him.

16. In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Anoop Agarwal & Co.
Chartered Accountants
Firm Reg. No. 001739C
(Amit Kumar Srivastava)
Place: Kolkata Partner
Dated: 04.05.2017 Membership No. 517195

Annexure B to the Independent Auditor's Report

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 GALLANTTISPAT LIMITED ("the Company") as of 31 March 2017 in conjunction with our auditof 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 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 ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 auditors' judgment 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany'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 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 31 March 2017 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 Anoop Agarwal & Co.
Chartered Accountants
Firm Reg. No. 001739C
(Amit Kumar Srivastava)
Place: Kolkata Partner
Dated: 04.05.2017 Membership No. 517195