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Garg Furnace Ltd.

BSE: 530615 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE194E01015
BSE LIVE 19:17 | 19 Oct 14.32 0.68
(4.99%)
OPEN

14.32

HIGH

14.32

LOW

14.32

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 14.32
PREVIOUS CLOSE 13.64
VOLUME 1000
52-Week high 15.12
52-Week low 8.26
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.32
Sell Qty 999.00
OPEN 14.32
CLOSE 13.64
VOLUME 1000
52-Week high 15.12
52-Week low 8.26
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 14.32
Sell Qty 999.00

Garg Furnace Ltd. (GARGFURNACE) - Auditors Report

Company auditors report

To

The Members of

GARG FURNACE LIMITED

Report on the Financial Statements

We have audited the accompanying Financial Statements of Garg Furnace Limited("the Company") Kanganwal Road V.P.O. Jugiana G. T. Road Ludhiana whichcomprise the Balance Sheet as at March 31 2015 the Profit and Loss Statement and CashFlow Statement for the year then ended and a summary of significant accounting policiesand other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the matters stated in Section 134(5) of the CompaniesAct2013 ("the Act") with respect to the preparation and presentation of thesefinancial statements that give a true and fair view of the financial position financialperformance and Cash flows of the Company in accordance with the Accounting principlesgenerally accepted in India including the Accounting Standards specified under Section 133of the Companies Act 2013 read with rule 7 of the Companies (Accounts) Rules2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the consolidated financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ 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 thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Companies Act2013("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 misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on auditor’sjudgment including assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments; the auditorconsiders internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An auditor also includes evaluating the appropriatenessof accounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.

We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner 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 2015 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 30 to the financial statements which describes theuncertainty related to outcome of appeal filled by the Company against demand of PunjabPower Corporation Ltd. However our Opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraph 3 and 4 of the Order.

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

a) We have obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as 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 Balance Sheet the statement of Profit and Loss and the CashFlow Statement comply with the Accounting Standards specified under Section 133 of theCompanies Act2013 read with rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theCompanies Act 2013.

f) With respect to 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 explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financialpositions in its financial statements as referred to in note 30 to its financialstatements.

ii) The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii) There were no amount which were required to be transferred to Investor Educationand Protection Fund by the company.

For Dass Khanna & Co.
Chartered Accountants
(Reg No. 000402N )
Sd/-
(CA AMARJIT KAMBOJ)
Place: LUDHIANA. PARTNER
Date : 30-05-2015 M. No. 082152

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT

(REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS"OF OUR REPORT OF EVEN DATE.)

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

b). All the assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

(ii) a). The inventory has been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.

b). The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c). The company is maintaining proper records of inventory. The discrepancies noticedon verification between physical stocks and the book records were not material.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained undersection 189 of the companies Act 2013. Consequently the provisions of clauses iii (b)and iii (c) of paragraph 3 of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to usthere is adequate internal control system commensurate with the size of the company andthe nature of its business for purchases of inventory fixed assets and for sale of goodsand services. During the course of our audit we have not observed any continuing failureto correct major weaknesses in internal control system.

(v) According to the information and explanations given to us the Company has notaccepted deposits within the meaning of Section 73 to 76 or other relevant provisions ofthe Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 during theyear. No order has been passed by the Company Law Board or National Company Law Tribunalor Reserve Bank of India or any court or any other Tribunal.

(vi) We have broadly reviewed the books of account relating to materials labour andother items of cost maintained by the company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 148(1) of the Companies Act2013 and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have however not made a detailed examination of the recordwith a view to determine whether they are accurate or complete.

(vii) a). The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income tax salestax custom duty excise duty cess service tax and other material statutory duesapplicable to it.

b). According to the information and explanations given to us there are no dues ofsales tax income tax custom duty excise duty cess and service tax which have not beendeposited on account of any dispute except mentioned below:

Name of Statute Nature of Dues Forum where appeal is pending Period to which amount relates Amount involved in Rs
Income Tax Act1961 Income Tax ITAT A.Y 2008-09 29.00 Lacs
Income Tax Act1961 Income Tax ITAT A.Y 2010-11 10.00 Lacs
Income Tax Act1961 Income Tax ITAT A.Y 2011-12 12.11 Lacs

c). According to the information and explanations given to us there is no amount whichis required to be transferred to Investor education and protection fund in accordance withrelevant provisions of the Companies Act 1956 (1 of 1956) and rules there under.

(viii) The Company does not have any accumulated losses further it has not incurredcash losses during the financial year covered by our audit and in the immediatelypreceding financial year.

(ix) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to bank/ financial institutions.

(x) The Company has not given guarantees for loan taken by others from banks orfinancial institutions.

(xi) In our opinion and according to the information and explanation given to us theterm loans have been applied for the purpose for which they were obtained.

(xii) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the year.

For Dass Khanna & Co.
Chartered Accountants
(Reg No. 000402N )
Sd/-
(CA AMARJIT KAMBOJ)
Place: LUDHIANA. PARTNER
Date : 30-05-2015 M. No. 082152