Independent Auditors' Report
To The Members of
GCM CAPITAL ADVISORS LIMITED
Report on Financial Statements
We have audited the accompanying financial statement of GCM CAPITAL ADVISORS LIMITEDwhich comprise the Balance Sheet as at March 31 2014 and the Statement of Profit andLoss and Cash Flow Statement for the year ended and a summary of Significant accountingpolicies and other explanatory statements.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statement that give atrue and fair view of the financial position financial performance and cash flows of thecompany in accordance with the accounting standards referred to in sub-section (3C) ofsection 211 of the companies act 1956 ("the Act") which shall continue to applyin respect of section 133 of the Companies Act 2013 in terms of General Circular 15/2013dated September 13 2013 issued by the Ministry of Corporate Affairs. This responsibilityincludes the design implementation and maintenance of internal control relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amount anddisclosure in financial statements. The procedure selected depends on the auditorsjudgment including the assessment of risk of the material misstatement of the financialstatement whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the companys preparation and fairpresentation of the financial statements in order to design audit procedure that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimate made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the above matter the accompanyingfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principal generallyaccepted in India.
a. In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2014; and
b. In the case of the Statement of Profit & Loss of the profit for the year endedon that date.
Report on other legal and regulatory requirements:-
1. As required by the Companies (Auditors Report) Order 2003 as amended bycompanies (Auditors report) Amendment order 2004 issued by the Central Governmentof India in terms of sub-section (4A) of section 227 of the Companies Act 1956 weenclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of thesaid Order.
2. As required by section 227(3) of the Companies 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 purposes 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 & 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 notified under the Companies Act 1956read with the General Circular 15/2013 dated 13th September 2013 of the Ministry ofCorporate Affairs in respect of Section 133 of the Companies Act 2013;
e) On the basis of written representations received from the directors as on 31stMarch 2014 and taken on record by the Board of Directors we report that none of thedirectors are disqualified as on 31st March 2014 from being appointed as a director interms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956;
f) Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the company.
For Maheshwari & Co.
FRN No. 105834W
M. No. 075872
Date: May 18 2014
ANNEXURE TO INDEPENDENT AUDITORS REPORT
Report in terms of Paragraph 4 and 5 in Section 227(4A) of the Companies Act 1956(Companies (Auditors Report) Order 2003) issued by the Central Government:
1. FIXED ASSETS
a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
b. As explained to us the assets have been physically verified by the management inaccordance with a phased program of verification of its Fixed Assets including CapitalWork in Progress adopted by the Company which in our opinion is reasonable consideringthe size and the nature of its business.
c. According to information and explanations given to us the company has not disposedoff substantial part of its fixed assets during the year and the going concern status ofthe company is not affected.
According to the information and explanations given to us and being the nature of thebusiness no such inventory is maintained by the company hence this clause is notapplicable to the company.
3. LOANS AND ADVANCES GRANTED / TAKEN FROM CERTAIN ENTITIES
According to the information and explanations given to us the Company has not taken orgranted any loans secured or unsecured to / from companies firms or other partiescovered in the Register maintained under Section 301 of the Companies Act 1956:
4. INTERNAL CONTROL SYSTEM
In our opinion and according to the information and explanations given to us there isinternal control system for the purchase of inventory and fixed assets and for the sale ofgoods and services commensurate with the size of the company and the nature of itsbusiness.
5. CONTRACTS OR ARRANGEMENT REFERRED TO IN THIS SECTION 301 OF THE COMPANIES ACT 1956
According to the information and explanations given to us we are of the opinion thatthe particulars of contracts or arrangements referred to in section 301 of the act thatneed to be entered in the Register required to be maintained under that section have beenentered.
In our opinion and according to the information and explanations given to us inrespect of transactions which have been made in pursuance of contracts or arrangemententered in the register maintained under Section 301 and exceeding the value of INR500000/- in respect of any party during the period have been made at prices which arereasonable having regard to the prevailing market price at the relevant time wherecomparable market price exist.
6. ACCEPTANCE OF DEPOSITS
In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 58A or 58AA or any other relevantprovisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules1975 with regard to the deposits accepted from the public and the directives issued by theReserve Bank of India in this matter. According to the information and explanation givento us no order has been passed by the Company Law Board or the National Company LawTribunal or the Reserve Bank of India or any Court or any other Tribunal in this regard.
7. INTERNAL AUDIT SYSTEM
According to the information and explanations given to us the Company has an internalaudit system commensurate with the size and nature of its business however no such reportshave been produced before us for our verification.
8. COST RECORDS
We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Accounting Records) Rules 2011 prescribed by the Central Government underSection 209(1)(d) of the Companies Act 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.
9. STATUTORY DUES
According to the information and explanations given to us in respect of statutory andother dues:
(a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education and ProtectionFund Employees State Insurance custom duty excise duty and other statutory duesapplicable to it except for TDS as at the end of the year were Rs. 233936/-.
(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Investor Education and Protection FundEmployees State Insurance custom duty sales tax excise duty and other statutorydues were outstanding is nil as at March 31 2014 for a period of more than six monthsfrom the date were they became payable.
(c) According to the information and explanations given to us and based on recordsproduced to us there are no dues of Income tax Service tax Provident Fund InvestorEducation and Protection Fund Employees State Insurance custom duty sales tax andexcise duty which have not been deposited on account of any dispute.
10. ACCUMULATED LOSSES
The Company has no accumulated losses at the end of the financial year however it hasnot incurred any cash losses during the financial year covered by our audit and not in theimmediately preceding financial year.
11. DUES TO FINANCIAL INSTITUTIONS BANKS AND DEBENTURE HOLDERS
According to the information and explanations given to us and based on the documentsand records produced to us the Company has not taken any loans from financialinstitutions or banks during the financial year covered under audit hence this clause isnot applicable to the Company.
12. SECURITY FOR LOANS & ADVANCES GRANTED
According to the information and explanations given to us the Company has not grantedloans and advances on the basis of security by way of pledge of shares debentures andother securities and accordingly this clause is not applicable to the Company;
13. SPECIAL STATUTE
In our opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special statute applicable tochit fund and nidhi / mutual benefit fund/ societies and accordingly this clause is notapplicable to the Company;
14. DEALINGS/TRADING IN SHARES SECURITIES DEBENTURES AND OTHER INVESTMENTS
In our opinion and according to the information and explanations given to us theCompany has dealing in shares securities and other investments. Proper records have beenmaintained of the transactions and contracts and timely entries have been made therein.The shares and securities and other investments have been held by the company in its ownname.
15. GUARANTEES GIVEN
According to the information and explanations given to us the company has not givenany guarantee for loans taken from banks or financial institutions by others thereforethe provisions of clause 4(xv) of the Companies (Auditors Report) Order 2003 are notapplicable to the Company.
16. TERM LOANS
In our opinion and according to the information and explanation given to us theCompany has not taken any term loan hence this clause is not applicable to the Company.
17. UTILISATION OF FUNDS
According to the information and explanations given to us on an overall examination ofthe Balance Sheet and Cash Flows of the Company we report that the Company has notutilized funds raised on short-term basis for long-term investment;
18. PREFERENTIAL ALLOTMENT OF SHARES
During the year the Company has made preferential allotment of shares to parties andcompanies covered under register maintained under section 301 of the Companies Act 1956.According to the information and explanations given to us the price at which shares havebeen issued is not prejudicial to the interest of the Company.
19. SECURITY FOR DEBENTURES ISSUED
The Company has not issued any debentures during the year and accordingly this clauseof the order is not applicable to the Company;
20. PUBLIC ISSUE OF EQUITY SHARES
The Company has not raised any money during the year through public issue although thepublic issue of the Company opened for subscription on May 5 2014 and closed on May 72014 pursuant to which allotment was done on May 16 2014.
21. FRAUDS NOTICED
During the course of our examination of the books and records of the Company carriedout in accordance with generally accepted auditing practices in India and according tothe information and explanations given to us we have neither come across any instances offraud on or by the Company noticed or reported during the year nor have we been informedof such case by management.
For Maheshwari & Co.
Firm Registration Number: 103854W
Membership Number - 075872
Date: May 18 2014