You are here » Home » Companies » Company Overview » Gontermann Peiper (India) Ltd

Gontermann Peiper (India) Ltd.

BSE: 504701 Sector: Engineering
NSE: GONTERPEIP ISIN Code: INE530A01026
BSE LIVE 14:27 | 20 Nov 6.80 -0.20
(-2.86%)
OPEN

6.75

HIGH

6.80

LOW

6.75

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 6.75
PREVIOUS CLOSE 7.00
VOLUME 1501
52-Week high 9.20
52-Week low 5.87
P/E
Mkt Cap.(Rs cr) 15
Buy Price 6.80
Buy Qty 500.00
Sell Price 7.35
Sell Qty 57.00
OPEN 6.75
CLOSE 7.00
VOLUME 1501
52-Week high 9.20
52-Week low 5.87
P/E
Mkt Cap.(Rs cr) 15
Buy Price 6.80
Buy Qty 500.00
Sell Price 7.35
Sell Qty 57.00

Gontermann Peiper (India) Ltd. (GONTERPEIP) - Auditors Report

Company auditors report

TO THE MEMBERS OF GONTERMANN-PEIPERS (INDIA) LIMITED

Report on the financial statements

We have audited the accompanying financial statements of GONTERMANN-PEIPERS (INDIA)LIMITED ("the company") which comprise the Balance Sheet as at March 312015 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand 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 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 Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such control.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by 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 financial statements.

Emphasis Matters

Without qualifying our opinion we draw attention to the following notes to thefinancial statements:

a) Note No. 30 to the financial statements relating to remuneration paid in earlieryears to the Ex Managing Director of the Company in excess of the limits prescribed undersection 198 read with Schedule XIII to the Act and consequent initiation of recoveryprocess of such excess remuneration after rejection of application u/s 309(5B) of theCompanies Act 1956 by the Central Government.

b) Note No. 31 to the financial statements wherein as explained Corporate DebtRestructuring (CDR) Scheme is effective from 1st January 2012. The outstandingliabilities of the company have been substantially restructured under the aegis of CDRScheme which extends till 2021 and stipulation relating to creation of pari-passu chargeon the immovable assets of the company is pending for which NOC for ceding first/secondcharge on the fixed assets of the company has been obtained from the existing chargeholder so as to execute necessary legal documents but NDC has not yet been obtained.

c) Note No. 32 to the financial statements relating to the Scheme of Amalgamation theaccounting treatment laid out in the scheme and consequential adjustments that would arisewill be dealt by the company in the financial statements upon effectiveness of thescheme.

d) Note No. 33 to the financial statements which indicates the basis and factors forerosion of net worth of the company and position of accumulated losses in excess of networth of the company. The company has incurred a net cash loss during the current year andin the previous year(s) and the company’s current liabilities exceeded its currentassets as at the balance sheet date and the company has defaulted in repayment of interestand principal on borrowings. This conditions along with other matters set forth in theabove referred note indicates that the existence of material uncertainty that castssignificant doubt about the company’s ability to continue as a going concern.However based upon management’s perspective of improved performance and financialposition on account of expected enhancement of working capital limits/term loans frombank infusion of promoter’s contribution diversification in business activities andsynergy benefits on amalgamation after necessary approval from High Court and itsimplementation the financial statements of the company have been prepared by themanagement on a going concern basis.

e) Note No. 34 to the financial statements relating to non-confirmation andreconciliation of most of the parties relating to trade receivable and payable advancesto suppliers and from customers and its consequential impact on the financial statement.

f) The Board of Directors has authorized Mr. Dwijen Lahiri Whole Time Director andProf. Manoj Kumar Mitra Independent Director of the company to sign the financialstatements of the company as at 31st March 2015 for and on behalf of the Board ofDirectors as the Managing Director is not available on medical grounds since considerableperiod.

Basis for Qualified Opinion

a) Capital Advances (Note No. 12) includes long outstanding advances to the tune of Rs.1166.82 Lacs (Including amount represented as trade receivable) and Advances to Suppliers(Note No. 16- Other Loans & Advances) includes long outstanding advances to the tuneof Rs. 630.75 Lacs in respect of which no Confirmation/ Acknowledgement/ Schedule ofdelivery was available the consequential revenue impact if any is not ascertainable.Accordingly provision for advances doubtful for recovery/ adjustment is necessary andnon-creation of such provision is contrary to the requirements of Accounting Standard-4"Contingencies and Events occurring after the Balance Sheet date".

b) The company has recognized Net deferred tax asset (DTA) of Rs. 2820.74 Lacs(including Rs 1059.28 Lacs for the period) up to 31st March 2015 on account of unabsorbeddepreciation carried forward business losses and disallowances under Income Tax laws(Refer Note No. 11 and 45) based on the future profitability projections made by themanagement. The company has history of recent losses and in the absence of virtualcertainty supported by convincing evidence to the fact that sufficient taxable income willbe available against which such deferred tax assets can be realized and alsonon-disclosure of its nature in our opinion the recognition of deferred tax asset is incontravention to Accounting Standard-22 " Accounting for Taxes on Income".

Had the impact of item stated above been considered the loss for the year would havebeen Rs. 4620.66 Lacs (after adjusting deferred tax assets of Rs.1445.82 Lacs recognizedupto 31st March 2014) as against the reported loss of Rs.2115.56 Lacs and balance inReserve and Surplus would have been Rs. (1522.44) Lacs as against the reported Reserve andSurplus of Rs.1298.30 Lacs.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements except for the possible effects of thematter described in the Basis for Qualified Opinion paragraph give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith 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 March31 2015;

b) in the case of the Statement of Profit and Loss of the LOSS the year ended on thatdate; 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 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks as we considered appropriate andaccording to the information and explanations given to us we enclose in the annexure astatement on the matters specified in paragraphs 3 of the Order to the extent applicableto the company relevant to this year.

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 appears from our examination of those books.

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

d) Except for the matters described in Basis for Qualified Opinion paragraphs above inour opinion the aforesaid financial statements comply with the Accounting Standardsspecified 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 31 March2015 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2015 from being appointed as a director in terms of Section 164(2) of theAct.

f) With respect to the other matters included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014 in ouropinion and to our 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. 28 to the financial statement.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

For V. Malik & Associates
Chartered Accountants
ICAI Firm’s Reg. No. 000155N
Vipin Malik
Place: Camp Kolkata/New Delhi (Proprietor)
Date: 29th May 2015 Membership No. 080468

ANNEXURE TO THE AUDITOR’S REPORT TO THE MEMBERS OF GONTERMANN-PEIPERS (INDIA)LIMITED FOR THE YEAR ENDING 31ST MARCH 2015

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

(i) In respect of its fixed Assets:

(a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) As explained to us the Company has physically verified certain assets during theyear in accordance with a programme of verification which in our opinion provides forphysical verification of fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(ii) In respect of its inventories:

(a) As explained to us inventories were physically verified during the year by themanagement at reasonable intervals.

(b) In our opinion and according to information and explanations given to us theprocedures of physical verification of inventories followed by the management werereasonable and adequate in relation to the size and the nature of its business.

(c) In our opinion and according to information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) Transactions with parties’ u/s 189 of the Companies Act 2013

a) The company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act.Hence the provisions of clause (iii) (a) (b) of paragraph 3 are not applicable to theCompany. The company has not taken any loan secured or unsecured from companies firms orother parties covered in the register maintained under Section 189 of the Companies Act.

b) In view of what has been stated in para (iii) clause (a) above the question ofreceipt/repayment of principal amount and interest thereof does not arise.

c) In view of what has been stated in para (iii) clause (a) above the question ofoverdue amount more than rupees one lakh and reasonable steps for the recovery ofprincipal amount and interest thereof does not arise.

(iv) Internal Control

In our opinion and according to the information and explanations given to us there areadequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchases of inventory fixed assets and with regardto purchase of inventory and fixed assets and for the sale of goods and services

(v) Deposits from the public

In our opinion and according to the information and explanations given to us companyhas not accepted deposits from the public the provisions of sections 73 to 76 or anyother relevant provisions of the Companies Act and the rules framed there under withregard to the deposits accepted from the public are not applicable.

(vi) Maintenance of Cost records

We have broadly reviewed the books of accounts maintained by the company pursuant tothe order made by the Central Government for the maintenance of cost records undersub-section (1) of section 148 of the Companies Act and are of the opinion that prima-facie the prescribed accounts and records have been maintained. We have not however madea detailed examination of the records to ascertain whether they are accurate or complete.

(vii) Statutory dues

a) According to information and explanations given to us and records of the companyexamined by us in our opinion the company is not regular in depositing undisputedstatutory dues including Provident Fund Investor Education and Protection FundEmployees’ State Insurance Income tax Sales-tax Wealth tax Custom Duty ExciseDuty Cess Duty Cess and other statutory dues with the appropriate authorities during theyear.

b) According to information and explanations given to us no undisputed amount payablein respect of income tax wealth tax sales tax custom duty excise duty and cess were inarrears as at 31st March 2015 for a period of more than six months from the date theybecame payable.

c) According to information and explanations given to us following disputed demandshave not been deposited the details of disputed dues are:

c) According to information and explanations given to us following disputed demandshave not been deposited the details of disputed dues are:

Nature of the dues Amount Period to which amount relates Forum where dispute is pending
(Rs. in Lacs)
Excise Duty 209.09 1975 to 1986 Hon’ble High Court Calcutta
4.66 1993-1994 Tribunal (Central Excise)
1.39 2002-2003 Joint Commissioner (Central Excise)
8.60 1998-1999 Commissioner Appeal (Central Excise)
2.02 2007-2008 Commissioner Appeal (Central Excise)
2.09 2006-2007 CESTAT
5.68 2007-2008 CESTAT
4.57 2008-2009 CESTAT
0.96 2008-2009 Commissioner Appeal (Central Excise)
1.39 2007-2008 CESTAT
0.31 2008-2009 Commissioner Appeal (Central Excise)
6.31 2008-2009 Commissioner Appeal
92.26 upto 1977 Hon’ble High Court Calcutta
Sales Tax 34.08 2007-2008 Revision Board of Commercial Tax
84.82 2009-2010 Additional Commissioner
0.82 2010-2011 Senior Joint Commissioner of Sales Tax
20.56 2010-2011 Senior Joint Commissioner of Sales Tax
19.98 2011-12 Additional Commissioner
239.27 1994-1995 Hon’ble High Court Calcutta
93.36 2001-2002 Hon’ble High Court Calcutta
Custom 1.50 1997-1998 Hon’ble High Court Calcutta
Income Tax 177 A.Y.1998-1999 Hon’ble High Court
1539 A.Y. 2000-2001 Hon’ble High Court
Service Tax 11.17 2006-07 to 2008-09 Tribunal (Central Excise)
5.38 2009-2010 Commissioner Appeal Central Excise
85.57 2004-05 to 2007-08 Commissioner Appeal Central Excise

d) In our opinion and according to the information and explanations given to us thereis no amount which required to be transferred to investor education and protection fund inaccordance with the relevant provisions of the Companies Act and rules made hereunder.

viii) Accumulated losses

The accumulated losses of the Company at the end of the financial year have exceededthe net worth of the Company. The Company has incurred cash losses during the financialyear covered by our audit and in the immediately preceding financial year.

ix) Repayment of dues of financial institution or bank etc.

Based on our audit procedures and as per the information and explanations given by themanagement we are of the opinion that the company has defaulted in repayment of term loandues to banks and the default is continuing throughout the year towards repayment ofprincipal and interest. As on the Balance Sheet date there is a default of Rs. 247.36Lacs on account of principal and Rs. 218.18 Lacs on account of interest the details aregiven below:

Period of Default Principal Interest
(Rs. in Lacs) (Rs. in Lacs)
Less than 30 days 247.36 81.60
31 days to 60 days 0.00 72.76
61 days above 0.00 63.82
Total 247.36 218.18

Working capital loan from banks include Rs. 1206.20 Lacs continuing default towardsrepayment of working capital facilities (including interest default of Rs. 46.63 lacsperiod of default 5 days). The Company did not have any outstanding debentures or dues tothe financial institutions during the year.

(x) Loans and Advances

In our opinion and according to the records of the Company examined by us the companyhas not given any guarantee for loans taken by others from bank or financial institutionswhere the terms and conditions are prejudicial to the interest of the company.

(xi) In our opinion and according to the records of the Company examined by us theterm loans were applied for the purpose for which the loans were obtained.

(xii) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given by the management we report that nofraud on or by the company has been noticed or reported during course of our audit nor wehave been informed of such case by the management.

For V. Malik & Associates
Chartered Accountants
ICAI Firm’s Reg. No. 000155N
Vipin Malik
Place: Camp Kolkata/New Delhi (Proprietor)
Date: 29th May 2015 Membership No. 080468