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Grand Foundry Ltd.

BSE: 513343 Sector: Metals & Mining
NSE: GRANDFONRY ISIN Code: INE534A01010
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Grand Foundry Ltd. (GRANDFONRY) - Auditors Report

Company auditors report

To the Members of GRAND FOUNDRY LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of GRAND FOUNDRY LIMITED("theCompany") which comprise the Balance Sheet as at March 31 2017 and the Statementsof Profit and Loss and Cash Flow for the y ear then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014(asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the financial statements based on ouraudit.

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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.

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

Opinion

8. 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 March31 2017 and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure I a statement on the matters specified inparagraphs 3 and 4 of the Order.

10. 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 purpose 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 Cash Flow dealt with by thisReport 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 (as amended);

e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

f. With regard to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls we provide a report in AnnexureII for the matters specified therein.

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(as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have any pending litigations which would impact its financialposition;

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

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For THACKER BUTALA DESAI
Chartered Accountants
F. R. No. : 110864W
Kunjan Gandhi Partner
Mem. No.:39195
Mumbai
Date : July 132017

ANNEXURE I REFERRED TO IN PARAGRAPH 9 OF OUR REPORT OF EVEN DATE

i) Fixed Assets

a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) According to the information and explanation given to us the title deed ofimmovable property is held in the name of the Company

ii) Inventory

The Company has inventory as it is not a service provider. Accordingly the provisionof clause (ii) of para 3 of the Companies (Auditor's Report) Order 2016 is applicable.The inventory has been physically verified at proper intervals.

iii) Loans granted to parties covered in register maintained u/s 189

As informed the Company has granted any loans secured or unsecured to companies orother parties covered in the register maintained under Section 189 of the Companies Act.Accordingly the provision of clause of Para 3 of the Companies (Auditor's Report) Order2016 are applicable. The terms on conditions of the loan are not prejudicial to thecompany's interest.

iv) Compliance with the provisions of Section 185 and 186 of the Companies Act 2013with respect to Loans Investments Guarantees and Security

As informed the Company has granted loan not given any guarantee and has providedsecurity in connection with any loan and hence the compliance of the provisions of Section185 and 186 of the Companies Act 2013 is applicable and hence commented upon. However theloans granted the term and condition of the loans are not prejudicial to the interest ofthe Company.

As informed the company has investments during the year and the compliance of theprovisions of Section 186 of the Companies Act 2013 is applicable the company hasdisclosed full particulars of the investment made in the financial statement.

v) Public Deposits

In our opinion and according to the information and explanation given to us thecompany has not accepted deposits. Accordingly the provision clause (v) of para 3 of theCompanies (Auditor's Report) Order 2016 is not applicable and hence not commented upon.

vi) Cost Records

On facts the requirement of clause (vi) of para 3 of the Companies (Auditor's Report)Order 2016 is not applicable in case of the Company and hence not commented upon.

vii) Statutory dues

a) The company is regular in depositing undisputed statutory dues including income-taxservice tax and any other statutory dues with the appropriate authorities and there areno arrears of outstanding statutory dues as at the last day of the financial yearconcerned for a period of more than six months from the date they became payable.

b) As per the information and explanation given to us there are no dues of Income TaxService Tax Sales Tax Custom duty Excise duty and cess which have not beendeposited on account of dispute.

viii) Dues to financial institutions banks Government and debenture holders

Based on the records examined by us and according to the information and explanationsgiven to us the Company has borrowed any loans from any financial institution banksgovernment or debenture holders as at the Balance Sheet date. Accordingly the provisionof clause (viii) of para 3 of the Companies (Auditor's Report) Order 2016 is applicable.The company has not defaulted in payment of loans or borrowing to financial institution.

ix) Utilisation of proceeds raised by way of Initial Public Offer or further publicoffer

The Company has not raised any money by way of initial public offer or further publicoffer (including debt instruments) and term loans. Accordingly the provision of clause(ix) of para 3 of the Companies (Auditor's Report) Order 2016 is not applicable and hencenot commented upon.

x) Frauds

During the course of our examination of the books and records of the Company carriedout in accordance with generally accepted accounting practices and according to theinformation and explanations given to us we have neither come across any instances offraud by the Company or any fraud on the Company by its officers or employees were noticedor reported during the year.

xi) Managerial Remuneration

As informed the company being a Private Limited Company the provisions of Section 197and the Schedule V to the Companies Act 2013 with respect to obtaining requisiteapprovals for payment of managerial remuneration is not applicable. Accordingly theprovision of clause (xi) of para 3 of the Companies (Auditor's Report) Order 2016 is notapplicable and hence not commented upon.

xii) The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.

xiii)Nidhi Company

The company is not a Nidhi Company. Accordingly the provision of clause (xii) of para3 of the Companies (Auditor's Report) Order 2016 is not applicable and hence notcommented upon.

xiv)Related Party Transactions

Based on the records examined by us and according to the information given to us theCompany has complied with the provisions of Sections 177 and 188 of the Companies Act2013 with respect to the transactions with the related parties and the details of suchtransactions have been disclosed in the Financial Statements as required by the applicableAccounting Standards (AS-18). The provisions of Section 177 of the Companies Act 2013 isnot applicable to the Company being a Private Limited Company.

xv)Preferential Allotment / Private Placement

Based on the records examined by us and according to the information given to us theCompany has not made any Preferential Allotment or Private Placement of shares or fully orpartly convertible debentures. Accordingly the provision of clause (xiv) of para 3 of theCompanies (Auditor's Report) Order 2016 is not applicable and hence not commented upon.

xvi)Non-cash transactions

Based on the records examined by us and according to the information given to us theCompany has not entered into any non-cash transactions with the Directors or personsconnected with him. Accordingly the provision of clause (xv) of para 3 of the Companies(Auditor's Report) Order 2016 is not applicable and hence not commented upon.

xvii)Registration under Section 45-IA of the RBI Act 1934

The Company is not required to be registered under Section 45-IA of the Reserve Bank ofIndia Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For THACKER BUTALA DESAI
Chartered Accountants
F. R. No. : 110864W
Kunjan Gandhi Partner
Mem. No.:39195
Mumbai
Date : July 132017

ANNEXURE IITO THE INDEPENDENT AUDITOR'S REPORT – MARCH 31 2017

(Referred to in our report of even date)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE ACT:

We have audited the internal financial controls over financial reporting of GRANDFOUNDRY LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of the 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

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 Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal controls based on the assessed risk.The procedures selected depend on the auditor's judgment including the assessment of therisks of material 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 control systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING:

A company's internal financial controls 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 controls over financialreporting includes those policies and procedures that (1) pertain to t he 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 controlsover 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For THACKER BUTALA DESAI
Chartered Accountants
F. R. No. : 110864W
Mumbai Date : July 132017 Kunjan Gandhi Partner
Mem. No.:39195