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Gravity (India) Ltd.

BSE: 532015 Sector: Industrials
NSE: N.A. ISIN Code: INE995A01013
BSE LIVE 15:15 | 17 Aug 3.14 -0.16
(-4.85%)
OPEN

3.14

HIGH

3.14

LOW

3.14

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 3.14
PREVIOUS CLOSE 3.30
VOLUME 100
52-Week high 5.34
52-Week low 2.73
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.14
Sell Qty 400.00
OPEN 3.14
CLOSE 3.30
VOLUME 100
52-Week high 5.34
52-Week low 2.73
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 3.14
Sell Qty 400.00

Gravity (India) Ltd. (GRAVITYINDIA) - Auditors Report

Company auditors report

TO THE MEMBERS OF GRAVITY (INDIA) LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GRAVITY (INDIA) LIMITED(“the company”)which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 thereunder.

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. Continuation to IndependentAuditors Report J C Kabra & Associates Chartered Accountants

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on our judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments we considersinternal financial control relevant to the Company’s preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byCompany’s Directors as well as evaluating the overall presentation of the financialstatements.

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

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;

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofSection 143 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 (and proper returns adequatefor the purposes of our audit have been received from the branches which is also auditedby us)

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.[and the returns receivedfrom the branches which are prepared by us]

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 written representations received from the directors as on 31 March2016 Continuation to Independent Auditors Report J C Kabra & Associates CharteredAccountants taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to adequacy of the internal financial control over reporting of thecompany and the operating effectiveness of such controls refer to our separate report in‘Annexure B’

g) With respect to the other matters included in the Auditor’s Report and to ourbest 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 statement- Refer Note

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts

For J C Kabra & Associates
Chartered Accountants
FRN: 115749W
CA.J. D. Kabra
Place: Mumbai Partner
Date: May 25 2016 Membership no: 038525

ANNEXURE A TO THE AUDITORS’ REPORT

The Annexure referred to in our report to the members of GRAVITY (INDIA) LIMITED forthe year ended 31st March 2016.

On the basis of the information and explanation given to us during the course of ouraudit we report that:

(i) (a) As informed the company has maintained proper records showing full particularsincluding quantitative details and situation of its fixed assets.

(b) As explained to us the company has program for physical verification of fixedAssets at periodic intervals. In our opinion the period of verification is reasonablehaving regard to the size of the company and the nature of its business.

(c) Total Assets of company includes Immovable property also and the title deeds ofimmovable properties are held in the name of the company.

(ii) (a) As explained to us Inventories have been physically verified during the yearby management at reasonable intervals.

(b) According to information and explanation given to us the procedure of Physicalverification of inventory followed by the management are reasonable and adequate inrelation to size of the company and nature of business

(c) In our opinion and on the basis of our examination of the records the company isgenerally maintaining proper records of Inventories. No material discrepancy was noticedon physical verification of stocks by the management as compared to book records

(iii) According to explanation and information given to us and on the basis of ourexamination of books of account the company has not granted loans secured or unsecured tocompanies firms Limited Liability or other parties listed in the register maintainedunder section 189 of the Companies Act 2013. Therefore the provision of sub clause (a)and

(b) of the paragraph (iii) of the order not applicable to the company.

(iv) In respect of loans investments guarantees and security all mandatoryprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.

(v) As informed to us the company has not accepted deposits from public during theyear.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by central government for maintenance of cost records has not beenspecified by the Central Government for maintenance of cost records under sub-section (1)of section 148 of the Act are of the opinion that prima facie the prescribed accountsand records have generally been made and maintained. We have not however made detailedexamination of the records with a view to examination of the records with a view toexamine whether they are accurate and complete.

(vii) The company is regular in depositing undisputed statutory dues includingprovident fund Employee’s state insurance income-tax sales-tax service tax dutyof customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities. Continuation to Independent Auditors Report J C Kabra &Associates Chartered Accountants

(viii) According to the information and explanation given to us there is no amountpayable in respect of income tax wealth tax sales tax and excise duty which have notbeen deposited on account of any dispute.

(ix) According to information and explanation given to us and on the basis the companyhasn’t made any default in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders. Subject to note no. 6 of thenotes on accounts .

(x) The company doesn’t raise any money by way of initial public offer or furtherpublic offer (including debt instruments)

(xi) According to the information and explanation given to us the company has notgiven any guarantee for loans taken by others from bank and other financial institutions.

(xii) As per information and explanation given to us managerial remuneration has beenpaid or provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

(xiii) Company is not a Nidhi Company hence nothing to be disclosed for any provisionsapplicable on Nidhi Company.

(xiv) As per information and explanation given to us all transactions with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards;

(xv) The company hasn’t made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xvi) As per information and explanation given to us the company hasn’t enteredinto any non-cash transactions with directors or persons connected with him.

(xvii) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For J C Kabra & Associates
Chartered Accountants
FRN: 115749W
CA.J. D. Kabra
Place: Mumbai Partner
Date: May 25 2016 Membership no: 038525

ANNEXURE - B TO THE AUDITORS’ 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 GRAVITY(INDIA) LIMITED. (“The Company”) as of 31 March 2016 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 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 auditor’s 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 controlssystem over 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 Continuation to Independent AuditorsReport J C Kabra & Associates(Chartered Accountant)

Chartered Accountants

Financial control over financial reporting includes those policies and procedures that(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 2016 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 J C Kabra & Associates
Chartered Accountants
FRN: 115749W
CA.J. D. Kabra
Place: Mumbai Partner
Date: May 25 2016 Membership no: 038525