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Gujarat Automotive Gears Ltd.

BSE: 505712 Sector: Auto
NSE: N.A. ISIN Code: INE705G01021
BSE LIVE 15:40 | 22 Sep 290.55 -7.25
(-2.43%)
OPEN

295.00

HIGH

298.00

LOW

290.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 295.00
PREVIOUS CLOSE 297.80
VOLUME 1215
52-Week high 367.45
52-Week low 164.00
P/E 9.62
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 295.00
CLOSE 297.80
VOLUME 1215
52-Week high 367.45
52-Week low 164.00
P/E 9.62
Mkt Cap.(Rs cr) 51
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Automotive Gears Ltd. (GUJAUTOMOTIVE) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT

To

The Members of GUJARAT AUTOMOTIVE GEARS LIMITED

Report on the Financial Statements

We have audited accompanying financial statements of GUJARAT AUTOMOTIVE GEARSLIMITED ("the Company") which comprise the Balance Sheet as at March 312016 and the Statement of Profit and Loss and Cash Flow Statement for the year the endedand a summary of significant accounting policies and other explanatory information.

Management' Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the Accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe 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.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016;

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

c) in the case of 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 (Auditors’ Report) Order 2016' issued by theCentral Government of India in terms of sub- section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" astatement on the matters specified in paragraphs 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.

d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under section 133 of CompaniesAct 2013 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 2016 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on March 31 2016 from being appointed as a director in termsof Section 164(2) of the Companies Act 2013.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

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 in our opinionand to the 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 23 to the financial statements;

ii. The company did not have any material foreseeable losses on long-Term contractsincluding derivatives contracts.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2016.

For Kanu Doshi Associates LLP
Chartered Accountants
Firm Registration Number: 104746W/W100096
Arati Parmar
Partner
Membership No: 102888
Place: Mumbai
Date: 31.05.2016

ANNEXURE TO THE AUDITORS’ REPORT

Referred to in paragraph 1 of 'Report on other Legal and Regulatory Requirements' inour Report of even date on the accounts of GUJARAT AUTOMOTIVE GEARS LIMITED for the yearended March 31 2016

i. (a) The Company is generally maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals during the year and no material discrepancies were noticed on suchverification.

(c) On the basis of our examination and as explained to us the title deeds ofImmovable properties are held in the name of the Company.

ii. The inventory has been physically verified by the Management during the year. Inour opinion the frequency of verification is reasonable. The discrepancies noticed onphysical verification of inventory as compared to book records were not material.

iii. The Company has granted unsecured loan to a Company covered in the registermaintained under Section 189 of the Companies Act 2013 ('the Act').

(a) The terms and conditions of granting of such loans are not prejudicial to theinterest of the company.

(b) The parties are repaying the principal amounts as stipulated and are also regularin payment of interest as applicable.

(c) In respect of loans and guarantees there is no overdue amount outstanding for morethan ninety days.

iv. According to information and explanation provided to us in respect of loansgranted the company has complied with the provisions of Section 185 and 186 of thecompanies Act2013.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the rules framed there under to the extentnotified and therefore clause (v) is not applicable.

vi. The Central Government has not prescribed the maintenance of cost records undersub-Section (1) of Section 148 of the Companies Act for any of the products of theCompany.

vii. (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax duty of custom duty of excise value added tax cess andother material statutory dues applicable to it. According to the information andexplanations given to us no undisputed arrears of statutory dues were outstanding as atMarch 31 2016 for a period of more than six months from the date they became payable.

(b) The disputed statutory dues aggregating Rs. 95679/- pending before the appropriateauthorities are as under:

Name of the Statute Nature of the dues Forum where the dues is pending Amount in Rs.
1 Income Tax Income Tax Hon'ble High Court (A.Y. 2001-02) 95679
Total 95679

viii. According to the records of the Company examined by us and information andexplanation given to us the Company has not defaulted in repayment of dues to financialinstitution bank or debenture holders as at the Balance Sheet date.

ix. The company has not raised any moneys by way of public issue/ further offerincluding debt instruments. The moneys raised on Term loans have been applied for thepurpose for which it was raised.

x. The company has not conducted any frauds or any fraud by its officers/ employees hasbeen noticed or reported during the year and therefore this clause is not applicable.

xi. The managerial remuneration paid by the company is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company.

xiii. The Company has complied with the provisions of section 177 and 188 of CompaniesAct 2013 in respect of transactions with the related party and has disclosed the detailsin the Financial Statements in accordance with the accounting standards.

xiv. The company has not made any preferential allotment / private placement of sharesor has fully or partly convertible debentures during the year under review.

xv. The company has not entered into any non-cash transactions with directors orpersons connected with him during the year under review.

xvi. According to the information and explanations given to us the company is notrequired to obtain registration under section 45 IA of the Reserve Bank of lndia Act 1934and therefore clause XVI is not applicable.

For Kanu Doshi Associates LLP
Chartered Accountants
Firm Registration Number: 104746W/W100096
Arati Parmar
Partner
Membership No: 102888
Place: Mumbai
Date: 31.05.2016

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 GujaratAutomotive Gears Limited ("the Company") as of 31 March 2016 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors are responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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 safeguarding ofits 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 issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 auditors’ 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 controls systemover 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 financial control over financialreporting includes those policies and procedures that (1) pertain to the 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 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 Kanu Doshi Associates LLP
Chartered Accountants
Firm Registration Number: 104746W/W100096
Arati Parmar
Partner
Membership No: 102888
Place: Mumbai
Date: 31.05.2016