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Gujarat NRE Coke Ltd.

BSE: 512579 Sector: Metals & Mining
NSE: GUJNRECOKE ISIN Code: INE110D01013
BSE LIVE 11:04 | 23 Aug 1.73 0.01
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1.75

HIGH

1.75

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NSE 10:46 | 23 Aug 1.70 0
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OPEN

1.70

HIGH

1.75

LOW

1.70

OPEN 1.75
PREVIOUS CLOSE 1.72
VOLUME 14307
52-Week high 4.40
52-Week low 1.36
P/E
Mkt Cap.(Rs cr) 285
Buy Price 1.70
Buy Qty 6975.00
Sell Price 1.73
Sell Qty 3000.00
OPEN 1.75
CLOSE 1.72
VOLUME 14307
52-Week high 4.40
52-Week low 1.36
P/E
Mkt Cap.(Rs cr) 285
Buy Price 1.70
Buy Qty 6975.00
Sell Price 1.73
Sell Qty 3000.00

Gujarat NRE Coke Ltd. (GUJNRECOKE) - Auditors Report

Company auditors report

To the members of

Gujarat NRE Coke Ltd.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Gujarat NRE CokeLtd. ("the Company") which comprise the Balance Sheet as at March 31 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 Standalone Financial Statements

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 standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 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 the auditors'judgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 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 of the state of affairs of the Companyas at March 31 2016 its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

(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 it appears from our examination of those books;

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

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2016 from being appointed as a director in terms of Section164 (2) of the Act;

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.

g. With respect to the other matters to be included in the Auditors' 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 No. 30 to the financial statements;

(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 refer Note No. 35 to the financial statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For N.C.Banerjee & Co.
Chartered Accountants
(Firm’s Registration No.: 302081E)
CA B Basu
Place: Kolkata (Partner)
Dated: 29th May 2016 Membership No. 12748

Annexure A to Independent Auditor's Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditors' Report of even date to the members of Gujarat NRE Coke Ltd.on the standalone financial statements for the year ended March 31 2016]

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner during the year. No materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) During the year inventories have been physically verified by the management atreasonable intervals. In our opinion the frequency of verification is reasonable. We wereexplained that the discrepancies noticed during the physical verification of inventorieswere not material and have been properly dealt with in the books of accounts.

(iii) The Company has not granted loans secured or unsecured to companies firms LLPsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013. Accordingly sub-clauses (a) (b) and (c) of clause (iii) of paragraph 3 of theOrder are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public hence this clause is notapplicable.

(vi) We have broadly reviewed the cost records maintained by the company as prescribedby the central government under Section 148(1) of the Companies Act 2013 and are of theopinion that prima facie the prescribed cost records have been maintained. We havehowever not carried out a detailed examination of such records nor are we required to doso with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company in our opinion the company has beengenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income-tax sales tax duty ofexcise value added tax duty of customs service tax cess and other material statutorydues.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at 31March 2016 for a period of more than six months from the date they became payable duringthe year except:

(i) Income Tax Rs. 4.12 crores

(ii) VAT Rs 7.59 Crores

(b) According to the information and explanations given to us there were no dues ofincome tax sales tax value added tax duty of customs service tax cess which have notbeen deposited with the appropriate authorities on account of any dispute except thefollowing:

Name of the statute Nature of Dues Amount (Rs./Crores) Period to which the amount Relates Forum where disputes are pending
Income Tax Act 1961 Regular Assessment 1.37 2010-11 CIT (Appeals)/ITAT
Finance Act 1994 (Act 32 of 1994) Service Tax 2.62 2011-12 CESTAT
1.06 2014-15 CESTAT
0.21 2014-15 Writ Petition before Kolkata High Court
0.45 2015-16 Commissioner (Appeals)
The Customs Act 1962 Custom Duty 7.03 2007-08 2009-10 2010-112014-15 CESTAT Commissioner (Appeal)
The Central Excise Act1944 Excise Duty 3.46 2008-09 CESTAT
1.38 2013-14 CESTAT
0.10 2015-16 Commissioner

(viii) In our opinion and according to the information and explanations given to usthe Company has defaulted in repayment of loans and borrowings to financial institutionsbanks and dues to debenture holders the details of which are given below Amount

(Rs. in Crs)

Particulars Delays up to 30 days Delays 31 - 90 days Delays 91 -180 days Delays beyond 180 days Total Amount
Letter of Credits / Bill 59.89 70.77 105.05 32.01 267.73
Discounting/ Installments/
Overdrawing
Interest Liabilities 12.17 22.23 32.14 7.21 73.75

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion and according tothe information and explanations given to us the Company has applied the term loans forthe purpose for which they were raised.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has complied with Section 42 of theCompanies Act 2013 in making preferential allotment and private placement of sharesduring the year and the amounts raised have been used for the purposes for which the fundswere raised.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the Order is not applicable.

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

For N.C.Banerjee & Co.
Chartered Accountants
(Firm’s Registration No.: 302081E)
CA B Basu
Place: Kolkata (Partner)
Dated: 29th May 2016 Membership No. 12748

Annexure B to the Independent Auditors' Report

[Referred to in paragraph 2(f) under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report of even date to the members of GujaratNRE Coke Ltd. on the standalone financial statements for the year ended March 31 2016]

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Gujarat NRECoke Ltd. ("the Company") as of March 31 2016 in conjunction with our audit ofthe 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 judgement 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 March 31 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 N.C.Banerjee & Co.
Chartered Accountants
(Firm’s Registration No.: 302081E)
CA B Basu
Place: Kolkata (Partner)
Dated: 29th May 2016 Membership No. 12748