You are here » Home » Companies » Company Overview » Gummadi Industries Ltd

Gummadi Industries Ltd.

BSE: 531243 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Gummadi Industries Ltd. (GUMMADIINDS) - Auditors Report

Company auditors report

GUMMADI INDUSTRIES LIMITED ANNUAL REPORT 2006-2007 AUDITORS' REPORT To The Members of M/S.GUMMADI INDUSTRIES LIMITED, Ladies and Gentlemen, We have audited the attached Balance Sheet of M/S.GUMMADI INDUSTRIES LIMITED, as on 31st March, 2007 and also the Profit and Loss Account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes Assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Manufacturing and other Companies (Auditor's Report) Order 1988, issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956. We have enclosed in the annexure a statement on the matters specified in paragraph 4 and 5 of the said order. Further to our comments in the annexure referred to above, we report that: a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit. b) Proper books of accounts as required by law have been kept by the company as far as it appears from our examination of such books. c) The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of accounts. d) The Balance Sheet and Profit & loss Account of the company comply with the Accounting Standards as prescribed by Sec 211(3C) of the Companies (Amendment) Act, 1999. e) According to the information made available to us, none of the director is disqualified from being appointed as director under clause (g) of sub section (1) of section 274 of the Companies Act, 1956. f) Attention Is Invited, regarding the use of the going concern assumption in drawing the financial statements covered In this report. In view of the accumulated loss, liabilities and lay off of operation by the management, the companies ongoing operations Is largely affected. However, the company continues to prepare the accounts on the basis of the Going concern basis. g) (I) The company net worth has been significantly eroded due to losses. (II) The company had earlier suspended Its production activities since December, 2002. The company has not succeeded In entering Into any agreement for revival of production action at Pondicherry. (III) Despite such erosion, the accounts for the year ended 31st March 2007, have been prepared on the basis of a going concern as the management has settled Its dues with the bank and hence this will facilitate commencement of production activities in future. h) (I) We draw attention to Profit and Loss Account In the financial statements. The company has Incurred a net loss of Rs.41,21,299/- Including depreciation during the year ended March 31st 2007 and as of that date, the company's accumulated loss (Profit & Loss A/c.) stands at Rs.6,60,46,845/- (II) The factors mentioned above along with other matters set forth In clause (f), raise substantial doubt that the company will be able to continue as a going concern. I) The company has written off Sundry Debtors to a tune of Rs.35,78,288/- and as per the explanations given to us, the balance of Rs.35,79,142/- is expected to be reallsed In the near future. j) The company has also written back Sundry Creditors to Rs.30,13,194/- Subject to the above omissions of the information dealt in the preceding paragraph and to the best of our information and according to the explanation given to us, we are unable to form our opinion on the said Balance Sheet and Profit and Loss Account read together with the notes there on to give the information required by the Companies Act, 1956. i) In so far as it relates to the Balance Sheet of the state of affairs of the company as on 31st March, 2007. ii) In so far as it relates to the Profit and Loss Account of the company, the Loss for the year ended on that date. iii) In so far as it relates to the cash flow statement, of the cash flows for the year ended on that date. Place : Chennai For SUBRAMANIAN & SWAMINATHAN Dated : 01.09.2007 CHARTERED ACCOUNTANTS Sd/- (N. SVBRAMANIAN) PARTNER ANNEXURE TO AUDITORS REPORT a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets; b) All fixed assets have been physically verified by the management during, the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. c) During the year the company has not disposed off any part of the Fixed Assets. Hence no comments are offered in this regard. ii. a) The inventory of spare parts has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable. b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. The value of Inventories has been brought down to Its realisable value which Is lower than Its cost during the year under review. iii. a) The company has taken loans aggregating to Rs.63,63,960/- from one party covered in the register maintained under section 301 of the Act. b) In our opinion the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company. c) Based on the information and explanations given to us the company, has settled all its dues with its Banker and the No Due Certificate has been obtained. d) Based on the examination of records and documents and on the information and explanations given to us, the company has not taken reasonable steps in the process of settling the overdue amount of Interest on loans taken from companies listed In the register maintained under section 301 of the Companies Act. iv. Based on the audit procedures and on the information and explanations given to us there is an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal controls. v. a) Based on the examination of records and documents the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act have been so entered; b) In our opinion the transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. vi. Based on the examination of the records and documents and on the information and explanations given to us, the company has not accepted deposits from the public and therefore the question of compliance with the directions issued by RBI and the provisions of section 58A and 58AA of the Companies Act 1956, and the rules framed thereunder are not applicable. Hence no comments are offered in this regard. vii. According to the information and explanations given to us the company has an internal audit system commensurate with the size and nature of the business. viii. Maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, has not been prescribed for this company. Hence the same is not maintained. ix. a) The company does not have any amount of Sales Tax / Income Tax/ Custom Tax / Wealth Tax / Excise Duty / Cess, that have not been deposited on account of any dispute. Hence no comments are offered in this regard. x. The accumulated losses of the company are more than fifty per cent of Its net worth. The company has Incurred cash losses during the financial year covered under the audit and In the immediately preceding financial year. xi. Based on the examination of records and documents, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Hence no comments are offered in this regard. xii. The provisions of any statute applicable to chit funds are not applicable to this company. Hence no comments are offered in this regard. xiii. The company is not dealing or trading in shares, securities, debentures and other investments. Hence no comments are offered in this regard. xiv. Based on the information and explanations given to us the company has not given any guarantee for loans taken by others from bank or financial Institutions. xv. The company has not raised any term loans during the period covered under the audit. Hence no comments are offered in this regard. xvi. Based on the information and explanations given to us the company has neither utilised funds raised on short-term basis for long-term purposes nor utilised funds raised on long-term basis for short-term purposes. xvii. The company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act 1956. Hence no comments are offered in this regard. xviii. The company has not raised funds through issue of debentures during the period covered under the audit. Hence no comments are offered in this regard. xix. The company has not made any public issue during the period covered under the audit. Hence no comments are offered in this regard. xx. Based on the audit procedures performed and on the information and explanations given to us, we report that, no fraud on or by the company has been noticed or reported during the course of our audit. Place : Chennai For SUBRAMANIAN & SWAMINATHAN Dated : 01.09.2007 CHARTERED ACCOUNTANTS Sd/- (N. SUBRAMANIAN) PARTNER