You are here » Home » Companies » Company Overview » Gyscoal Alloys Ltd

Gyscoal Alloys Ltd.

BSE: 533275 Sector: Metals & Mining
NSE: GAL ISIN Code: INE482J01021
BSE LIVE 15:40 | 17 Nov 6.48 -0.02
(-0.31%)
OPEN

6.79

HIGH

6.79

LOW

6.48

NSE 15:27 | 17 Nov 6.50 0.05
(0.78%)
OPEN

6.50

HIGH

6.75

LOW

6.40

OPEN 6.79
PREVIOUS CLOSE 6.50
VOLUME 34431
52-Week high 14.95
52-Week low 5.45
P/E
Mkt Cap.(Rs cr) 103
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.79
CLOSE 6.50
VOLUME 34431
52-Week high 14.95
52-Week low 5.45
P/E
Mkt Cap.(Rs cr) 103
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gyscoal Alloys Ltd. (GAL) - Auditors Report

Company auditors report

TO

THE MEMBERS

GYSCOAL ALLOYS LTD.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of GYSCOAL ALLOYSLIMITED ("the Company") which comprise the Balance Sheet as at March 312017 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary 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 in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesestandalone 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. 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 accountingrecords33 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 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. 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 auditor'sjudgment 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 true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial 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 31 March 2017 and 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 (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the order.

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 appears from our examination of those books.

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.

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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms ofSection 164(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"; and

g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest 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 as referred to in Note 34 to the financialstatements.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Educationand Protection

Fund by the Company.

iv. The company has provided requisite disclosures in its financial statements asreferred to in Note 35 as to holdings as well as dealings in Specified Bank Notes duringthe period from 8th November 2016 to 30th December 2016 and the same disclosure are inaccordance with the books of accounts maintained by the company.

For SAURABH R. SHAH & CO.
Chartered Accountants
Firm Reg. No. 127176W
N. S. Patel
Ahmedabad Partner
May 29 2017 Membership No. 151799

Annexure A to Independent Auditors' Report (Referred to in Paragraph 1 under theheading of "Report on Other Legal and Regulatory Requirements" of our report ofeven date)

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31 March 2017 we report that:

(i) (a) Whether the company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets;

The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Whether these fixed assets have been physically verified by the management atreasonable intervals; whether any material discrepancies were noticed on such verificationand if so whether the same have been properly dealt with in the books of account;

As explained to us all the fixed assets have been physically verified by theManagement in accordance with a programme of verification which in our opinion providesfor physical verification of all the fixed assets at reasonable intervals having regard tothe size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) Whether the title deeds of immovable properties are held in the name of thecompany. If not provide the details thereof;

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) Whether physical verification of inventory has been conducted at reasonableintervals by the management and whether any material discrepancies were noticed and if sowhether they have been properly dealt with in the books of account;

As explained to us the inventories of finished and semi-finished goods and rawmaterials at Factory were physically verified during the period by the Management. Thediscrepancies noticed on verification between the physical stocks and the book recordswere not material.

(iii) Whether the company has granted any loans secured or unsecured to companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. If so

(a) Whether the terms and conditions of the grant of such loans are not prejudicial tothe company's interest;

(b) Whether the schedule of repayment of principal and payment of interest has beenstipulated and whether the repayments or receipts are regular;

(c) If the amount is overdue state the total amount overdue for more than ninety daysand whether reasonable steps have been taken by the company for recovery of the principaland interest;

The Company has not granted any loan to any party listed in the register maintainedunder section 189 of the Companies Act. Accordingly paragraph 3(viii) of the Order is notapplicable.

(iv) In respect of loans investments guarantees and security whether provisions ofsection 185 and 186 of the Companies Act 2013 have been complied with. If not providethe details thereof.

As informed to us the Company has not granted and loans or made any investments orprovided any guarantee or security to the parties covered under section 185 and 186.Accordingly paragraph 3(iv) of the Order is not applicable.

(v) In case the company has accepted deposits whether the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder where applicablehave been complied with? If not the nature of such contraventions be stated; If an orderhas been passed by Company Law Board or National Company Law Tribunal or Reserve Bank ofIndia or any court or any other tribunal whether the same has been complied with or not?

As informed to us the Company has not accepted any deposit from public. Accordinglyparagraph 3(v) of the Order is not applicable.

(vi) Whether maintenance of cost records has been specified by the Central Governmentunder sub-section (1) of section 148 of the Companies Act 2013 and whether such accountsand records have been so made and maintained.

We have broadly reviewed the cost records maintained by the company specified by theCentral Government under sub-section (1) of section 148 of the Companies Act and we are ofthe opinion that prima facie the prescribed cost records have been maintained. We havehowever not made a detailed examination of the cost records with a view to determinedwhether they are accurate or complete.

(vii) (a) Whether the company is regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and any other statutory dues to theappropriate authorities and if not the extent of the arrears of outstanding statutorydues as on the last day of the financial year concerned for a period of more than sixmonths from the date they became payable shall be indicated;

According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities during the period. However insome cases such statutory dues are paid after its due dates along with interest during theyear. According to the information and explanations given to us no undisputed amountspayable in respect of sales tax customs duty excise duty cess and other materialstatutory dues applicable to it were in arrears as at 31st March 2017 for aperiod of more than six months from the date they became payable except Income Tax payableof Rs. 3393273/- for the A.Y. 2014-15.

(b) Where dues of income tax or sales tax or service tax or duty of customs or duty ofexcise or value added tax have not been deposited on account of any dispute then theamounts involved and the forum where dispute is pending shall be mentioned. (A mererepresentation to the concerned Department shall not be treated as a dispute).

According to the information and explanations given to us the disputed statutory duesaggregating Rs. 844606876/- that have not been deposited on account of disputed matterpending before appropriate authorities are as under :

Sr. No. Name of the Statue Nature of the Dues Amount in Rs. Period to which the amount relates Forum where dispute is pending
1. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 5192774* 2006-07 Gujarat Value Added Tax Tribunal Ahmedabad
2. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 472542* 2006-07 Gujarat Value Added Tax Tribunal Ahmedabad
3. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 3746534* 2007-08 Gujarat Value Added Tax Tribunal Ahmedabad
4. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 32404381* 2007-08 Gujarat Value Added Tax Tribunal Ahmedabad
5. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 170505* 2008-09 Gujarat Value Added Tax Tribunal Ahmedabad
6. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 107084371* 2008-09 Gujarat Value Added Tax Tribunal Ahmedabad
7. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 250524818* 2009-10 Gujarat Value Added Tax Tribunal Ahmedabad
8. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 244882* 2009-10 Gujarat Value Added Tax Tribunal Ahmedabad
9. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 279409484 2010-11 Gujarat Value Added Tax DC Appeal Ahmedabad
10. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 676876 2010-11 Gujarat Value Added Tax DC Appeal Ahmedabad
11. The Gujarat Value Added Tax Act 2003 Value Added Tax and interest 152073889 2011-12 Gujarat Value Added Tax DC Appeal Ahmedabad
12. The Central Sales Tax Act 1956 Central Sales Tax Interest and Penalty 1712030 2011-12 Gujarat Value Added Tax DC Appeal Ahmedabad
13. The Income Tax Act 1961 Income Tax Interest 8979840 2011-12 ITAT Ahmedabad
14. The Income Tax Act 1961 Income Tax Interest 1913950 2012-13 CIT (Appeal) Ahmedabad
Total 844606876

* Stay Order has been received against the amount disputed and not deposited

(viii)Whether the company has defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders? If yes the periodand the amount of default to be reported (in case of defaults to banks financialinstitutions and Government lender wise details to be provided).

In our opinion and according to the information and explanations given to us theCompany has defaulted in repayment of dues to financial institutions banks or debentureholders during the year details of which are as under :

Sr. No. Name of the Bank Default made since Defaulted principal amount outstanding as on Balance Sheet Date Amount in Rs. Defaulted interest amount outstanding as on Balance Sheet Date Amount in Rs. Remarks
1. State Bank of Bikaner & Jaipur Satellite Road Branch Ahmedabad Cash Credit A/c No. 61137449344 December-15 94930515 20217603 As all these Accounts classified by bank as NPA interest on the same is not charged by the bank in the
2. State Bank of Patiala Mid Corporate Branch Navrangpura Ahmedabad Cash Credit A/c No. 65084267769 July-15 250000000 63080539 said accounts. So the company has made provision of interest payable on such accounts at the interest rates
3. UCO Bank Ashram Road Branch Ahmedabad Cash Credit A/c No. 19980500007002 May-16 298813289 34428204 sanctioned by the banks and shown under the Other Current Liabilities in Balance Sheet.
4. UCO Bank Kukarvada Branch Kukarvada Cash Credit A/c No. 28390510000137 May-16 10120369 1294142

(ix) Whether moneys raised by way of initial public offer or further public offer(including debt instruments) and term loans were applied for the purposes for which thoseare raised. If not the details together with delays or default and subsequentrectification if any as may be applicable be reported;

In our opinion and according to the information and explanations given to us theCompany has utilized the money raised by way of initial public offer / further publicoffer (including debt instruments) and the term loans during the year for the purposes forwhich they were raised.

(x) Whether any fraud by the company or any fraud on the Company by its officers oremployees has been noticed or reported during the year; If yes the nature and the amountinvolved is to be indicated;

To the best of our knowledge and belief and according to the information andexplanations given to us no material fraud by the company or any fraud on the Company byits officers or employees was noticed or reported during the period.

(xi) Whether managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act? If not state the amount involved and steps taken by the company forsecuring refund of the same;

According to the information and explanations give to us and based on our examinationof the records of the Company the Company has paid/provided for managerial remunerationin accordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) Whether the Nidhi Company has complied with the Net Owned Funds to Deposits inthe ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintainingten per cent unencumbered term deposits as specified in the Nidhi Rules 2014 to meet outthe liability;

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)Whether all transactions with the related parties are in compliance with sections177 and 188 of Companies Act 2013 where applicable and the details have been disclosed inthe Financial Statements etc. as required by the applicable accounting standards;

According to the information and explanations given to us and based on our examinationof the records of the Company transactions with the related parties are in compliancewith sections 177 and 188 of the Act where applicable and details of such transactionshave been disclosed in the financial statements as required by the applicable accountingstandards.

(xiv)whether the company has made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and if soas to whether the requirement of section 42 of the Companies Act 2013 have been compliedwith and the amount raised have been used for the purposes for which the funds wereraised. If not provide the details in respect of the amount involved and nature ofnon-compliance;

According to the information and explanations give to us and based on our examinationof the records of the Company the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

(xv) Whether the company has entered into any non-cash transactions with directors orpersons connected with him and if so whether the provisions of section 192 of CompaniesAct 2013 have been complied with;

According to the information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.

(xvi)Whether the company is required to be registered under section 45-IA of theReserve Bank of India Act 1934 and if so whether the registration has been obtained.

The Company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act 1934.

For SAURABH R. SHAH & CO.
Chartered Accountants
Firm Reg. No. 127176W
N. S. Patel
Ahmedabad Partner
May 29 2017 Membership No. 151799

Annexure B to Independent Auditors' Report (Referred to in Paragraph 2(f) under theheading of "Report on Other Legal and Regulatory Requirements" of our report ofeven date)

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 GyscoalAlloys Limited ("the Company") as of 31 March 2017 in conjunction with our auditof the standalone 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 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For SAURABH R. SHAH & CO.
Chartered Accountants
Firm Reg. No. 127176W
N. S. Patel
Ahmedabad Partner
May 29 2017 Membership No. 151799