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G G Dandekar Machine Works Ltd.

BSE: 505250 Sector: Engineering
NSE: N.A. ISIN Code: INE631D01026
BSE 00:00 | 20 Mar 56.65 -3.25
(-5.43%)
OPEN

62.00

HIGH

62.00

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56.50

NSE 05:30 | 01 Jan G G Dandekar Machine Works Ltd
OPEN 62.00
PREVIOUS CLOSE 59.90
VOLUME 2379
52-Week high 90.00
52-Week low 56.05
P/E
Mkt Cap.(Rs cr) 27
Buy Price 56.65
Buy Qty 10.00
Sell Price 62.00
Sell Qty 74.00
OPEN 62.00
CLOSE 59.90
VOLUME 2379
52-Week high 90.00
52-Week low 56.05
P/E
Mkt Cap.(Rs cr) 27
Buy Price 56.65
Buy Qty 10.00
Sell Price 62.00
Sell Qty 74.00

G G Dandekar Machine Works Ltd. (GGDANDEKAR) - Auditors Report

Company auditors report

To the Members of

G. G. Dandekar Machine Works Limited

Nagpur.

Report on the Standalone Financial Statements

1. We have audited the accompanying IndAS financial statements of G. G. DandekarMachine Works Limited ("the Company") which comprise the Balance Sheet as at 31March 2018 the Statement of Profit and Loss (including Other Comprehensive Income)theCash Flow Statement and the Statement of Changes in Equity for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated insub-section 5 of Section 134 of the Companies Act 2013 ("the Act") with respectto the preparation of these IndAS financial statements that give a true and fair view ofthe state of affairs (financial position) profit or loss (financial performance includingother comprehensive income) cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards ('Ind AS') specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("the Rules").

3. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standaloneIndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

4. Our responsibility is to express an opinion on these standalone IndAS financialstatements based on our audit.

5. 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.

6. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

7. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the IndAS financial statements. The procedures selected depend onthe auditor's judgement including the assessment of the risks of material misstatement ofthe IndAS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the IndAS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's directors as well as evaluating theoverall presentation of the IndAS financial statements.

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

Other Matters

9. The Company had prepared separate sets of statutory financial statements for theyear ended 31 March 2017 and 31 March 2016 in accordance with Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended) on which we issued auditor's reports to the shareholders of theCompany dated 09May 2017 and 24 May 2016 respectively. These financial statements havebeen adjusted for the differences in the accounting principles adopted by the Company ontransition to Ind ASwhich have also been audited by us. Our opinion is not qualified inrespect of this matter.

Opinion

10. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid IndAS financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31March 2018 and its profit(financial performance including other comprehensive income)its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

11. As required by sub-section 3 of Section 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 it appears from our examination of those books.

c) The Balance sheet the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid IndAS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

e) On the basis of the written representations received from the Directors as on 31March 2018 and taken on record by the Board of Directors none of the Directors aredisqualified as on 31 March 2018 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-A" to this report.

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 financialstatements;

ii. The company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

12. As required by the Companies (Auditors' Report) Order. 2016 ('the Order') issuedby the Central Government of India in terms of section 143(11) of the Act we enclose in"Annexure-B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For Joshi & Kulkarni Sd/-
Chartered Accountants Shantanu Ghanekar
[F.R. No. 115751-W] Partner
M.No. 102133
Place : Pune
Date : 19.05.2018

"Annexure-A" to the Independent Auditor's Report

(Referred to in Paragraph 11(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofsub-section 3 of Section 143 of the Companies Act 2013('the Act')

1. We have audited the internal financial controls over financial reporting of G. G.Dandekar Machine Works Limited ("the Company") as of 31 March2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls 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 Reporting('the Guidance Note') issued by the Institute of Chartered Accountants of India ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ('the Act').

Auditor's Responsibility

3. 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'issued by the ICAI and the Standards on Auditing prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 controls based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

5. 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 control systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controls overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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

7. 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.Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial controls overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note issued by theICAI.

Sd/-
For Joshi & Kulkarni Shantanu Ghanekar
Chartered Accountants Partner
[F.R. No. 115751-W] M.No. 102133
Place : Pune
Date : 19.05.2018

"Annexure-B" to Independent Auditor's Report

(Referred to in paragraph 12 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

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

b) The Company has physically verified all of its fixed assets during the year. Nomaterial discrepancies have been noticed on such verification. In our opinion theperiodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 8 to the standalone financial statements areheld in the name of the Company except land located at Plot no. 59 DandekarwadiBhiwandi.

(ii) The inventory has been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable. In respect of inventory lying with third parties these have been confirmed bythem. The discrepancies noticed on verification between the physical stocks and the bookrecords were not material.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly paragraph 3(iii) of the Order is not applicable to theCompany.

(iv) In our opinion and according to information and explanations given to us theCompany has not given loans made investments or given guarantees which are covered by theprovisions of Section 185 and Section 186 of the Act. Accordingly paragraph 3(iv) of theOrder is not applicable to the Company.

(v) The Company has not accepted any deposits from the public in accordance with theprovisions of sections 73 to 76 of the Act and the rules framed there under.

(vi) We have broadly reviewed the records maintained by the Company pursuant to therules prescribed by Central Government for maintenance of cost records under sub section 1of Section 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not made a detailedexamination of the records.

(vii) (a) According to the information and explanations given to us and records of thecompany examined by us the company generally is regular in depositing undisputedstatutory dues including provident fund employees' state insurance income- taxsales-tax service tax value added tax cess and any other material statutory dues withthe appropriate authorities and there were no arrears of outstanding statutory dues as atthe last day of the financial year concerned for a period of more than six months from thedate they became payable;

(b) According to the information and explanation given to us there are no dues ofincome tax sales tax value added tax Service tax duty of customs duty of excise whichhave not been deposited with the appropriate authorities on account of any dispute otherthan those mentioned in Annexure I to this report

(viii) The Company has not defaulted in repayment of loans or borrowings to the banks.The Company does not have any loans or borrowings from any financial institution orGovernment nor has it issued any debentures as at the balance sheet date.

(ix) The Company has not raised any money by way of initial public offer furtherpublic offer (including debt instruments) and term loans during the year. Accordingly theprovisions of Clause 3(ix) of the Order are not applicable to the Company.

(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 year.

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of 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 ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Ind AS24 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly the provisions of Clause 3 (xiv) of the Order are not applicable to theCompany.

(xv) According to the information and explanations give to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly provisions of paragraph 3 (xv) ofthe Order are not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) of the Order arenot applicable to the Company.

For Joshi & Kulkarni Sd/-
Chartered Accountants Shantanu Ghanekar
[F.R. No. 115751-W] Partner
M.No. 102133
Place : Pune
Date : 19.05.2018