The Members of
Gujarat Mineral Development Corporation Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of GujaratMineral Development Corporation Limited ("the Company") which comprise theBalance Sheet as at 31st March 2017 and the Statement of Profit and Loss (includingOther Comprehensive Income) the Cash Flow Statement and the Statement of Changes inEquity for the year then ended and a summary of the significant accounting policies andother explanatory information (herein after referred to as "standalone Ind ASfinancial statements").
Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued thereunder.
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 judgments 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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.
The comparative financial information of the Company for the year ended 31st March 2016and the transition date opening balance sheet as at 1st April 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by us for the year ended 31st March 2016 vide report dated 26thMay 2016 and predecessor auditor for the year ended 31st March 2015 vide their reportdated 24th July 2015 expressed an unmodified opinion on those standalonefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the Ind AS which have been audited by us.
Our opinion is not modified in respect of these matters.
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 inparagraphs 3 and 4 of the Order to the extent applicable.
2. In terms of Section 143(5) of the Act we give in Annexure 2(i) & 2(ii)' astatement on the directions issued under the aforesaid section by the Comptroller andAuditor General of India.
3. As required by Section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss theCash Flow Statement and the Statement of Changes in Equity dealt with by this Report arein agreement with the books of account. d) In our opinion the aforesaid standalone Ind ASfinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with relevant rule issued thereunder. e) On the basis of the writtenrepresentations received from the directors as on 31st March 2017 taken on record by theBoard of Directors none of the directors is disqualified as on 31st March 2017 frombeing appointed as a director in terms of Section 164 (2) of the Act. f) With respect tothe adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report inAnnexure B'. g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements- Refer Note 2.37 to the StandaloneInd AS financial statements. ii. The Company did not have any long-term contractsincluding derivative contracts for which there were any material foreseeable losses. iii.There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company. iv. The Company has providedrequisite disclosures in the Standalone Ind AS financial statements as to holdings as wellas dealings in Specified Bank Notes during the period from 8th November 2016 to 30thDecember 2016. Based on audit procedures and relying on the management representation wereport that the disclosures are in accordance with books of account maintained by theCompany and as produced to us by the Management
Refer Note [2.11.03] to the Standalone Ind AS financial statements
For S.C. Ajmera & Co.
FRN 002908C Place:- Ahmedabad Arun Sarupria Partner
Date:- 09.05.2017 M. No. 078398
ANNEXURE A' TO THE AUDITORS' REPORT
(Referred to Para (1) our Report of even date)
The Annexure referred to in Independent Auditors' Report to the members of GujaratMineral Development Corporation Limited ("the Company") on the standalone Ind ASfinancial statements for the year ended 31 March 2017.
We report that:
i. In respect of Fixed Assets
a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets. b. The Company has a program ofphysical verification of its fixed assets by which fixed assets are verified at reasonableintervals. In accordance with this program fixed assets were verified during the year anddiscrepancies which were noticed on such verification were properly dealt with in thebooks of accounts. c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the company.
ii. In respect of Inventory
a. The physical verification of inventory has been conducted at reasonable intervals bythe Management. b. The procedure of physical verification of inventory followed by themanagement is reasonable and adequate in relation to the size of company and the nature ofits business. c. The company has maintained proper records of inventory. The discrepanciesnoticed on such verification between the physical stock and book stock was not materialand the same have been properly dealt with in the books of accounts.
iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Therefore requirement of clauses (iii) of the paragraph 3 of the order is notapplicable to the company.
iv. In respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with.
v. The company has not accepted any deposits during the year as per the directivesissued by the Reserve Bank of India and within the meaning of the provisions of sections73 to 76 and other relevant provisions of the Companies Act and the rules framed thereunder where applicable. Thus the clause (v) of paragraph 3 of the order is notapplicable to the company.
vi. In pursuant to the order made by the Central Government for the maintenance of costrecords under sub section (1) of section 148 of the Companies Act 2013 the company hasmade and maintained the prescribed accounts
vii. In respect of statutory dues
a. According to the information and explanations given to us and on the basis of ourexamination the company is generally regular in depositing undisputed statutory dueincluding provident fund Investor Education and Protection Fund Employee's StateInsurance Income tax sales tax wealth tax service tax duty of excise value added taxand cess and any other statutory dues with appropriate authorities.
b. The details of excise duty income tax and sales tax not deposited on account ofdispute are as under:
|Name of Statute ||Nature of Dues ||Period to which the amount relates ||Amount (Rs. In Lakh) ||Forum where dispute is pending |
|Commercial Tax ||Sales Tax/VAT ||1993-94 ||21.78 ||Hon. High Court |
| || ||1995-96 ||98.92 ||Appellate Tribunal |
| || ||1997-98 ||2.45 ||Appellate Tribunal |
|Commercial Tax ||CST ||1997-98 ||4.26 ||Appellate Tribunal |
|Service Tax ||Service Tax ||Jan14 to Nov15 ||0.65 ||Appellate Tribunal |
|Service Tax ||Service Tax ||Dec15 to Aug16 ||0.39 ||Appellate Tribunal |
|Central Excise Act 1944 ||Excise ||May15 to Jan16 ||15.03 ||Appellate Tribunal |
|Central Excise Act 1944 ||Excise ||Mar11 to April15 ||38.77 ||Appellate Tribunal |
|Central Excise Act 1944 ||Excise ||2015-16 ||504.39 ||Appellate Tribunal |
viii. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year.
ix. The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.
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 the Company haspaid/provided for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 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.
xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where ever applicable and the details have been disclosed in the standalone Ind ASFinancial Statements etc. as required by the applicable Indian Accounting Standards.
xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review.
xv. According to the information and explanations give 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 him during the year.
xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For S.C. Ajmera & Co.
Chartered Accountants FRN 002908C
Place:- Ahmedabad Arun Sarupria Partner
Date:- 09.05.2017 M. No. 078398
ANNEXURE B' TO THE AUDITORS' REPORT
(Report on Internal Financial Controls over Financial Reporting)
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 GujaratMineral Development Corporation Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
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 standalone Ind AS financial statements whether due to fraudor 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 standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control 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 standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and 3. provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.
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.
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 2017 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 S.C. Ajmera & Co. Chartered Accountants
FRN 002908C Place:- Ahmedabad Arun Sarupria Partner
Date:- 09.05.2017 M. No. 078398
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT OF
GUJARAT MINERAL DEVELOPMENT CORPORATION LTD
Gujarat Mineral Development Corporation Ltd.
In continuation of our Independent Audit Report on Standalone Ind AS FinancialStatement of Gujarat Mineral Development Corporation Ltd. ("The Company") dated09.05.2017 we have reported on Directions and Sub-direction under section 143(5) of theCompanies Act 2013 applicable for the year 2016-17 as under:
Directions under Section 143(5) of Companies Act 2013 Applicable for the year 2016-17
|Directions/Questions u/s 143(5) ||Action Taken by Gujarat Mineral Development Corporation Ltd. ||Impact on Accounts and Financials |
|1 Whether the Company has clear title/lease deeds for freehold and leasehold respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available? ||Yes the Company has clear title/lease deeds for freehold and leasehold respectively. ||No impact |
|2 Whether there are any cases of waiver/ write off of debts/loans/interest etc. If yes the reasons there for and the amount involved. ||As informed to us the company has written off Debit Balances of Rs. 0.18 Lakh in the books of accounts. In the opinion of the management such amounts are no longer receivable. Further a housing loan with interest given to a deceased employee amounting to Rs. 5.91 Lakh has been written off debiting staff welfare expenses. As per the staff welfare policy of the company the same is to be waived in case of death of employee while in service. ||No impact |
|3 Whether proper records are maintained for inventories lying with third parties and assets received as gift/grant(s) from the Government or other authorities. ||Yes proper records are maintained by the company for inventory lying with third parties. And no asset is received as gift from Government or other authority as informed to us. ||No impact |
| ||For S.C. Ajmera & Co. |
| ||Chartered Accountants |
| ||FRN 002908C |
|Place:- Ahmedabad ||Arun Sarupria Partner |
|Date:- 09.05.2017 ||M. No. 078398 |