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G S Auto International Ltd.

BSE: 513059 Sector: Engineering
NSE: N.A. ISIN Code: INE736H01024
BSE 11:30 | 26 Mar 7.43 -0.18
(-2.37%)
OPEN

7.35

HIGH

7.43

LOW

7.35

NSE 05:30 | 01 Jan G S Auto International Ltd
OPEN 7.35
PREVIOUS CLOSE 7.61
VOLUME 300
52-Week high 15.30
52-Week low 6.11
P/E
Mkt Cap.(Rs cr) 11
Buy Price 7.44
Buy Qty 25.00
Sell Price 7.75
Sell Qty 50.00
OPEN 7.35
CLOSE 7.61
VOLUME 300
52-Week high 15.30
52-Week low 6.11
P/E
Mkt Cap.(Rs cr) 11
Buy Price 7.44
Buy Qty 25.00
Sell Price 7.75
Sell Qty 50.00

G S Auto International Ltd. (GSAUTOINTL) - Auditors Report

Company auditors report

To the Members of G.S. Auto International Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of G.S. AutoInternational Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit & Loss (including other comprehensiveincome) the Cash Flow Statement and the statement of changes in equity for the year thenended and the summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the 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 Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in the equity of the Company in accordance with theaccounting principles generally accepted in India Including the Indian accountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent :and the design implementationand maintenance of adequate internal financial control that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit in of theInd AS financial statements 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ins AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS 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 accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS specified undersection 133 of the Act of the state of affairs (financial position) of the Company as atMarch 31 2018 its loss (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matters

The Company had prepared separate sets of statutory financial statements for the yearended March 31 2017 and March 31 2016 in accordance with the Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended) on which predecessor auditors issued their auditor's reports tothe shareholders of the Company dated 30.05.2017 and 13.08.2016 respectively. Thesefinancial statements have been adjusted for the differences in the accounting principlesadopted by the Company on transition to Ind AS which have been audited by us.

Our opinion is not modified in respect of this matter.

Emphasis of Matter

We draw attention to the following matter in the Notes to the financial statements:Note 65 to the financial statements which states that the company has delayed the paymentof interest & installment for the second & third quarter of the financial yearended March 312018 on account of its term loan from Export Import Bank of India (EXIMBank).

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 section (11) of section 143 of theAct and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the said 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 purpose 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 Other ComprehensiveIncome) the Cash Flow Statement and the statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS 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 written representations received from the directors as on March312018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312018 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" 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 Ind AS financial Statements - Refer Note 39 to the financial statements.

ii. According to the information and explanations provided to us the Company did nothave any long term contracts including derivative contracts for which there were anymaterial foreseeable losses.

iii. There has been no delay in the transferring amounts required to be transferredduring the year to the Investor Education and Protection Fund by the Company.

For SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Ludhiana: 23rd August 2018 Partner
Membership Number: 093100

Annexure A referred to the Independent Auditor's Report of even date to the members ofG.S. Auto International Limited on the Ind AS financial statements for the year endedMarch 31 2018.

Re: G.S. Auto International Limited ("the Company")

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

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

b) The Company has a regular program of physical verification of its fixed assets underwhich fixed assets are verified in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c) The title deeds of all the immoveable properties (which are included under the fixedAssets schedule) are held in the name of the Company

(ii) In our opinion the management has conducted physically verification of inventoryat reasonable intervals during the year. No material discrepancies were noticed on suchverification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to any of the companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the said order arenot applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans made investments given guarantees or security during theyear which is covered under provisions of Section 185 and 186 of the Act. Accordingly theparagraph 3(iv) of the Order is not applicable to the Company.

(v) According to the information and explanations provided by the management we are ofthe opinion that the Company has not accepted any deposits from public covered underSection 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the paragraph 3(v) of the Order is not applicable to the Company.

(vi) We have broadly reviewed the accounts and records maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148(1) of the Companies Act 2013 related to the manufacture of autocomponents and are of the opinion that prima facie the specified accounts and recordshave been made and maintained. We have not however made a detailed examination of thesame.

(vii) a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Wealth tax Service tax sales tax duty of customs duty of excise Value Added TaxCess and other statutory dues including GST as applicable to it. Further no undisputedamounts payable in respect thereof were outstanding at the year end for a period of morethan six months from the date they became payable.

b) According to the records of the Company the dues outstanding of the Income Tax onaccount of any dispute are as follows:-

Name of the Statute Nature of the dues period to which it relates(AY) Amount (Rs.in Lacs) * Forum where dispute is pending
Income Tax Act 1961 Income Tax Including interest as applicable 2008-09 91.55 Commissioner (Appeals)
Income Tax Act 1961 Income Tax Including interest as applicable 2009-10 01.63 Commissioner (Appeals)
Income Tax Act 1961 Income Tax Including interest as applicable 2009-10 34.17 Commissioner (Appeals)
Income Tax Act 1961 Income Tax Including interest as applicable 2010-11 154.83 ITAT
Income Tax Act 1961 Income Tax Including interest as applicable 2011-12 16.29 ITAT
Income Tax Act 1961 Income Tax Including interest as applicable 2012-13 273.11 Commissioner (Appeals)
Income Tax Act 1961 Income Tax Including interest as applicable 2015-16 96.04 ITAT

(viii) In our opinion and according to the information and explanations given by themanagement the Company has delayed the payment of interest & installment for thesecond & third quarter of the financial year ended March 312018 on account of itsterm loan from Export Import Bank of India (EXIM Bank). Except this the Company has notdefaulted in repayment of dues to bank financial institutions or government. The Companydid not have any outstanding dues in respect of financial institution banks or from thegovernment except as aforesaid.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

(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 Companies Act2013.

(xii) In our opinion the Company is not a nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the management all thetransactions with the related parties are in compliance with section 177 and 188 of theAct where applicable and the details have been disclosed in the financial statements etc.as required by the applicable Ind AS.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

(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 any non-cashtransactions with directors or persons connected with them covered under Section 192 ofthe Act. 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 SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Ludhiana: 23rd August 2018 Partner
Membership Number: 093100

Annexure B to the Independent Auditor's Report of even date on the Ind AS financialstatements of G.S. Auto International Limited

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

In conjunction with our audit of the Ind AS financial statements of "G.S. AutoInternational Limited" (‘the Company') as of and for the year ended March31 2018 we have audited the internal financial controls over financial reporting of theCompany as of 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). 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 the Company's policies the safeguarding of its assetsthe prevention 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.

Auditor's 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 over financial reporting. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

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 2018 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 SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Ludhiana: 23rd August 2018 Partner
Membership Number: 093100