You are here » Home » Companies » Company Overview » Gajra Bevel Gears Ltd

Gajra Bevel Gears Ltd.

BSE: 505711 Sector: Auto
NSE: N.A. ISIN Code: INE282D01010
BSE 00:00 | 25 Mar 0.53 0.02
(3.92%)
OPEN

0.53

HIGH

0.53

LOW

0.53

NSE 05:30 | 01 Jan Gajra Bevel Gears Ltd
OPEN 0.53
PREVIOUS CLOSE 0.51
VOLUME 7000
52-Week high 2.39
52-Week low 0.43
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.53
Buy Qty 3000.00
Sell Price 0.49
Sell Qty 4000.00
OPEN 0.53
CLOSE 0.51
VOLUME 7000
52-Week high 2.39
52-Week low 0.43
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.53
Buy Qty 3000.00
Sell Price 0.49
Sell Qty 4000.00

Gajra Bevel Gears Ltd. (GAJRABEVEL) - Auditors Report

Company auditors report

To

The Members

GAJRA BEVEL GEARS LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of GAJRA BEVEL GEARS LIMITED (‘theCompany’) which comprise the Balance Sheet as at 31s1 March 2018 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the 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 stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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 there under.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that arc 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 financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31slMarch 2018 and its profit and its cash flows for the year ended on that date.

Emphasis on the matters:

> Company has accumulated losses which has eroded the entire net worth of thecompany and made the company financially sick. Based on the audited balance sheet as on30-092008 the company had filed a reference under section 15(1) of the SIC (SP) Act 1985with the BIFR and same is registered as case no. 27/2009 on 30-07-2009. The BIFR wide itsorder issued during the hearing held on 06-01-2010 declared the company as SICK INDUSTRIALCOMPANY in terms of section 3(1 )(o) of sick Industrial Companies (Special provisions)Act 1985. During the course of pendency of reference with BIFR the management of companyhas settled the loan accounts of State Bank of India IFCI IDBI MPSIDC and MPAVN as wellas made full and final payments as per the terms of OTS. OTS with Madhya Pradesh FinancialCorporation's term loan is still in process.

> By notification No. 50 388(E) dated 25-11-2016 the SICA Repeal Act 2003 has beennotified w. e. f. 01-12-2016 and as per section 252 read with schedule VIII of theinsolvency and bankruptcy code 2016. The reference filled with the BIFR/ABIFR is abatedand the company may file a fresh reference before NCLT within 180 days from that date i.e.31/05/2017 but company has still not filled any reference.

Report on Other Legal and Regulatory Requirements:

1. As required by companies (Auditors report) order 2016 (‘the Order") issuedby the central government of India in terms of sub-section (11) of section 143 of the Actwe give in Annexure "A" statement on the matters specified in para 3 and 4 ofthe 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 h. In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books.

c. Since the company does not have any branch; hence provision of sub-section 8 is notapplicable.

d. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account

c. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

f. In our opinion there are no adverse matters or observation subject to inherentlimitation of audit which may have an adverse effect on the functioning of the Company.

g. On the basis of the written representations received from the directors as on 31s1March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164(2) of the Act.

h. There are no adverse remark or observations related to maintenance of books ofaccounts and other matters connected therewith:

i. 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".

j. 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 if any the impact of pending litigations on itsfinancial position in its financial statements at relevant places in the financialstatements; for the Company does run have any pending litigations which would impactits financial position

n. The Company did not have any long term contract including derivatives for whichthere were material foreseeable losses:

m. There has been no such amount which is/was required to be transferred to theInvestor Education and Protection Fund by the Company.

Place: Indore
Date: 30th May 2018 For: D N Jhamb & Company
Chartered Accountants
FRN 019675C
CA Devki Nandan Jhamb
Partner
Membership No. 079696

Annexure-"A" to the Independent Auditors’ Report

The Annexure referred to in our report to the members of GAJRA BEVEL GEARS

LIMITED for the year Ended on 31s1 March 2018. We report that:

On the basis of such checks as we considered appropriate and according to theinformation

and Explanations given to us during the course of our audit we report that:

(i) In respect of its fixed assets:

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

(b) As explained to us fixed assets have been physically verified by themanagement during the year in accordance with the phased programme of verification adoptedby the management which in our opinion provides for physical verification of all thefixed assets at reasonable intervals. According to the information and explanations givento us no material discrepancies were noticed on such verification.

(c) Accordingly to the information and explanation given to us and on the basis ofour examination of records of the company the title deeds of the immovable properties areheld in the name of the company.

(d) Although records for the fixed assets has been maintained properly but companyis not into operation since long hence production facilities are standing ideal andworking conditions cannot be commented upon.

(ii) In respect of its inventory:

a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at regular intervals/ (at the endof the year) by the Management. In case of inventories lying with third partiescertificates of stocks holding have been received.

b) All the inventories are non-moving since long but management is of the opinion thatinventories are such which have the values to the tune it is stated in the financialstatements and accordingly no need to write it off or provide for the reduction is value.

c) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

d) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onphysical verification of stocks as compared to book records were not material and havebeen properly dealt with in the books of account.)

(iii) In respect of loans secured or unsecured granted to the parties covered inregister maintained under section 189 of the Companies Act 2013:

According to the information and explanations given to us and on the basis ofexamination of records of the Company has not granted any loans to companies firms or

other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013; and therefore paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us thecompany has not provided any guarantees and securities in respect of any loans in terms ofprovisions of section 185 and 186.

(v) As per information and explanation given to us as well as evident from thefinancial records of the company the company has not received any public deposits duringthe year under audit.

(vi) Since no production or any manufacturing activities are carried over by thecompany since long hence we are of the opinion that rules regarding maintenance of costrecords are not applicable to the company.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given tous the Company has been irregular in depositing with the appropriate authorities even theundisputed statutory dues like EPF contribution employees" state insurance (ESI)contribution. Commercial Tax Income-tax and Excise Duty. However after the grant ofinstalment facility the company has cleared the dues of provident fund. The status ofunpaid dues as on 31.03.2018 is as under

Nature of Dues Amount
(Rs In Lakhs)
E.S.I.C Contribution 62.5
Commercial Tax 165.63
Income Tax Demand 149.11
Excise Duty 48.51

do) Assessed demands of commercial tax against which the Company has preferred forRevision before the Competent Authority have not been accounted for as liability are asunder:

Assessment Year Assessed Demand (Rs. In Lakhs)
1999-2000 16.64
2001-2002 27.72
2002-2002 48.09
2005-2006 267.81
2006-2007 205.35
Total 565.61

(viii) In our opinion and according to the information and explanations given tous during the year the company has not made any payment towards the dues of MadhyaPradesh Financial Corporation the outstanding of which as on 31 march 2018 is Rs. 890.88Lakhs.

(ix) In our opinion and according to the information and the explanation given tous the company did not raised any money by the way of initial public offer (IPO) orfurther public offer (including debt instruments) and term loans hence paragraph 3 (ix)of the order is not applicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to

us no material fraud by the Company and no material fraud on the Company by itsofficer or employees has been noticed or reported during the year.

(xi) According to the information and explanation given to us and on the basis of ourexamination of records of the company no managerial remunerations were paid for the saidfinancial year.

(xii) In our opinion and according to the information and explanation provided to usthe company is not a NIDHI company and accordingly paragraph 3(xii) is not applicable.

(xiii) According to the information and explanation given to us and on the basis of ourexamination of records of the company the transaction with related parties are incompliance with section 177 and section 188 of the Companies Act 2013 to the extendapplicable and proper disclosures for the same has been made in the financial statementsin accordance with applicable accounting standards.

(xiv) According to the information and explanation given to us and based on ourexamination of records of the company company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures and paragraph 3(xiv)of the order is not applicable.

(xv) According to the information and explanation given to us and based on ourexamination of records of the company company has not made/entered in any non-cashtransactions with directors or persons connected with him; hence paragraph 3(xv) of theorder is not applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

Place: Indore
Date: 30th May 2018 For: D N Jhamb & Company
Chartered Accountants
FRN 019675C
CA Devki Nandan Jhamb
Partner
Membership No. 079696

Anncxure - B to the Independent Auditors" Report

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 control over financial reporting of GAJRA BEVELGEARS LIMITED ("the company") as of 31 March 2018 in conjunction with ouraudit of the standalone financial statements of the company for the year ended on thatdate.

Management's Responsibility for Internal Financial controls

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 Reportingissued by the Institute of Chartered Accountants of India (TCAF). 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 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.

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 control 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 ethicalrequirement 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statement whether due to fraud 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control 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 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 31 March 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.

Place: Indore
Date: 30th May 2018 For: D N Jhamb & Company
Chartered Accountants
FRN 019675C
CA Devki Nandan Jhamb
Partner
Membership No. 079696