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Gandhi Special Tubes Ltd.

BSE: 513108 Sector: Metals & Mining
NSE: GANDHITUBE ISIN Code: INE524B01027
BSE 00:00 | 24 Feb 271.05 3.95
(1.48%)
OPEN

268.90

HIGH

275.00

LOW

265.00

NSE 00:00 | 24 Feb 268.65 0.10
(0.04%)
OPEN

270.05

HIGH

279.00

LOW

262.20

OPEN 268.90
PREVIOUS CLOSE 267.10
VOLUME 2467
52-Week high 316.15
52-Week low 136.70
P/E 12.67
Mkt Cap.(Rs cr) 350
Buy Price 265.00
Buy Qty 2.00
Sell Price 273.50
Sell Qty 6.00
OPEN 268.90
CLOSE 267.10
VOLUME 2467
52-Week high 316.15
52-Week low 136.70
P/E 12.67
Mkt Cap.(Rs cr) 350
Buy Price 265.00
Buy Qty 2.00
Sell Price 273.50
Sell Qty 6.00

Gandhi Special Tubes Ltd. (GANDHITUBE) - Auditors Report

Company auditors report

To

The Members of

GANDHI SPECIAL TUBES LIMITED.

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of comprise the Balance Sheet asat March 31 2019 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and notes to the financial statements including a summary of thesignificant accounting policies and other explanatory information.

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 theCompanies Act 2013 ("the Act") in the manner so required and give a true andafair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amendedand other accounting principles generally accepted in India of the state of affairs ofthe Company as at March 31 2019 the profit and total comprehensive income changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor’s Responsibilities for theAudit of the Financial Statements section of our Report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the financial statementsunder the provisions of the Act and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI’s Code of Ethics. We believe thatthe audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our Report.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises the information included in the Annual Report but does notinclude the Ind AS financial statements and our Auditor’s Report thereon.

Our opinion on the financial statementsdoes not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.If based on the workwe have performed we conclude that there is a material misstatement of this otherinformation; we are required to Report that fact. We have nothing to Report in thisregard.

Management’s Responsibility for the Financial Statements

The Company’s Management is responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these financial statements that give a trueand fair view of the state of affairs (Financial Position) Profit or Loss (financialperformance)total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherfraud or error.

management is responsible for assessing the Company’s ability to continue as agoing Inpreparingthefinancial concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors are responsible for overseeing the Company’s financialReporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditor’s Report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influencethe economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or and perform audit procedures responsive to thoserisks and obtain audit evidence that issufficientand appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in placeand the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists relatedtoeventsorconditionsthatmaycastsignificantdoubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our Auditor’s Report to therelated disclosures in the financial statements or if such disclosures are to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourAuditor’s Report. However future events or conditions may cause the Company to ceaseto continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safe guards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the auditfinancialstatements of thecurrent period and are therefore the key audit matters. We describe these matters in ourAuditor’s Report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter shouldnot be communicated in our Report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 197 (16) of the Act we Report that the company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under section 197 read with Schedule V to the Act.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in "Annexure A" a statement on the matters specified in paragraphs3 and 4 of the Order.

Further to our comments in "Annexure A" as required by Section 143(3) of theAct 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) Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors isdisqualifiedas on March 31 2019 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".

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 as amended 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 financial statements - Refer Note No.30 to the Financial Statements.

ii. The Company has not entered into any long term contracts including derivativecontracts for which there were any material foreseeable losses as required under theapplicable law or Indian Accounting Standards.

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

For SHASHIKANT J. SHAH & CO.
Chartered Accountants
Firm Reg. No. 109996W
SHASHIKANT J. SHAH
Partner
Membership No: 015905
Place : Mumbai
Date : 28/05/2019

Annexure "A" to The Independent Auditor’s Report for the year ended 31stMarch 2019.

(Referred to in paragraph 2 under the heading ‘Report on Other Legal andRegulatory Requirements of our Report to the Members of GANDHI SPECIAL TUBES LIMITED ofeven date)

i. In respect of the Company’s fixed assets:

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

(b) As explained to us the fixed assets have been physically verified by themanagement in accordance with the phased programme of verification which in our opinionis reasonable having regard to the size of the company and the nature of its assets. Nomaterial discrepancies were noticed on such verification;

(c) 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. As explained to us the physical verification of inventory has been conducted bythe management in accordance with the phased programme of verification which in ouropinion is reasonable and no material discrepancies were noticed on such

iii. According the information and explanations given to us the Company has duringthe year not granted any loans Secured or unsecured to Companies firms LimitedLiability Partnership; or other parties covered in the register maintained under section189 of the Companies Act2013accordingly the provision of paragraph 3 (iii) 3(iii) (a)to (c) of the said order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the companies Act 2013in respect of grant of loans to Directors Loans and investments and giving guarantees andproviding securities etc. as applicable.

v. The Company has not accepted any deposits from the public within the meaning ofSection 73 74 75 and 76 of the Act and Rules framed there under to the extent notified.Accordingly clause 3(v) not applicable

vi. We have broadly reviewed the records maintained by the Company in respect of itsproducts where pursuant to the Company’s Cost record and audit) Rules 2014 themaintenance of cost records have been prescribed under Section148(1) of the Companies Act2013 and are of the opinion that primafacie the prescribed accounts and records havebeen made and maintained we have not however made a detailed examination of recordswith view to determine whether they are accurate or complete.

vii. (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident FundProfession Tax Investor Education& Protection Fund Employees’ State Insurance Income Tax Goods and Service TaxCustoms Duty and other material statutory dues as applicable with the appropriateauthorities.

(b) The disputed Statutory dues aggregating 195.14 Lakh which have not been depositedon account of disputed matter pending before appropriate authorities are as under :

(Rs. in Lakhs)

Nature of the Statute Nature of Dues Amount under dispute not yet deposited Period to which the Amount Relates Forum where Dispute is Pending
Service Tax Laws Service Tax 168.66 01-09-2004 to 30-09-2013 Before Customs Excise & Service tax Appellate tribunal
Service Tax Laws Service Tax 1.25 01-03-2012 to 31-12-2012 Before Commissioner (Appeal) Customs Excise & Service tax
Sales Tax Laws Sales Tax 25.23 01-04-2002 to 31-03-2003 Before joint Commissioner of sales tax (Appeal)
Total 195.14

viii. The Company does not have any loans or borrowings from financial institutionsbanks government or to debenture holders during the year. Accordingly Paragraph 3 (viii)of the Order is not applicable.

ix. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. AccordinglyParagraph3(ix) of the Order is not applicable.

x. According to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on Company by its officers oremployeesnoticed or Reported during the year in course of our audit nor have we beeninformed of any such case by the management.

xi. According to the information and explanations given 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 Act.

xii. In our opinion and According to 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 ourexamination of the records of the Company transactions with related parties areincompliance with Section 177 and 188 of the Companies Act 2013 where applicable andthedetails of such transactions have been disclosed in the Financial Statement as requiredby the applicable accounting standards.

xiv. According to the information and explanations given 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 paid convertible debenturesduring the year under review. Accordingly Paragraph 3 (xiv) of the Order is notapplicable.

xv. According to the information and explanations given to us and based on examinationof the records of the Company the Company has not entered into any non-cash transactionswith its Directors or persons connected with them covered under section 192 of theCompanies Act 2013. Accordingly Paragraph 3(xv) is not applicable.

xvi. The Company is not requiredto be registered under section 45-IA of the ReserveBank of India Act1934. Accordingly Paragraph 3(xvi) of the Order is not applicable.

For SHASHIKANT J. SHAH & CO.
Chartered Accountants
Firm Reg. No. 109996W
SHASHIKANT J. SHAH
Partner
Membership No: 015905
Place : Mumbai
Date : 28/05/2019

Annexure "B" to the Independent Auditor’s Report

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements section of our Report to the Members of GANDHI SPECIAL TUBES LIMITED of evendate)

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")

We have audited the internal financial GANDHI SPECIAL TUBES LIMITED ("theCompany") controlsoverfinancial as of March 31 2019 in conjunction with ouraudit of the 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 financialReporting 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 respective company’s policies thesafe guarding 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.

Auditor’s Responsibility

Our responsibility is to express an opinion on company’s internal financialcontrols over financial Reporting with reference to financial statements based on ouraudit. We conducted our audit in accordance with the Guidance Note on Audit of FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by the Institute of Chartered Accountants of India and deemed to beprescribed under Section143(10) of the Companies Act 2013 to the extent deemedapplicable to an audit of internalfinancialcontrols Both applicable to an audit ofinternal financial controls and both issued by ICAI.Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialReporting with reference to these financial statements was established and maintained andif 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 with reference tofinancial statement and their operating effectiveness. Our audit of internal financialcontrols over financial Reporting included obtaining an understanding of internalfinancial controls over financial Reporting with reference to these financial statementsassessing 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 offinancialstatements whether risksofmaterialmisstatementofthe due to fraud orerror.

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 with reference to these financial statements of theCompany.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseFinancial Statement

A company’s internal financial control over financial Reporting with reference tothese financial statementis a process designed to provide reasonable assurance regardingthe reliability of financial Reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. Acompany’s internal financial control over financial Reporting with reference to thesefinancial statements 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 authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting Withreference to these Financial Statements

Because of the inherent limitations of internal financial controls over financialReporting with reference to these financial including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialreference to financial statements to future periods are subject to the risk that theinternal financial control over financial Reporting with referencetothesefinancialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial Reporting with reference to these financial statement and suchinternal financial controls over financial Reporting with reference to these financialstatements were operating effectively as at March 31 2019 based on the internal controlover financial Reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For SHASHIKANT J. SHAH & CO.
Chartered Accountants
Firm Reg. No. 109996W
SHASHIKANT J. SHAH
Partner
Membership No: 015905
Place : Mumbai
Date : 28/05/2019

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