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Gandhi Special Tubes Ltd.

BSE: 513108 Sector: Metals & Mining
NSE: GANDHITUBE ISIN Code: INE524B01027
BSE 00:00 | 23 Oct 310.95 -0.45
(-0.14%)
OPEN

310.00

HIGH

310.95

LOW

303.30

NSE 00:00 | 23 Oct 307.35 -0.85
(-0.28%)
OPEN

308.95

HIGH

310.00

LOW

306.45

OPEN 310.00
PREVIOUS CLOSE 311.40
VOLUME 145
52-Week high 414.00
52-Week low 263.00
P/E 12.98
Mkt Cap.(Rs cr) 430
Buy Price 305.00
Buy Qty 1.00
Sell Price 310.95
Sell Qty 44.00
OPEN 310.00
CLOSE 311.40
VOLUME 145
52-Week high 414.00
52-Week low 263.00
P/E 12.98
Mkt Cap.(Rs cr) 430
Buy Price 305.00
Buy Qty 1.00
Sell Price 310.95
Sell Qty 44.00

Gandhi Special Tubes Ltd. (GANDHITUBE) - Auditors Report

Company auditors report

To

The Members of

GANDHI SPECIAL TUBES LIMITED.

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of GANDHI SPECIAL TUBESLIMITED ("the Company") which comprise the Balance Sheet as at March 312018; the Statement of Profit and Loss (including other comprehensive income) the CashFlow Statement the statement of changes in equity foryearthenendedand significantaccountingpolicies summaryof and other explanatory information (herein after referred to as IndAS " Financial statements").

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matter stated in Section 134(5)of the Companies Act 2013 ("The Act") with respect to the preparation of theseInd AS financial statements that give a true and fair view of the financial positionfinancial performance (including other comprehensive income) cash flows and changes inequity of the company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act and relevant rules issued thereafter.

This responsibility also include maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting fraud 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 Ind ASfinancial 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 Ind AS financial statements basedon our audit.

While conducting the 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 conducted our audit in accordance with the StandardsonAuditingspecifiedunder Section143(10) of the Act. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosure in the Ind AS financial statements. The procedures selected depend on theauditor's judgments including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the company's preparation of thefinancial to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 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 of the state of affairs of the companyas at 31st March 2018 and its profit total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Other Matter

The audited financial statements for the year ended 31st March 2017 wascarried out and reported by S. V. Doshi & Co. vide their unmodifiedaudit report dated16th May 2017 whose report has been furnished to us by the management and which has beenrelied upon by us for the purpose of our audit of financial statements. Our audit reportis not qualified in respect of this matter.

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 143(11) of Act we give inthe Annexure "A" a statement on the matters specified in the paragraphs 3 and 4of the said order to the extent applicable.

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;

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 Profitand Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. (‘Ind AS' have been included)

e) On the basis of the written representations received from the directors as on March31st 2018 and taken on record by the Board of Directors we report that noneof the directors is disqualified as on March 31 st 2018 from being appointedas a director in terms of Section 164(2) of the Act.

f) With respect to adequacy of the internal financial control over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport 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 Auditor) Rule 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 Ind AS financial statements- Refer Note 31 to the Ind AS financialstatements.

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
Place : Mumbai Partner
Date : 28th May 2018 Membership No: 015905

Annexure "A" to The Independent Auditor's Report for the year ended 31stMarch 2018.

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" 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) As explained to us the fixed assets have been physically verified by the managementin accordance with the phased programme of verification which in our opinion isreasonable 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 explanation 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 verification.

(iii) According to the information and explanations given to us the Company hasduring the 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 Act. Accordingly the provisions of paragraph 3(III) 3(III) (a) to (c) of thesaid order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans to Directors Loans and investments giving guarantees and providingsecurities 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 the Rules framed there under to the extentnotified. Accordingly Clause 3(v) of the Order is 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 Section 148(1) of the Act and areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of records with a view todetermine whether they are accurate or complete.

(vii) a) According to the information and explanations 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 Fund Investor Education & ProtectionFund Employees' State Insurance Income Tax Sales Tax Service tax Custom duty Exciseduty value added tax cess GST and other material statutory dues as applicable with theappropriate authorities.

b) The Disputed statutory dues aggregating `178.51 lakhs which have not been depositedon account of disputed matters pending before appropriate authorities are as under :

(Rs. in lakhs)
Name of the Statute

Nature of Dues

Amount under dispute not yet deposited

Period to which the amount relates

Forum where the dispute is pending
Service Tax Laws

Service Tax

152.03

01-09-2004 To 30-09-2013

Before Customs Excise & Service Tax Appellate Tribunal
Name of the Statute Nature of Dues

Amount under dispute not yet deposited

Period to which the amount relates

Forum where the dispute is pending

Service Tax Laws Service Tax

1.25

01-03-2012 To 31-12-2012

Before Commissioner (Appeals) Customs Excise & Service Tax

Sales Tax Laws Sales Tax

25.23

01-04-2002 To 31-03-2003

Before Joint Commissioner of Sales Tax (Appeals)

Total

178.51

(viii) The Company does not have any loans or borrowing from financial institutionbank Government or to during the year. Accordingly paragraph 3(viii) of the order is notapplicable.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(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 the Company by its officers oremployees noticed 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 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 ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details of suchtransactions have been disclosed in the Ind AS Financial Statements as required by theapplicable Ind AS 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 convertible debentures duringthe year under review. Accordingly paragraph 3(xiv) of the order is not applicable.

(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. Accordingly paragraph 3(xvi) of the order is not applicable.

For Shashikant J. Shah & Co.
Chartered Accountants
Firm Reg. No. 109996W
Shashikant J. Shah
Place : Mumbai Partner
Date : 28th May 2018 Membership No: 015905

Annexure "B" to the Independent Auditor's Report

(Referred to in Paragraph 2(f) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date)

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 ofGANDHISPECIAL TUBES LIMITED ("the Company") as of 31st March 2018 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

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"). 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 Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under theAct.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 obtainingan understanding of internal financial controls over financial reporting assessing therisk that a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 over financial projections of any evaluation of the internal financial the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internalfinancialcontrols overfinancialreporting were operating effectively as at 31 st March 2018 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Shashikant J. Shah & Co.
Chartered Accountants
Firm Reg. No. 109996W
Shashikant J. Shah
Place : Mumbai Partner
Date : 28th May 2018 Membership No: 015905