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GCM Commodity & Derivatives Ltd.

BSE: 535917 Sector: Financials
NSE: N.A. ISIN Code: INE200P01016
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NSE 05:30 | 01 Jan GCM Commodity & Derivatives Ltd
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Mkt Cap.(Rs cr) 3
Buy Price 4.43
Buy Qty 12000.00
Sell Price 4.39
Sell Qty 18000.00
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52-Week high
52-Week low
P/E
Mkt Cap.(Rs cr) 3
Buy Price 4.43
Buy Qty 12000.00
Sell Price 4.39
Sell Qty 18000.00

GCM Commodity & Derivatives Ltd. (GCMCOMMODITY) - Auditors Report

Company auditors report

TO

GCM COMMODITY & DERIVATIVES LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying Standalone financial statements of GCM Commodity &Derivatives Limited( the company )which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss the cash flow statement for the year 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 of thesestandalone financial statements to give a true and fair view of the financial positionfinancial performance and the cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding of the assets of the Company and for preventingand detecting the 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 financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 and the Rulesmade there under including the accounting standards and matters which are required to beincluded in the audit report. We conducted our audit in accordance with the Standards onAuditing specified under section 143(10) of the Actand other applicable authoritativepronouncements issued by the institute of Chartered Accountants of India. Those Standardsand pronouncements require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company s preparation of thefinancial statements that give true and fair view in order to design audit proceduresthat are appropriate in the circumstances.An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company s Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the 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 31stMarch 2017 and its Profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor s Report) Order 2016( the Order ) issued by theCentral Government of India in terms of sub-section (11) of section 143 of theAct(hereinafter referred to as the Order )and on the basis of such checks of the booksand records of the company as we considered appropriate and according to the informationand explanations given to us we give in the Annexure A a statement on the mattersSpecified in paragraphs 3 and 4 of the Order.

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 and thecash flow statement dealt with by this Report are in agreement with the books of account.d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of written representations received fromthe directors as on 31st March 2017 taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2017 from being appointed as a directorin terms of Section 164(2) of the Act. f) With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in Annexure B. g) With respect to the othermatters to be included in the Auditors Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our knowledge andbelief and according to the information and explanations given to us: i) The Company hasinitiated legal proceedings against National Spot Exchange Limited through BSE Broker sForum and is a number of National Spot Exchange Forum. The total amount receivable fromNational Spot Exchange Limited on account settlement dues in Rs 1605.49 lakhs whichincludes both client fund and self fund. ii) The Company did not have any long-termcontracts including derivatives contracts for which there were any material foreseeablelosses during the year ended March 31 2017. iii) There were no amounts which required tobe transferred by the Company to the Investor Education and Protection Fund during theyear ended March 31 2017. iv) The company has provided requisite disclosures in itsFinancial Statements as to holdings as well as dealings in specified bank notes during theperiod from 8 November 2016 to 30 December 2016 and these are in a accordance with thebooks of accounts maintained by the company Refer Note 2.26 to the Financial Statements.

For Bharat D. Sarawgee
Chartered Accountants
FRN: 326264E
Bharat D. Sarawgee
Date: Kolkata Partner
Date: 09 .05.2017 Membership No.:061505

ANNEXURE A TO INDEPENDENT AUDITORS REPORT

The auditor s report on the accounts of a company to which this Order applies shallinclude a statement on the following matters namely:-

i) a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b) These fixed assets have been physically verified by the management at reasonableintervals; No material discrepancies were noticed on such verification.

c) The title deeds of immovable properties are held in the name of the company.

(ii) The Company is maintaining proper records of inventory and there is no anymaterial discrepancy noticed.

(iii) The company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Accordingly the provisions of Clause 3(iii) ofthe 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 Section 185 and 186 of the Companies Act 2013in respect of the loans and investments made and guarantees and security provided by it.

v) The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified. Accordingly the provisions of Clause 3(v) of the Order are not applicable tothe Company

vi) Maintenance of cost records has not been specified by the Central Government undersubsection (1) of section 148 of the Companies Act 2013 and no such accounts and recordshave been so made and maintained. Accordingly the provisions of Clause 3(vi) of the Orderare not applicable to the Company.

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 depositingthe undisputed statutory dues including provident fund employees state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities;

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax -tax which have not been depositedon account of any dispute.

viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date.

ix) In our opinion and according to the information and explanations given to usthere was no money raised by way of Initial public offer or any term loan accordinglythe provisions of Clause 3(ix) of the Order are not applicable to the Company.

x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the

Company or on the Company by its officers or employees noticed or reportedduring theyear nor have we been informed of any such case by the Management.

xi) During the course of our examination of the books and records of the Company andaccording to the information and explanations given to us the Company has paid managerialremuneration within the limits of Sec 197 of the Companies Act 2013.

xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of theOrder are not applicable to the Company.

xiii) The Company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of theAct. The details of such related partytransactions have been disclosed in the financial statements as required underAccountingStandard (AS) 18 Related Party Disclosures specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts)Rules 2014;

xiv) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debenturesduring the year under review. Accordinglytheprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 since being a stock broking company. Accordingly theprovisionsof Clause 3(xvi) of the Order are not applicable to the Company.

For Bharat D. Sarawgee
Chartered Accountants
FRN: 326264E
Bharat D. Sarawgee
Date: Kolkata Partner
Date: 09.05.2017 Membership No.:061505

ANNEXURE B TO INDEPENDENT AUDITORS REPORT

Referred to in paragraph 2(f) of the Independent Auditors Report of even date to themembers of GCM Commodity & Derivatives Limitedon the standalone financial statementsfor the year ended March 31 2017.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of GCMCommodity & Derivatives Limited( the Company ) as of March 312017 in conjunction withour audit 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 internalcontrol 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 internalfinancial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherenceto company s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy andcompleteness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols over financial reporting based on ouraudit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting(the Guidance Note ) and the Standards on Auditing deemed to be prescribed under section143(10) of the Act tothe extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and bothissued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan andperform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial 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 controlssystem over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a materialweakness 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 materialmisstatementof 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 onthe 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 regardingthe reliability of financial reporting and thepreparation of financial statements for external purposes in accordance withgenerallyaccepted accounting principles. A company s internal financial control over financialreporting includes those policiesand procedures that:

1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect thetransactions anddispositions of the assets of the company;

2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statementsin accordance with generally accepted accountingprinciples and that receipts and expenditures of the company arebeing 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 ofthe company s assets that could have amaterial 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 orimproper 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 thatthe internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthedegree 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 reportingand such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based ontheinternal control over financial reporting criteria established by the Companyconsidering the essential components of internalcontrol stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the InstituteofChartered Accountants of India.

For Bharat D. Sarawgee
Chartered Accountants
FRN: 326264E
Bharat D. Sarawgee
Date: Kolkata Partner
Date: 09.05.2017 Membership No.:061505