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GNA Axles Ltd.

BSE: 540124 Sector: Auto
NSE: GNA ISIN Code: INE934S01014
BSE 00:00 | 01 Dec 256.20 1.15
(0.45%)
OPEN

280.00

HIGH

280.00

LOW

252.00

NSE 00:00 | 01 Dec 255.95 1.25
(0.49%)
OPEN

256.30

HIGH

257.25

LOW

250.85

OPEN 280.00
PREVIOUS CLOSE 255.05
VOLUME 3989
52-Week high 324.70
52-Week low 132.00
P/E 19.19
Mkt Cap.(Rs cr) 550
Buy Price 254.00
Buy Qty 20.00
Sell Price 257.30
Sell Qty 100.00
OPEN 280.00
CLOSE 255.05
VOLUME 3989
52-Week high 324.70
52-Week low 132.00
P/E 19.19
Mkt Cap.(Rs cr) 550
Buy Price 254.00
Buy Qty 20.00
Sell Price 257.30
Sell Qty 100.00

GNA Axles Ltd. (GNA) - Auditors Report

Company auditors report

To the Members of

GNA AXLES LIMITED

REPORT ONT HE FINANCIAL STATEMENTS

We have audited the accompanying Standalone financial statements of GNA AXLESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss (including other comprehensive income) Cash FlowStatement and the statement of changes in equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FORT HE 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive)and cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Indian accountingstandard) Rules 2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring 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 Standalone Ind AS financialstatements based on our 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 conductedour audit of the Standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. And other applicable authoritativepronouncement issue by institute of Chartered Accountants of India. These Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the Standalone Ind AS 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 Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India.

(1) In the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2019 (2) In the case of the Statement of Profit and Loss (comprising of othercomprehensive income) of the profit for the year ended on that date: and (3) In the caseof the Cash Flow Statement of the cash flows for the year ended on that date and (4)Changes in equity for the year ended on that date.

REPORT ONOT HER LEGALAND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. 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 purpose 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 Lossincluding other comprehensive income) the Cash Flow Statement and the statement of changesin equity dealt with by this report are in agreement with the books of account . d. in ouropinion the aforesaid Standalone Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2015 as emended. e. On the basis of written representations receivedfrom the directors as on 31st March 2019 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2019 from being appointed as a directorin terms of Section 164 (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 tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i) The Company has disclosed the impact of pendinglitigations on its financial position in its Standalone Ind AS financial statements –Refer Notes to financial statements point no.

29. ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses. iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

For Harish & Co.

Chartered Accountants (FRN017372N)

(Vasu Aggarwal)

Partner

M. No. 091343

Place: Jalandhar

Date: May 11 2019

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirement' of our report of even date to the Standalone Ind AS financialstatements of the Company for the year ended 31st March 2019:

1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets; (b) The Fixed Assets have beenphysically verified by the management at reasonable intervals in accordance with regularprogramme of verification. According to the information and explanation given to us nomaterial discrepancies were noticed on such verification.

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

2) (a) The management has conducted the physical verification of inventory atreasonable intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3) 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 Act. Accordingly the provisions of clause 3 (iii) (a) to (C) of theOrder are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at 31st March 2019 for a period of more than six monthsfrom the date on when they become payable.

(b) According to the information and explanation given to us there are no materialdues of duty of customs which have not been deposited with the appropriate authorities onaccount of any dispute. However according to information and explanations given to usthe following dues of income tax sales tax duty of excise service tax and value addedtax have not been deposited by the Company on account of disputes;

Nature of the Statute Nature of the Dues Amount (र) Period to which the amount relates Forum where dispute is pending
Punjab Sales Tax Act Demand P-VAT 54.67 2009-2010 DETC Appeals
Punjab Sales Tax Act Demand P-VAT 139.06 2008-2009 VAT Tribunal
Punjab Sales Tax Act Demand P-VAT (Crane 1.80 2004-2005 DETC Appeals
Excise & Service Tax Service Tax outward freight 5.23 2009-2010 Before Commissioner Appeal
Excise & Service Tax Service Tax on others 2.17 2017-18 Before Asistant Commissioner
Excise & Service Tax Service tax on others 1.88 2011-12 Before CESTAT
Excise & Service Tax Service Tax on others 0.37 2012-13 Before CESTAT
Excise & Service Tax Service Tax on others 1.46 2012-13 Before CESTAT
Excise & Service Tax Service Tax on others 0.70 2013-14 Before CESTAT

 

Nature of the Statute Nature of the Dues Amount (र) Period to which the amount relates Forum where dispute is pending
Excise & Service Tax Service Tax on others 4.20 2017-18 Before Assist. Comsioner.
Excise & Service Tax Service Tax on others 1.18 2015-16 Before CESTAT
Excise & Service Tax Service Tax on others/ Guest House 0.32 2014-15 Before CESTAT
Excise & Service Tax Service Tax on Club Membership/Misc. 1.09 2013-14 Before CESTAT
Income Tax Act Income Tax Regular Assessment 2.49 2016-17 Before Commissioner of Income-tax (Appeals
Excise & Service Tax Excise Duty CENVAT 38.13 2017-18 Asstt. Commissioner

8 In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings from a financialinstitutions banks.

9 Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer.

10 Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11 Based upon the audit procedures performed and the information and explanations givenby the management the managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act;

12 In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii of the Order are not applicable to the Company.

13 In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14 Based upon the audit procedures performed and the information and explanations givenby the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv of the Order are not applicable tothe Company and hence not commented upon.

15 Based upon the audit procedures performed and the information and explanations givenby the management the company has not entered into any non-cash transactions withdirectors or persons connected with him and the provisions of section 192 of CompaniesAct 2013 have been complied with.

16 In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi ofthe Order are not applicable to the Company and hence not commented upon.

For Harish & Co.

Chartered Accountants (FRN017372N)

(Vasu Aggarwal)

Partner

M. No. 091343

Place: Jalandhar

Date: May 11 2019

"Annexure "B"

to the Independent Auditor's

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Financial Statements of GNA Axles Limited Report on the Internal FinancialControls under Clause (i of Sub-section 3 of Section 143 of the Companies Act 2013("the Act"

We have audited the internal financial controls over financial reporting of GNA AxlesLimited ("the Company" as of 31st March 2019 in conjunction with our audit ofthe standalone Ind AS financial statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIALCONTROLS

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Controls Over Financial Reporting(the "Guidance Note" and the Standards on Auditing issued by ICAI and deemed tobe prescribed under section 143(10 of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.

MEANING OF INTERNAL FINANCIALC ONTROLSOVER 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 authorisations ofmanagement and directors of the company; and (3 provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLSOVER 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 31st March 2019 based on theInternal Control over financial reporting criteria established by the company consideringthe essential components of the Internal Control stated in the Guidance Note on audit ofInternal financial controls over financial reporting issued by the Institute of CharteredAccountants of India.

For Harish & Co.

Chartered Accountants (FRN017372N)

(Vasu Aggarwal)

Partner

M. No. 091343

Place: Jalandhar

Date: May 11 2019

.