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GNA Axles Ltd.

BSE: 540124 Sector: Auto
NSE: GNA ISIN Code: INE934S01014
BSE 00:00 | 13 Dec 250.65 0.90
(0.36%)
OPEN

253.95

HIGH

255.25

LOW

247.00

NSE 00:00 | 13 Dec 250.75 1.35
(0.54%)
OPEN

249.20

HIGH

255.45

LOW

247.15

OPEN 253.95
PREVIOUS CLOSE 249.75
VOLUME 2356
52-Week high 391.60
52-Week low 211.05
P/E 7.05
Mkt Cap.(Rs cr) 538
Buy Price 250.65
Buy Qty 50.00
Sell Price 254.00
Sell Qty 1.00
OPEN 253.95
CLOSE 249.75
VOLUME 2356
52-Week high 391.60
52-Week low 211.05
P/E 7.05
Mkt Cap.(Rs cr) 538
Buy Price 250.65
Buy Qty 50.00
Sell Price 254.00
Sell Qty 1.00

GNA Axles Ltd. (GNA) - Auditors Report

Company auditors report

To the Members of

GNA AXLES LIMITED

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying Standalone fi nancial statements of GNA AXLESLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profi t and Loss (including other comprehensive income) Cash FlowStatement and the statement of changes in equity for the year then ended and a summary ofsignifi cant 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 Ind AS fi nancial statements that give a true and fair view of the financial position fi nancial performance (including other comprehensive)and cash fl owsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS ) specified under 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 fi nancial controls that were operating e3 ectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS fi nancial 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 fi nancialstatements based 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 thereunder.

We conducted our audit of the Standalone Ind AS fi nancial statements in accordancewith the Standards on Auditing specifi ed under Section 143(10) of the Act. And otherapplicable authoritative pronouncement issue by institute of Chartered Accountants ofIndia. These Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the Ind AS fi nancialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and the disclosures in the Ind AS fi nancialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone Ind AS fi nancialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal fi nancial control relevant to the Company's preparation of theStandalone Ind AS fi nancial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal fi nancialcontrols system over fi nancial reporting and the operating e3 ectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the Standalone Ind AS fi nancialstatements. We believe that the audit evidence we have obtained is su3 cient andappropriate to provide a basis for our audit opinion on the Standalone Ind AS fi nancialstatements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS fi nancial 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 a3 airs of the Company as at 31stMarch 2018 (2) In the case of the Statement of Profi t and Loss (comprising of othercomprehensive income) of the profi t for the year ended on that date: and (3) In the caseof the Cash Flow Statement of the cash fl ows for the year ended on that date and (4)Changes in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND 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 specifi ed 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 Profi t 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 fi nancial statements comply with the AccountingStandards specifi ed under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2015 as emended. e. On the basis of wri3 en representations receivedfrom the directors as on 31st March 2018 taken on record by the Board of Directors noneof the directors is disqualifi ed as on 31st March 2018 from being appointed as adirector in terms of Section 164 (2) of the Act. f. With respect to the adequacy of theinternal fi nancial controls over fi nancial reporting of the Company and the operating e3ectiveness of such controls refer to our separate Report in

"Annexure B". g. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i) The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS fi nancial 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)
(Harish Kumar)
Proprietor
M. No. 016902
Place: Jalandhar
Dated: 28th May 2018

"Annexure "A" to the Independent Auditors'

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 fi nancialstatements of the Company for the year ended 31st March 2018:

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

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

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

(b) The discrepancies noticed on physical verifi cation 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 fi rmsLimited 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 specifi ed 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 2018 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 (Rs) amount relates Forum where Period to which the 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 2008-2009 Before Commissioner Appeal
Excise & Service Tax Service Tax outward freight 8.66 2010-11 CESTAT
Excise & Service Tax Service tax on others 1.92 2010-11 Before commissioner appeal
Excise & Service Tax Service Tax on others .37 2012-13 Before Commissioner Appeal
Excise & Service Tax Service Tax on others 1.46 2010-11 Before Commissioner Appeal
Excise & Service Tax Service Tax on others 0.70 2013-14 Before Commissioner Appeal
Excise & Service Tax Service Tax on others 0.40 2013-14 Before Commissioner Appeal
Excise & Service Tax Service Tax on others 1.18 2013-14 Before Commissioner Appeal
Excise & Service Tax Service Tax on others/Guest House 0.33 2014-15 Before Commissioner Appeal
Excise & Service Tax Service Tax on Club Membership/Misc. 3.66 2013-14 Ass3 . Commissioner SE
Income Tax Act Income Tax Regular Assessment 135.04 2012-13 Before Commissioner of Income-tax (Appeals
Excise & Service Tax Excise Duty CENVAT 34.20 2016-17 Ass3 . Commissioner
Excise & Service Tax Excise Duty CENVAT 38.13 2017-18 Ass3 . 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 fi nancialinstitutions 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 o3 er.

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 of the Order are not applicable to the Company and hence not commented upon.

For HARISH & CO.
Chartered Accountants (FRN017372N)
(Harish Kumar)
Proprietor
M. No. 016902
Place: Jalandhar
Dated: 28th May 2018

"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 fi nancial controls over fi nancial reporting of GNA AxlesLimited ("the Company" as of 31st March 2018 in conjunction with our audit ofthe standalone Ind AS fi nancial 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 internal financial controls based on the internal control over fi nancial 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 fi nancial controls thatwere operating e3 ectively for ensuring the orderly and e3 cient 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 fi nancial information as required underthe Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal fi nancialcontrols over fi nancial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note" and the Standards on Auditing issued by ICAI anddeemed to be prescribed under section 143(10 of the Companies Act 2013 to the extentapplicable to an audit of internal fi nancial 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 ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal fi nancial controls over fi nancial reporting was established andmaintained and if such controls operated e3 ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal fi nancial controls system over fi nancial reporting and their operating e3ectiveness. Our audit of internal fi nancial controls over fi nancial reporting includedobtaining an understanding of internal fi nancial controls over fi nancial 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 fi nancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is su3 cient and appropriate toprovide a basis for our audit opinion on the Company's internal fi nancial controls systemover fi nancial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal fi nancial control over fi nancial reporting is a process designedto provide reasonable assurance regarding the reliability of fi nancial reporting and thepreparation of fi nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal fi nancial control over fi nancialreporting includes those policies and procedures that (1 pertain to the maintenance ofrecords that in reasonable detail accurately and fairly refl ect the transactions anddispositions of the assets of the Company; (2 provide reasonable assurance thattransactions are recorded as necessary to permit preparation of fi nancial 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 e3 ect on the fi nancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial 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 internal financial controls system over fi nancial reporting and such internal fi nancial controlsover fi nancial reporting were operating effectively as at 31st March 2018 based on theInternal Control over fi nancial reporting criteria established by the Company consideringthe essential components of the Internal Control stated in the Guidance

Note on audit of Internal fi nancial controls over fi nancial reporting issued by theInstitute of Chartered Accountants of India.

For HARISH & CO.
Chartered Accountants (FRN017372N)
(Harish Kumar)
Proprietor
M. No. 016902
Place: Jalandhar
Dated: 28th May 2018