We have audited the attached Balance Sheet of GCCL INFRASTRUCTURE AND
PROJECTS LIMITED as at 31st March 2012 and also the Profit and Loss
Account of the Company for the year ended on that date, annexed
thereto, and report that:
1) As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in term of sub - section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
2) We conduct our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whetherthe financial
statements are free of material misstatement. An audit includes
examining, on a'' test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also included
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3) Furtherto our comments in paragraph (1) above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purpose of our
b) In our opinion, The Company has maintained proper books of accounts
as required by Law, so far, as appears from our examination of those
c) The Balance Sheet and the Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d) In our opinion, the Profit and Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956.
e) On the basis of the representations/received from the directors of
the Company, we report that none of the directors is disqualified from
being appointed as a director of the Company under clause(g) of
sub-section (1) of section 274 of the CompaniesAct, 1956.
f) Subject to the above, in our opinion and to the best of our
information and according to the explanations given to us, the
accounts, read with the accounting policies and other notes, give the
information required by the Companies Act, 1956,in the manner so
required and give a true and fair view:-
1. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2012 and
2. In the case of the Profit and Loss Account, of the loss for the
year ended on that date.
3. In the case of the Cash flow Statement, of the Cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
TO THE MEMBERS OF GCCL INFRASTRUCTURE AND PROJECT LTD. (REFERRED TO IN
PARAGRAPH 1 OF OUR REPORT OF EVEN DATE)
(1) (a) The company has maintained generally proper records showing
full particulars including quantitative details and situation of fixed
(b) As explained to us, the Management has physically verified the
Company''s fixed assets during the year and no material discrepancies
were noticed on such verification.
(2) (a) The inventory has been physically verified by the Management
during the year. The frequency of such verification is reasonable.
(b) In our opinion, the procedures of physical verification of stocks
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The discrepancies noticed on such physically verification of stock
as compared to books records were not material and the same have been
properly dealt with in the books of accounts.
(3) (a) According to the information and explanations given to us, the
company has granted and taken loans
and advances from companies, firms or other parties listed in the
registers maintained under section 301 and the companies underthe same
management. The maximum amount involved during the year towards loan
granted was NIL and towards the loan taken was Rs NIL. The year end
balance of loans taken from such parties was Rs NIL and year end
balance of loan granted to such party was Rs 203.76 Lacs
(b) In our opinion , the rate of interest and other terms and
conditions on which loans have been taken from / granted to companies,
firms or other parties listed in the registers maintained under Section
301 are not, prima facie prejudicial to the company.
(c) The company is regular in repaying the principal amounts as
stipulated and has been regular in the payment of interest wherever
applicable. The parties have repaid principal amounts as stipulated and
have been regular in payment of interest wherever applicable.
(d) There is no overdue amount of loans taken from or granted by the
companies, firms or other parties listed in the register maintained
under Section of 301 of the Companies Act, 1956.
(4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventories, fixed assets and with
regard to the sale of goods, if any.
(5) (a) According to the information and explanations given to us, We
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at relevant time.
(6) The company has not accepted deposit from public coming under the
purview of section 58 A of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rule, 1975.
(7) The company has an internal Audit System Commensurate with the size
of the company and its nature of business.
(8) The Central Government has not prescribed maintenance of the cost
records under Section 209 (1) (d) of the Companies Act, 1956 in respect
of the products manufactured by the company.
(9) According to the records of the Company, the company is regular in
depositing with appropriate authorities undisputed statutory dues.
There are no undisputed statutory dues as on the last day of the
financial year which are outstanding for more than six months from the
date they become payable except TDS Interest amount.
(10) In our opinion, the accumulated losses are not more than fifty
percent for net worth.
(11) The company has not defaulted in repayment of dues to financial
institutions and banking institutions.
(12) According to the information and explanations given to us, the
company has not granted any loan or advance on the basis of security by
way of pledge of shares or debentures or any other securities.
(13) In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore the provisions of clause 4 (xiii) of
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
(14) In our opinion, the company is not dealing in ortrading shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors'' Report)
.Order, 2003 are not
applicable to the company.
(15) In our opinion, the company has not given any guarantee for loans
taken by others from banks or financial institutions and hence the
provisions relating to clause 4 (xv) are not applicable to the Company.
(16) This clauses is not applicable as no term loans been raised during
(17) According to the information and explanation given to us and on
overall examination of balance sheet of the company, We report that no
short term funds have been used for long term purposes not long term
funds are used for short term purposes.
(18) According to the information and explanation given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
(19) No debentures have been issued during the year.
(20) The company has not raised any money by public issue during the
(21) According to the information and explanation give to us, no fraud
on or by the company has been noticed or reported during the course of
For Hiren K. Shah & Co.
Place : Ahmedabad Hiren K. Shah
Date : 28/07/2012 (Proprietor)