We have audited the accompanying financial statements of G.M.Breweries
Limited (''the Company'') which comprise the Balance Sheet as at March
31, 2013, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended and a summary of significant accounting
policies and other explanatory information.
Managements responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
(i) in the case of the Balance sheet, of the state of affairs of the
company as at March 31, 2013;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
2. As required by section 227(3) of the Act, we report that:
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 proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 of our report of even date)
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situations of fixed
b) As per the information and explanations given to us, the fixed
assets of the Company have been physically verified by the management
at reasonable intervals and no serious discrepancies between the book
records and physical verification were noticed.
c) During the year the Company has not disposed off any substantial
/major part of fixed assets.
2. a) As per the information and explanations given to us, the
inventories have been physically verified by the management at
reasonable intervals during the year.
b) In our opinion and as per the information and explanations given to
us, procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and nature of its business.
c) The Company is maintaining proper records of inventories. In our
opinion, discrepancies noticed on physical verification of inventory
were not material in relation to the operations of the Company and the
same have been properly dealt with in the books of account.
3. As per information furnished, the company has not granted any loans
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956. The company had taken loan
from director which was paid back during the year.
4. In our opinion and according to the information and explanations
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 inventory and fixed assets and for
the sale of goods. During the course of audit, no major weakness has
been notice in the internal controls.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under sec 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under sec 301 and
exceeding the value of five lakh rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. As the company has not accepted any deposits from the public within
the meaning of the provisions of Sec 58A and 58AA of the Companies Act,
1956 and rules made there under, clause (vi) of the order is not
7. In our opinion, the company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. The maintenance of cost records has not been prescribed by the
Central Government under Section 209(1)(d) of the Companies Act, 1956.
9. (a) According to information and explanations given to us and the
records examined by us, the Company has generally been regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income tax, value added tax, wealth tax,
custom duty, excise duty, cess and other statutory dues wherever
(b) According to information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at March 31,
2013, for a period of more than six months from the date they became
(c) According to the records of the Company, there are no dues
outstanding in respect of income tax, MVAT, customs duty, wealth-tax,
service tax, excise-duty, cess, etc, on account of any dispute.
10. There are no accumulated losses of the Company as on March 31,
2013. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. The Company has not defaulted in repayment of dues to Banks and
payments have been made as per the repayment schedule sanctioned by the
banks. The Company has no borrowings from financial institutions or by
way of debentures.
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on basis of security by way of pledge of shares, debentures
and other securities.
13. Clause (xiii) of the order is not applicable to the Company as the
Company is not a Chit fund company or nidhi/ mutual benefit fund/
14. Clause (xiv) of the order is not applicable to the Company as the
Company is not dealing or trading in shares, securities, debentures and
15. According to information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
16. The company has applied funds from term loans raised during the
year only for the purpose for which those term loans were raised .The
Company has raised during the year term loans, which has been used for
long term funding of capital assets of the Company.
17. During the year under purview the Company has not made any long
term Investments out of funds raised on short- term basis or vice
18. The Company has not made any preferential allotment of shares
during the year.
19. Clause (xix) of the order is not applicable to the company, as the
Company has not issued any debentures.
20. The Company has not raised any money by public issues during the
year covered by our report.
21. As per the information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For V. P. Mehta & Company
Firm Registration No.106326W
Vipul P. Mehta
Membership No : 035722
Mumbai : April 04, 2013