We have audited the accompanying financial statements of Gujarat
Mineral Development Corporation Ltd., Ahmedabad which comprise the
Balance Sheet as at 31st March, 2012 Statement of Profit and Loss
Account and Cash flow statement of the Corporation for the year
then ended and summary of significant accounting policies and other
Management''s 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 fair presentation of the financial statements
that are free from material misstatement, whether due to fraud or
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 judgement, 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
presentation of the financial statements that give a true and fair view
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 statements.
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 a true and fair
view in conformity with the accounting principles I generally accepted
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) 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 Requirement
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) 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 Order.
2. As required by section 227(3) of the Companies Act, 1956, we report
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
c. The Balance Sheet, Statement of Profit and Loss and Cash flow dealt
with by this Report are in agreement with the books of account and with
the returns received from branches not visited by us;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act;
e. As per Circular No. 8/2002 dated 22.03.2002 issued by Ministry of
Law, Justice and Company Affairs, Government Companies have been
exempted from the applicability of the clause (g) of sub section (1) of
Section 274 of the Companies Act, 1956, regarding the disqualification
of Directors under the said section.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 of our report of even date on the account
of Gujarat Mineral Development Corporation Ltd, Ahmedabad for the
period ended on 31st March, 2012)
1. a. The Company has maintained proper record I showing full
particulars, including quantitative I details and situation of fixed
b. We are informed that during the period fixed assets I were
physically verified by the management and no material discrepancies
were noticed between the books records and physical existence of
c. No substantial part of fixed assets has been disposed I off during
the period as would affect going concern status of the company.
2. a. During the year the management and the firm of I chartered
accountants have physically verified the inventories. In our opinion
frequency of verification I is reasonable.
b. in our opinion and according to the information and I explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in I relation to
the size of the Company and the nature of its business.
c. The company has maintained proper records of I inventories. The
discrepancies noticed on verification between the physical stock and
book stock were not material and the same have been properly dealt with
in the books of accounts.
3. (a&b) The company has neither granted nor taken any I loans from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act 1956 or to a Company under the
same management. Therefore requirement of sub clause (b),(c),(d) and
(f) of clause (iii) of the order are not applicable to the company.
4. In our opinion the Company has an adequate I Internal Control
System commensurate with the size I of the Company and nature of its
business with regard to purchases of inventory & fixed assets and for
sale of goods & services. During the course of I audit, we have not
observed any major weakness in the internal controls.
5. There are no transactions that need to be entered I into register
in pursuance of section 301 of the act. I Therefore requirement of
sub-clause (b) of clause (v) of the order is not applicable to the
6. In our opinion and according to information and I explanation given
to us, the company has not accepted deposits from the public during the
period during the year within the meaning of section 58A, 58AA and
other relevant provisions of the act.
7. Internal Audit of the company is entrusted to the firm of Chartered
Accountants. The system is commensurate with the size and nature of the
activities of the company.
8. We have broadly reviewed the books of accounts and record maintain
by the corporation pursuant to the order made by the central government
for the maintenance of cost records under section 209 (1) (d) of the
companies act 1956, and are of the opinion that prima facie the
prescribed records have been maintained. We have however, not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanation given to us, there
are no undisputed dues payable in respect of Provident Fund, Investor
Education & Protection Fund, Employees State Insurance, Income Tax,
Sales tax, Wealth Tax, Service tax, Excise Duty, Cess and any other
statutory dues which are outstanding as at 31/03/2012 for a period of
more than six months from the date they became payable.
(b) The details of excise duty, income tax and sales tax not deposited
on account of dispute is as under:
Nature Amount Forum where dispute is pending
of due (Rs. in lakhs)
Sales tax 106.59 Appellate tribunal and high court
Income tax 3664.48 ITAT,CIT(A),High Court
Excise duty 450.58 CESTAT
10. The company has been registered for a period for more than five
years and it has no accumulated losses. The company has not incurred
cash losses during the year under audit and in the immediately
preceding financial year. Therefore, the requirement of clause (x) of
paragraph 4 of the Order is not applicable to the Company.
11. According to the records of the company examined by us and on the
basis of information and explanations given to us the Company has not
defaulted in repayment of dues to a financial institution or bank or
12. As per the information and according to the explanations given to
us the company has not granted any loans & advances on the basis of
security by way of pledge of other securities, and therefore
requirement of clause (xii) of para 4 of the order is not applicable to
13. The company is not a Chit Fund, Nidhi or Mutual benefit society.
Hence, the requirement of clause (xiii) of paragraph 4 of the order is
not applicable to the Company.
14. According to the information and explanation given to us, the
company is not dealing in shares, securities, debentures and other
investments and therefore requirement of clause (xiv) of para 4 of the
order is not applicable to the company.
15. The company has not given any guarantee for loans taken by the
others from banks or financial institutions.
16. The term loans obtained were applied for the purpose for which the
loans were obtained.
17. No funds raised for short term requirements have been used for
18. During the period under audit, the company has not made any
preferential allotment of shares to parties and companies covered in
the Register maintained under section 301 of the Act.
19. During the period under audit, Company has not issued any
debenture and therefore requirement of clause (xix) of the order is not
applicable to the company.
20. During the period under audit, company has not raised any money by
way of public issue and therefore the requirement of clause (xx) of
paragraph 4 of the order is not applicable to the company.
21. According the information and explanation given to us, fraud on or
by the company has not been noticed or reported during the period under
FOR P. SINGHVI & ASSOCIATES
PLACE : GANDHINAGAR CA NIPUN SINGHVI
DATE : MAY 25, 2012 PARTNER