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Shree Ganesh Forgings Ltd.

BSE Live

Oct 14, 16:00
0.36 -0.01 (-2.70%)
Volume
AVERAGE VOLUME
5-Day
1,190
10-Day
870
30-Day
719
5,250
  • Prev. Close

    0.37

  • Open Price

    0.38

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 29, 15:40
1.00 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
83
10-Day
468
30-Day
233
0
  • Prev. Close

    1.00

  • Open Price

    0.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1.00 (844)

Annual Report

For Year :
2014 2013 2012 2011 2010 2009 2008 2007 2006

Auditor's Report

We have audited the accompanying financial statements of SHREE GANESH FORGINGS LIMITED (the Company), which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended , and a summary of significant accounting policies and other explanatory information. 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 in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) read with the general circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act 2013. 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. Auditor''s Responsibility 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 statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion The company has defaulted in payment of statutory dues, such as Sales tax, Property Tax, NMMC Cess, and for P.T. the company has not filled any return during the year. The Company has also defaulted in repayment of loans and interest on loans borrowed from banks. Despite accumulated losses and consequent total erosion of equity and inadequate liquidity, accounts have been complied as on going concern basis. Qualified opinion In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the impact whereof is unascertainable, 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 India: (a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2014; (b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date. (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 Requirements 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 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 audit; (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 books .; (c) the Balance Sheet and Statement of Profit and Loss and cash flow dealt with by this report are in agreement with the books of account. (d) in our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; (e) on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2014, 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 (Report on Other Legal and Regulatory Requirements) of our report of even date) (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The fixed assets were physically verified at the close of the year and no discrepancies were noticed. (ii) According to the information and explanations given to us, (a) Inventories have been physically verified by management at regular intervals. However the verification exercises have not been observed by us. (b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and nature of business. (c) In our opinion, the company has maintained adequate records of its inventories and. (d) No material discrepancies were noticed on physical verification. (iii) (a) According to the information and explanations given to us, the company has granted interest free loans to related parties of Rs. 3,70,98,457 which is a non - compliance of Section 295 of the Companies Act, 1956 as the necessary prior approval from Central Government has not been obtained. The maximum Outstanding during the year and year-end balance of such loan are as follows: Maximum amount Year-end Name of the Party outstanding balance during the year Namha metal Ltd. 1,41,88,311 3,51,36,543 Akshatt 2,00,02,501 1,50,189 Warehousing Corporation Anita Sekhri 2,49,048 7,04,118 Deepak Sekhri 46,05,220 10,99,607 Namha Sekhri 8,000 8,000 (b) Since there are no stipulated terms of repayment of interest and principle, hence we are not able to comment on the regularity of receipt of the same. (c) According to the information and explanations given to us, in case where overdue amount is more than rupees one lakh, reasonable steps have been taken by the company for the recovery of principal. (d) The Company has taken interest free loans of Rs. 1,21,199/- secured or unsecured, from related parties. The maximum outstanding during the year and the year-end balance of such loans are as follows:q1 Name of the Party Maximum Year-end amount balance outstanding during the year Akshatt Sekhri 34,456 16,776 Deepak Sekhri HU 1,04,423 1,04,423 (iv) 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 fixed assets etc. There is no sale of services during the year. During the course of our audit, we have not observed any major weaknesses in internal controls. However, in our opinion the company should strengthen its controls with regard to storage and maintenance of inventory records. (v) Based on the audit procedure 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 u/s 301 have been so entered. In our opinion and according to the information and explanations given to us, the transactions made in the registers maintained under section 301 and exceeding the value of five lakhs 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. (vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public therefore the provisions of clause 4 (vi) of the Order are not applicable to the company. (vii) In our opinion, the company has internal audit system commensurate with the size and nature of its business. (viii) The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 having regard to the nature of the business of the company. As explained to us, the specified records have been maintained to the extent applicable, We have, however not made detailed examination of the records, with a view to determine whether they are accurate. (ix) In respect of Statutory Dues: (a) According to the information given to us, there were certain dues in respect of Income Tax & Cess are outstanding as at March 31st,2014 for a period of more than six months from the date they become payable due to financial constraints faced by the company. Details are as follows: NMMC Cess 1,050,184 Sales Tax 45,15,673 Property Tax 91,45,565 P.T 57,996 CST 1,56,580 The disputed statutory dues relating to sales Tax and misc. aggregating to Rs. 270.68 lakhs that have not been deposited are as under: for which the company has made an appeal to the higher authority. Assessment Year Amount (Rs.) 2000-01 9,450.00 2001-02 350,003.00 2002-03 3,043,843.00 2003-04 2,216,678.00 2004-05 1,331,956.00 2005-06 1,331,956.00 2006-07 21,115,850.00 (x) As on 31.03.2010 the company had accumulated losses of Rs. 357,639,510/- which completely eroded company''s net worth. The company was registered as sick company Under the provisions of Sick Industrial and Companies (special provisions) Act, 1985 with the board for Industrial and Financial Reconstruction (BIFR) on 3rd August, 2010. As on 31st March, 2014 the Company''s net worth remains eroded by its accumulated losses of Rs. 767,70,5343/-. During the financial year 2013-14 the company had incurred cash losses of Rs. 23,099,193/- and Rs.176,506,322/- for the immediately preceding previous year i.e. F.Y. 2012-13. (xi) According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, as such the provisions of clause 4(xi) of the Order are not applicable. (xii) The company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4 (xii) of the order are not applicable. (xiii) According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments, as such the provisions of clause 4 (xiii) of the order are not applicable. (xiv) As per the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions, as such the provisions of clause 4 (xiv) of the order are not applicable. (xv) According to the information and explanations given to us, no term loan was taken during the year. Accordingly provisions of clause 4 (xv) of the order are not applicable. (xvi) Based on the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment. . (xvii) According to the information and explanations given to us, during the year the company has not made any preferential allotment of shares to parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, provisions of clause 4(xvii) of the Order are not applicable. (xviii) According to the information and explanations given to us, the company has not issued debentures during the year. Therefore, the provisions of clause 4(xviii) of the Order are not applicable. (xix) According to the information and explanations given to us, the company has not raised money by way of public issue during the year. Therefore, the provisions of clause 4(xix) of the Order are not applicable. For BATLIBOI & PUROHIT Chartered Accountants Firm Reg.No. 101048W Place : Mumbai (R.D. Hangekar) Date : Partner Membership No: 30615