TO THE MEMBERS OF
GANESH FOUNDRY AND CASTINGS LIMITED
Report on the standalone Financial Statements
Opinion
We have audited the accompanying financial statements of "GANESH FOUNDRY AND
CASTINGS LIMITED” (“the Company”), which comprise the balance sheet as at
March 31, 2020, and the Statement of Profit and Loss and statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 (‘Act) in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2020, its profit (or Loss) for the year ended on
that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing specified under
section 143 (10) of the Companies Act, 2013. Our responsibilities under those Standards
are further described in the auditors responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the
code of ethics issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Boards
Report including Annexures to Boards Report, Business Responsibility Report but does not
include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation
and presentation of these financial statements that give a true and fair view of the
financial position and financial performance of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so. The board of directors are also responsible for overseeing the
Companys financial reporting process.
Auditors 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 any 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 auditors judgment,
including the assessment of the risks of material misstatement in the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys 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 the 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.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors Report) Order, 2017 (“the Order”)
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, We have given in the Annexure ‘A a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2) Subject to above, as required by section 143(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 purposes of our audit;
b. In our opinion, proper books of accounts as required by law have been kept by the
Company so far as it appears from our examination of such books;
c. The Balance Sheet and Statement of Profit and Loss dealt with by this report are in
agreement with the books of accounts; d. In our opinion, the Balance Sheet and the
Statement of Profit and Loss comply with the Accounting Standards notified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the Directors as on 31ST
March, 2020 and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March, 2020 from being appointed as a
director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in Annexure B; and g. With respect to the other matters to be included in
the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and according to the
explanations given to us. (i) The company pending litigations which could impact its
financial position, the details of which have been adequately disclosed in Note No 26.01
of the Financial Statements. (ii) The Company did not have any long term contract
including derivative contracts as on 31st March, 2020, for which there were any material
foreseeable losses. (iii) There has been no amount required to be transferred to the
Investor Education and Protection fund by the Company during the year ended 31st March,
2020.
| For SPSA & Co |
| Chartered Accountants |
| FRN - 019888N |
| Sd/- |
| Sobhit Chhawchharia |
| Partner |
| Membership No. 066084 |
| UDIN:20066084AAAAAQ5131 |
| Place: Kolkata |
| Date: August 26, 2020 |
Annexure - A to the Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the standalone financial statements for the year ended 31 March 2020, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets
(b) The fixed assets have been physically verified by the Management during the year
and no material discrepancy has been noticed.
(c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties are
held in the name of the Company.
(ii) The management has conducted physical verification of Inventories at reasonable
intervals during the year. The procedure of physical verification of stocks followed by
the Management is reasonable and adequate in relation to the size of the Company and the
nature of its business. In our opinion and according to the information and explanation
given to us, the company is maintaining proper records of the inventory. No material
discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans secured or unsecured to companies, firms,
limited liability partnership or other parties covered in the register maintained under
section 189 of the Companies Act, 2013 (‘the Act).
(iv) In our opinion and according to the information and explanations given to us, the
Company has compiled with the provisions of section 185 and 186 of Companies Act , 2013
with respect to loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant
to the rules made by the Central Government for the maintenance of cost records under
section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
(vii) According to the records of the company, the company is regular in depositing
with appropriate authorities undisputed statutory dues including provident fund,
employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty,
cess, value added tax and other statutory dues applicable to it.
(viii) The Company does not have any loans or borrowings from any financial
institution, banks, government or debenture holders during the year. Accordingly,
paragraph 3(viii) of the Order is not applicable. (ix) The Company did not raise any money
by way of initial public offer or further public offer (including debt instruments) and
term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the
Company or on the Company by its officers or employees has been noticed or reported during
the course of our audit. (xi) According to the information and explanations give to us and
based on our examination of the records of the Company, the Company has provided for
managerial remuneration during the year . Managerial remuneration is in excess of the
limits prescribed in section 197 of companies act, 2013, for which relevant provisions
have been duly complied with provided in companies act, 2013. (xii) In our opinion and
according to the information and explanations given to us, t he Company is not a nidhi
company. Accordingly, paragraph 3(xii) of the Order is not applicable. (xiii) According to
the information and explanations given to us and based on our examination of the records
of the Company, transactions with the related parties are in compliance with sections 177
and 188 of the Act where applicable and details of such transactions have been duly
disclosed in the standalone financial statements as required by the applicable accounting
standards. (xiv) According to the information and explanations give to us and based on our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year under review. (xv) According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has not entered into
non-cash transactions with directors or persons connected with him. Accordingly, paragraph
3(xv) of the Order is not applicable. (xvi) The Company is not required to be registered
under section 45-IA of the Reserve Bank of India Act 1934. Accordingly, paragraph 3(xvi)
of the Order is not applicable.
| For SPSA & Co |
| Chartered Accountants |
| FRN - 019888N |
| Sd/- |
| Sobhit Chhawchharia |
| Partner |
| Membership No. 066084 |
| UDIN:20066084AAAAAQ5131 |
| Place: Kolkata |
| Date: August 26, 2020 |
ANNEXURE “B”
TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report to the Members of M/s Ganesh Foundry and Castings
Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of M/s Ganesh
Foundry and Castings Limited (“the Company”) as of March 31, 2020 in conjunction
with our audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial
The Board of Directors of the Company is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to respective companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the internal financial controls over
financial reporting of the Company based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants
of India and the Standards on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorization of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2020, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
| For SPSA & Co |
| Chartered Accountants |
| FRN - 019888N |
| Sd/- |
| Sobhit Chhawchharia |
| Partner |
| Membership No. 066084 |
| UDIN:20066084AAAAAQ5131 |
| Place: Kolkata |
| Date: August 26, 2020 |
+91-9892691696
