TO THE MEMBERS OF GRETEX INDUSTRIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Gretex
Industries Limited (the Company), which comprise the Standalone Balance Sheet as at
31st March, 2023, the Standalone Statement of Profit and Loss for the year
ended on 31st March, 2023 and the Standalone statement of Cash Flows for the
year then ended and a summary of significant accounting policies and other explanatory
information (hereinafter referred to as "the standalone financial statements")
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone financial statements give the
information required by the Companies Act 2013 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 31st March, 2023, the profit and
total income, changes in equity and its cash flows for the period 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 Act (SAs). Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of
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 (ICAI) together with the independence requirements that are relevant to our audit of
the financial statements under the provisions of the Act and the Rules made there under,
and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
OTHER INFORMATION
The Companys Management and Board of Directors are responsible for the
other information. The other information comprises the information included in the
Companys annual report, but does not include the financial statements and our auditors
report thereon. The Companys annual report is expected to be made available to us after
the date of this auditors report. Our opinion on the standalone financial statements does
not cover the other information and we will not express any form of assurance conclusion
thereon. In connection with our audit of the standalone financial statements, our
responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with
the standalone financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. When we read the Companys annual report, if we
conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance and take necessary actions, as applicable under
the relevant laws and regulations.
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 standalone 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 principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act.
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 standalone financial statements, the Management and
Board of Directors are 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 the Board of Directors either intends to
liquidate the Company or to cease operations, or has no realistic alternative but to do
so. The Board of Directors is also responsible for overseeing the Companys financial
reporting process.
AUDITORS RESPONSIBILITY
Our objective are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditors report that includes our opinion on these standalone
financial statements. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. 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. In making those
risk assessments, the auditor considers internal financial control relevant to the
companys preparation 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the financial statements.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by sub-section 3 of Section 143 of the Act, we report
that:
(a) We have sought and 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 it appears from our examination of those books;
(c) The Standalone Balance Sheet, the Standalone Statement of Profit
and Loss and the Statement of Standalone Cash Flows dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the aforesaid Standalone financial statements
comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2023 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2023 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 - A";
(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 did not have any pending litigations in its financial
statements.
ii. The Company did not have any long term contract including
derivative contract which may lead to any foreseeable losses.
iii. There have been no amounts required to be transferred to the
Investor Education and Protection Fund by the Company.
(h) with respect to the other matters to be included in the Auditors
Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and according to the information and explanations given
to us, the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of
the Act which are required to be commented upon by us.
2. As required by the Companies (Auditors Report) Order, 2020 ("
the Order") issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the "ANNEXURE - B" a statement on the
matters specified in the Order, to the extent applicable.
For Gupta Agarwal & Associates Chartered Accountants Firms
Registration No: 329001E
Sd/-
Badri Prasad Singhania Partner
Membership No: 058970 UDIN: 23058970BGZESL3193 Date: May 25, 2023
Place: Kolkata
ANNEXURE - A
REPORT ON THE INTERNAL FINANCIAL CONTROLS 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 Gretex Industries Limited ("the Company") as of 31st
March, 2023 in conjunction with our audit of the financial statements of the Company for
the period ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management 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 (ICAI).
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 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 companys internal
financial controls over financial reporting 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") and the Standards on Auditing, issued by ICAI
and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. 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 companys internal financial
controls system over financial reporting.
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 authorizations 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.
INHERENT 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 errors or frauds 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, 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 31st March,
2023, 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 Gupta Agarwal & Associates Chartered Accountants Firms
Registration No: 329001E
Sd/-
Badri Prasad Singhania Partner
Membership No: 058970 UDIN: 23058970BGZESL3193 Date: May 25, 2023
Place: Kolkata
"Annexure B" to the Independent Auditors Report
Referred to in paragraph 2 under the heading Report on Other Legal
& Regulatory Requirement of report of even date to the standalone financial
statements of the company for the year ended March 31, 2023; we report that:
1. PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS [Clause 3(i)]:
(a) The company has maintained proper records showing full particulars,
including quantitative details and situation of its Property, Plant and Equipment.
(b) The company is maintaining proper records showing full particulars
of intangible assets.
(c) As explained to us, these Property, Plant and Equipment have been
physically verified by the management at reasonable intervals; no material discrepancies
were noticed on such verification.
(d) The title deeds of immovable properties are held in the name of the
company.
(e) The Company has not revalued its Property, Plant and Equipment
(including Right of Use assets) or intangible assets or both during the year.
(f) No proceedings have been initiated or are pending against the
company for holding any Benami property under the "Benami Transactions (Prohibition)
Act, 1988 and Rules made thereunder.
2. INVENTORY [Clause 3(ii)]
a According to the information and explanations given to us, the
physical verification of inventory has been conducted at reasonable intervals by the
management and in our opinion, the coverage and procedure of such verification by the
management is appropriate; and no discrepancies of 10% or more in the aggregate for each
class of inventory were noticed.
b At any point of time of the year, the Company has not been sanctioned
working capital limits in excess of Rs. 5 crores, in aggregate, from banks or financial
institutions on the basis of security of current assets; and hence this clause is not
applicable.
3. LOAN GIVEN BY COMPANY [Clause 3(iii)]
The company has made investments in, provided any guarantee or security
or granted any loans or advances in the nature of loans, secured or unsecured to
companies, firms, Limited Liability Partnerships or any other parties during the year.
The company has provided loans or provided advances in the nature of
loans to any other entity during the year.
The aggregate amount during the year, and balance outstanding at the
balance sheet date with respect to such loans or advances and guarantees or security to
subsidiaries, joint ventures and associates are as follows:
Amount during the year: Nil
Outstanding as on 31.03.2023: Nil
The aggregate amount during the year, and balance outstanding at the
balance sheet date with respect to such loans or advances and guarantees or security to
parties other than subsidiaries, joint ventures and associates are as follows:
Amount during the year:
234.09 lakhs
Outstanding as on 31.03.2023: Nil
The investments made, guarantees provided, security given and the terms
and conditions of the grant of all loans and advances in the nature of loans and
guarantees provided are not prejudicial to the companys interest;
In respect of loans and advances in the nature of loans, the schedule
of repayment of principal and payment of interest has not been stipulated.
If the amount is overdue, state the total amount overdue for more than
ninety days, and whether reasonable steps have been taken by the company for recovery of
the principal and interest- The schedule of repayment of principal and payment of interest
has not been stipulated.
There is no loan or advance in the nature of loan granted which has
fallen due during the year, has been renewed or extended or fresh loans granted to settle
the over dues of existing loans given to the same parties
The Company has granted any loans or advances in the nature of loans
either repayable on demand or without specifying any terms or period of repayment:
(Rs. In Lakhs) |
|
All Parties |
Promoters (Including
Directors) |
Related Parties |
Aggregate amount of loans/
advances in nature of loans- - Repayable on demand (A) |
Nil |
|
Nil |
Aggregate amount of loans/
advances in nature of loans- - Agreement does not specify any terms or period of repayment
(B) |
Nil |
NIL |
Nil |
Total (A+B) |
Nil |
- |
Nil |
Percentage of loans/ advances in
nature of loans to the total loans |
-- % |
|
-- % |
4. LOAN TO DIRECTORS AND INVESTMENT BY COMPANY [Clause 3(iv)]
In our opinion and according to the information and explanations given
to us, the company has complied with the provisions of section 185 and I86 of the
Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. DEPOSITS [Clause 3(v)]
According to the information and explanation given to us the company
has not accepted deposits from the public during the financial year under audit.
Accordingly, the paragraph 3(v) of the order is not applicable to the company and hence
not commented upon.
6. COST RECORDS [Clause 3(vi)]
As informed to us, the maintenance of Cost Records has not been
specified by the Central Government under sub-section (1) of Section 148 of the Act, in
respect of the activities carried on by the company.
7. STATUTORY DUES [Clause 3(vii)]
(a) The company is regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income-tax, sales-tax, service tax,
duty of customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate authorities. According to the information and explanations given to us, no
undisputed amounts payable in respect of the above were in arrears as at March 31, 2023
for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us there are
no dues of income tax or sales tax or service tax or duty of customs or duty of excise or
value added tax which have not been deposited on account of any dispute.
8. SURRENDERED OR DISCLOSED INCOME [Clause 3(viii)]
There are no such transactions which are not recorded in the books of
account which have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.
9. REPAYMENT DUES [Clause 3(ix)]
In our opinion and according to information and explanations given to
us, the company has not defaulted in the repayment of loans or borrowings to financial
institutions, banks and government. The company has not issued any debentures.
The company is not a declared willful defaulter by any bank or
financial institution or other lender.
The term loans were applied for the purpose for which the loans were
obtained.
The funds raised on short term basis have not been utilized for long
term purposes.
The Company has not taken any funds from any entity or person on
account of or to meet the obligations of its subsidiaries, associates or joint ventures.
The Company has not raised loans during the year on the pledge of
securities held in its subsidiaries, joint ventures or associate companies.
10. UTILISATION OF INTIAL AND FURTHER PUBLIC OFFER [Clause 3(x)]
The Company has not raised any money by way of initial public offer or
further public offer (including debt instruments) during the year. Accordingly, the
reporting under clause 3(x)(a) of the Order is not applicable to the Company.
The Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally convertible)
during the year.
11. FRAUD AND WHISTLE-BLOWER COMPLAINTS [CLAUSE 3(xi)]
To the best of our knowledge and according to the information and
explanations given to us, no fraud by the company or any fraud on the Company by its
officers or employees has been noticed or reported during the year.
During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing practices in
India, and according to the information and explanations given to us, a report under
Section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit
and Auditors) Rules, 2014 was not required to be filed with the Central Government.
Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the
Company.
Whistle-blower complaints have not been received during the year by the
Company.
12. NIDHI COMPANY [Clause 3(xii)]
In our opinion and according to information and explanations given to
us, clause (xii) of para 3 to Companies (Auditors Report) Order, 2020 w.r.t. Nidhi
Company is not applicable to company. Accordingly, the paragraph 3(xii) of the order is
not applicable to the company and hence not commented upon.
13. RELATED PARTY TRANSACTION [Clause 3(xiii)]
In our opinion and according to information and explanations given to
us all transactions with the related parties are in compliance with sections 177 and 188
of Companies Act, 2013 where applicable and the details have been disclosed in the
Financial Statements etc., as required by the applicable accounting standards.
14. INTERNAT AUDIT: [CLAUSE 3(xiv)]
The company has an internal audit system commensurate with the size and
nature of its business.
The reports of the Internal Auditors for the period under audit were
considered by us.
15. NON CASH TRANSACTION [Clause 3(xv)]
In our opinion and according to information and explanations given to
us, the company has not entered into any non-cash transactions with directors or persons
connected with him. Accordingly, the paragraph 3(xv) of the order is not applicable to the
company and hence not commented upon.
16. REGISTER WITH RBI ACT, 1934 [Clause 3(xvi)]
The company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934. Accordingly, the paragraph 3(xvi) of the order is not
applicable to the company.
The Company has not conducted any Non-Banking Financial or Housing
Finance activities during the year.
The Company is not a Core Investment Company (CIC) as defined under the
Regulations by the Reserve Bank of India.
17. CASH LOSSES [Clause 3(xvii)]
The Company has not incurred cash losses in the Financial Year 2022-23
and in the immediately preceding financial year.
18. RESIGNATION OF STATUTORY AUDITORS [Clause 3(xviii)]
There has not been any resignation of the statutory auditors during the
year.
19. MATERIAL UNCERTAINTY ON MEETING LIABILITIES [Clause 3(xix)]
On the basis of the financial ratios, ageing and expected dates of
realization of financial assets and payment of financial liabilities, other information
accompanying the financial statements, the auditors knowledge of the Board of Directors
and management plans, we are of the opinion that no material uncertainty exists as on the
date of the audit report that company is capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date.
20. TRANSFER TO FUND SPECIFIED UNDER SCHEDULE VII OF COMPANIES ACT,
2013 [Clause 3(xx)]
The provision relating to transfer to fund specified under schedule vii
of the Companies Act, 2013 is not applicable to the company.
21. ADVERSE REMARKS IN CONSOLIDATED FINANCIAL STATEMENTS [Clause
3(xxi)]
There are no qualifications or adverse remarks by the respective
auditors in the Companies (Auditors Report) Order (CARO) reports of the companies
included in the consolidated financial statements.
For Gupta Agarwal & Associates Chartered Accountants Firms
Registration No: 329001E
Date: May 25, 2023 Place: Kolkata
Sd/-
Badri Prasad Singhania (Partner)
Membership No.: 058970 UDIN: 23058970BGZESL3193
+91-9892691696
