To the Members of THE GAEKWAR MILLS LIMITED.
Report on the Audited Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of THE GAEKWAR
MILLS LIMITED which comprises of Balance Sheet as at 31st March, 2023
and the Statement of Profit and Loss, Statement of changes in equity and the Cash Flow
Statement for the year ended and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information (hereinafter referred to
as "the standalone financial statements")
In our opinion and to the best of our information and according to the explanations
given to us, the Standalone financial statements give the information required by the
Companies Act, 2013 (the Act) in the manner so required and give a true and fair view in
conformity with the Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies ( Indian Accounting Standards)
Rules 2015 as amended , (‘Ind AS) and other accounting principles generally
accepted in India, of state of affairs of the Company as at March 31, 2023 and its losses,
total comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. 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 thereunder, 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 opinion on standalone financial statements.
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 are responsible for the other information. The other
information comprises of the information included in the Boards Report including
Annexures to the Boards report, Management Discussion and Analysis
Report and Business Responsibility Report but does not include Standalone financial
statements and our report thereon. Our opinion on the Standalone financial statements does
not cover the information and we do 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 and in doing so, consider whether the other information is
materially inconsistent with the standalone financial statements or our knowledge obtained
during course of our audit or otherwise appears to be materially misstated. If, based on
the work we performed, we conclude that there is a material misstatement of the other
information; we are required to report the 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 in section 134(5) of
the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the IND As and other accounting principles generally accepted
in India. This responsibility also includes the maintenance of adequate accounting records
in accordance with the provision of the Act for safeguarding of the assets of the Company
and for preventing and detecting the 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 internal financial
control, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the standalone
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 is also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the standalone
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. 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 financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also: ? Identify and assess the
risks of material misstatement of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. ? Obtain an understanding of
internal financial controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company has adequate internal
financial controls system in place and the operating effectiveness of such controls. ?
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
? Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the
Companys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may
cause the Company to cease to continue as a going concern. ? Evaluate the overall
presentation, structure and content of the standalone financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements. We communicate with those charged
with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit. We also provide those charged with governance with a
statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters. We describe these matters
in our auditors report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of Section (11) of section 143 of the Act
(hereinafter referred to as the "Order") and on basis of such checks of the
books and records of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure A, a statement on the
matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. (A) As required by section 143(3) of the Act, we report that:
a) We have sought 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, Statement of Profit and
Loss Account and Cash Flow statement and the statement in Changes in Equity dealt with by
this report are in agreement with the relevant books of account; d) In our opinion, the
aforesaid Standalone financial statements comply with the Ind AS specified under Section
133 of the Act. e) On the basis of written representations received from the directors, as
on 31st March, 2023, and taken on record by the Board of Directors, we Report that none of
the directors is disqualified as on 31st March, 2023 from being appointed as a director in
terms 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, we
refer to our separate Report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls over financial reporting.
(B) With respect to the other matters to be included in the Auditors Report in
accordance with the Rule 11 of the Companies (Audit and Auditors) Rule 2014, in our
opinion and to the best of our information and according to the explanations given to us :
a) The Company has disclosed the impact of pending litigations on its financial position
its standalone financial statements ; b) The Company did not have any long-term contracts
including derivatives contracts for which there were any material foreseeable losses. c)
There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company. d)
a. The Management has represented that, to the best of its knowledge and belief other
than as disclosed in the notes to accounts, no funds have been advanced or loaned or
invested by the Company to or in any other persons or entities, including foreign
entities, with understanding whether recorded in writing or otherwise, that the
intermediary shall, whether directly or indirectly lend or invest in other persons or
entities identified in any manner by or behalf of the Company( Ultimate beneficiaries) or
provide any guarantees, security or the like on behalf of the ultimate beneficiaries.
b. The Management has represented that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, no funds have been received by the Company
from any persons or entities ( Funding parties) with the understanding whether recorded in
writing or otherwise, that the Company shall, whether, directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding party ( Ultimate beneficiaries) or provide any guarantee, security or the like
on behalf of the Ultimate beneficiaries.
c. Based on such audit procedures that we have considered reasonable and appropriate in
the circumstances; nothing has come to our notice that has caused us to believe that the
representations under
(a) and
(b) contain any material misstatement. e) The Company has not paid any Dividend during
the current year in respect of the same declared for the previous year of which is in
compliance of Section 123 of the Companies Act, 2013 to the extent it applies for payment
of dividend.
f) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, and
accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is
not applicable to the financial year ended 31st March, 2023.
(C) With respect to matter to be included in Auditors Report under section
197(16) of the Act no managerial remuneration was paid/provided by the Company to tis
directors during the year.
For M D PANDYA & ASSOCIATES
Chartered Accountants
Reg. no. 107325W
M. D. PANDYA
Partner
Membership No.:033184
Mumbai,
Dated : 30th May, 2023.
UDIN : 23033184BGVJXQ6990
Annexure A to in to the Independent Auditors Report of the even date on the Ind AS
financials statements of THE GAEKWAR MILLS LIMITED
i a The Company has only Fixed Asset in form of Land. The Company has maintained proper
records showing full particulars, including quantitative details and situation of the
Land. b. The land has been physically verified by the management at regular intervals
during the year. In our opinion, the frequency of verification is reasonable considering
the size of the Company and nature of its business. No material discrepancies were noticed
on such verification. c. The title deeds of Land are held in the name of the company.
d. The Company has not re-valued Property, Plant and equipment (including Right of use
assets) or intangible assets or both during the year. e. There are no proceeding initiated
against the Company for holding any benami properties under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. ii. The Company does not
have inventory, therefore Para 3 (ii) of the Order are not applicable to the Company.
According to information and explanations given to us and on basis of our examination of
the records of the Company, the Company has not been sanctioned working capital limits in
excess Rs Five crores in aggregate from banks or financial institution. iii. During the
year the Company has granted loans and advances in the nature of loans, secured or
unsecured to companies, firms , Limited Liability Partnership or any other parties. a.
Based on the Audit procedures carried out by us and as per information and explanations
given to us, the Company has granted loans to Other parties as below:
| Particulars |
Loans in Rs |
Aggregate amount granted/paid during the year |
|
| Subsidiaries |
|
| Associates |
40,00,000 |
| Others |
95,00,000 |
| Balance outstanding as at the |
|
| Balance Sheet date- |
|
| Subsidiaries |
|
| Associates |
2,15,10,000 |
| Others |
95,00,000 |
b) According to the information and explanations given to us and based on our audit
procedures conducted by us the the grant of loans and advances in nature of loans during
the year are, prima facie, not prejudicial to the interest of the Company. c) According to
the information and explanations given to us and basis of our examination of the records
of the Company, in our opinion, in the case of loans and advances in nature of loans
given, there is no stipulation as to the repayment of principal and as such we are unable
to comment as to the regularity of the repayment of principal. d) According to the
information and explanations given to us and basis of our examination of the records of
the Company, in absence of any stipulation as to repayment of principal we are unable to
comment as to there is any overdue amount for more than ninety days in respect of loans
and advances in the nature of loans given. e) According to the information and
explanations given to us and basis of our examination of the records of the Company, in
absence of any stipulation for repayment of loans or advance in the nature of loans
granted there were no such loans falling due during the year, which have been renewed or
extended or fresh loan granted to settle the overdue of existing loans and advances in the
nature of loan given to same parties.
iv. In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of Section 185 of the Companies Act, 2013. The
Company has been advised that the provisions of section 186 of the Companies Act, 2013 are
not applicable to it, as it is engaged in the business of providing infrastructural
facilities. v. The provision of clause 3(v) of the Companies (Auditors Report) Order 2020
are not applicable to the company. vi. The provision of clause 3(vi) of the Companies
(Auditors Report) Order 2020 are not applicable to the company. vii. According to the
information and explanations given to us in respect of statutory dues : a. The Company is
generally regular in depositing undisputed statutory dues including Provident Fund, Income
tax, Goods and Services, Value Added tax and material statutory dues applicable to it to
the appropriate authorities. b. There were no undisputed statutory dues payable in respect
of Provident
Fund, Income tax, Goods and Services, Value Added tax and material statutory dues in
arrears as at 31st March, 2023 for a period more than six months from the date
they became payable. c. There are no dues in respect Provident Fund, , Employees State
Insurance,
Income tax, Value Added tax, Wealth tax, Custom Duty, Excise Duty, value added tax,
cess and any other statutory dues which have not been deposited as at 31st
March, 2023 on account of any dispute with the relevant authorities. viii. According to
information and explanations given to us and on the basis of our examination of the
records of the Company, the Company has not surrendered or disclosed any transactions
previously unrecorded as income in the books account in the tax assessments under Income
tax, 1961 as income during the year. ix. a. According to the information and explanations
given to us and basis of our examination of the records of the Company, the Company has
not defaulted in the repayment of loan or payment of interest thereon to any lenders. b.
According to the information and explanations given to us and basis of our examination of
the records of the Company, the Company has not been declared a willful defaulter by a
Bank or any financial institution or government authority.
c. In our opinion and according to information and explanations given to us by the
management, no term loan were obtained by the company.
d. According to the information and explanations given to us and 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 purposes by the company.
e. The company does not have any subsidiary, associate or joint venture . Accordingly
the requirement to report on this clause is not applicable to the Company.
f. The Company does not have any subsidiary; accordingly the requirement to report
under this clause is not applicable to the company. x
a. The company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly clause 3
x)
(a) of the Order is not applicable.
b. During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully, partially or optionally
convertible). Accordingly clause 3
(x)
(b) of the Order is no applicable. xi
a. Based on examination of the books and records of the Company and according to the
information and explanation given to us, considering the principles of materiality
outlined in the Standards on Auditing , we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
b. According to the information and explanations given to us , no report under sub
section
(12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as
prescribed in Rule 13 of the Companies ( Audit and Auditors) Rules, 2014 with the Central
Government.
c. According to the information and explanations given to us and based on our
examination of the records of the company, no whistle blower complaints have been received
by the Company during the year.
xii The Company is not a Nidhi Company. Therefore the clause 3(xii) of the Order is not
applicable to the Company. 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 section 177 and 188 of the Act where applicable. The
details of such related party transactions have been disclosed in the Ind AS financial
statements are required by the applicable accounting standards.
xiv. According to information and explanations given to us the Company has an internal
audit system commensurate with the size and nature of its business. We have considered the
reports of the internal auditors for the period under audit.
xv According to the information and explanations given to us and the representation
obtained from the management, the Company has not entered into any non-cash transactions
with Directors or persons connected with him. xvi a. The company is not required to be
registered under section 45-IA of Reserve Bank of India Act, 1934. Accordingly clauses
3(xvi)(a) and 3(xvi)(b) of the Order are not applicable. c. The Company is not a Core
Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.
Accordingly clause 3(xvi)(c ) of the Order is not applicable. d. According to the
information and explanations provided to us during the course of our audit, the Group does
not have any CICs.
xvii The Company has not incurred Cash losses in the financial year and also in the
immediately preceding financial year.
xviii There has been no resignation of the Statutory Auditors during the year and as
such clause 3(xviii) of the Order is not applicable.
xix According to the information and explanations given to us and 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, our
knowledge of the Board of Directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report that
company is not 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. We,
however, state that this is not an assurance as to the future viability of the company. We
further state that our reporting is based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance that all liabilities falling due
within a period of one year from the balance sheet date, will get discharged by the
company as and when they fall due.
xx The provisions of Clause 3 (xx) are not applicable to the company.
For M D PANDYA & ASSOCIATES
Chartered Accountants
Reg no ; 107325W
M. D. PANDYA
Partner
Membership No.:033184
Mumbai,
Dated : 30th May, 2023.
UDIN : 23033184BGVJXQ6990
Annexure B to the Independent Auditors Report
Referred to Para 2(f) of the Independent Auditors; Report of even date to the members
of the Company on the Standalone Financial Statements for the year ended 31st
March, 2023.
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 THE
GAEKWAR MILLS LIMITED ("the Company") as of March 31, 2023 in conjunction
with our audit of the Ind AS financial statements of the Company for the year 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 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
deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls, both issued by the ICAI. 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 authorisations 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 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, 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, 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 ICAI.
For M D PANDYA & ASSOCIATES
Chartered Accountants
M. D. PANDYA
Partner
Membership No.:033184
Mumbai,
Dated: 30th May, 2023.
UDIN : 23033184BGVJXQ6990
+91-9892691696
