To the Members of Galaxy Agrico Exports Limited Report on the Audit of the Ind AS
Financial Statements Opinion
We have audited the accompanying Ind AS financial statements of Galaxy Agrico Exports
Limited ("the Company") which comprises the Balance Sheet as at March 31,
2023,the Statement of Profit and Loss (including Other Comprehensive Income), Statement of
Cash Flows and Statement of Changes in Equity for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "the financial statements").
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 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, 2023, and its loss, total comprehensive loss, its cash flows and changes in equity 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 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 Companies Act, 2013 and the Rules
thereunder, 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.
We have determined that there are no other key audit matters to communicate in our
report except as stated in Emphasis of Matter below.
Emphasis of Matter
The Companys management is responsible for carrying out the inspection of its fixed
assets on a regular basis. We have not independently verified the fixed assets of the
Company during the year under review. Any adjustment to the value of the fixed assets as
appearing in the balance sheet of the Company may have an effect on the loss and net
assets of the Company for the period and year ended March 31, 2023.
The Companys management is responsible for carrying out the inspection of its
inventories on a regular basis. We have not independently verified the inventories of the
Company during the year under review. Any adjustment to the value of inventories as
appearing in the balance sheet of the Company may have an effect on the loss and net
assets of the Company for the period and year ended March 31, 2023.
The Companys management is responsible for carrying out the balance confirmation and
reconciliations with various debtors, creditors and advances. These have not been
independently verified by us during the year under review. Any adjustment to the value of
such balances as appearing in the balance sheet of the Company may have an effect on the
loss and net assets of the Company for the period and year ended March 31, 2023.
Our opinion is not modified in respect of this matter.
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 Management
Discussion and Analysis, Boards Report including Annexures to Boards Report and
Shareholders Information, but does not include the Ind AS financial statements and our
auditors report thereon.
Our opinion on the Ind AS 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 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.
Responsibility of Management 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 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
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 of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate implementation and maintenance of 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 Ind AS financial statement
that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the Ind AS 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.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the Ind AS 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.
2. Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the
Companies Act, 2013, 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.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
4. 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 Ind AS 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.
5. Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
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 Ind AS 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
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 Companies Act, 2013, we give in "Annexure A" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) 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 purposes 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 Balance Sheet, the Statement of Profit and Loss including the Statement of Other
Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt
with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified 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 March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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 B".
g. In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provisions of section 197 of the Act.
h. 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:
a. The Company does not have any pending litigations which would impact its financial
position.
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
d.
1. The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the 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 whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
2. The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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;
Based on the audit procedures that have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (1) and (2)
above, contain any material misstatement.
e. The Company has not paid any dividends during the year and hence, the provisions of
Section 123 of the Act are not applicable to the Company.
| Place: Rajkot |
For, |
| Date: 26/05/2023 |
HB Kalaria and Associates |
|
Firm Reg. No. 104571W |
|
Chartered Accountants |
|
SD/- |
|
(Hasmukh Kalaria) |
|
Partner |
|
Mem. No. 042002 |
|
UDIN: 23042002BGVKEU8964 |
Annexure A
Referred to in the section Report on Other Legal and Regulatory Requirements on of the
Independent Auditors Report of even date to the members of Galaxy Agrico Exports Limited
on the Ind AS financial statements as of and for the year ended March 31, 2023
(i)
(a) In respect of its property, plant, and equipment:
(A) The Company has not maintained records of its property, plant and equipment and
investment property.
(B) The Company does not have any intangible assets and hence, is not required to
maintain records for the same.
(b) The Company does not have a phased programme of verification of property, plant and
equipment to cover all the items in a phased manner. The Companys Management has
physically verified all the property, plant and equipment of the Company during the
current reporting period. According to the information and explanations given to us, no
material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined
by us and based on the examination of the registered sale deed/transfer deed/conveyance
deed, we report that, the title deeds, comprising all the immovable properties of land and
acquired buildings which are freehold, are held in the name of the Company as at the
balance sheet date. Further, based on examination of Letter of intent, independent
architect certificate, the purchase agreements executed by the Company and deeds of
transfer, we report that, the investment property in the nature of land development rights
is held in name of the Company.
(d) The Company has not revalued its property, plant and equipment during the reporting
period and hence, clause (i)(d) of the Order is not applicable.
(e) As explained to us by the management of the Company, there have not been any
proceedings initiated or pending against the Company under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder during the current reporting period or
as at the balance sheet date.
(ii) (a) We have not been provided with the records of inventory verification done by
the
management of the company during the reporting period. Hence, we are unable to comment
on whether there were any material discrepancies noticed by the management and whether the
same have been dealt with in the books of accounts of the Company during the reporting
period.
(b) In our opinion and according to the information and explanations given to us, the
Company has not been sanctioned working capital limits in excess of five crores rupees, in
aggregate, from banks or financial institutions and hence, reporting under clause (ii)(b)
of the Order is not applicable.
(iii) According to the information and explanations given to us, the company has not
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, hence clause (iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not made any loans, investments or provided any guarantees and hence, the
provisions of Sections 185 and 186 of the Companies Act, 2013 are not applicable to the
Company.
(v) According to the information and explanations given to us, the Company has not
accepted any deposits during the current reporting period in terms of provisions of
Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the
rules made thereunder. Hence, reporting under clause (v) of the Order is not applicable.
(vi) In our opinion, the provisions for maintenance of cost records under section
148(1) of the Companies Act, 2013 are not applicable to the Company. Hence, reporting
under clause (vi) of the Order is not applicable.
(vii) In our opinion and according to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues
including Goods and Services Tax, 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.
There were no undisputed amounts payable in arrears as at the balance sheet date for a
period of more than six months from the date they became payable.
(b) The Company does not have any statutory dues as referred sub-clause (a) above which
have not been deposited on account of disputes.
(viii) According to the information and explanations given to us, the Company does not
have any transactions, which were not recorded in the books of accounts and which have
been surrendered or disclosed as income during the current reporting period in the tax
assessments under the Income-tax Act, 1961.
(ix) (a) In our opinion and according to the information and explanations given to us,
the
Company has not defaulted in the repayment of loans or borrowings to financial
institutions or banks. The Company has not taken any loans or borrowings from the
government.
(b) In our opinion and according to the information and explanations given to us, the
Company has not been declared as a willful defaulter by any bank or financial institution
or other lender during the reporting period.
(c) The Company has obtained term loans during the current reporting period which, in
our opinion and according to the information and explanations given to us, have been
utilized for their stated purpose(s).
(d) According to the information and explanations given to us, and the procedures
performed by us, and on an overall examination of the financial statements of the company,
we believe that no funds raised on short-term basis have been used for long-term purposes
by the Company. We have however not made a detailed examination of the same.
(e) The Company does not have any associate, subsidiary or joint venture and hence,
clause (ix)(e) of the Order is not applicable.
(f) The Company does not have any associate, subsidiary or joint venture and hence,
clause (ix)(f) of the Order is not applicable.
(x) (a) During the current reporting period, the Company has not raised funds by way of
initial public offer or further public offer (including debt instruments) and hence
reporting under clause (x)(a) of the Order is not applicable to the Company.
(b) During the current reporting period, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures and
hence reporting under clause (x)(b) of the Order is not applicable to the Company.
(xi) (a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the Company has been
noticed or reported during the current reporting period.
(b) To the best of our knowledge and according to the information and explanations
given to us, no report under sub-section (12) of section 143 of the Companies Act, 2013
has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
(c) To the best of our knowledge and according to the information and explanations
given to us, the Company has not received any whistle-blower complaints during the current
reporting period.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the
Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv)
(a) In our opinion, the Company has an internal audit system commensurate with the size
and nature of its business.
(b) We have considered the reports of the Internal Auditors for the period under review
during our audit of the Company.
(xv) In our opinion and according to the information and explanations given to us,
during the current reporting period the Company has not entered into any non-cash
transactions with its directors or directors of its holding, subsidiary or associate
company, if any or persons connected with them and hence provisions of Section 192 of the
Companies Act, 2013 are not applicable.
(xvi) (a) The Company is not required to be registered under Section 45-I of the
Reserve Bank
of India Act, 1934.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities during the current reporting period and hence, is not required to obtain a
Certificate of Registration from the Reserve Bank of India as per the Reserve Bank of
India Act, 1934.
(c) The Company is not a Core Investment Company ("CIC") as defined in the
regulations made by the Reserve Bank of India.
(d) The Company does not have any Group companies and hence, clause (xvi)(d) of the
Order is not applicable to the Company.
(xvii) In our opinion, the Company has not incurred any cash losses during the current
reporting period and in the immediately preceding reporting period.
(xviii) There has not been any resignation of the statutory auditors during the current
reporting period under review.
(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) In our opinion section 135 of the Companies Act, 2013 is not applicable to the
Company and hence clause (xx) of the Order is not applicable.
(xxi) Clause (xxi) of the CARO, 2020 is not applicable in the report on the standalone
financial statements of the Company.
Annexure B
Referred to in point f. of the section Report on Other Legal and Regulatory
Requirements of the Independent Auditors Report of even date to the members of Galaxy
Agrico Exports Limited on the Ind AS financial statements for the year ended March 31,
2023
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Act
In conjunction with our audit of the Ind AS financial statements of the Company as of
and for the year ended March 31, 2023, we have audited the internal financial controls
over the financial reporting of Galaxy Agrico Exports Limited ("the Company") as
of that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on 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 the 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 Act.
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") issued by the ICAI 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 applicable to an audit of internal financial controls
and both issued by the ICAI. Those Standards and the Guidance Note require that we comply
with the 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 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 assessed risk. The procedures selected depend
on the auditors judgement, 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 Ind AS 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 Ind AS
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 of Ind AS 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 control 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
According to the information and explanations given to us and based on our audit, the
following material weakness(es) have been identified as at March 31, 2023:
a. The Company has not carried out an inspection of its fixed assets and has not
maintained a register of fixed assets during the year under review.
b. The Company has not carried out an inspection of its inventories during the year
under review.
c. The Company does not have an internal process to report deficiencies in internal
control to management on a timely basis.
A material weakness is a deficiency, or a combination of deficiencies, in internal
financial control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the companys annual or interim Ind AS financial
statements will not be prevented or detected on a timely basis.
We have considered the material weakness(es) identified and reported above in
determining the nature, timing, and extent of audit tests applied in our audit of the
March 31, 2023 Ind AS financial statements of the Company, and these material weakness(es)
do not affect our opinion on the Ind AS financial statements of the Company.
| Place: Rajkot |
For, |
| Date: 26/05/2023 |
HB Kalaria and Associates |
|
Firm Reg. No. 104571W |
|
Chartered Accountants |
|
SD/- |
|
(Hasmukh Kalaria) |
|
Partner |
|
Mem. No. 042002 |
|
UDIN: |
|
23042002BGVKEU8964 |
+91-9892691696
