To,
The Members of
GBL INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying IND AS Financial Statements of GBL INDUSTRIES
LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,
2020, the Statement of Profit and Loss (including Other Comprehensive Income), and the
Statement of Changes in Equity 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 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards ("Ind AS")
prescribed under Section 133 of the act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended, and other accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March 2019, and its profit and
total comprehensive income, changes in equity and its cash flows for the year ended on
thatdate.
Basis for Opinion
We conducted our audit of the financial statements 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 (ICAI) 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 audit opinion on the financialstatements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, 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 key audit matters to be communicated in our report.
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 Report, Boards Report including Annexures to Boards Report, and
Shareholders Information, but does not include the financial statements and our auditors
report thereon. The above mentioned reports are expected to be made available to us after
the date of this auditors report.
Our opinion on the 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 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 financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
When we read the above mentioned reports, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance and take appropriate actions as per the applicable laws andregulations.
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 of
these financial statements that give a true and fair view of the financial position,
financial performance including other Comprehensive Income, cash flows and Changes in
Equity of the Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of
the Act, read with relevant rules issued thereunder. 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; design, implementation and
maintenance of adequate internal financial controls, that are 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 orerror.
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 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 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 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 bymanagement.
• 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 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 financial
statements, including the disclosures, and whether the 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 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, 2016 ("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 A", a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we further report that:
(i) 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.
(ii) 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.
(iii) The Balance Sheet, Statement of Profit and Loss including other comprehensive
income, Cash Flow Statement and statement of changes in equity dealt with by this Report
are in agreement with the books of account.
(iv) In our opinion, the aforesaid financial statements comply with the Indian
Accounting Standards prescribed under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
(v) On the basis of written representations received from the directors as on March 31,
2020, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2020, from being appointed as a director in terms of Section 164(2) of the
Act.
(vi) With respect to 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 "AnnexureB",
(vii) 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 to the best of our information and according to the explanations
given to us, the Company did not pay any remuneration to its directors during the year in
terms of section 197 of the Act.
(viii) With respect to 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 does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts; as
such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
|
For, For, Pragnesh Thakkar& Associates |
|
Chartered Accountants |
|
Firm No:-131059W |
|
SD/- |
|
Pragnesh Thakkar |
| Place:Ahmedabad |
Proprietor |
| Date: 22nd June, 2020 |
(MembershipNo.117831) |
|
UDIN:2117831AAAAAV6219 |
Annexure ‘A to the Independent Auditors Report
Referred to in paragraph 1 under the heading "Report on Other Legal And Regulatory
Requirements" of Our Independent Audit Report of even date on the Financial
Statements of GBL INDUSTRIES LIMITED for the year ended 31st March, 2020
(i) On the basis of such checks as we considered appropriate and according to the
information and explanations given In respect of its Property, plant and equipments:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, plant and equipments.
(b) As explained to us, the management during the year has physically verified the
Property, plant and equipments in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(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
included in Property, plant and equipments are held in the name of the Company.
(ii) As explained to us, in our opinion, the management has physically verified
inventories at reasonable intervals during the year and there was no material
discrepancies noticed on such physical verification as compared to the book records.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms
or other parties covered in the Register maintained under Section 189 of the Companies
Act, 2013 and hence, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the
Company has not given any loans, investments, guarantees and security in terms of section
185 and 186 of the Companies Act, 2013.
(v) The Company has not accepted any deposits from the public covered under Section 73
to 76 of the Companies Act, 2013.
(vi) According to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under sub-section (1) of section 148 of
the Companies Act, 2013, in respect of products of the Company. Accordingly, paragraph
3(vi) of the Order is not applicable
(vii) In respect of statutory dues:
(a) According to the information and explanation given to us and on the basis of our
examination of the records of the Company, undisputed statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, Goods and Services Tax, Service
Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues
have been generally deposited regularly with the appropriate authorities in India.
According to the information and explanation given to us, no undisputed amounts payable
in respect of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service
Tax, Goods and Services Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues were in arrears as at 31 March, 2020 for a period of more than six
months from the date they become payable.
b) According to the information and explanations given to us there are no disputed dues
in respect of Sales Tax, Income Tax, Service Tax, Goods and Services Tax and Custom Duty
which had not been deposited on account of any dispute.
(viii) In our opinion and according to the information and explanations given to us,
the Company has not defaulted in the repayment of dues to banks. The Company has not taken
any loan either from financial institutions or from the government and has not issued any
debentures.
(ix) According to information and the explanations given by the management, the Company
has not raised 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) During the course of our examination of the books and records of the Company
carried out in accordance with the auditing standards generally accepted in India, we have
neither come across any instance of fraud by the Company or by its officers or employees
on it, has been noticed or reported during the course of our audit nor have we been
informed of any such instance by theManagement.
(xi) According to the information and explanation given to us and based on our
examination of the records of the Company, the Company did not pay any managerial
remuneration in terms of Section 197 of the Act read with Schedule V to the Act.
Accordingly, paragraph 3(xi) of the Order is not applicable.
(xii) In our opinion and according to information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not
applicable.
(xiii) According to information and explanations given to us and based on our
examination of the records of the Company, in our opinion, all the transactions entered
with the related parties are in compliance with sections 177 and 188 of the Act and the
details of such transactions have been disclosed in the Financial Statements as required
by the applicable accounting standards.
(xiv) According to the information and explanations given 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 paid convertible debentures
during the year and hence reporting under paragraph 3(xiv) of the order is not applicable.
(xv) According to information and explanations given to us and based on our examination
of the records of the Company, the company has not entered into any non-cash transactions
with directors or persons connected with directors. Accordingly, paragraph 3(xv) of the
Order is not applicable.
(xvi) According to the information and explanations given to us and the records of the
Company examined by us, the company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934. Accordingly, the reporting requirement under
clause 3(xvi) of the Order is not applicable.
|
For, For, Pragnesh Thakkar& Associates |
|
Chartered Accountants |
|
Firm No:-131059W |
|
SD/- |
|
Pragnesh Thakkar |
| Place:Ahmedabad |
Proprietor |
| Date: 22nd June, 2020 |
(MembershipNo.117831) |
|
UDIN:2117831AAAAAV6219 |
Annexure - B to the Independent Auditors Report
Referred to in paragraph 2(F) under the heading "Report on Other Legal And
Regulatory Requirements" of Our Independent Audit Report of even date on the
Financial Statements of GBL INDUSTRIES LIMITED for the year ended 31st March, 2020
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 GBL
Industries Limited ("the Company") as of 31 March, 2020in 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 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, as specified under section
143(10) of the Companies Act, 2013, to the extent 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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, 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 31 March 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, For, Pragnesh Thakkar& Associates |
|
Chartered Accountants |
|
Firm No:-131059W |
|
SD/- |
|
Pragnesh Thakkar |
| Place:Ahmedabad |
Proprietor |
| Date: 22nd June, 2020 |
(MembershipNo.117831) |
|
UDIN:2117831AAAAAV6219 |
+91-9892691696
