TO THE MEMBERS OF
GILLANDERS ARBUTHNOT AND COMPANY LIMITED
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of Gillanders Arbuthnot and Company Limited ("the Company"), which comprise the standalone balance sheet as at March 31, 2024, the standalone statement of profit and loss (including other comprehensive income), the standalone cash flows statement and the standalone statement of changes in equity for the year ended on that date, and notes to the standalone financial statements, including material accounting policies and other explanatory information in which is included the financial statements for the year ended on that date audited by the branch auditors of the Companys branch "MICCO" (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 aforesaid 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 the state of affairs of the Company as at March 31, 2024, and its loss and total comprehensive income, its cash flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone 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 Standalone 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 standalone financial statements under the provisions of the Act and the Rules made 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 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 standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone 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 the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
How our audit addressed the key audit matter |
1. Revenue Recognition |
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Revenue recognition is significant audit risk within |
Our audit consisted testing of the design and |
the Company. |
operating effectiveness of the internal controls and |
substantive testing as follows: |
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The revenue standard establishes a comprehensive |
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framework for determining whether, how much |
Evaluated the design and tested the operative |
and when revenue is recognized. This involves |
effectiveness of the internal controls relating to |
certain key judgments relating to identification of |
revenue recognition, discounts and rebates. |
distinct performance obligations, determination |
Tested sample of sale transactions to their |
of transaction price of identified performance |
respective customer contracts, underlying |
obligation, the appropriateness of the basis used |
invoices and related documents. |
to measure revenue recognized over a period. |
Obtained confirmations from customers on |
Additionally, the standard mandates robust |
sample basis to support existence assertion of |
disclosures in respect of revenue and periods over |
trade receivables and assessed the relevant |
which the remaining performance obligations will |
disclosures made in the financial statements; to |
be satisfied subsequent to the balance sheet date. |
ensure revenue from contracts with customers are |
Risk exists that revenue is recognized without |
in accordance with the requirements of relevant |
substantial transfer of control and is not in |
accounting standards. |
accordance with Ind AS-115 "Revenue from |
In case of construction contracts, reviewed the |
Contracts with Customers". |
Companys estimation process (including the |
approval of project budget, monitoring of project |
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costs and activities, and managements review |
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and customers approval of projects stage of |
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completion and milestones achieved) used in |
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determining the amounts of revenue and costs |
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recognised in Companys financial statements. |
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2. Impairment of Assets |
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Significant judgement is involved in assessing |
Our audit procedures included considering the |
property, plant and equipment for impairment. At |
Companys accounting policies with respect |
the end of every reporting period, the Company |
to impairment in accordance with Ind AS 36 |
assesses whether there is any indication that an asset |
"Impairment of Assets". |
or cash generating unit (CGU) may be impaired. If |
We performed test of controls over impairment process |
any such indication exists, the Company estimates |
through inspection of evidence of performance of |
the recoverable amount of the asset or CGU. |
these controls. We performed the following tests of |
The determination of recoverable amount, being the |
details: |
higher of fair value less costs to sell and value-in- |
We obtained the managements impairment |
use involves significant estimates, assumptions and |
assessment. |
judgements of the long-term financial projections. |
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We evaluated the key assumptions including |
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Impairment of assets is a key audit matter considering |
projected cash flows. In determining future |
the significance of the carrying value, long term |
cash flows management is required to make |
estimation and the significant judgements involved |
assumptions relating to future profitability, |
in the impairment assessment. |
including revenue growth and operating margins, |
and the determination of an appropriate discount |
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rate, all of which are subject to management |
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override as the outcome of the impairment |
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assessments could vary significantly if different |
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judgements are applied. |
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We have tested the workings of management for |
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ascertaining fair value and costs of disposal of |
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CGU for ascertaining recoverable amount. |
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3. Expected Credit Loss |
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The Company assesses at each date of balance sheet |
Our Audit procedure on evaluation of Expected |
whether a financial asset or a group of financial assets |
credit loss model include: |
is impaired. Ind AS 109 requires expected credit |
Obtained an understanding of the Companys |
losses to be measured through a loss allowance. |
process for estimating the ECL of various eligible |
The company recognizes impairment loss for |
assets included in the Standalone Financial |
trade receivables that do not constitute a financing |
Statements. |
transaction using expected credit loss model, which |
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Evaluated the detailed analysis performed by |
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involves use of a provision matrix constructed on |
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management on revenue by selecting samples |
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the basis of historical credit loss experience. For |
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for the existing contracts with customers. |
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all other financial assets, expected credit losses |
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are measured at an amount equal to the 12 month |
Evaluated the calculation of historical loss rate on |
expected credit losses or at an amount equal to the |
the basis of historical trends, industry practices, |
life time expected credit losses if the credit risk on |
business environment in which company |
the financial asset has increased significantly since |
operates & forward-looking information. |
initial recognition. |
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for the presentation of the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
Managements Responsibility for the Standalone Financial Statements
The Companys Management and Board of Directors are responsible for the matters stated in section 134(5) of 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 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 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 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 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 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.
Those Board of Directors are also responsible for overseeing the Companys financial reporting process.
Auditors Responsibility for the Audit of the Standalone Financial Statements
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 standalone 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 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 and Board of Directors.
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 standalone 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.
Other Matter
We did not audit the financial statements and other financial information of the Companys Engineering (MICCO) Division included in the accompanying standalone financial statements of the Company whose financial statements and other financial information reflect total assets of Rs. 8,878.47 lakhs as at 31st March 2024 and total revenue of Rs. 3,858.51 lakhs for the year ended on that date. This financial statements/ financial information has been audited by the branch auditor whose reports have been furnished to us by the management. Our opinion on the Statement, in so far as it relates to the amounts and disclosures included in respect of branch and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid branch, is based solely on the report of such branch auditor.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure "A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditors on separate financial statements and the other financial information of the branch, as noted in the other matter paragraph we report, to the extent applicable, that:
a) We / the branch auditor whose report we have relied upon, 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 report on the financial statements of Engineering (MICCO) Division of the Company audited under section 143(8) of the Act by branch auditors has been sent to us and has been properly dealt with by us in preparing this report.
d) The standalone balance sheet, the standalone statement of profit and loss including other comprehensive income, the standalone cash flow statement and standalone statement of changes in equity dealt with by this Report are in agreement with the books of account.
e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with the relevant Rules thereon.
f) On the basis of the written representations received from the directors as on 1st April, 2024 to 17th April, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.
g) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in Annexure "B" to this report. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to these standalone financial statements.
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 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 read with Schedule - V to the Act. i) 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, as amended in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the branch audit of MICCO division:
i. The Company has disclosed the impact of pending litigations as at March 31, 2024 on its financial position in its Standalone financial statements - Refer Note No. 38 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a. The management has represented that, to the best of its knowledge and belief as disclosed in the notes to the Standalone Financial Statement, during the year no funds 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 persons or entities, including foreign entities ("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 behalf of the Company (Ultimate beneficiaries) or provide any guarantee, security or the like on behalf of the company (Ultimate beneficiaries).
b. The management has represented, that, to the best of its knowledge and belief as disclosed in the notes to the Standalone Financial Statement, during the year no funds have been received by the Company from any persons or entities, including foreign 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 company (Ultimate Beneficiaries).
c. Based on such audit procedures that we have considered reasonable and appropriate in the circumstances; nothing has come to our attention that causes us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under clause (iv) (a) and (iv) (b) above, contain any material mis-statement.
v. No dividend has been declared or paid during the year by the company. The Board of Directors of the company has not proposed any divided for the financial year 2023-24.
vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1st April 2023.
Based on our examination which included test checks, the Company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software except for recording of audit trail (edit log) facility at the database level. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.
For J K V S & Co. |
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Chartered Accountants |
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Firms Registration No. 318086E |
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Ajay Kumar |
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Partner |
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Place: Kolkata |
Membership No. 068756 |
Date: 13th Day of May 2024 |
UDIN: 24068756BKHBVC5290 |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report of even date)
i. (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment and relevant details of right-of use assets.
(B) The company has maintained proper records showing full particulars of intangible assets.
(b) As per the information and explanations given to us, physical verification of property, plant and equipment and right-of use assets have been carried out periodically in a phased manner by the Company and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable having regard to size of the Company and nature of its business.
(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 (other than immovable properties where the company is the lessee and the lease agreements are duly executed in favor of the lessee) are held in the name of the Company.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has not revalued its property, plant and equipment (including right-of use asset) and intangible asset during the year.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transaction Act, 1988 and rules made thereunder.
ii. (a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management during the year. For stocks lying with third parties at the year-end, written confirmations have been obtained and for goods-in-transit subsequent evidence of receipts have been linked with inventory records. In our opinion, the frequency of such verification is reasonable and procedure and coverage as followed by management were appropriate. No discrepancies were noted on verification between the physical stocks and book records that were more than 10% in the aggregate for each class of inventory.
(b) As disclosed in note 24 to the financial statements and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during the year on the basis of security of current asset of the Company. The variations of the quarterly returns/statements filed by the company including branch with such banks and the books of accounts are not material.
iii. According to the information and explanations given to us and on the basis of our examination of the records of the Company, during the year the Company has not provided any guarantee or security, nor granted loans and any advances in the nature of loans, secured or unsecured, to Companies, firms, limited liability partnership or any other parties. Accordingly reporting under clause (iii) (a) and (iii) (c) to (iii) (f) of the Order are not applicable to the company
(iii) (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we are of the opinion that the investment made are not prejudicial to the interest of the company.
iv. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not given any loans, or provided any guarantee or security as specified under Section 185 and 186 of the Companies Act, 2013 ("the Act"). In respect of the investments made by the Company, in our opinion the provisions of Section 186 of the Act have been complied with.
v. According to information and explanations given to us and on the basis of our examination of the records of the Company, the company has complied with the directives issued by Reserve Bank of India, and the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed there under with respect to deposits (from public). According to the information and explanations given to us no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company in respect of the aforesaid deposits.
vi. We have broadly reviewed the cost records maintained by the Company in respect of its products (Tea and Textile) pursuant to the rules prescribed by the Central Government of India under section 148 (1) of the Act and are of the opinion that prima facie, the prescribed records have been so made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, duty of customs, Goods & Service Tax, cess and other material statutory dues during the year by the Company with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, duty of customs, Goods & Service Tax, cess and other material statutory dues were in arrears as at March 31, 2024 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, the dues outstanding in respect of income tax or sales tax or wealth tax or duty of customs or duty of excise or value added tax or goods and service tax, on account of disputes are as follows:
Period to which |
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Nature of |
Amount Involved |
Forum where Dispute is |
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Name of the Statute |
the amount |
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Dues |
( in Lakhs) |
Pending |
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relates |
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West Bengal Commercial |
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The Central Sales Tax |
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Sales Tax |
1.62 |
2011-12 |
Taxes Appellate and |
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Act,1956 |
||||
Revisional Board, Kolkata |
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28.68 (Net of amount |
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WBCT Appellate and |
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paid under protest Rs. |
2013-14 |
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Revisional Board |
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The West Bengal Value |
3.28) |
|||
Sales Tax |
||||
Added Tax Act ,2005 |
79.20 (Net of Pre- |
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Sales tax Commissioner |
||||
deposit amount Rs. |
2015-16 |
|||
(Appeal),Kolkata |
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12.58) |
||||
Orissa Sales Tax Act, |
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1998-99 |
||||
1947 |
Additional Commissioner of |
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Sales Tax |
11.91 |
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Central Sales Tax (Orissa) |
1998-99 & |
Sales Tax, Cuttack |
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Rules, 1957 |
1999-2000 |
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Sales Tax |
51.38 |
2009-10 |
High Court, Ranchi |
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Jharkhand VAT Act, 2005 |
0.10 |
2016-17 |
Sales Tax Tribunal, Ranchi |
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0.08 |
2017-18 |
Sales Tax Tribunal, Ranchi |
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Commissioner of commercial |
||||
3.76 |
2014-15 |
|||
Chhattisgarh Vat Act, |
Taxes, Durg |
|||
VAT |
||||
2005 |
Commissioner of commercial |
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1.17 |
2015-16 |
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Taxes, Durg |
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26.32 (Net of amount |
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Commissioner (Appeal), |
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paid under Protest Rs. |
2018-19 |
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Jharkhand |
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2.47) |
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2.95 |
2019-20 |
Appellate Authority |
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128.20 |
2020-21 |
Appellate Authority |
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30.82 |
2021-22 |
Appellate Authority |
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251.01 (Net of Pre- |
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Goods & Services Tax Act |
Goods & |
deposit amount Rs. |
2017-18 |
Appellate Authority |
Services Tax |
||||
12.10) |
||||
31.74 (Net of Pre- |
||||
deposit amount Rs. |
2019-20 |
Appellate Authority |
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1.87) |
||||
26.70 (Net of Pre- |
Appellate Authority |
|||
deposit amount Rs. |
2017-18 |
(Commissioner Appeals, GST |
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12.82) |
Central) |
|||
91.11 (Net of Pre- |
||||
Appellate Tribunal East Zonal |
||||
Finance Act, 1994 |
Service Tax |
deposit amount Rs. |
||
Branch Kolkata |
||||
3.55) |
||||
2007-08 to 2017- |
Asst. commissioner of I.T -CPC |
|||
8.36 |
||||
18 |
(TDS) |
|||
Income Tax Act, 1961 |
Income Tax |
|||
2009-10 to 2020- |
||||
2.13 |
TDS CPC |
|||
21 |
||||
75 |
viii. According to the information and explanations given to us, Company has not surrendered or disclosed any transactions, previously unrecorded in the books of accounts, in the tax assessments under the Income Tax Act, 1961, as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company.
ix. (a) According to the records of the Company examined by us and the information and explanation given to us, the company has not defaulted in repayment of loans or borrowing or in the payment of interest thereon to any financial institution or banks or Government.
(b) According to the information and explanations given to us and the records of the Company examined by us including representation received from the management, the Company has not been declared willful defaulter by any bank, financial institution or other lenders or government or any government authority.
(c) In our opinion and according to the information and explanation given to us by the management, Term Loans were applied for the purpose for which the loans were obtained.
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that no funds raised on short-term basis have been used for long-term purpose by the Company.
(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or joint ventures as defined under companies Act, 2013. (f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, we report that the company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint venture or associate companies defined under companies Act, 2013. x. (a) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any money by way of initial public offer or further public offer (including debt instrument). Accordingly reporting under clause (x) (a) of the Order is not applicable to the Company.
(b) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause (x) (b) of the Order is not applicable to the Company. xi. (a) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit. (b) According to the information and explanation given to us, no report under sub-section (12) of Section 143 of 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 Central Government.
(c) According to the information and explanations and representations made by the management, no whistle-blower complaints have been received during the year (and upto date of report) by the company xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3 (xii) (a) to (c) 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 sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards. xiv. (a) Based on information and explanation provided to us and our audit procedure, in our opinion, the company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit has been considered by us.
xv. In our opinion, and according to the information and explanation given to us, the company has not entered into any non-cash transactions with directors or persons connected with him and hence requirement to report on clause 3(xv) of the Order is not applicable on the Company. xvi. (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the
Company. Accordingly, the requirement to report on clause (xvi) (a) to (c) of the Order is not applicable to the Company.
(d) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under Clause 3 (xvi) (d) of the Order is not applicable.
xvii. In our opinion and according to the information and explanations provided to us, the company has incurred cash losses in the current financial year. The cash loss incurred during the year is Rs. 704.06 Lakhs. The company has not incurred cash loss in the immediately preceding financial year.
xviii. There has been no resignation of the statutory auditors during the year. Accordingly, provisions of clause 3 (xviii) of the Order are not applicable to the Company.
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. According to the records of the Company examined by us and the information and explanation given to us the average net profits of the Company during the three immediately preceding financial years is negative, hence the company did not spend any amount in CSR activities. Accordingly, provisions of clause (xx) (a) and (b) of the Order are not applicable to the Company. Refer Note No. 54 (xi) to the Standalone financial statements.
For J K V S & Co. |
|
Chartered Accountants |
|
Firms Registration No. 318086E |
|
Ajay Kumar |
|
Partner |
|
Place: Kolkata |
Membership No. 068756 |
Date: 13th Day of May 2024 |
UDIN: 24068756BKHBVC5290 |
(Referred to in paragraph 2(g) under Report on Other Legal and Regulatory Requirements section of our report of even date)
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to financial statements of Gillanders Arbuthnot And Company Limited ("the Company") as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 judgement, including the assessment of the risks of material misstatement of the standalone 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 with reference to financial statements.
Meaning of Internal Financial Controls With reference to financial statements
A companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control with reference to financial statements 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 standalone 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 standalone financial statements.
Inherent Limitations of Internal Financial Controls With reference to financial statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements 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 with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2024, based on the internal control with reference to financial statements 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.
Other Matter
Our aforesaid reports u/s 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to financial statements in so far as it relates to one unit of the Companys Engineering (MICCO) Division is based on the corresponding report of the branch auditor of such unit.
For J K V S & Co. |
|
Chartered Accountants |
|
Firms Registration No. 318086E |
|
Ajay Kumar |
|
Partner |
|
Place: Kolkata |
Membership No. 068756 |
Date: 13th Day of May 2024 |
UDIN: 24068756BKHBVC5290 |
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