To the Board of Directors of Gleam Fabmat Limited
Report on the Audit of the Standalone Annual Financial Results
Qualified Opinion
We have audited the accompanying standalone annual financial results of Gleam Fabmat
Limited ("the Company") for the six-month ended and year ended 31
March 2023 ("the Statement" or "standalone annual financial results"),
attached herewith, being submitted by the Company pursuant to the requirement of
Regulation 33 of the Securities and Exchange Board of India ("SEBi") (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing
Regulations").
In our opinion and to the best of our information and according to the explanations
given to us, except for the possible effects of the matter described in the Basis for
Qualified Opinion section of our report, the aforesaid standalone annual financial
results:
a. are presented in accordance with the requirements of Regulation 33 of the Listing
Regulations in this regard; and
b. give a true and fair view in conformity with the recognition and measurement
principles laid down in the applicable Accounting Standards, and other accounting
principles generally accepted in India, of the net loss and other financial information
for the year ended 31 March 2023.
Basis for Qualified Opinion
Attention is invited to the following matters in the Notes to the Standalone Annual
Financial Results;
The Company was having credit facility of Rs. 2 crores with Axis Bank Limited and
defaulted in payment of demands raised hy the bank. The aggregate amount of Rs. 2.06
crores were outstanding as on the date of balance sheet and the same was carried since
31st December 2019. The bank has applied to the Debt Recovery Tribunal ("DRT")
for recovery of outstanding dues. As per the order dated on 21st December 2020 in DRT-III,
Delhi, the Company is restrained from selling, transferring or otherwise creating third
party interest with regards to mortgaged properly (i.e. Commercial Shop owned by Mrs.
Puspha Gupta, Director) until further orders. The aforesaid matter is pending for next
hearing before DRT and the next hearing date is not fixed.
Since the matter under consideration before Debt Recovery Tribunal-Ill, Delhi for
recovery of overdue payments of credit facility from Axis Bunk Limited, therefore, the
Company has not made any provision for interest payable on the outstanding amount.
/.? VoA" & 42%.
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 Standalone Annual Financial Results 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 standalone 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
qualified opinion on the standalone annual financial results.
Managements and Board of Directors Responsibilities for the Standalone Annual
Financial Results
These standalone annual financial results have bee prepared on the basis of the
standalone annual financial statements.
The Companys Managements and the Board of Directors are responsible for the
preparation and presentation of these standalone annual financial results that give a true
and fair view of the net profit/loss and other financial information in accordance with
the recognition and measurement principles laid down in Accounting Standards prescribed
under section 133 of the Act and other accounting principles generally accepted in India
and in compliance with Regulation 33 of the Listing Regulations. 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 annual financial results that give a
true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone annual financial results, the Management and the Board of
Directors are responsible for assessing the Companys ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of Standalone Annual Financial Results
Our objectives are to obtain reasonable assurance about whether the standalone annual
financial results 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 annual financial results.
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 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 internal financial controls with reference to Financial Statements 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 in the standalone annual financial results
made by the management and Board and Board of Directors.
• Conclude on the appropriateness of Management and Board of Directors 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 appropriateness of this assumption. 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 annual financial results 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
annual financial results, including the disclosures, and whether the standalone annual
financial results 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.
Emphasis of Matters
Without qualifying our opinion, we draw attention on the following matters,
(a) During the year, the registration under Goods and Service Tax Act of Delhi State
has been cancelled by the GSTIN vide Order ID ZA070821027560S dated 06 August 2021 on
account of registered premises not found during their physical verification and the same
is inactive as on the date of the results. Therefore, no sale and purchase have been made
after the cancellation order. Further, the Company has estabilished its corporate office
in the state of Gujarat during the current year, accordingly, registration under goods and
service tax act has been taken w.e.f. 20 January 2023.
(b) the Company has not maintained the adequate records for inventory lying as
stock in trade. In the absence of quantitive records, valuation of these stocks is not
ascertainable/measured. We have relied on the representation made to us by the management.
(c) the Company is in process of reconciliation of GST input tax credit between
credit lying in books and credit available in GSTR-2A at GST portal. Any descripencies /
loss of credit aries out of such reconciliation, if any, is presently not ascertainable.
Other Matters
The standalone annual financial results includes the results for the six months ended
jl March 20x,j being the balancing figure between the audited figures in respect of the
full financial year and the published unaudited year to date figures up to the end of
September of the current financial year which were subject to limited review by us.
| For Kapish Jain & Associates |
| Chartered Accountants |
| Firm Registration Number 022743N |
* NEW DELHI * |
CA Kapish Jain
Partner |
| Membership No. 514162 |
| UDIN 23514162BGWHBR2406 |
| Place: New Delhi |
| Date: 27 May 2023 |
+91-9892691696
