To the Members of Gratex Industries Limited
Report on the Audit of the Standalone Financial Statements
1. Opinion
We have audited the standalone financial statements of Gratex Industries Limited
("the Company"), which comprise the balance sheet as at 31st March 2023, and the
statement of Profit and Loss, 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 standalone 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
Ind AS and other accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2023, and profit, total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
2. 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 there
under, 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.
3. 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 This matter is
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 this matter;
There are no matter to be reported under this head.
4. Emphasis of Matters
a. As per note no.25 of the accounts "Revenue from operations" 98.87% of
revenue is from related party transactions only. The pricing policy is determined keeping
"Arms length price" considerations in mind by the management. Considering the
criteria provided by the management to decide the pricing policy, we feel that the pricing
policy adopted by the management is justifiable.
Our opinion is not modified in respect of the above matters.
5. Managements Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financial
position, financial performance, changes in equity 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 financial
statement that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
6. Auditors Responsibilities 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.
7. Other Matter
There are no any matters which require to be reported under this head.
8. 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 the "Annexure B" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9. 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, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone 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 31st
March, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 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 A".
(g) 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:
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 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
|
For Jayesh R Shah & Co. |
|
Firms Registration No.104182W |
|
Sd/- |
|
Jayesh Shah |
|
Proprietor |
| Place: Mumbai |
Membership No. 033864 |
| Date: 30th May, 2023 |
UDIN: 23033864BGYCSJ8752 |
Annexure-A to the Independent Auditors Report.
Referred to in paragraph 9(f) of the Independent Auditors Report of even date to the
members of Gratex Industries Limited on the Ind AS financial statements for the year ended
March 31, 2023
Report on the Internal Financial Controls over financial reporting under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of Gratex
Industries Limited ("the Company") as of March 31, 2023 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
2. 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 Act.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing deemed to be prescribed
under section 143(10) of the Act to the extent applicable to an audit of internal
financial control, both applicable to an audit of internal financial control and both
issued by ICAI. Those Standards and the Guidance Note require that I 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.
4. 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 Ind AS financial statements, whether due to fraud or error.
5. 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 on the Ind AS
financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
6. 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
7. In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023, based on the
internal control over financial reporting criteria established by the Company commensurate
with the size of the company and nature of its business 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 Jayesh R Shah & Co. |
|
Firms Registration No.104182W |
|
Sd/- |
|
Jayesh Shah |
|
Proprietor |
| Place: Mumbai |
Membership No. 033864 |
| Date: 30th May, 2023 |
UDIN: 23033864BGYCSJ8752 |
Annexure-B to the Independent Auditors Report.
Referred to in paragraph (8) of the Independent Auditors Report of even date to the
members of Gratex Industries Limited on the Ind AS financial statements for the year ended
March 31, 2023
(i) (a) (A) We have verified the records of the Company, in our opinion, the Company
has maintained proper records showing full particulars including quantitative details and
situation of Property, Plant and Equipment.
(B) The Company does not have any intangible assets hence no records require.
(b) The management explained that Property, plant and equipments are physically
verified by the management once in a year, In our opinion considering the size of the
company it is justifiable. No material discrepancies were noticed on such verifications.
(c) According to information and explanation given to us and on the basis of our
examination of the records of the Company, we are of the opinion that the title deeds of
all the immovable properties (other than properties where the company is the lessee and
the lease agreements are duly executed in favour of the lessee and self constructed
properties) disclosed in the financial statements are held in the name of the company;
(d) AS per the information furnished and verification of the records the company has
not revalued its Property, Plant and Equipment (including Right of Use assets) or
intangible assets or both during the year;
(e) As per the information provided by the management and from verification of the
records, in our opinion no proceedings have been initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and rules made there under, if so, whether the company has appropriately
disclosed the details in its financial statements;
(ii) (a) As per information furnished, the physical verification of inventory is
conducted once in a year by the management and, in our opinion, the coverage and procedure
of such verification by the management is appropriate; a minor discrepancy were noticed
and have been properly dealt with in the books of account;
(b) According to information and from verification of the records the company has not
been sanctioned working capital limits in excess of five crore rupees, in aggregate, from
banks or financial institutions on the basis of security of current assets;
(iii) According to information and explanation provided and from verification of the
records, In our opinion, during the year, the company has not made any investments, or
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 sub clause a, b, c, d, e and f of clause iii is not applicable;
(iv) In our opinion and according to the information and explanations given to us and
from verification of the records, the Company has not granted any loans or made any
investments or provided any guarantees, and security, to the companies covered under
section 185. Further the Company has complied with the provisions of Section 186 of the
Companies Act;
(v) From verification of the records, in our opinion the Company has not accepted any
deposits during the year from the public within the meaning of the provisions of section
73 to 76 of the Companies act, 2013 and rules framed there under;
(vi) As per the information provided and from verification of the records, we are of
the opinion that company does not cover under sub-section (1) of section 148 of the
Companies Act, 2013 and hence not require to maintain cost records ;
(vii) (a) According to the information and explanation given to us and the records of
the Company examined by us, in our opinion, the company is 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. and if
not, the extent of the arrears of outstanding statutory dues as on the last day of the
financial year concerned for a period of more than six months from the date they became
payable, shall be indicated;
(b) According to the information and explanation provided to us and the records of the
Company verified by us, the outstanding dues of Sales Tax, VAT, Income tax and excise duty
which have not been deposited on account of dispute with the appropriate authorities are
as Nil;
(viii) According to information and explanation given to us by the management and from
the verification of the records, in our opinion, there are no any transactions, not
recorded in the books of accounts which have been surrendered or disclosed as income
during the year in the tax assessment under the Income Tax Act, 1961 (43 of 1961);
(ix) (a) Based on our audit procedures and the information and explanation given by the
management, we are of the opinion that the company has not defaulted in repayment of loans
or other borrowings or in the payment of interest thereon to any lender;
(b) As per the information, we are of the opinion that the company is not a declared
willful defaulter by any bank or financial institution or other lender;
(c) As per the information and verification of records, in our opinion the Company has
not availed any term loans during the year;
(d) In our opinion, the funds raised on short term basis have not been utilised for
long term purposes;
(e) From verification of the records, in our opinion the company has not taken any
funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures;
(f) From verification of the records, in our opinion, the company has not raised loans
during the year on the pledge of securities held in its subsidiaries, joint ventures or
associate companies;
(x) (a) From verification of the records, in our opinion, the Company has not raised
any moneys by way of initial public offer or further public offer (including debt
instruments) during the year;
(b) From verification of the records, in our opinion the company has not made any
preferential allotment or private placement of shares or convertible debentures (fully,
partially or optionally convertible) during the year;
(xi) (a) During the course of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing practice and according to
information and explanations given to us, we have neither come across any instances of
material fraud by the or on the Company, has been noticed or reported during the year;
(b) No report under sub-section (12) of section 143 of the Companies Act 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) As per the information and explanation furnished, there are no whistle-blower
complaints received during the year by the company;
(xii) (a) As the Company is not a Nidhi company sub clause a, b and c of clause xii of
the order are not applicable to the Company;
(xiii) As per the information and explanation provided by the company and from the
verification of the records, in our opinion, all transactions with the related parties are
in compliance with sections 177 and 188 of Companies Act where applicable and the details
have been disclosed properly in the Ind AS financial statements as required under Ind AS
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