Auditors Report on Quarterly Financial Results and Year to Date Results of the Company
Pursuant to the Regulation 33 of th e SEBI (Listing Obligation and Disclosure
Requirements) Regulations, 2015
To,
Board of Directors of (GSB Finance Limited,
Opin ion:
We h ave audited the standalone financial statements of GSB Finance Limited ("the
Company"), which comprise the balance sheet as of 31st March 2023, and the statement
of Profit and Loss, statement of changes in equity and state ment 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 ou r 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
accounting principles generally accepted in India, of the state of affairs of the Company
as at 31st March 2023, and profit/loss, changes in equity and its cash flows for the year
ended on that date.
Basis of 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the finan cial statements of the current period. These
matters were addressed in the context of our audit of the financial state ments, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Our opinion is not qualified in respect of the above matters.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the [information included in the Management report but does not
include the financial statements and our auditors report thereon.]
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements, or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, ba sed 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 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, and cash flows 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. 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 accou nting
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 comp leteness of the accounting
records, relevant to the preparation and presentation of the financial statement that give
a true a nd fair view and are free from material misstatement, whether due to fraud or
error.
In pre paring the financial statements, management is responsible for assessing the
Companys ability to continue as a going conce rn, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless mana
gement either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements 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 p art of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We are also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design an d 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 adequate internal financial controls system in place and the operating
effectiveness of such co ntrols.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• 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 th e 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
re port. 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 th e 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 th e 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
As requ ired 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 Companies Act, 2013, we give in the Annexure "B" a statement on the matters
specifie d in paragraphs 3 and 4 of the Order, to the extent applicable.
As requ ired by Section 143(3) of the Act, we report that:
(a) W e have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessa ry for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other compressive
income), statement of Changes in Equity and statement of the Cash Flow dealt with by this
Report are in agreement with the books of account.
(d) In o ur opinion, the aforesaid standalone financial statements comply with the
Indian Accounting Standards (Ind AS) specifie d 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 2023from 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 a nd Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material fore seeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the investor education and protection fund by the company.
Annexure A- To the Independent Auditors Report:
The Annexure referred to in paragraph 1 under the Report on Other Legal and Regulatory
Requirements our report in the members of GSB Finance Limited ("The Company")
for the year ended on 31st March 2023, We report that: -
(a) The company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets;
(b) Fixed assets have been physically verified by the management at reasonable
intervals; and no material discrepancies were noticed on such verification
(c) The company does not hold any immovable property. Hence, clause 3(i)(c) about title
deeds of immovable properties is not applicable in the present case.
(d) No Revaluation of property, plant and equipment or intangible has been made during
the year.
(a) Company has inventory in electronic mode hence verification of inventory has been
done through Dema statement at reasonable intervals by the management and no material
discrepancies were noticed.
(b) Company has not availed any working capital limit from bank or financial
institution in excess of Rs. 5 Cr against Current Assets.
(iii) The company has not granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013. As the company has not granted any loans to
parties covered under section 189 clause 3(iii)(a) which deals with terms and conditions
of the grant of such loans is not applicable. as the company has not granted any loans to
parties covered under section 189 clause 3(iii)(b) which deals with schedule of repayment
of principal and payment of interest is not applicable. as the company has not granted any
loans to parties covered under section 189 the question of amount being overdue does not
arise;
(iv) In our opinion and according to the information and explanations given to us, the
Company has not granted any loans or provided any guarantee or security to the parties
covered under Section 185 and hence provisions of Clause 3(iv) of the aforesaid Order in
this regard are not applicable to the Company. Further, the Company has complied with
provision of Section 186 of the Act in respect of the investments made by it.
(v) in our opinion and according to the information and explanations given to us, the
company has not accepted any deposits. Hence, clause 3(v) which deals with directives
issued by the reserve bank of India and the provisions of sections 73 to 76 or any other
relevant provisions of the companies act, 2013 and the rules framed thereunder, are not
applicable
(vi) In our opinion and according to the information and explanations given to us. The
Company is not required to maintain cost records pursuant to the Rules made by the Central
Government for the maintenance of cost records under sub-section (l) of section 148 of the
Companies Act.
(vii) According to the records of the Company, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income-tax, sales tax, wealth tax, duty of customs, duty
of excise, value added tax or cess and other statutory dues applicable to it. No
undisputed amounts payable in respect of provident fund, employees state insurance,
income-tax, sales tax, wealth tax, duty of customs, duty of excise, value added tax or
cess and other statutory dues were outstanding, as at 31-03-2023, for a period of more
than six months from the date they became payable.
According to the records of the Company and information and explanations given to us no
dues of income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess that have not been deposited on account of any disputes except as
follows:
| Name of the Statue |
Nature of Dispute |
Amount paid under Protest (Rs in lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income Tax |
0.59 |
AY 2012-13 |
Demand As Per Order u/s.143(1)(a) |
(viii) According to the information and explanations given to us by the management,
there are no transactions which are not recorded in the books of accounts but Surrender or
Disclosed in the Income tax assessment.
(ix) Based on our audit procedures and according to the information and explanations
given to us by the management, we are of the opinion that the Company has not defaulted in
repayment of dues to financial institutions and bank.
(x) Based on our audit procedures and according to the information and explanations
given to us by the management, the Company has not raised any money during the year under
review.
(xi) During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of material fraud by the Company or on the Company by its officers or employees,
noticed or reported during the year, nor we have been informed of any such case by the
management.
(xii) The company is not a Nidhi Company. Hence, clause 3(xii) will not be applicable
(xiii) The Company has entered the transaction with the related parties in compliance
with the provisions of the Section 177 and 188 of the Act. The details of such related
party transactions have been disclosed in the standalone financial statements as required
under Indian Accounting Standard (IndAS) 24, Related Party Disclosures specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
| Name of Related Party |
Designation |
Remuneration |
| Shri Ramakant S. Biyani |
Mg. Director |
6,00,000/- |
| Shri Suyash Ramakant Biyani |
Whole Time Director |
6,00,000/- |
(xiv) Internal audit
(a) The company does not have an internal audit system commensurate with the size and
nature of its business.
(xv) The Company has not entered any non-cash transactions with its directors, or the
persons connected with him and hence provisions of Clause 3(xv) of the aforesaid Order are
not applicable to the Company.
(xvi) (a) The company is registered under section 45-IA of the Reserve Bank of India
Act, 1934 and the registration is enforced for the same.
(b) The company has not conducted any Non-Banking Financial or Housing Finance
activities without a valid Certificate of Registration (CoR) from the Reserve Bank of
India as per the Reserve Bank of India Act, 1934
(c) The company is not as Core Investment Company (CIC), therefore, there is no
question of fulfilling criteria of CIC as defined in regulations made by Reserve Bank of
India.
(d) The company is not as Core Investment Company (CIC), therefore, clause (xvi)(d) is
not applicable
(xvii) Based on our audit procedures and according to the information and explanations
given to us by the management, the company has not incurred any cash losses in the
financial year and in the immediately preceding financial year;
(xviii) According to the information and explanations given to us by the management,
the statutory auditors have not taken any resignation during the year, therefore, there is
no question of taking into consideration the issues, objections or concerns raised by the
outgoing auditors;
(xix) 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, the auditors knowledge of the Board of Directors and management
plans we are of the opinion that no material uncertainty exists as on the date of the
audit report that company is 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. Calculations of Financial Ratios are attached with the Financial Statement.
(xx) The provision of section 135 of The Companies Act, 2013 is not applicable to the
company.
(xxi) The provisions related to Consolidated Financial Statements are not applicable to
the company.
Annexure B- to the Independent Auditors Report
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 GSB Finance
Limited ("the Company") as of March 31, 2023, 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 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 (the
"Guidance Note") 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 and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls, both applicable to an audit of Internal Financial
Controls and, both issued by the 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 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 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, 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, 2022, 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 issued by the
Institute of Chartered Accountants of India
|
For H. P. Jadeja& Associates |
|
Chartered Accountants |
|
Firm Registration No. 135374W |
|
Hemantsinh P. Jadeja |
|
Proprietor |
| Date: 22nd May 2023 |
Membership No: 152374 |
| Place: Mumbai |
|
| UDIN : 23152374BGQRMY1975 |
|
+91-9892691696
