To
The Members of
GUJRAT CREDIT CORPORATION LIMITED
Report on the audit of the Standalone Financial Statements
Opinion
We have audited the accompanying financial statements of Gujarat Credit Corporation
Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2023,
the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and the Statement of Cash Flows for the year ended on that date and
notes to the financial statements including a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as "the financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards 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, 2023, the Profit and total comprehensive
Loss, changes in equity and its cash flows for the year ended on that date.
Basis for opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under
those Standards are further described in the Auditors Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India (ICAI) together with the independence requirements that are relevant to our audit of
the 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
financial statements.
Key audit matters
We have determined that there are no key audit matters to communicate in our report.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis,
Boards Report including Annexures to Boards Report, Business Responsibility Report,
Corporate Governance and Shareholders Information, 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, 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.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; 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 statements 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 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 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.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made 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 the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the 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 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 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 Matters
The comparative financial information of the Company for the year ended March 31, 2022
included in this Statement had been audited by previous auditors, who had expressed an
unmodified opinion thereon as per their report dated May 30, 2022.
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 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.
2. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
D) In our opinion, the aforesaid financial statements comply with the Ind AS 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 March
31, 2023, taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 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) In our opinion and to the best of our information and accordingly 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 of the Act.
H) 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:
a. The Company does not have any pending litigation;
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company;
d. i. The management has represented that, to the best of its knowledge and belief, 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 person(s)
or entity(ies), 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 on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
ii. The management has represented that, to the best of its knowledge and belief, no
funds have been received by the Company from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the understanding, whether recorded
in writing or otherwise, that the Company shall, 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 Ultimate Beneficiaries; and
iii. Based on the audit procedures conducted by us, nothing has come to our notice that
has caused us to believe that the representations under sub-clause (i) and (ii) contain
any material misstatements.
e. The Company has not declared any dividend during the year.
f. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable w.e.f.
April 1, 2023, reporting under this clause is not applicable.
For Sorab S. Engineer & Co.
Chartered Accountants
Firms Registration No. 110417W
CA. Chokshi Shreyas B.
Partner
Membership No.100892
UDIN: 23100892BGQHOE8838
Ahmedabad
May 25, 2023
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory
Requirements section of our report to the Members of Gujarat Credit Corporation Limited
of even date)
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")
We have audited the internal financial controls over financial reporting of GUJARAT
CREDIT CORPORATION 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 Board of Directors of the Company 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. 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 respective 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 internal financial controls over
financial reporting of the Company 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 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 judgement, 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 internal financial controls system over
financial reporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the Standalone financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given
to us, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at March 31, 2023, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
For Sorab S. Engineer & Co.
Chartered Accountants
Firms Registration No. 110417W
CA. Chokshi Shreyas B.
Partner
Membership No.100892
Ahmedabad
May 25, 2023
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under Report on Other Legal and Regulatory Requirements
section of our report to the Members of Gujarat Credit Corporation Limited of even date) i.
In respect of the Companys Property, Plant and Equipment and Intangible Assets:
a) (A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of Intangible
assets.
b) The Company has a program of verification to cover all the items of Property, Plant
and Equipment in a phased manner which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Pursuant to the program, certain
Property, Plant and Equipment were physically verified by the management during the year.
According to the information and explanations given to us, no material discrepancies were
noticed on such verification
c) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the title deeds of immovable properties (other
than immovable properties where the Company is the lessee and the lease agreements are
duly executed in favor of the lessee) disclosed in the standalone financial statements are
held in the name of the Company
d) According to the information and explanations given to us, the Company has not
revalued its Property, Plant and Equipment or intangible assets or both during the year.
e) According to the information and explanation given to us, the Company has no
proceedings pending for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder.
ii. According to the information and explanations given to us, the Company does not
have any physical inventory. Consequently, the requirements under this clause are not
applicable.
iii. According to the information and explanations given to us, the Company has not
made investments in, 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. Consequently, the requirements under this clause are
not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, the
Company has not advanced any loan or given any guarantee or provided any security or made
any investment covered under section 185 and section 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the
Company has not accepted any deposits from the public within the meaning of Sections 73 to
76 or any other relevant provisions of the Act and rules framed thereunder. 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.
vi. To the best of our knowledge and belief, the Central Government has not prescribed
maintenance of cost records under section 148 (1) of the Act in respect of the Companys
products. Consequently, requirement of clause (vi) of paragraph 3 of the order are not
applicable.
vii. According to the information and explanations given to us, in respect of statutory
dues:
a) The Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State Insurance, Income
Tax, Wealth Tax, Custom Duty, Goods and Service Tax, Cess and other material statutory
dues applicable to it. According to the information and explanations given to us, no
undisputed amounts payable in respect of outstanding statutory dues were in arrears as at
March 31, 2023 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there is no amount
payable in respect of income tax, Goods and Service Tax, Custom Duty, and Cess whichever
applicable, which have not been deposited on account of any disputes.
viii. To the best of our knowledge and belief and according to the information and
explanations given to us, there were no transactions which are not recorded in the books
of account that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.
ix. In our opinion and according to the information and explanations given to us, in
respect of the Companys Borrowings:
a) The Company has not defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender.
b) The Company is not a declared willful defaulter by any bank or financial institution
or other lender.
c) The terms loans of the company were applied for the purpose for which the loans were
obtained.
d) The Company has not raised funds raised on short term basis during the year.
e) 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) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies.
x. In our opinion and according to the information and explanations given to us, the
Company has not raised funds by way of initial public offer or further public offer
(including debt instruments) or preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) during the year.
Consequently, the requirements of clause (x) of paragraph 3 of the order are not
applicable.
xi. In respect of fraud by the Company or on the Company:
a) To the best of our knowledge and belief and 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 year.
b) There has been no report under sub-section (12) of section 143 of the Companies Act
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) There have been no whistle-blower complaints received during the year by the
company.
xii. The Company is not a Nidhi Company. Consequently, requirements of clause (xii) of
paragraph 3 of the order are not applicable.
xiii. To the best of our knowledge and belief and according to the information and
explanations given to us, all transactions with the related parties are in compliance with
sections 177 and 188 of the Act, where applicable, and the details have been disclosed as
required by the applicable Indian Accounting Standard (Ind AS)-24 Related Party
Disclosures.
xiv. To the best of our knowledge and belief and according to the information and
explanations given to us, the Company is not required to have an internal audit.
Consequently, the requirements of clause (xiv) of paragraph 3 of the order are not
applicable.
xv. To the best of our knowledge and belief and according to the information and
explanations given to us, the Company has not entered into any non-cash transactions with
directors or persons connected with him.
xvi. According to the nature of business, the company is not required to be registered
under section 45-IA of Reserve Bank of India, 1934.
xvii. According to the information and explanations given to us, the company has not
incurred cash loss during the current and previous year.
xviii. According to the information and explanations given to us, there has been no
resignation of the statutory auditors during the year.
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
the 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.
xx. According to the information and explanations given to us, section 135 of the
Companies Act, 2013 relating to Corporate Social Responsibility is not applicable to the
Company. Consequently, the requirements of clause (xx) of paragraph 3 of the order are not
applicable.
For, Sorab S. Engineer & Co.
Chartered Accountants
Firm Registration No. 110417W
CA. Chokshi Shreyas B.
Partner
Membership No.100892
Ahmedabad
May 25, 2023
+91-9892691696
