To,
THE MEMBERS OF GUJARAT HY-SPIN LIMITED.
Report on the Financial Statements
Opinion
I have audited the accompanying financial statements of GUJARAT HY-SPIN LIMITED (“the Company") which
comprises the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss,
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 my opinion and to the best of my information and according to the explanations given
to me, the aforesaid 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 March
31, 2023, and loss, and its cash flows for the year ended on that date.
Basis for opinion
I conducted my audit in accordance with the Standards on Auditing (SAs) specified under
Section 143(10) of the Companies Act, 2013. My responsibilities under those Standards are
further described in the Auditors Responsibilities for the Audit of the Financial Statements section of my
report. I am 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 my audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules thereunder, and I have fulfilled my other ethical
responsibilities in accordance with these requirements and the Code of Ethics. I believe
that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my opinion.
Key Audit Matters
Key audit matters are those matters that, in my professional judgment, were of most
significance in my audit of the financial statements of the current period. These matters
were addressed in the context of my audit of the financial statements as a whole, and in
forming my opinion thereon, and I do not provide a separate opinion on these matters
Emphasis of Matter
The Companys management is responsible for carrying out the inspection of its
inventories on a regular basis. I have not independently verified the inventories of the
Company during the year under review. Any adjustment to the value of inventories as
appearing in the balance sheet of the Company may have an effect on the profit and net
assets of the Company for the period and year ended March 31, 2023.
The Companys management is
responsible for carrying out the balance confirmation and reconciliations with various
debtors, creditors and advances. These have not been independently verified by me during
the year under review. Any adjustment to the value of such balances as appearing in the
balance sheet of the Company may have an effect on the profit and net assets of the
Company for the period and year ended March 31, 2023.
My opinion is not modified in respect of this matter.
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Board of
Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and
Shareholders Information, but
does not include the financial statements and my auditors report thereon.
My opinion on the financial statements does not cover the other information and I do
not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or my knowledge obtained during the
course of my audit or otherwise appears to be materially misstated.
If, based on the work I have performed, I conclude that there is a material
misstatement of this other information; I am required to report that fact. I have nothing
to report in this regard.
Responsibility of Management 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 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 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.
Auditors Responsibility for
the Audit of the Financial Statements.
My 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 my 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, I exercise professional judgment and
maintain professional skepticism throughout the audit. I also:
1. 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
my 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.
2. 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, I am also responsible for expressing my opinion on whether the
company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
4. 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 I conclude that a material uncertainty exists,
I am required to draw attention in my auditors report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of my auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
5. 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.
I communicate with those charged with governance, where applicable, regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that I identify during my
audit.
I also provide those charged with governance, where applicable, with a statement that I
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 my independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, I 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. I describe these matters in my
auditors report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, I determine that a matter should not be communicated in my 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 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, I give in “Annexure A”
a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
As required by Section 143(3) of the Act, I report that:
a. I have sought and obtained all the information and explanations which to the best of
my knowledge and belief were necessary for the purposes of my audit.
b. In my opinion, proper books of account as required by law have been kept by the
Company so far as it appears from my 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 my opinion, the aforesaid 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 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 my
separate Report in “Annexure
B”.
g. 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 my opinion and to the best of my information and according to the
explanations given to me, 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, in my opinion and to the best of my information and according to
the explanations given to me:
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.
iv. 1) The Management has represented that, to the best of its knowledge and belief, no
funds (which are
material either individually or in the aggregate) 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 or entity, including foreign entity
("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;
2) The Management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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 Ultimate Beneficiaries;
3) Based on the audit procedures that have been considered reasonable and appropriate
in the circumstances, nothing has come to my notice that has caused me to believe that the
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (1) and (2)
above, contain any material misstatement.
v. The Company has not paid or declared any dividend during the year and hence, the
provisions of Section 123 of the Act are not applicable to the Company.
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For Mandaliya & Associates |
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Chartered Accountants |
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Reg. No. 131786W |
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SD/- |
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Hiren Mandaliya |
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Proprietor |
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M .No. 137782 |
29th of May, 2023 at Rajkot |
UDIN:23137782BGRRWZ3780 |
Annexure A
Referred to in the section Report on Other Legal and Regulatory Requirements on of the
Independent Auditors Report of
even date to the members of GUJARAT HY-SPIN LIMITED on the financial statements as of and
for the year ended March 31, 2023
(i) (a) In respect of its property, plant, and equipment:
(A) The Company has maintained proper records showing full particulars, including
quantitative details and situation of property and plant and equipment.
(B) The Company does not have any intangible assets and hence, is not required to
maintain records for the same.
(b) The Company has a programme of verification of plant, property, and equipment to
cover all the items in a phased manner over a period of [2] year which, in my opinion, is
reasonable having regard to the size of the Company and the nature of its assets. Pursuant
to the programme, certain plant, property, and equipment and investment property were
physically verified by the Management during the current reporting period. According to
the information and explanations given to me, no material discrepancies were noticed on
such verification.
(c) According to the information and explanations given to me and the records examined
by me and based on the examination of the registered sale deed/transfer deed/conveyance
deed, I report that, the title deeds, comprising all the immovable properties of land and
acquired buildings which are freehold, are held in the name of the Company as at the
balance sheet date. In respect of immovable properties of acquired land that have been
taken on lease in the financial statements, the lease agreements are in the name of the
Company, where the Company is the lessee in the agreement.
(d) The Company has not revalued its Property, Plant and Equipment during the reporting
period and hence, clause (i)(d) of the CARO, 2020 is not applicable.
(e) As explained to me by the management of the Company, there have not been any
proceedings initiated or pending against the Company under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder during the current reporting period or
as at the balance sheet date.
(ii) (a) As explained to me, the inventories excluding stocks with other third parties,
if any, were physically
verified during the reporting period by the Management at reasonable intervals and no
material discrepancies were noticed on physical verification. In respect of inventory
lying with other third parties, if any, confirmations were obtained by the Management for
substantial portions of stocks held by them at the year-end.
(b) As I have not received the required information from the Company to form an
opinion, we are unable to comment under clause (ii)(b) of the CARO, 2020.
(iii) In my opinion, the Company has not provided any
loan/guarantee/security/investment to any party and hence, reporting under clause
(iii)(a), (b), (c), (d), (e), and (f) of the CARO, 2020 is not applicable.
(iv) In my opinion and according to the information and explanations given to me, the
Company has not made any loans, investments or provided any guarantees and hence, the
provisions of Sections 185 and 186 of the Companies Act, 2013 are not applicable to the
Company.
(v) According to the information and explanations given to me, the Company has not
accepted any deposits during the current reporting period in terms of provisions of
Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the
rules made thereunder.
(vi) In my opinion, the provisions for maintenance of cost records under section 148(1)
of the Companies Act, 2013 are not applicable to the Company.
(vii) In my opinion and according to the information and explanations given to me, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues
applicable to it to the appropriate authorities. There were no undisputed amounts payable
in arrears as at the balance sheet date for a period of more than six months from the date
they became payable except details as provide hereunder.
Name of Statue |
Nature of the Dues |
Amount in Rs. Lakhs |
Period to which amount relates |
Due Date |
Date of Payment |
The Gujarat Professional Tax |
Professional
Tax |
4.97 |
Up to September, 2022 |
Up to 15th day of subsequent
month |
Not Yet Paid |
(b) The Company does not have any statutory dues which have not been deposited on
account of disputes:
(viii) According to the information and explanations given to me, the Company does not
have any transactions, which were not recorded in the books of accounts and which have
been surrendered or disclosed as income during the current reporting period in the tax
assessments under the Income-tax Act, 1961.
(ix) (a) In my opinion and according to the information and explanations given to me,
the Company has not
defaulted in the repayment of loans or borrowings to financial institutions or banks.
The Company has not taken any loans or borrowings from the government.
(b) In my opinion and according to the information and explanations given to me, the
Company has not been declared as a willful defaulter by any bank or financial institution
or other lender during the reporting period.
(c) In my opinion and according to the information and explanations given to me, the
Company has not obtained any term loans during the current reporting period and hence,
reporting under clause (ix)(c) of CARO, 2020 is not applicable..
(d) The Company has not raised any funds on short-term basis, and hence, clause (ix)(d)
of CARO, 2020 is not applicable.
(e) The Company does not have any associate, subsidiary or joint venture and hence,
clause (ix)(e) of CARO, 2020 is not applicable.
(f) The Company does not have any associate, subsidiary or joint venture and hence,
clause (ix)(e) of CARO, 2020 is not applicable.
(x) (a) During the current reporting period, the Company has not raised funds by way of
initial public offer
or further public offer (including debt instruments) and hence reporting under clause
(x)(a) of CARO 2020 is not applicable to the Company.
(b) During the current reporting period, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures and
hence reporting under clause (x)(b) of CARO 2020 is not applicable to the Company.
(xi) (a) To the best of my knowledge and according to the information and explanations
given to me, no
fraud by the Company and no material fraud on the Company has been noticed or reported
during the current reporting period.
(b) To the best of my knowledge and according to the information and explanations given
to me, no report under sub-section (12) of section 143 of the 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 the Central Government.
(c) To the best of my knowledge and according to the information and explanations given
to me, the Company has not received any whistle-blower complaints during the current
reporting period.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the
CARO, 2020 is not applicable.
(xiii) In my opinion and according to the information and explanations given to me the
Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where
applicable, for all transactions with the related parties and the details of related party
transactions have been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) (a) In my opinion, the Company has an internal audit system commensurate with the
size and nature of
its business.
(b) I have considered the reports of the Internal Auditors for the period under review
during my audit of the Company.
(xv) In my opinion and according to the information and explanations given to me,
during the current reporting period the Company has not entered into any non-cash
transactions with its directors or directors of its holding, subsidiary or associate
company, if any or persons connected with them and hence provisions of Section 192 of the
Companies Act, 2013 are not applicable.
(xvi) (a) The Company is not required to be registered under Section 45-I of the
Reserve Bank of India Act,
1934.
(b) The Company has not conducted any Non-Banking Financial or Housing Finance
activities during the current reporting period and hence, is not required to obtain a
Certificate of Registration from the Reserve Bank of India as per the Reserve Bank of
India Act, 1934.
(c) The Company is not a Core Investment Company (“CIC”)
as defined in the regulations made by the Reserve Bank of India.
(d) The Company does not have any CICs as part of the Group and hence, clause (xvi)(d)
of CARO, 2020 is not applicable to the Company.
(xvii In my opinion, the Company has not incurred any cash losses during the current
reporting period and in ) the immediately preceding reporting period.
(xvii There has been a resignation of the statutory auditors during the current
reporting period under review. i) The outgoing statutory auditors have not raised any
issues, objections or concerns regarding the affairs of the Company.
(xix) In my opinion, subject to my comments and observations in the auditors report, if any, 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, the
auditors knowledge of the Board
of Directors and management plans, I believe there does not exist any uncertainty as on
the date of the audit report that the Company is not capable of meeting its liability
existing at the balance sheet as and when they fall due within a period of one year from
the balance sheet date.
(xx) In my opinion section 135 of the Companies Act, 2013 is not applicable to the
Company and hence clause (xx) of the CARO, 2020 is not applicable.
(xxi) Clause (xxi) of the CARO, 2020 is not applicable in the report on the standalone
financial statements of the Company.
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For Mandaliya & Associates |
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Chartered Accountants |
|
Reg. No. 131786W |
|
SD/- |
|
Hiren Mandaliya |
|
Proprietor |
|
M .No. 137782 |
29th of May, 2023 at Rajkot |
UDIN: 23137782BGRRWZ3780 |
Annexure B
Referred to in point f. of the section Report on Other Legal and Regulatory
Requirements of the Independent Auditors Report of even date to the members of GUJARAT HY-SPIN LIMITED on the financial
statements for the year ended March 31, 2023
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Act
In conjunction with my audit of the financial statements of the Company as of and for
the year ended March 31, 2023, I have audited the internal financial controls over
the financial reporting of GUJARAT HY-SPIN LIMITED (“the Company”) as of that date.
Managements Responsibility
for Internal Financial Controls
The Companys management is
responsible for establishing and maintaining internal financial controls based on 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 the 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 Act.
Auditors Responsibility
My responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on my
audit. I conducted my audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the ICAI 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
controls, both applicable to an audit of internal financial controls and both issued by
the ICAI. Those Standards and the Guidance Note require that I comply with the 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.
My audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system 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 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.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my 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
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 of 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 control 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 my 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
considering the essential components of internal control stated in the Guidance Note
issued by ICAI.
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For Mandaliya & Associates |
|
Chartered Accountants |
|
Reg. No. 131786W |
|
SD/- |
|
Hiren Mandaliya |
|
Proprietor |
|
M .No. 137782 |
29th of May, 2023 at Rajkot |
UDIN: 23137782BGRRWZ3780 |
+91-9892691696
