To the members of, Gujarat Investa Limited,
Opinion
We have audited the accompanying financial statements of Gujarat Investa Limited
("the Company") which comprise the Balance Sheet as at 31st March,
2023 the Statement of Profit & Loss for the year ended on that date, Statement of
Change in Equity and the Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information which we have signed
under reference to this report.
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 31st March, 2023, the Profit and Loss, Change in Equity and its
Cash Flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act. 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 there under
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
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. These matters
were addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, we do not provide separate opinion on these matters. We have
determined that there are no key audit matters to communicate in our report.
Managements Responsibility for the Financial Statements
The Companys Board of Directors and the management is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013, with respect to the preparation and
presentation 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, read with Rule 7 of the Companies (Accounts)
Rules, 2014. 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 management either intends to liquidate the company or
to cease operation, or has no realistic alternative but to do so. The Board of Directors
is responsible for overseeing the companys financial reporting process.
Auditors Responsibility 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 is 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 professional skepticism throughout the audit. We also:
i) 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.
ii) Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstance. 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 control.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosure made by management.
iv) Conclude 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 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.
v) Evaluate the overall presentation, structure and content of the Financial
Statements, including the disclosures and whether the financial statements represent the
underlying transaction and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Financial Statement 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 misstatement 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 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
1. 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 purpose of our audit;
b. In our opinion, proper Books of Account as required by law have been kept by the
Company so far as appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, Statement of Change of
Equity and the Statement of Cash Flow dealt with by this Report are in agreement with
the Books of Account;
d. In our opinion, the aforesaid Financial Statements comply with the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of
the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the Directors as on March
31,2023 and 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 internal financial controls over
financial reporting of the Company and operating effectiveness of such controls, refer to
our specific 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 our opinion and to best of our information and according to the explanations given
to us, the remuneration paid by the Company to its directors during the year is in
accordance with the provision of section 197 of the Act.
h) With respect to 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 such pending litigations which would impact its financial
position.
c) The Company has made provision, as required under the applicable laws or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
d) There has not been an occasion in case of the Company during the year under report
to transfer any sums to Investor Education and Protection Fund. Therefore the question of
delay in transferring such sums does not arise.
e) i)The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, 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) management has represented, that, to the best of its knowledge and belief, other
than as disclosed in the notes to the accounts, 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, 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; and
iii) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement.
(f) The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
(g) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act, in our opinion and according to the information and explanations given
to us, no remuneration paid by the Company to its directors during the year is in
accordance with the provision of section 197 of the Act.
2. As required by the Companies (Auditors Report) Order 2020 (‘the Order) issued
by the Central Government in term of section 143(11) of the Act, we give in Annexure
A" a statement on the matters specified in paragraphs 3 and 4 of the order.
|
For Lunia & Company, |
|
Chartered Accountants, |
|
Firm Registration No. 116436W, |
|
SD/- |
| Ahmedabad, |
(CA R.C. Lunia), |
| The 30th May, 2023 |
Partner, |
|
Membership No F-12729 |
|
UDIN: 23012729BGSLZL9367 |
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE
YEAR ENDED 31ST MARCH, 2023 OF GUJARAT INVESTA LIMITED
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of audit, we report that:
1. In respect of the Companys Property, Plant and Equipment and Intangible Assets :
a) The Company has maintained proper records showing full particulars, including
quantitative detail and situation of Property, Plant and Equipment.
b) The company is not having any intangible asset. Therefore, the provisions of Clause
(i)(a)(B) of paragraph 3 of the order are not applicable to the company. Or
c) The Company has maintained proper records showing full particulars of intangible
assets.
d) According to the information and explanations given to us, Property, Plant and
Equipment have been physically verified by the management at regular intervals during the
year and no material discrepancies were noticed on such verification. In our opinion, the
frequency of physical verification of Property, Plant and Equipment is reasonable.
e) 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 are
held in the name of the Company.
The company has not constructed any building over land taken on lease.
According to the information and explanations given to us, there are no proceedings
initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.
2. According to the information and explanations given to us:
a) Physical verification of Inventory has been conducted at regular intervals during
the year and no material discrepancies were noticed on such verification. In our opinion,
the coverage and procedure of such verification by the management is appropriate.
b) 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.
3. According to the information and explanations given to us, during the year, the
Company has made investments in, provided any guarantee or security or granted loans or
advances in nature of loans, secured or unsecured, to Companies, firms, Limited Liability
Partnerships or any other parties. If so: According to the information and explanations
given to us, a) During the year the company has provided loans or provided advances in
nature of loans, or stood guarantee or provided security to any other entity
(Not applicable to the company, as the Principal Business of the Company is to give
loans).
4. In our opinion and according to information and explanations given to us, the
Company has complied with the provisions of Section 185 and 186 of the Act, with respect
to the loans and investments made.
5. The Company has not accepted any deposits from the public during the year, covered
under the direction issued by the Reserve Bank of India and the provisions of Section 73
to 76 of the Companies Act, 2013 and Rules framed there under.
6. The maintenance of the cost records has not been prescribed by the Central
Government under Section 148 (1) of the Companies Act, 2013, for the year under review.
7. (a) According to the information and explanations given to us and the records
examined by us, the Company is regular in depositing undisputed statutory dues including
Provident Fund, Income Tax, Goods and Service Tax, Sales-Tax, Employees State Insurance,
Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other statutory dues with
the appropriate authorities except following Income Tax Demand pending for a period of
more than six months from the date they become payable
| Name of the Statute |
Name of Dues |
Amount Rs. |
Period which amount relates |
Forum where the dispute is pending |
| Income Tax Act, 1961 |
Demand |
32247916 |
Assessment Year 2012-13 |
Appeal pending with CIT (A) |
| Income Tax Act, 1961 |
Demand |
20814563 |
Assessment Year 2013-14 |
Appeal pending with CIT (A) |
(b)There were no undisputed statutory dues outstanding as on 31st March, 2023 for a
period of more than six months from the date they became payable.
8. Based on the information and explanations given to us, there have been no
transactions which have not been recorded in the books of account, which have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
9. Based on the information and explanations given to us:
a) the Company has not defaulted in repayment of any dues to financial institutions and
banks
b) the Company is not a declared willful defaulter by any bank or financial institution
or other lender.
c) the term loans obtained were used for the purpose for which the loans were obtained.
d) the funds raised on short-term basis have not been utilized for long-term basis.
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 any loans during the year on the pledge of securities
held in its subsidiaries, joint ventures or associate companies.
10. (a) The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments) during the year, and hence details related for
the same are not applicable.
(b) The Company has not made preferential allotment and/or private placement of shares
during the year and provisions of section 42 and section 62 of the Companies Act, 2013 are
complied with.
11. (a) As per the information given to us, no fraud on or by the Company has been
noticed or reported during the course of our audit.
(b) We, the auditors, have not filed any report under sub-section (12) of section 143
of the Companies Act in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and
Auditors) Rules,2014 with the Central Government.
? As per the information given to us, the Company has not received any whistle-blower
complaints.
12. As the company is not a Nidhi Company, the provisions of clause 3(xii) of the
Companies (Auditors Report) Order 2021 are not applicable to the Company.
13. According to the information and explanations given to us, transaction with the
related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 and
details of same have been disclosed in the Financial Statement etc. as required by the
applicable accounting standards.
14. a) According to the information given to us, the Company has internal audit system
commensurate with the size and nature of its business. b) As statutory auditors of the
company, we have considered the reports of the internal auditors for the period under
audit.
15. 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 them.
16. The Company is registered under Section 45-IA of the Reserve Bank Of India Act,
1934 as a NBFC Company.
17. Based on the information given to us, the Company has not incurred cash losses in
this or immediately preceding financial year.
18. There has been no resignation of the Statutory Auditors during the year.
19. In our Opinion, on the basis of financial ratios, ageing and expected dates of
realization of financial assets and payments of financial liabilities, other information
accompanying the financial statements and our interaction with the Board of Directors and
management, no material uncertainty exists as on the date of audit report that the Company
will be incapable of meeting its liabilities existing as on 31st of March, 2023 as and
when they fall due within a period of one year from the balance sheet date.
20. (a) In respect of other than ongoing projects, the second proviso to sub-section
(5) of section 135 of the company Act, related to transferring unspent amount to a Fund
specified in Schedule VII to the Companies Act within a period of six months of the expiry
of the financial year is not applicable to the Company.
(b)Second proviso of sub-section (5) of section 135 of Companies Act is not applicable
to the Company.
| For Lunia & Company, |
| Chartered Accountants, |
| Firm Registration No. 116436W, |
| SD/- |
| (CA R.C. Lunia), |
| Partner, |
| Membership No F-12729 |
| UDIN: 23012729BGSLZL9367 |
| AHMEDABAD |
| DATE: 30.05.2023 |
ANNEXURE "B" to the Auditors Report
The members of Gujarat Investa Limited
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 Gujarat Investa Limited (the Company) as at
31st March, 2023 in conjunction with our audit of 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
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 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 Control
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 Standard on Auditing 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 were 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 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 risk 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 control system over
financial reporting.
Meaning of Internal Financial Control 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 statement 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
expenditure of the Company are being made only in accordance with authorizations of the
Management and directors of the company and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of
Companys assets that could have a material effect on the financial statements.
Inherent Limitation of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial control 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 change 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 31st March, 2023,
based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants Of India.
|
For Lunia & Company, |
|
Chartered Accountants, |
|
Firm Registration No. 116436W, |
|
SD/- |
| Place: Ahmedabad, |
(CA R.C. Lunia), |
| Date: The 30th May, 2023 |
Partner, |
|
Membership No F-12729 |
|
UDIN: 23012729BGSLZL9367 |
+91-9892691696
