To
The Members of
Gujarat Natural Resources Limited
Opinion
We have audited the accompanying financial statements of Gujarat
Natural Resources Limited ("the Company"), which comprise the balance sheet
as at March 31, 2023 and 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 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, 2023 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 its loss and cash flows for the year ended on
that date.
Basis for opinion
We conducted our audit in accordance with the Standards on Auditing
(SAs) specified undersection 143(10) of the Companies Act, 2013, as amended ("the
Act"). Our responsibilities under those Standards are further described in the
"Auditors Responsibilities for the Audit of the Standalone Financial
Results" 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 Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate to provide a
basis for our opinion.
Emphasis of Matter:
• The company is carrying Rs. 3,31,92,998/- in "other
non-current assets" which in our opinion needs to be written off. And Due to the same
Profit &Loss account is under stated. So the amount of Rs. 3,31,92,998/-
written off by company in next financial year as per the applicable rules and regulations.
Managements Responsibility for the Financial Statements
The Statement has been prepared on the basis of the annual standalone
financial statements for the year ended March 31, 2023. The Board of Directors of the
Company are responsible for the preparation and presentation of the Statement that give a
true and fair view of the loss and other comprehensive income and other financial
information in accordance with the applicable accounting standards prescribed under
Section 133 of the Act read with relevant rules issued there under and other accounting
principles generally accepted in India and in compliance with Regulation 33 of the Listing
Regulations, 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 accounting policies; making judgments and estimates that are
reasonable and prudent; and the 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 Statement that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing Statement, the Board of Directors are 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 the Board of Directors 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 Standalone
Financial Results
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. 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. In making those
risk assessments, the auditor considers internal financial control relevant to the
Companys preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by Companys Directors, as well as evaluating the
overall presentation of the financial statements.
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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the Central Government in terms of Section 143 (11) of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and
4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and an explanation
which is to the best of our knowledge and beliefs 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 appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement 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 Act, read with the Companies
(Indian Accounting Standard) Rules, 2015, as amended
e) On the basis of written representations received from the directors
as on 31 March, 2023, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023, from being appointed as a director in terms of
Section 164(2) of the Act.
f) With respect to the other matters included in the Auditors
Report and to our best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable losses.
iii. There is no amount required to be transferred, to the
investors education & Protection Fund by the Company.
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 Natural Resources 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. 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 on Audit of Internal Financial Controls Over
Financial Reporting (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 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 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 unauthorised 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, 2023.
Annexure A to the Independent Auditors Report on the financial
statements of Gujarat Natural Resources Limited for the year ended 31 March 2023
To,
The Members of
Gujarat Natural Resources Limited
(Referred to in paragraph 1 under ‘Report on Other Legal and
Regulatory Requirements section of our report of even date)
(I) (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) Property, Plant and Equipment were physically verified by the
management in accordance with a planned programme of verifying them at reasonable
intervals having regard to the size of the Company and the nature of its assets.
(c) The title deeds of all the immovable properties (other than
properties where the Company is the lessee, and the lease agreements are duly executed in
favor of the lessee) are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment
(including Right of use asset) or intangible assets during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the
Company for holding any benami property under the Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year. In our opinion the coverage and the
procedure of such verification by the management is appropriate. Discrepancies of 10% or
more in aggregate for each class of inventory were not noticed on such physical
verification.
(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. Therefore, the requirement to report on clause
3(ii)(b) of the Order is _not _applicable to the Company.
(iii) (a) During the year the Company has provided loans, advances in
the nature of loans, provided guarantee and security to companies as follows :
Particulars Loans (In lakhs)
Aggregate amount granted/ provided during the year,
- Subsidiaries 705.00/-
- Related Parties 4,287.34/-
- Others
Balance outstanding as at balance sheet date in respect of above case,
- Subsidiaries 7,147.90/-
- Related Parties 5,314.75/-
- Others
(b) During the year the investments made and the terms and conditions
of the grant of all loans and advances in the nature of loan during the year are, prima
facie, not prejudicial to the Companys interest.
(c) The company has granted interest free loan which is violation of
the Act.
(d) There are no amounts of loan granted to companies which are overdue
for more than ninety days.
(e) There were no loans which had fallen due during the year, that have
been renewed or extended or fresh loans granted to settle the overdue of existing loans
given to the same parties.
(f) The Company has not granted any loans or advances in the nature of
loans, either repayable on demand or without specifying any terms or period of repayment
to companies, firms, Limited Liability Partnerships or any other parties. Accordingly, the
requirement to report on clause 3(iii)(f) of the Order is not applicable to the company.
(iv) According to the information and explanations given to us and on
the basis of our examination of the records, the Company has not given any loans, or
provided any guarantee or security as specified under Section 185 of the Companies Act,
2013 and the Company has not provided any guarantee or security as specified under Section
186 of the Companies Act, 2013. Further, the Company has complied with the provisions of
Section 186 of the Companies Act, 2013 in relation to loans given and investments made.
(v) The Company has not accepted any deposits or amounts which are
deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not
applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the maintenance of cost
records under section 148(1) of the Companies Act, 2013, related to the manufacturing
activities and are of the opinion that prima facie, the specified accounts and records
have been made and maintained. We have not, however, made a detailed examination of the
same.
(vii) (a) The Company does not have liability in respect of Service
tax, Duty of excise, Sales tax and Value added tax during the year since effective 1 July
2017, these statutory dues has been subsumed into GST. According to the information and
explanations given to us and based on audit procedures performed by us, no undisputed
amounts payable in respect of these statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(b) The Company is regularly depositing with appropriate authorities
undisputed statutory dues. Therefore, the requirement to report on clause 3(v) of the
Order is not applicable to the Company.
(viii) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the Company has not
surrendered or disclosed any transactions, previously unrecorded as income in the books of
account, in the tax assessments under the Income Tax Act, 1961 as income during the year.
(ix) (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 has not been declared willful defaulter by any bank or
financial institution or government or any government authority.
(c) According to the information and explanations given to us by the
management, the Company has not obtained any term loans during the year. Accordingly,
clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the standalone financial statements of
the Company, no funds raised on short-term basis have been used for long-term purposes by
the Company.
(e) On an overall examination of the standalone financial statements of
the Company, 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. Hence, the
requirement to report on clause (ix)(f) of the Order is not applicable to the Company.
(x) (a) The Company has not raised any money during the year by way of
initial public offer / further public offer (including debt instruments) hence, the
requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or private
placement of shares/fully or partially or optionally convertible debentures during the
year under audit and hence, the requirement to report on clause 3(x)(b) of the Order is
not applicable to the Company
(xi) (a) Based on examination of the books and records of the Company
and according to the information and explanations given to us, considering the principles
of materiality outlined in Standards on Auditing, we report that no fraud by the Company
or on the Company has been noticed or reported during the course of the audit.
(b) During the year, no report under sub-section (12) of section 143 of
the Companies Act, 2013 has been filed by cost auditor and secretarial auditor or by us in
Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules,
2014 with the Central Government.
(c) We have taken into consideration there are no whistle blower
complaints received by the Company during the year while determining the nature, timing
and extent of our audit procedures.
(xii) The Company is not a Nidhi Company as per the provisions of the
Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(a),(b) and (c)
of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with
sections 177 and 188 of Companies Act, 2013 where applicable and the details have been
disclosed in the notes to the standalone financial statements, as required by the
applicable accounting standards.
(xiv) (a) Based on information and explanations provided to us and our
audit procedures, in our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(b) Internal audit under section 138 of Companies Act, 2013 is
applicable. We have considered the Internal Audit observation in audit process.
(xv) The Company has not entered into any non-cash transactions with
its directors or persons connected with its directors and hence requirement to report on
clause 3(xv) of the Order is not applicable to the Company.
(xvi) The provisions of section 45-IA of the Reserve Bank of India Act,
1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to report
on clause (xvi)(a), (b), (c) & (d) of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current year and
in the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during
the year and accordingly the requirement to report on Clause 3(xviii) of the Order is not
applicable to the Company.
(xix) On the basis of the ageing report, financial ratios and expected
dates of realization of financial assets and payment of financial liabilities, any other
information accompanying the financial statements, 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 Company.
(xx) Corporate social responsibility under section 135(5) of Companies
Act, 2013 is not applicable to the Company. Therefore, the requirement to report on clause
3(xx)(a) and 3(xx)(b) of the Order is not applicable to the Company.
|
For, G M C A & Co. |
|
Chartered Accountants |
|
FRN: 109850W |
|
CA. Mitt S. Patel |
|
(Partner) |
| Place : Ahmedabad |
Membership No. 163940 |
| Date : 30.05.2023 |
UDIN: 23163940BGPZNG8514 |
+91-9892691696
