To
The Members of Gulshan Polyols Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the standalone financial statements of Gulshan Polyols Limited
("the Company"), which comprise the Balance Sheet as at 31 March 2023, and the
Statement of Profit and Loss (including other comprehensive income), Statement of Changes
in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone
financial statements, including a summary of significant accounting policies and other
explanatory information (hereinafter referred to as "the standalone financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 ("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 31 March 2023, and profit (including other
comprehensive income), changes in equity and its 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
under Section 143(10) of the Act. Our responsibilities under those SAs are further
described in the Auditors Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India together with the
ethical requirements that are relevant to our audit of the standalone 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 we have obtained is sufficient and appropriate to provide
a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters (‘KAM) are those matters that, in our professional judgment,
were of most significance in our audit of the standalone financial statements of the
current period. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
"We have determined that there are no key audit matters to communicate in our
report."
Other Information
The Companys management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Companys
annual report, but does not include the standalone financial statements and our auditors
report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone 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.
Managements Responsibility for the Standalone Financial Statements
The Companys management and Board of Directors are responsible for the matters stated
in Section 134(5) of the Act with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs, profit / loss
(including other comprehensive income), changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This
responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate
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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, management and 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 management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
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 control 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 with reference to standalone financial statements 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 standalone 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 standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deRs.ciencies 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 standalone 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 the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms 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, to the extent applicable.
2. As required by section 143 (3) of the Act, 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 it appears from our
examination of those books; c. The Balance Sheet, the Statement of Profit and Loss
(including other comprehensive income), the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with the books of
account. d. In our opinion, the aforesaid standalone financial statements comply with the
Ind AS specified under Section 133 of the Act read with rule 7 of the companies(account)
rules, 2014. e. On the basis of 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
with reference to financial statements of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure B".
g. 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 our opinion
and to the best of our information and according to the explanations given to us: (1) The
Company has disclosed the impact of pending litigations on its financial position in its
standalone Ind AS financial statements.
(2) The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including
derivative contracts.
(3) There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company.
3. With respect to the matter to be included in the Auditors Report under section
197(16):
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company to its directors during the current year is in accordance
with the provisions of Section 197 of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section 197 of the Act. The Ministry of
Corporate Affairs has not prescribed other details under Section 197(16) which are
required to be commented upon by us.
For and on behalf of
For Rajeev Singal & Co
Chartered Accountants
(Firm Registration no. 008692C)
Date : 12-05-2023
Place : Delhi
UDIN: 23408730BGQDYA8445
(CA Sunil Kumar) Partner Membership No.408730
ANNEXURE ‘A TO THE AUDITORS REPORT
(Referred to in Para 1 under ‘Report on Other Legal Regulatory Requirements
section of our Report of even date)
The Annexure referred to in Independent Auditors Report to the members of the Company
on the standalone financial statements for the year ended 31 March, 2023.
We report that: i. In respect of Fixed Assets a. A. The company has maintained proper
records showing full particulars including quantitative details and situation of its fixed
assets (property plant and equipment) B. The company has maintained proper records showing
full particulars of its intangible assets. b. The company has a program of physical
verification of its fixed assets (property, plant and equipment) by which fixed assets are
verified at reasonable intervals. In accordance with this program fixed assets were
verified and discrepancies which were noticed on such verification were properly dealt
with in the books of accounts. 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 which are disclosed in financial statements (other than properties
where the company is the lessee and the lease agreements are duly executed in favour of
the lessee) are held in the name of the company. d. 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 revalued its Property, Plant and Equipment (including Right
of Use assets) or intangible assets or both during the year. e. According to the
information and explanations given to us and on the basis of our examination of the record
of the company, any proceedings have not been initiated or are pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and rules made thereunder. ii. In respect of Inventory and Working Capital Limits
a. (i) The physical verification of inventory has been conducted at reasonable intervals
by the Management (ii) The coverage and procedure of physical verification of inventory
followed by the management is reasonable, adequate and appropriate in relation to the size
of company and the nature of its business.
(iii) The company has maintained proper records of inventory. The discrepancies noticed
on such verification between the physical stocks and book stocks were not material for
each class of inventory and the same have been properly dealt with in the books of
accounts. b. The company has 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 during any point of time of the year. The quarterly returns or
statements filed by the company with such banks or financial institutions are in agreement
with the books of account of the Company. iii. According to the information and
explanations given to us and on the basis of our examination of the record of the company
during the year the company has not made investment 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 partnership or other parties covered in the register
maintained under section 189 of the Companies Act, 2013 Therefore, requirement of clause
(iii) of paragraph 3 of the order is not applicable to the company. iv. In respect of
loans, investments, guarantees, and security, provisions of section 185 and 186 of the
Companies Act, 2013 have been compiled with as applicable. v. The company has not accepted
any deposits or amounts which are deemed to be deposits during the year as per the
directives issued by the Reserve Bank of India and within the meaning of the provisions of
sections 73 to 76 and other relevant provisions of the Companies Act, 2013 and the rules
framed there under, where applicable. Thus, the clause (v) of paragraph 3 of the order is
not applicable to the company. vi. In pursuant to the order made by the Central Government
for the maintenance of cost records under sub section (1) of section 148 of the Companies
Act, 2013, the company has made and maintained the prescribed accounts and records. We
have however, not made a detailed examination of the Cost Records with a view to determine
whether they are accurate and complete. vii. In respect of statutory dues a. According to
the information and explanations given to us, and on the basis of our examination, the
company is generally regular in depositing undisputed statutory dues including provident
fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax,
Goods and Service Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Excise, Duty of
Customs, Value Added Tax, Cess and any other Statutory dues with appropriate authorities.
According to the information and explanation given to us there were no outstanding
statutory dues as on 31st of March, 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, no
undisputed amount is payable in respect of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or cess as at March
31, 2023. viii. According to the information and explanations given to us, and on the
basis of our examination of the record of the company, there are no such instances noticed
where transactions are not recorded in the books of account have been surrendered of
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(43 of 1961). There is no previously unrecorded income which gas been required to be
properly recorded in the books of account during the year. ix. The company has not
defaulted in repayment of loans or borrowing to a financial institution, bank, Government
or dues to debenture holders. x. a. The Company has not raised moneys by way of initial
public offer or further public offer (including debt instruments) during the year and
hence reporting under clause 3(x)(a) of the Order is not applicable. b. During the year,
the Company has not made any preferential allotment or private placement of shares or
convertible debentures (fully or partly or optionally) and hence reporting under clause
3(x)(b) of the Order is not applicable. xi. a. According to the information and
explanations given to us, no material fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the course of our audit. b.
There is no Audit Report in form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 has been filed by the auditors with Central Government in terms of
provisions of sub section 12 of Section 143 of the Companies Act. c. According to the
information and explanations given to us, there is no whistle blower complaint has been
received by the company during the year. xii. The provisions of clause 3 (xii) of the
Order, for Nidhi Company, are not applicable to Company. xiii. According to the
information and explanations given to us, all transactions with the related parties are in
compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the
details have been disclosed in the standalone Financial Statements etc. As required by the
applicable Indian Accounting Standards. xiv. a. The Company has an Internal Audit system
commensurate with the size and nature of its business. b. The Reports of the Internal
Auditors for the period under audit were considered. xv. According to the information and
explanations given to us and based on our examination of the records of the Company, the
company has not entered into non-cash transactions with directors or persons connected
with them during the year. xvi. According to information and explanations given to us, the
Company is not required to be registered u/s 45-IA of Reserve Bank of India Act, 1934.
Accordingly, provision of clause 3(xvi) of the Order is not applicable to the Company.
xvii. According to the information and explanations given to us, the company has not
incurred cash losses in the financial year and in the immediately preceding financial
year. xviii. There has not been any resignation of the statutory auditors during the year.
xix. On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, Plans of the Board of Directors and management we are of the opinion
that no material uncertainly exists as on the date of the audit report, that the company
is capable of meeting its liabilities existing at the date of balance sheet as and when
they fall due within a period of one year from the balance sheet date. xx. a. According to
information and explanation given to us, in respect of other than ongoing projects, the
company has spent the entire amount hence there is no unspent amount which is required to
be transferred to a Fund specified in Schedule VII to the Companies Act within a period of
six months of the expiry of the financial year in compliance with second proviso to
sub-section (5) of section 135 of the said Act; b. There is no such amount remaining
unspent under sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing
project, which has been required to be transferred to special account in compliance with
the provision of subsection (6) of section 135 of the said Act; xxi. There have been no
Qualification or Adverse remarks by the respective auditors in the companies (Auditors
Report) Order (CARO) reports of the companies included in the Consolidated financial
statements.
For and on behalf of
For Rajeev Singal & Co
Chartered Accountants
(Firm Registration no. 008692C)
Date : 12-05-2023
Place : Delhi
UDIN: 23408730BGQDYA8445
(CA Sunil Kumar) Partner
Membership No.408730
"ANNEXURE - B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2(f) under ‘Report on Other Legal and Regulatory
Requirements section of our report of even date )
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 with reference to standalone financial
statements of GULSHAN POLYOLS LIMITED ("the Company") as of 31 March 2023
in conjunction with our audit of the standalone financial statements of the Company for
the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control with reference to financial statements
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants
of India ("ICAI"). These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial statements based on our audit. We conducted our audit
in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and
deemed to be prescribed under Section 143(10) of the 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 ICAI. 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 with reference to financial
statements 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 control system with reference to financial statements and their
operating effectiveness.
Our audit of internal financial controls with reference to financial statements
included obtaining an understanding of internal financial controls with reference to
financial statements, 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 standalone 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
with reference to financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control with reference to financial statements 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 with
reference to financial statements 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 with reference to
financial statements, 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 with
reference to financial statements to future periods are subject to the risk that the
internal financial control with reference to financial statements 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 with reference to standalone financial statements and such
internal financial controls with reference to standalone financial statements were
operating effectively as at 31 March 2023, based on the internal control with reference to
financial statements criteria established by the Company considering the essential
components of internal control stated in the Guidance Note issued by the ICAI.
For and on behalf of
For Rajeev Singal & Co
Chartered Accountants
(Firm Registration no. 008692C)
Date : 12-05-2023
Place : Delhi
UDIN: 23408730BGQDYA8445
(CA Sunil Kumar) Partner
Membership No.408730
+91-9892691696
