Gujarat Investa Ltd.
|BSE: 531341||Sector: Financials|
|NSE: N.A.||ISIN Code: INE373D01017|
|BSE 13:15 | 30 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 531341||Sector: Financials|
|NSE: N.A.||ISIN Code: INE373D01017|
|BSE 13:15 | 30 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
to the members of Gujarat Investa Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Gujarat Investa Limited ("theCompany") which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit & Loss for the year ended on that date and the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information which we have signed under reference to this report.
Management's Responsibility for the Financial Statements
The Company's Board of Directors and the management is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India and as specified under Section 143(10) of theCompanies Act 2013. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of financialstatement whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bycompany's Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements. .
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements dealt with by this Report read togetherwith schedules significant accounting policies and disclosures give the informationrequired by the Act Rules and Regulations in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India;
a) In the case of the Balance Sheet of the State of Affairs of the Company as at 31stMarch 2017;
b) In the case of the Statement of Profit and Loss of the Profit for the year ended onthat date.
c) In the case of Cash flow Statement of Cash Inflows and Outflows for the year endedon that date.
Report on other Legal and Regulatory Requirements
1. As required by "the Companies (Auditor's Report) Order 2017" issued bythe Central Government of India in terms of Sub Section (11) of Section 143 of theCompanies Act 2013 (hereinafter referred as the "Order") and on the basis ofsuch checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us we give in the Annexure astatement 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 obtained all the information and explanations which to the best of ourknowledge 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 theCompany so far as appears from our examination of those books;
c) The Balance-Sheet Statement of Profit and Lossand the Cash Flow Statement dealtwith by this Report are in agreement with the Books of Account;
d) In our opinion the aforesaid Financial Statements comply with the AccountingStandards referred to in Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) On the basis of written representations received from the Directors as on March312017 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2017 from being appointed as a director in terms of Section164 (2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reportingof the Company and operating effectiveness of such controls refer to our specific reportin Annexure B and
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. The Company does not have any such pending litigations which would impact itsfinancial position.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to Investor Education and Protection Fund. Therefore the question ofdelay in transferring such sums does not arise.
iv) The Company has provided requisite disclosures in the Financial Statements as toholding as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with book ofaccount maintained by the Company and as produced to us by the management.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THEYEAR ENDED 31ST MARCH 2017 OF GUJARAT INVESTA LIMITED
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of audit we report that:
1. In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars includingquantitative detail and situation of its fixed assets.
(b) The fixed assets have been physically verified during the year by the managementin accordance with a program of verification the frequency of which is reasonable.According to the information given to us no material discrepancies were noticed on suchverification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company.
2. In respect of the Inventories:
(a) As explained to us inventories were verified during the year by the management atreasonable intervals.
(b) In our opinion and according to the information and explanations given to us theprocedures of verification of inventories followed by the management were reasonable andadequate in relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
3. According to the information and explanations given to us the company has grantedsecured or unsecured loans to Companies firms and other parties covered in the registermaintained under Section 189 of the Companies Act 2013 and
a) In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the entities listed in the register maintained under Section 189of the Act were not prima facie prejudicial to the interest of the company.
(b) In the case of the loans granted to the firms Companies and other parties listedin the register maintained under section 189 of the Act the borrowers have been regularin repayment of principaland interest as stipulated. The terms of arrangements do notstipulate any repayment schedule and the loans are repayable on demand. Accordinglyparagraph 3(iii)(b) of the Order is not applicable to the Company in respect of repaymentof the principal amount.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the entities listed in the register maintained under section 189 of the Act.
4. In our opinion and according to information and explanations given to us thecompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.
5. In our opinion and according to the information and explanations given to us theCompany being a Non Banking Finance Company (NBFC) registered with Reserve Bank of Indiais not required to comply with the provisions of section 737475 and 76 or any otherrelevant provisions of Act and the Rules framed thereunder to the extent notified withregard to the deposits accepted from the public.The Company has not accepted any depositsfrom the public during the year.
6. The Central Government of India has not specified the maintenance of Cost recordsunder Section (1) of Section 148 of the Companies Act 2013for any of the product andservices of the Company.
7. According to the information and explanations given to us and the records examinedby us the Company is regular in depositing undisputed statutory dues including ProvidentFund Income Tax Sales-Tax Service Tax Custom Duty Excise Duty Value Added Tax Cessand other statutory dues with the appropriate authorities. There were no undisputedstatutory dues outstanding as on 31st March 2017 for a period of more than sixmonths from the date they became payable.
8. Based on the information and explanations given to us the Company has not defaultedin repayment of any dues to financial institutions and banks.
9. According to the information and explanations given to us the term loans raisedwere used for the purpose for which they were raised.
10. As per the information given to us no fraud on or by the Company has been noticedor reported during the course of our audit.
11. Provision of Section 197 read with Schedule V of the Companies Act 2013 do notapplicable to the Company as no Managerial Remuneration paid during the year by theCompany.
12. As the Company is not a Nidhi Company the provisions of clause 3(xii) of theCompanies (Auditors Report Order 2017) are not applicable to the Company.
13. According to the information and explanations given to us transaction with therelated parties are in compliance with Section 188 of the Companies Act 2013 and detailshave been disclosed in the Financial Statement etc. as required by the applicableaccounting standards.
14. The company has not made any preferential allotment of shares during the year.
15. The Company has not entered into any non cash transactions with its directors orpersons connected with them. Accordingly the provisions of clause 3(xv) of the Order arenot applicable to the Company.
16. The Company is required to and has been registered under Section 45-IA of theReserve Bank Of India Act 1934 as a NBFC Company.
ANNEXURE B to the Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub Section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of GujaratInvestaLimited (the Company) as at 31st March 2017 in conjunction with ouraudit of financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's Internal FinancialControls based on the internal control over financial reporting based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls over Financial Reporting (the Guidance Note) and the Standard on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anyaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining understanding of internal financial controls over financial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risk ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial control systemover financial reporting.
Meaning of Internal Financial Control over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statement for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditure of the Company are being made only in accordance with authorizations of theManagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition ofCompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of change in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in Guidance Note on Auditof Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants Of India.