Gajanan Securities Services Ltd.
|BSE: 538609||Sector: Financials|
|NSE: N.A.||ISIN Code: INE868G01019|
|BSE 00:00 | 27 Dec||Gajanan Securities Services Ltd|
|NSE 05:30 | 01 Jan||Gajanan Securities Services Ltd|
|BSE: 538609||Sector: Financials|
|NSE: N.A.||ISIN Code: INE868G01019|
|BSE 00:00 | 27 Dec||Gajanan Securities Services Ltd|
|NSE 05:30 | 01 Jan||Gajanan Securities Services Ltd|
TO THE MEMBERS OF GAJANAN SECURITIES SERVICES LTD Report on theStandalone Financial Statements
We have audited the accompanying standalone financial statements ofGAJANAN SECURITIES SERVICES LTD ("the Company") having CIN-L67120WB1994PLC063477 which comprise the Balance Sheet as at 31st March 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the "standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.
Key audit matters
Key audit matters are those matters that in our professional judgementwere of most significance of 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 awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income changes inequity and cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing thecompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.
(c) The company does not have any branches.
(d) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flows dealtwith by this Report are in agreement with the books of account.
(e) In our opinion the aforesaid standalone financial statementscomply with the with the Ind AS specified under Section 133 of the Act.
(f) In our opinion there are no financial transactions or matterswhich have any adverse effect on the functioning of the company.
(g) On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.
(h) In our opinion there are no adverse remark relating to themaintenance of accounts and other matters connected therewith.
(i) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure-A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
(j) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations which would impactits financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund (IEPF) by the Company.
2. As required by the Companies (Auditor's Report) Order 2020("the Order") as issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Companies Act 2013 We give in "AnnexureB" a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1(i) under 'Report on Other Legal andRegulatory Requirements 'section of our report to the Members of GAJANAN SECURITIESSERVICES LTD of even date)
Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of subsection 3 of Section 143 of the Companies Act 2013 (the"Act")
We have audited the internal financial controls over financialreporting of GAJANAN SECURITIES SERVICES LTD (the "Company") as of March 312022 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Management of the Company is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (the"ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") issued by the ICAI andthe Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us 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 March 31 2022 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of GAJANAN SECURITIES SERVICES LTD oneven date)
i. In respect of the Company's property plant & equipment:
a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of its Property Plant and Equipment.
b) The property plant & equipment have been physically verifiedunder a phased program of physical verification. To the best of our knowledge no materialdiscrepancy was noticed on such verification.
c) According to the information and explanations given to us and on thebasis of our examination of the records of the company the company does not have anytitle deeds on its name accordingly clause 3 (i) (c) of the said Order are not applicableto the Company.
d) The Company has not revalued its Property Plant and Equipmentduring the year as per the information given to us. Hence clause 3 (i) (d) of the saidOrder is not applicable to the Company.
e) No proceedings have been initiated or are pending against theCompany for holding any benami property under the Benami Transaction (Prohibition) Act1988 and rules made thereunder.
ii. The Company does not hold any inventory and hence reporting underthis clause is not done.
iii. The Company has made investments in companies but has not grantedany loans to other parties.
a) The Company has not provided any loans or advances in the nature ofloans or stood guarantee or provided security to any other entity during the year andhence reporting under clause 3(iii)(a) of the Order is not applicable.
b) In our opinion the investments made during the year are primafacie not prejudicial to the Company's interest.
Since the company has not granted any loans or advances hence Clause 3(iii) (c) 3 (iii) (d) 3 (iii) (e) and 3 (iii) (f) of the said Order is not applicable tothe Company.
iv. The Company has complied with the provisions of Sections 185 and186 of the Companies Act 2013 in respect of investments made as applicable.
v. The Company has not accepted deposits during the year and does nothave any unclaimed deposits as at March 31 2022 and therefore the provisions of theclause 3 (v) of the said Order are not applicable to the Company.
vi. The maintenance of cost records has not been specified by theCentral Government under subsection (1) of section 148 of the Companies Act 2013 for thebusiness activities carried out by the Company. Hence reporting under clause (vi) of theOrder is not applicable to the Company.
vii. According to the information and explanations given to us inrespect of statutory dues:
a) The Company has been regular in depositing undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax Goods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and othermaterial statutory dues applicable to it with the appropriate authorities.
b) According to records there are no dues of Income Tax Sales TaxGood and Services Tax Value Added Tax Excise Duty and Customs Duty which have not beendeposited as on 31st March 2022 on account of disputes.
viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961.
ix. According to the information and explanation given to us theCompany has not defaulted in repayment of loans or other borrowings or in payment ofinterest thereon to any lender and hence reporting under clause 3 (ix) (a) of the Order isnot applicable to the Company.
The Company has not been declared a willful defaulter by any bank orfinancial institution or other lender and hence reporting under clause 3 (ix) (b) of theOrder is not applicable to the Company.
The Company has not taken any Term loans during the year hence thequestion of proceeds of loan being diverted does not arise as per clause 3 (ix) (c) of theOrder.
According to clause 3 (ix) (d) any funds raised by the Company forshort term basis is not utilized for long term purpose as per the explanation andinformation given to us.
According to the information and explanation given to us the Companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiaries associates or joint ventures.
x. (a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) No fraud by the Company or no material fraud on the Company byits officers or employees has been noticed or reported during the year.
(b) No report under section 143(12) of the Companies Act 2013 has beenfiled by the auditors in Form ADT-4.
(c) No whistle-blower complaints have been received by the Companyduring the year and hence clause 3 (xi) (c) is not applicable to the company.
xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
xiv. The company does not have an internal audit system commensuratewith the size and nature of its business and hence reporting under clause 3 (xiv) (b) ofthe Order is not applicable to the Company.
xv. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionswith its directors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.
xvi. (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause3(xvi)(a) (b) and (c) of the Order is not applicable.
(b) In our opinion there is no core investment company within theGroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. The Company has not incurred Cash losses in the financial yearand in the immediately preceding financial year.
xviii. There has been no instance of any resignation of the statutoryauditors occurred during the year.
xix. No material uncertainty exists as on the date of the audit reportthat company is capable of meeting its liabilities existing at the date of balance sheetas and when they fall due within a period of one year from the balance sheet date.
xx. In respect of other than ongoing projects the company has nottransferred unspent amount to a Fund specified in Schedule VII to the Companies Act withina period of six months of the expiry of the financial year in compliance with secondproviso to sub-section (5) of section 135 of the said Act. Since section 135 of TheCompanies Act 2013 is not applicable to the Company clause 3 (xx) of the said Order isnot applicable to the Company.
Section 135 of The Companies Act 2013 is not applicable to the Companyand hence clause 3 (xx) of the said Order is not applicable to the Company.
xxi. Reporting under clause 3 (xxi) of the Companies Auditor's ReportOrder is not applicable to the Company as there is no adverse remark in the Audit Reportto the Standalone Financial Statements of the Company.
For MUKESH CHOUDHARY & ASSOCIATES
Ch artered A ccoun tan ts
CA Gopal Kumar Khetan