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Gala Global Products Ltd.

BSE: 539228 Sector: Services
NSE: N.A. ISIN Code: INE480S01026
BSE 00:00 | 18 Sep 55.30 2.60
(4.93%)
OPEN

52.65

HIGH

55.30

LOW

52.65

NSE 05:30 | 01 Jan Gala Global Products Ltd
OPEN 52.65
PREVIOUS CLOSE 52.70
VOLUME 2607
52-Week high 102.00
52-Week low 32.00
P/E 276.50
Mkt Cap.(Rs cr) 302
Buy Price 54.75
Buy Qty 443.00
Sell Price 55.30
Sell Qty 371.00
OPEN 52.65
CLOSE 52.70
VOLUME 2607
52-Week high 102.00
52-Week low 32.00
P/E 276.50
Mkt Cap.(Rs cr) 302
Buy Price 54.75
Buy Qty 443.00
Sell Price 55.30
Sell Qty 371.00

Gala Global Products Ltd. (GALAGLOBAL) - Auditors Report

Company auditors report

TO THE MEMBERS OF GALA GLOBAL PRODUCTS LIMITED

Report on the Ind AS Financial Statements

Opinion

We have audited the accompanying Financial Statements of GALA GLOBAL PRODUCTS LIMITED(“the Company”)which comprise the Balance Sheet as at March 31 2019 and theStatement of Profit and Loss including the Statement of Other Comprehensive Income theStatement of Changes in Equity and the Cash Flow Statement for the year then ended andnotes to the financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as “Ind ASFinancial Statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 and its profit including othercomprehensive income the changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Ind AS Financial Statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibility for the Audit of the Ind AS Financial Statements' section of our report. Weare independent of the Company in accordance with the ‘Code of Ethics' issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules made there under and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Code of Ethics. We believe that the auditevidence obtained by us is sufficient and appropriate to provide a basis for our auditopinion on the Ind AS Financial Statements.

Emphasis of Matter

We draw attention to the requirements of Ind AS-19 - Employee Benefits have not beencomplied with. Based on books of account and as per the explanations given by themanagement the Company is in the process of finalization of structure for the employeebenefits and hence there were no employees who were eligible for the benefits yet.Accordingly Employee Benefits have not been provided in the financial statement. As perthe criteria defined by the Company Our opinion is not modified in respect of thismatter.

Other Matter

The Financial Statements of the Company for the year ended March 31 2018 included inthese financial statements have been audited by the predecessor auditor who expressed aqualified opinion with respect to non-amortisation of Intangible Assets on thosefinancial statements on May 14 2018.

Information Other than the Ind AS Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors report but does notinclude the Ind AS Financial Statements and our Auditor's Report thereon.

Our opinion on the Ind AS Financial Statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS Financial Statements our responsibility isto read the other information and in doing so consider whether such other information ismaterially inconsistent with the Ind AS Financial Statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information; weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Ind AS Financial Statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the Indian Accounting Standards (IND AS) prescribed under Section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting the 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 Ind AS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Ind AS Financial Statements management is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

That Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Ind AS Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies(Auditor's Report) Order2016(“theOrder”) issued by the Central Government of India in terms of Section 143(11) of theAct we give in the “Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section143(3)of the Act were port that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit. (b) In ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveIncome the Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS Financial Statements comply with theAccounting Standards prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

(e) On the basis of the written representations received from the Directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in “Annexure B”.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand according to the information and explanation given to us by the management theremuneration paid/provided during the Current Year by the Company to its directors is inaccordance with the provisions of Section 197 read with Schedule V of the Act. Theremuneration paid/provided to any director is not in excess of the limit laid down underSection 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company did not have any pending litigations impacting the financial position ofthe company

ii. The Company did not have any long-term contracts including derivative contracts forwhich there are any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For SHAH KARIA AND ASSOCIATES
Chartered Accountants
ICAI Firm Registration No.: 131546W
Priyank Shah
Partner Place: Ahmedabad
Membership No.: 118627 Date: May 9 2019

Annexure A referred to in Paragraph 1 on Report on Other Legal and RegulatoryRequirements of Our Report of even date of Gala Global Products Limited for the year endedMarch 31 2019

(i) In respect of its Property Plant and Equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) All property plant and equipment have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on verification carried out during the yearin accordance with the aforesaid plan.

(c) As per the information and explanations provided 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.

(ii) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on such physical verification.

(iii) According to information and explanation given to us the Company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register required under section 189 of the Companies Act2013. Accordingly paragraph 3 (iii) of the order is not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of loans to directors including entities in which they are interested and inrespect of grant of loans and advances making investments and providing guarantees andsecurities.

(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of sections 73 to 76 of the Act. Therefore theprovision of Clause (v) of paragraph 3 of the Order is not applicable to the Company.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section (1) of section 148 of the Act for any of the activities of the companyand accordingly paragraph 3 (vi) of the order is not applicable.

(vii) According to the information and explanation given to us in respect of statutorydues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales- tax service tax goods and service tax duty of customsduty of excise value added tax cess and other material statutory dues have beengenerally regularly deposited during the year by the company with the appropriateauthorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax sales- taxservice tax goods and service tax duty of customs duty of excise value added tax cessand other material statutory dues were in arrears as at March 31 2019 for a period ofmore than six months from the date they became payable.

(viii) In our opinion based on the audit procedures performed for the purpose ofreporting the true and fair view of the Ind AS financial statements and according to theinformation and explanations given by the management the Company has not defaulted inrepayment of loans or borrowings to banks or financial institutions. The Company did nothave any loans or borrowings from Government and debenture holders.

(ix) In our opinion and according to the information and explanations given to us bythe management the Company has utilized monies raised by way of term loans for thepurposes for which they were raised. The Company has not raised any money by way ofinitial public offer / further public offer / debt instruments during the year.

(x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers or employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi company and hence reporting under clause (xii) ofParagraph 3 the Order is not applicable to the Company.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with Section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in notes to thefinancial statements as required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of Shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For SHAH KARIA AND ASSOCIATES
Chartered Accountants
ICAI Firm Registration No.: 131546W
Priyank Shah
Partner Place: Ahmedabad
Membership No.: 118627 Date: May 9 2019

Annexure B referred to in Paragraph 2(f) on Report on Other Legal and RegulatoryRequirements of Our Report of even date of Gala Global Products Limited for the year endedMarch 31 2019

Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act2013 (“the Act”)

We have audited the internal financial controls over financial reporting of GALA GLOBALPRODUCTS LIMITED (‘the Company') as of March 31 2019 in conjunction with our auditof the Ind AS 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 Reporting (the“Guidance Note”) issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these Ind AS Financial Statementsbased on our audit. We conducted our audit in accordance with the Guidance Note and theStandards on Auditing prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. The Guidance Note and thoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether adequate internal financial Controls overfinancials reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting with reference to theseInd AS Financial Statements and their operative effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal controls based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of our audit opinion on the internal financial control system overfinancial reporting with reference to these Ind AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial controls over financial reporting with reference tothese Ind AS financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of Ind AS financialstatements for external purposes in accordance with generally accepted accountingprinciples. A Company's internal financial control over financial reporting includes thosepolicies and procedures that: (1) Pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the Company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Ind AS financial statements in accordance withgenerally accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorizations of management and directors of theCompany; and (3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could havematerial effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting with reference to these Ind AS financial statements including the possibilityof collusion or improper management override of controls material misstatements due toerror or fraud may occur and not to be detected. Also projections of any evaluation ofthe internal financial controls over financial reporting with reference to these Ind ASfinancial statements to future periods are subject to the risk that the internal financialcontrols over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanation givenby the management the Company has in all material respects an adequate internalfinancial control system over financial reporting with reference to these financialstatements and such internal financial controls over financial reporting with reference tothese Ind AS financial statements were operating effectively as at March 31 2019 basedon the internal controls over financials reporting criteria established by the Companyconsidering the essential components of internal controls stated in the Guidance Note.

For SHAH KARIA AND ASSOCIATES
Chartered Accountants
ICAI Firm Registration No.: 131546W
Priyank Shah
Partner Place: Ahmedabad
Membership No.: 118627 Date: May 9 2019