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Garodia Chemical Ltd.

BSE: 530161 Sector: Others
NSE: N.A. ISIN Code: INE236P01010
BSE 00:00 | 01 Sep Garodia Chemical Ltd
NSE 05:30 | 01 Jan Garodia Chemical Ltd
OPEN 5.83
PREVIOUS CLOSE 5.83
VOLUME 200
52-Week high 5.83
52-Week low 3.98
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.83
CLOSE 5.83
VOLUME 200
52-Week high 5.83
52-Week low 3.98
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Garodia Chemical Ltd. (GARODIACHEMICAL) - Auditors Report

Company auditors report

To the Members

Garodia Chemicals Limited

Opinion

We have audited the accompanying financial statements of Garodia Chemicals Limited(‘the Company') which comprise the Balance Sheet as on March 31 2021 the Statementof Profit and Loss (including Other Comprehensive Income) the Cash Flow Statement and theStatement of Changes in Equity for the period ended March 31 2021 and a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the Act) in the manner so required and give a true & fair view inconformity with the Indian accounting standard prescribed under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 its loss and total comprehensive losschanges 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) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatement section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the Rules made thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics.

We believe that the audit evidence we have obtained is sufficient & appropriate toprovide a base for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.

1) Assets and Liabilities Written Off
Company has written off some of the items of assets including fixed assets amounting to of Rs.107.07 Lakhs and Liabilities of Rs.36.04 Lakhs. Assets written off were non recoverable and no further outflow of resources were expected to pay off the liability.

Other Matters

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit 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 Financial Statements

These financial results have been prepared on the basis of the annual financialstatements. The Company's Board of Directors are responsible for the preparation andpresentation of these financial results that give a tme and fair view of the net profitand other comprehensive income and other financial information of the Company and thebalance sheet and the statement of cash flows in accordance with the recognition andmeasurement principles laid down in the Indian Accounting Standards prescribed underSection 133 of the Act read with relevant rales issued thereunder and other accountingprinciples generally accepted in India and in compliance with Regulation 33 and Regulation52 of the Listing Regulations. The Board of Directors of the Company are responsible formaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and llic design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring accuracy and completeness of the accounting records relevant lo Ihcpreparation and presentation of Ihc financial statements that give a true and fair viewand are free from material misstatement whether due lo fraud or error which have beenused for the purpose of preparation of the financial results by Ihc Directors of theCompany as aforesaid.

In preparing the financial results the Board of Directors of the Company areresponsible for assessing Ihc ability of the Company lo continue as a going concerndisclosing as applicable matters related to going concern and using Ihc going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor lo ccasc operations or has no realistic alternative but lo do so.

The Board of Directors of Ihc Company are responsible for overseeing Ihc financialreporting process of the Company.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether Ihc financial resultsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when il exists. Misstatements can arise from fraudor error and are considered material if. individually or in Ihc aggregate they couldreasonably be expected to influence the economic decisions of users taken on Ihc basis ofthese financial results.

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

i. Identify and assess Ihc risks of material misstatement of the financial resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgery.intentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that arc appropriate in the circumstances. Under Section 143(3)(i)of the Act. we arc also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.

iv. Conclude on the appropriateness of the Board of Directors' use of the going concernbasis 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 arc required to draw attention in our auditor's report to therelated disclosures in the financial results 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 ccasc to continue as a going concern.

v. Evaluate the overall presentation structure and content of the financial resultsincluding the disclosures and whether the financial results represent the underlyingtransactions and events in a manner that achieves fair presentation.

Wc 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. Wc alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Going concern

Wc draw the attention to notes lo financial statements which explains that financialstatements arc now not prepared on going concern basis for reasons scl out in that note.Our opinion is not modified in respect of that matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in tenns of Section 143( 11) of the Act we givein the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the statement of change in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312021 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure 2" to this report.

g) 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 has no pending litigations on its financial position.

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

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

3. 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. In our opinion and to thebest of our information and according to the explanation given to us the company has notpaid any remuneration to directors during the year.

ANNEXURE - 1 TO THE AUDITORS REPORT

The annexure referred to in independent auditor's report to the members of the Companyon the financial statements for the year ended March 312021. We report that:

i. (a) lo (c) As per the information and explanations given to us. the Company has nofixed assets and hence no further comments are given in relation to the same.

ii. (a) lo (c) As per the information and explanations given to us. the company doesnot have any inventory. Hence no further comments are given in relation to the same.

iii. The Company has not granted any loans to company covered in the registermaintained under section 189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us. theCompany lias not granted any loans to directors including entities in which they areinterested or provided any guarantees and securities to the parties covered under section185 and 186 of the Companies Act 2013. Hence no further comments are given in relation tothe same.

v. The Company has not accepted any deposits from the public.

vi. Accordingly to the information and explanation given to us. cost records were notmaintained by the company pursuant to the order of the central government under section148(1) of the Companies Act. 2013 as it was not applicable to the company.

vii. a) Undisputed statutory dues including provident fund employees' state insuranceincome-tax. sales-tax. sendee tax. duty of custom duty of excise value added tax. cessgoods & sendee tax and other material statutory dues have generally been regularlydeposited with the appropriate authorities.

According to the information and explanations given to us. no undisputed amountspayable in respect of income-tax. service tax sales-tax duty of custom duty of excisevalue added tax. cess goods & sendee tax and other material statutory dues wereoutstanding for the year end. for a period of more than six months from the date theybecame payable.

b) According to the records of the Company there are no dues outstanding ofincome-tax. sales-tax. wealth tax. service tax duty of custom duty of excise valueadded tax and cess goods & sendee tax on account of any dispute for the year endedMarch 31. 2021.

iii. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management w e are of the opinion that the Company has not defaulted in repaymentof dues to a financial institution bank or debenture holders or government as there areno dues towards the same.

ix. Based on our 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 and on an overall examination of the balance sheet we report thatno monies raised by way term loans.

x. Based upon 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 w e report that no fraud on or by the officers and employees ofthe Company has been noticed or reported during the year.

xi. Based on our 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 managerial remuneration has been paid /provided.

xii. In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

xiii. Based on our 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 transactions with the related parties are in compliance w ithsection 177 and 188 of Companies Act. 2013 w here applicable and the details have beendisclosed in the notes to the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.

xv. Based on our 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 the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

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.

ANNEXURE - 2 TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 10(f) of the Independent Auditors' Report of even date to themembers Garodia Chemicals Limited on the financial statements for the year ended March 312021

Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the Act

Wc have audited Ihe internal financial controls over financial reporting GarodiaChemicals Limited (‘the Company') as of March 31 2021 in conjunction with ouraudit of the financial statements of Ihc Company for the year ended on lhat date.

Management's responsibility for internal financial controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on Ihc internal control over financial reporting criteriaestablished by the Company considering the essential componenls of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by Ihc Institute of Chartered Accountants of India (ICAI). These responsibililicsinclude 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 Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' responsibility

Our responsibility is to express an opinion on Ihc Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of internal financial controls and both issued bythe ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was 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 an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks 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 controls systemover financial reporting.

Meaning of internal financial controls 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 statements for external purposes in accordance with generallyaccepted accounting principles.

A company's internal financial control over financial reporting includes those policiesand procedures that:

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company:

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent limitations of internal financial controls over financial reporting

Because of the inherent limitations of internal financial controls 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 changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

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 March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Laxmikant Kabra & Co LLP Chartered Accountants
(Formerly known as Laxmikant Kabra & Co)
Firm Registration No: 117183W/ W100736
Laxmikant pigitallysigned by Laxmikant Ram Prasad Ramprasad Kabra Date: 2021.06.02 Kabra 14:40:22+05301
CA Laxmikant Kabra
Partner Place: Thane
Membership No.: 101839 Date: 2nd June 2021
UDIN: 21101839AAAAFS1127

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