Gian Life Care Limited
Report on the Financial Statements Opinion
We have audited the accompanying financial statements of Gian Life Care Limited Kanpur("the Company") which comprises the Balance Sheet as at March 31 2021 theStatement of Profit and Loss and statement of cash flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.
Our opinion is qualified for
1. Gratuity Liability and Leave Encashment Liability is not provided for in the booksof accounts of the Company and is thus not in accordance with Accounting Standard 15 on"Employee Benefits" issued by the Institute of Chartered Accountants of India.
2. According to section no. 27 of The Companies Act 2013 A Company shall not at anytime vary the terms of a contract referred to in the prospectus or objects for which theprospectus was issued except subject to the approval of or except subject to anauthority given by the company in general meeting by way of special resolution.
The company has so far not spent the proceeds of IPO on the proposed objects of theIPO.
Subject to above
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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2021 the profit & loss account and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements 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 together with theethical requirements that are relevant to our audit of the financial statements under
the provisions of the Companies Act 2013 and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Covid Impact - In view of the highly uncertain economic environment a definitiveassessment of the impact on the subsequent periods is highly dependent on thecircumstances as they evolve.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Board's Report including Annexures to the Board's Report butdoes not include the financial statements and our auditor's report thereon.
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
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible for assessing theCompany'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.
The Board of Directors are also responsible for overseeing the company's financialreporting process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has an adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management. Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the financial statementsor if such disclosures are inadequate to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the date of our auditor's report. However futureevents or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
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
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Since there are increasing restrictions on travel & meetings as a result we facedpractical issues for access to the audit location in carrying out the audit.
Challenges in carrying audit at audit location
During this pandemic challenges never before faced by auditors in performing auditsare emerging. In response we need to be more agile and creative in performing audits andcomplying with the auditing standards. Now more than ever auditors might rely ontechnology in performing audit procedures. Performing auditing procedures in the middle ofthis pandemic is troublesome and we as auditor have encountered challenges in:
Physical verification of inventory fixed assets etc
Understanding and testing internal control
Account and balance confirmations
Performing subsequent event procedures Report on Other Legal and RegulatoryRequirements
As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give (in the Annexure A) a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.
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 purposes of our audit.
(b) In our opinion proper books of account 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014
(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (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 B".
(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 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company has Company did not have any long-term contracts including derivativecontracts for which 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
Annexure A to the Independent Auditors Report
The Annexure referred to in our Independent Auditors' Report to the members of the GianLife Care Limited on the financial statements for the year ended 31st March2021 we report that:
(i) (a) In our opinion the Company has maintained proper records showing fullparticulars
including quantitative details and situation of fixed assets on the basis of availableinformation.
(b) The Company has a regular programme for physical verification in a periodic mannerwhich in our opinion is reasonable having regards to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.
(c) The company had taken over the fixed assets of Gian Pathology & X - Ray
(Proprietor - Mr. Arun Kumar Gupta) pursuant to take over of business on 1st March2019 which was originally purchased in the name of Gian Pathology & X- Ray /Mr. ArunKumar Gupta Total takeover amount of the fixed assets amounted to Rs. 29215535.44/-
(d) The company had taken over the Flat (refer point c) in March 2019 title deed of
which stands in the joint name of the Ms. Avani Gupta (CFO) and Mr. Arun Gupta(Managing Director).
(ii) As explained to us the inventory has been physically verified by the managementduring the year at reasonable intervals. In our opinion the frequency of such verificationis reasonable. No material discrepancies noticed on physical verification of inventoriesas compared to the book record.
(iii) In our opinion the Company has not granted any loans secured or unsecured to
companies firms or other parties covered in the register maintained under section 189of the Companies Act 2013 (the Act'). Therefore sub clauses (a) (b) and (c) arenot applicable.
(iv) According to the information and explanations provided to us the Company has notgranted any loans to the parties covered under Section 185 of the Act. The Company has notprovided us with supporting evidence which comply with the provisions of Section 186 ofthe Act in respect of investments made or loans or guarantee or security provided to theparties covered under Section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits during the year from the public within the meaningof provisions of section 73 to 76 of the companies act 2013 and the rules framed thereunder and therefore the provisions of clause (v) of the Order are not applicable to thecompany.
(vi) The maintenance of cost records under sub section(1) of section 148 of theCompanies Act 2013 is not applicable in view of rule 3 of the Companies Act (Cost Recordsand Audit) Amendment Rules 2014 and therefore the provisions of clause (vi) of the Orderare not applicable to the Company.
(vii) (a) In our opinion and according to the information and explanations given to us"undisputed statutory dues including provident fund employees' state insuranceincome-tax cess have not been regularly deposited with the appropriate authorities andthere have been serious delays in a large number of cases".
(b) According to the information and explanations provided to us the followingundisputed amounts payable in respect of Income-tax Cess and Other Statutory Dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.
Statement of Arrears of Statutory Dues Outstanding for More than Six Months.
|Name of the Statute ||Nature of the Dues ||Amount (Rs.) ||Period to which the amount relates ||Due Date ||Date of Payment |
| || ||5004 ||Mar-19 ||15-Apr- 19 ||- |
| || ||142346 ||Apr-19 ||15-May- 19 ||- |
| || ||141253 ||May-19 ||15-Jun- 19 ||- |
| || ||140708 ||Jun-19 ||15-Jul-19 ||- |
| || ||93028 ||Jul-19 ||15-Aug- 19 ||- |
| || ||85888 ||Aug-19 ||15-Sep- 19 ||- |
| || ||85888 ||Sep-19 ||15-Oct- 19 ||- |
| || ||85888 ||Oct-19 ||15-Nov- 19 ||- |
| || ||85888 ||Nov-19 ||15-Dec- 19 ||- |
|EPF Act 1952 ||Provident ||85888 ||Dec-19 ||15-Jan- 20 ||- |
| || ||85888 ||Jan-20 ||15-Feb- 20 ||- |
| || ||85888 ||Feb-20 ||15-Mar- 20 ||- |
| || ||85888 ||Mar-20 ||15-Apr- 20 ||- |
| || ||36581 ||Apr-20 ||15-May- 20 ||- |
| || ||40297 ||May-20 ||15-Jun- 20 ||- |
| || ||47568 ||Jun-20 ||15-Jul-20 ||- |
| || ||45276 ||Jul-20 ||15-Aug- 20 ||- |
| || ||43993 ||Aug-20 ||15-Sep- 20 ||- |
| || ||34865 ||Mar-19 ||15-Apr- 19 ||- |
| || ||35353 ||Apr-19 ||15-May- 19 ||- |
| || ||34925 ||May-19 ||15-Jun- 19 ||- |
| || ||34774 ||Jun-19 ||15-Jul-19 ||- |
| || ||20678 ||Jul-19 ||15-Aug- 19 ||- |
| || ||11535 ||Aug-19 ||15-Sep- 19 ||- |
| || ||11535 ||Sep-19 ||15-Oct- 19 ||- |
| || ||12141 ||Oct-19 ||15-Nov- 19 ||- |
| || ||12141 ||Nov-19 ||15-Dec- 1Q ||_ |
|ESI Act 1948 ||ESIC ||12141 ||Dec-19 ||15-Jan- 20 ||- |
| || ||12141 ||Jan-20 ||15-Feb- 20 ||- |
| || ||12141 ||Feb-20 ||15-Mar- 20 ||- |
| || ||12141 ||Mar-20 ||15-Apr- 20 ||- |
| || ||9041 ||Apr-20 ||15-May- 20 ||- |
| || ||9641 ||May-20 ||15-Jun- 20 ||- |
| || ||11577 ||Jun-20 ||15-Jul-20 ||- |
| || ||10960 ||Jul-20 ||15-Aug- 20 ||- |
| || ||10615 ||Aug-20 ||15-Sep- 20 ||- |
| || ||120223 ||Apr-20 ||07-May- 20 ||- |
| || ||123259 ||May-20 ||07-Jun- 20 ||- |
|The Income Tax Act 1961 ||TDS ||123925 ||Jun-20 ||07-Jul-20 ||- |
| ||120817 ||Jul-20 ||07-Aug- 20 ||- |
| || ||124298 ||Aug-20 ||07-Sep- 20 ||- |
|Total || ||2344025 || || ||- |
(c) According to the information and explanations given to us there are no materialdues of income tax sales tax wealth tax service taxduty of customs duty of excisevalue added tax and cess which have not been deposited with the appropriate authorities onaccount of any dispute.
(viii) The company has defaulted in repayment of loans or borrowings to a financialinstitution bank.
Amount and period of default are as follows:
|Sr. No. Bank Name ||Period (Days) ||Interest Component ||Principal Component |
|1 Allahabad Bank* || || || |
|2 Canara Bank ||90 ||14500 ||45500 |
|3 Canara Bank ||120 ||60000 ||150000 |
|4 Union Bank of India ||39 ||42144 ||4739 |
|5 Siemens Financial Services * || || || |
|Total || ||116644 ||200239 |
* Confirmation of the Overdue balance from Siemens Financial Services and AllahabadBank was not made available to us during the course of our audit
(ix) In our opinion and according to the information and explanations given to us theCompany has NOT utilized the money in total raised by way of initial public offer duringthe year for the purposes for which they were raised except for:
| || || ||Amount |
|Nature of the fund raised ||Object ||Amount (Rs.) Lacs ||Utilised till 31st March 2021 (Rs.) Lacs |
| ||1-To Open Processing center in nearby cities of Kanpur ||86.40 ||- |
|Initial Public Offer ||2- To Purchase Advance machinery and Equipment ||100.29 ||42.07 |
| ||3- Repayment/Pre Payment Certain borrowings availed by the Company ||78.72 ||11.07 |
| ||4- Issue Expenses ||46.11 ||46.11 |
| ||Total ||311.52 ||99.25 |
(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 explanationsprovided by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year.
(xi) According to the information and explanations provided by the management themanagerial remuneration has been paid/provided in accordance with the requisite
approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and the explanations given to usthe Company is not a Nidhi company and therefore the provisions of clause (xii) of theorder are not applicable to the company.
(xiii) In our opinion and according to the information and the explanations given tous and based on our examination of the records of the company all transactions with therelated parties are in compliance with section 177 and 188 of the Act where applicable andthe details have been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) According to the information and explanations provided to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) of the Order are notapplicable to the Company and not commented upon.
(xv) In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith him.
(xvi) The company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.
Annexure "B" to the Independent 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 Gian LifeCare Limited as of 31st March 2021 in conjunction with our audit of the financialstatements of the Company forthe 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"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the 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 issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of IndiaThose Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 andexpenditures 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 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 procedure may deteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these Financial Statements and suchinternal financial controls over financial reporting with reference to these FinancialStatements were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia
For and on behalf of
P.D.Dalai & Co.
Firm Registration No.102047W
(Aashish S. Kakaria)
UDIN : 21102915AAAAEQ9776
07th July 2021