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Gorani Industries Ltd.

BSE: 531608 Sector: Consumer
NSE: N.A. ISIN Code: INE792J01015
BSE 00:00 | 20 Jan 39.10 -2.05
(-4.98%)
OPEN

40.35

HIGH

40.35

LOW

39.10

NSE 05:30 | 01 Jan Gorani Industries Ltd
OPEN 40.35
PREVIOUS CLOSE 41.15
VOLUME 77
52-Week high 47.25
52-Week low 11.12
P/E 24.14
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 40.35
CLOSE 41.15
VOLUME 77
52-Week high 47.25
52-Week low 11.12
P/E 24.14
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gorani Industries Ltd. (GORANIINDUSTRIE) - Auditors Report

Company auditors report

To the Members of Gorani Industries Limited Report on the Financial Statements Opinion

We have audited the accompanying Ind AS financial statements of Gorani IndustriesLimited ("the Company") which comprise the Balance Sheet as at March 312021 the Statement of Profit and Loss (including the statement of Other ComprehensiveIncome) the Statement of Changes in Equity and the Cash Flow Statement for the year thenended and notes to the Ind AS financial statements including a summary of significantaccounting policies and other explanatory information.

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 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 31st March 2021 and its profit and othercomprehensive 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) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of the IndAS Financial Statements section of our report. We are independent of the Company inaccordance 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 the Ind ASfinancial statements under the provisions of the Act and the Rules made thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the Ind AS.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Ind- AS financial statements of the current period. Thesematters were addressed in the context of our audit of the Ind-AS financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters

We have determined that there is no key audit matter to communicate in our report

Information other than the Ind AS financial statements and Auditors' Report thereon

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information comprises the informationincluded in the Management Discussion and Analysis Board's Report including Annexure toBoard's Report Business Responsibility Report Corporate Governance and Shareholder'sInformation but does not include the Ind AS financial statements and our auditor's reportthereon.

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 identified above and in doing so consider whether suchother information is materially inconsistent with the Ind AS financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation and presentation of theseInd-AS financial statements that give a true and fair view of the financial positionfinancial performance total Comprehensive Income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in India includingthe Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateAccounting Policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 Ind-AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the Ind AS financial statements management and Board of Directors areresponsible 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.

That Management and Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditors' Responsibility for 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 audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also:

1. 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 from one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are 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.

3. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 Ind AS financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

5. 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.

Materiality is the magnitude of misstatements in the Ind AS Financial Statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Ind AS 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 of any identified misstatements in the Ind AS FinancialStatements.

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 Ind AS financial statements ofthe current period and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror 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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (11) of Section 143 ofthe Act we enclosed in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the order to the extent applicable.

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

a. We have sought and obtained all the information's 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 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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended.

e. On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the director is disqualifiedas on March 31 2021 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 with reference to these Ind-AS financial Statements and theoperating effectiveness of such controls refer to our separate report in

"Annexure B" of this report.

g. With respect to other matters to be included in the Auditor's report in accordancewith the requirements of section 197(16) of the act as amended :

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid/provided by the Company to its directors during theyear is in accordance with the provisions of section 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 explanation given tous:

i. There is no pending litigation which impact the financial position of company and tobe included in financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; hence no provision was required to bemade; and

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

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" SECTION OF OUR REPORT OF EVEN DATE TO THEMEMBERS OF GORANI INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2021

(i) In respect of the Company's property plant and equipment:

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

(b) All property plant and equipment of the Company are physically verified by themanagement at regular intervals which in our opinion is reasonable considering the sizeof the Company and the nature of assets. During the year as informed to us by managementno material discrepancies have been noticed on such verification.

(c) According to the information and explanation given to us and the records examinedby us we report that the title deeds comprising all the immovable properties are held inthe name of the Company as at the balance sheet date.

(ii) In respect of its inventory:

(a) As explained to us the inventories of finished goods semi-finished goods storesspare parts and raw materials were physically verified at regular intervals by theManagement. In case of inventories lying with third parties certificates of stocksholding have been received.

(b) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onphysical verification of stocks as compared to book records were not material and havebeen properly dealt with in the books of account.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered

in the register maintained under section 189 of the Act. Accordingly paragraph 3(iii)of the Order is not applicable to the Company.

(iv) In our opinion and according to information and explanations given to us theCompany has not granted any loans or provided any guarantees or security to the partiescovered under Section 185 or 186 of the Act. Accordingly paragraph 3(iv) of the Order isnot applicable to the Company.

(v) According to the information and explanation given to us the company has notaccepted deposits from public during the year. Accordingly paragraph 3(v) of the Order isnot applicable to the Company.

(vi) According to the information and explanation given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of Section 148 of theAct in respect of the activities carried on by the Company. Accordingly paragraph 3(vi)of the Order is not applicable to the Company.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given tous the Company has generally been regular in depositing undisputed statutory duesincluding Investor Education and Protection Fund Provident Fund Employees StateInsurance (ESI) Income-tax Tax deducted at sources Tax collected at sourceProfessional Tax Goods & Services Tax and other material statutory dues applicable toit with the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident fund Employees' State Insurance Income tax Goods andServices tax duty of Customs Cess and other material statutory dues were in arrears asat 31 March 2021 for a period of more than six months from the date they became payable

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitution bank Government and there are no dues to debenture holders during the year.

(ix) According to the records of the company the Company has not raised any money byway of initial public offer or further public offer (including debt instrument) during theyear. In our opinion the term loans raised during the year were applied for the purposefor which those are raised.

(x) Based upon the audit procedures performed and according to the information andexplanations given to us no material fraud on the Company by its officers or employeesnor any fraud by the Company has been noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company as prescribed under section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexaminations of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and the details ofsuch related party transactions have been disclosed in the Ind AS financial statements asrequired by the applicable Indian Accounting Standards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year. Hencereporting requirement under clause 3(xiv) of the order are not applicable to the company.

(xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him as referred to in section 192 of the Act.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

ANNEXURE "B" AS REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING OF"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" SECTION OF OUR REPORT OFEVEN DATE TO THE MEMBERS OF GORANI INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED31ST MARCH 2021

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 GoraniIndustries Limited ('the Company') as of March 31 2021 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to Ind-AS financialstatements and such internal financial controls over financial reporting with reference tothese Ind-AS financial statements were operating effectively as at March 31 2021 basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal controls stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance note on Audit of internal Financial controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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.

Auditor's 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 have conducted our audit in accordance with the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing issued by ICAI and deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 were 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 over financial reporting with reference to these Ind- ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting with reference to these Ind-AS financialstatements 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 judgment including the assessment of therisks of material misstatement of the Ind AS financial statements whether due to fraud orerror.

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 with reference to these Ind-AS financial statements.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting with reference to theseInd-AS financial statements is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company's internal financial control over financial reporting with referenceto these Ind-AS financial statements includes those policies and 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations 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 withreference to these Ind-AS financial statements

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 be detected. Also projections of any evaluation of theinternal financial controls over financial reporting with reference to these Ind-ASfinancial statements to future periods are subject to the risk that the internal financialcontrol over financial reporting with reference to these Ind-AS financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.

For: SANDEEP SURENDRA JAIN & CO.
Chartered Accountants
Firm Reg. No. 010172C
Place: Indore CA. SEEMA VIJAYVARGIYA
Date :29 June 2021 Partner
UDIN : 21409674AAAAAG5421 Membership No. 409674

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