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Govind Poy Oxygen Ltd.

BSE: 509586 Sector: Industrials
NSE: N.A. ISIN Code: INE00ZH01011
BSE 05:30 | 01 Jan Govind Poy Oxygen Ltd
NSE 05:30 | 01 Jan Govind Poy Oxygen Ltd

Govind Poy Oxygen Ltd. (GOVINDPOYOXYG) - Auditors Report

Company auditors report

TO THE MEMBERS OF GOVIND POY OXYGEN LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Govind Poy Oxygen Limited (the Company ) which comprise the Balance Sheet as at March 31 2020 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas the financial statements ).

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 and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ( Ind AS )and other accounting principles generally accepted in India of the state of affairs ofthe Company as at March 31 2020 the loss and total comprehensive income changes inequity 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 SAs are furtherdescribed in the Auditor s Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sl Key Audit Matter How our audit addressed the Key Audit Matter
No
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 Our audit approach was a combination of test of internal controls and substantive procedures which included but was not limited to the following
Revenue from Contracts with Customers
Revenue is a key driver of the business and in respect of services provided there is a risk that revenue is recorded inappropriately relative to the provision of the underlying service. ? Documenting our understanding of the systems and controls around the recording of the revenue and assessing the design and effectiveness of such controls.
We have therefore identified revenue recognition as a key audit matter because of significant assessed risks of material misstatement. ? Evaluation of the revenue recognition policies for compliance with Ind AS 115 Revenue from contracts with customers and consistency with the earlier period.
? Assessing of revenue transactions on sample basis against the supporting documentation to determine whether the income has been appropriately recognised in accordance with the Ind AS and the Company s accounting policy.
? Comparison of the revenue with that of previous year and obtaining of explanations for significant or unusual variances.
Key observations:
Based on our verification and according to the information and explanation given to us we have found that revenues were being accounted for in accordance with the Company s accounting policy and Ind AS 115 Revenue from contracts with customers .

Information Other than the Financial Statements and Auditor s Report Thereon

The Company s Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board sReport including Annexures to Board s Report Corporate Governance and Shareholder sInformation but does not include the financial statements and our auditor s reportthereon. Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon. In connection with our auditof the financial statements our responsibility is to read the other informationidentified above when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.When we read the report containing other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance. 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 Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding 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 design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the 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 responsible for overseeing the Company s financial reportingprocess.

Auditor s Responsibilities 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:

3 Identify and assess the risks of material misstatement of the financial statementswhether 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 forgeryintentional omissions misrepresentations or the override of internal control.

3 Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

3 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 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.

3 Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor s report unless law or regulation precludes public disclosure about the matter orwhen 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 (Auditor s Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of Section 143 (11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of 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 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 including Other ComprehensiveIncome Statement of Changes in Equity and Statement of Cash Flow dealt with this Reportare in agreement with the books of account;

d) in our opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act;

e) on the basis of written representations received from the directors of the Companyas on March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of section164(2) of the Act;

f) with respect to the adequacy of internal financial controls with reference to thefinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B .

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 by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to thedirectors is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197 (16)which are required to be commented upon by us.

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 has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 28 to the financial statements;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor

Education and Protection Fund by the Company.

For Sudha Suresh Pai and Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Partner
Membership No. 046235
UDIN 20046235AAAABA1936
Place: Margao - Goa
Date : June 26 2020

Annexure A to the Independent Auditor s Report

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirementssection of our report of even date to the Members of Govind Poy Oxygen Limited for theyear ended 31st March 2020)

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

i. In respect of the Company s fixed assets: a. The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

b. As explained to us the company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased manner over a period ofthree years. In accordance with this programme certain fixed assets were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthe periodicity of physical verification is reasonable having regard to the size of theCompany and the nature of its assets.

c. According to the information and explanations given 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. According to the information and explanations given to us the management hasconducted physical verification of inventories at reasonable intervals and no materialdiscrepancies were noticed between the physical stock and book records on such physicalverification.

iii. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013 ( the Act ) and accordingly reporting under paragraph 3 (iii) of the order is notapplicable to the Company. iv. In our opinion and according to the information andexplanations given to us the Company has complied with the provisions of Section 185 andSection 186 of the Act in respect of loans making investments and providing guaranteesand securities as applicable.

v. In our opinion and according to information and explanations given to us thecompany has not accepted any deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of Section 73 to 76 or any other relevant provisions of the Actand rules framed thereunder. Accordingly reporting under paragraph 3 (v) of the order isnot applicable to the Company.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148 (1) of the Act for the Company. Accordingly reporting under paragraph 3 (v) ofthe order is not applicable to the Company.

vii. In respect of statutory dues: a. The Company is regular in depositing withappropriate authorities undisputed Statutory dues including provident fund employeesstate insurance income tax sales tax customs duty cess goods and service tax valueadded tax and other material statutory dues applicable to it. According to the informationand explanations given to us there are no undisputed amounts payable in respect of incometax service tax sales tax customs duty excise duty goods and service tax value addedtax and cess which were outstanding as at 31st March 2020 for a period of morethan six months from the date they became payable.

b. According to the information and explanations given to us the following are thedisputed statutory dues which have not been deposited on account of disputed matterspending before the appropriate authorities:

(Rs. )
Name of the Nature of dues Forum where dispute is Amount Period to which the
Statute Pending amount relates
Central Excise Excise Duty Supreme Court 670488.00 2000-2005
Act 1944

viii. In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans to banks. The Company did not have anyoutstanding dues to financial institutions Government and Debenture holders.

ix. In our opinion and according to the information and explanation given to us themoneys raised by way of term loan have been applied for the purpose for which they wereobtained. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments).

x. According to the information and explanations given to us no material fraud by theCompany or on the

Company by its officers or employees has been noticed or reported during the course ofour audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with 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. Accordingly reporting under paragraph 3 (xii) of the orderis not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act wherever applicable and the details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence reporting under paragraph 3 (xiv) of the order is not applicable to theCompany.

xv. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him. Accordingly reporting underparagraph 3 (xv) of the order is not applicable to the Company.

xvi. In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For Sudha Suresh Pai and Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Partner
Membership No. 046235
UDIN: 20046235AAAABA1936
Place: Margao-Goa
Date: June 262020

Annexure B to the Independent Auditor s Report

(Referred to in paragraph 2 (f) under Report on Other Legal and Regulatory Requirementssection of our report of even date to the Members of Govind Poy Oxygen Limited for theyear ended 31st March 2020)

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 with reference to financial statementsof Govind Poy Oxygen Limited ( the Company ) as at 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon 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 controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting ( the Guidance Note ) issued by the Institute of Chartered Accountantsof India ( ICAI ). These responsibilities include design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company s policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor s Responsibility

Our responsibility is to express an opinion on the Company s internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and Standards on Auditing issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements was established and maintained and if such controlsoperated effectively in all material respects. Our audit involves performing procedures toobtain audit evidence about the adequacy of the internal financial controls with referenceto financial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statements included obtaining an understanding ofinternal financial controls with reference to financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal controls based on the assessed risk. The procedures selecteddepend on the auditor s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company s internal financial controls with referenceto financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company s internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company s internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company s assets that could have a material effect on the financialstatements.

Inherent limitations of internal financial controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31stMarch 2020 based on the internal controls with reference to financial statements criteriaestablished by the company considering the essential components of internal controlsstated in the Guidance Note issued by ICAI.

For Sudha Suresh Pai and Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Partner
Membership No. 046235
UDIN: 20046235AAAABA1936
Place: Margao-Goa
Date: June 26 2020

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