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Gratex Industries Ltd.

BSE: 526751 Sector: Industrials
NSE: N.A. ISIN Code: INE915E01013
BSE 00:00 | 21 Jan 14.06 -0.74
(-5.00%)
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NSE 05:30 | 01 Jan Gratex Industries Ltd
OPEN 14.06
PREVIOUS CLOSE 14.80
VOLUME 2596
52-Week high 18.00
52-Week low 8.10
P/E 100.43
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.06
CLOSE 14.80
VOLUME 2596
52-Week high 18.00
52-Week low 8.10
P/E 100.43
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gratex Industries Ltd. (GRATEXINDUSTRIE) - Auditors Report

Company auditors report

To the Members of Gratex Industries Limited

Report on the Audit of the Standalone Financial Statements

1. Opinion

We have audited the standalone financial statements of GratexIndustries Limited ("the Company") which comprise the balance sheet as at 31stMarch 2021 and the statement of Profit and Loss statement of changes in equity andstatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the Ind AS and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 and profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities forthe Audit of the Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Companies Act 2013 and the Rulesthere under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current periodThis matter is addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthis matter; There are no matter to be reported under this head.

4. Emphasis of Matters

a. As per note no.19 of the accounts "Revenue fromoperations" 92.68% of revenue is from related party transactions only. The pricingpolicy is determined keeping "Arm's length price" considerations in mind bythe management. Considering the criteria provided by the management to decide the pricingpolicy we feel that the pricing policy adopted by the management is justifiable.

b. As per note no. 35 of the accounts "Disclosure on Impact ofCOVID-19 pandemic on Company we have gone through the details provided in the notes andof the opinion that considering the nature of the business and size of the company thedisclosure made by the company is proper and the impact on the business operationsrevenue cash flow of the Company for the year has been appropriately assessed by theCompany. The accounts are prepared as a going concern and we are of the opinion that thecompany has properly done it. The effect of pandemic on subsequent year is also disclosedproperly of course it is an estimate only the full effect can not be judged as thepandemic risk is still continued and full operation has not started yet till the date ofthe signing of the accounts. It can be assessed only after 2nd or 3rdquarter of F.Y. 2021-22

Our opinion is not modified in respect of the above matters.

5. Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting Standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateimplementation and maintenance of accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

6. Auditor's Responsibilities for the Audit of theFinancial Statements

Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

7. Other Matter

There are no any matters which require to be reported under this head.

8. Report on Other Legal and Regulatory Requirements

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 of the Companies Act 2013 we give in the "Annexure B" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

9. 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 A".

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

For Jayesh R Shah & Co.
Firm's Registration No.104182W
Sd/-
Jayesh Shah
Proprietor
Place: Mumbai Membership No. 033864
Date: 29th June 2021 UDIN:21033864AAAABO6241

Annexure-A to the Independent Auditors Report.

Referred to in paragraph 9(f) of the Independent Auditors' Reportof even date to the members of Gratex Industries Limited on the Ind AS financialstatements for the year ended March 31 2021

Report on the Internal Financial Controls over financial reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

1. We have audited the internal financial controls over financialreporting of Gratex Industries Limited ("the Company") as of March 31 2021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing andmaintaining internal financial controls based on "the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI)". These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial control both applicable to an audit of internal financial control andboth issued by ICAI. Those Standards and the Guidance Note require that I comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the Ind AS financial statementswhether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting 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 ofInd AS financial statements in accordance with generally accepted accounting principlesand that receipts 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 Ind ASfinancial statements.

Referred to in paragraph 9(f) of the Independent Auditors' Reportof even date to the members of Gratex Industries Limited on the Ind AS financialstatements for the year ended March 31 2021

Inherent Limitations of Internal Financial Controls Over FinancialReporting

6. Because of the inherent limitations of internal financial controlsover financial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

7. In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312021 based on the internal control over financial reporting criteria established by theCompany commensurate with the size of the company and nature of its business 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 Jayesh R Shah & Co.
Firm's Registration No.104182W
Sd/-
Jayesh Shah
Proprietor
Place: Mumbai Membership No. 033864
Date: 29th June 2021 UDIN:21033864AAAABO6241

Annexure-B to the Independent Auditors Report.

Referred to in paragraph (8) of the Independent Auditors Report of even date to themembers of Gratex Industries Limited on the Ind AS financial statements for the year endedMarch 31 2021

I (a) The records of the Company for fixed assets showing full particularsincluding quantitative details and situations of fixed assets are under preparation.

(b) According to the information and explanation the management has physicallyverified the assets at the year end and no material discrepancies were noticed on suchverifications.

(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 immoveable properties otherthan self constructed properties are held in the name of the Company.

II As per the information furnished the physical verification of inventory isconducted once in a year by the management and the discrepancies noticed by the managementare properly dealt with in the books of accounts.

III As per the information furnished and from verification of the records we are ofthe opinion that the Company has not granted any interest free loans to Companies firmsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013; hence para 3(a)(b)(c) of the order is not applicable.

IV In our opinion and according to the information and explanations given to us andfrom verification of the records the Company has not granted any loans or provided anyguarantee or security to the parties covered under section 185.

Further the Company has complied with the provisions of section 186 of the CompaniesAct in respect of the loans and investments made and guarantees and security providedby it.

V The Company has not accepted any deposits during the year from the public within themeaning of the provisions of Sections 73 to 76 of the Companies Act 2013 and the rulesframed there under.

VI As per the information provided and from verification of the records we are of theopinion that the Company does not cover under section 148(1) of the Companies Act 2013and hence not required to maintain cost records.

VII (a) According to the information and explanation given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance FundIncome-tax Sales-tax service tax Custom Duty Excise Duty Cess GST and other materialstatutory dues as applicable with appropriate authorities.

(b) According to the records of the Company examined by us and the information andexplanations given to us there are no undisputed amounts payable in respect of IncomeTax Service Tax Custom Duty Sales Tax Excise Duty PF ESIC GST and any otherstatutory dues which have remained outstanding as at 31st March 2021 for aperiod of more than six months from the date they become payable.

According to the records of the Company and information and explanation given to us andrecord verified by us there are no disputed outstanding dues of Sales-tax Custom DutyExcise Duty Income tax service tax cess.

VIII. Based on our audit procedures and the information and explanations given by themanagement We are of the opinion that the Company has not defaulted in repayment of itsdues to any banks or financial institutes and debenture holders.

IX. We have verified the records of the Company and of the opinion that the companyhas not raised any money by way of public offer (including debt instruments). The amountsof term loan which company have received were applied for the purpose for which those areraised.

X. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice and according tothe information and explanations given to us we have neither come across any instances ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the management.

XI. The Company has provided for managerial remuneration in accordance with therequisite approvals mandated by the Provisions of Section 197 read with Schedule V to theAct.

XII. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company

XIII. As per the verification of the records We are of the opinion that alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the Ind ASFinancial Statements as required under Ind AS 24 Related Party Disclosures specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

XIV. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) are not applicable to the Company.

XV. The Company has not entered into any non-cash transactions with directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) are not applicableto the Company.

XVI. We have been informed that the company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934. Accordingly the provisions of Clause3(xvi) are not applicable to the Company.

For Jayesh R Shah & Co.
Firm's Registration No.104182W
Sd/-
Jayesh Shah
Proprietor
Place: Mumbai Membership No. 033864
Date: 29th June 2021 UDIN:21033864AAAABO6241

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