The Members of GROVY INDIA LIMITED
Report on the audit of the Financial Statements
I have audited the accompanying Ind AS financial statements of Grovy India Limitedwhich comprise the Balance sheet as at March 31 2020 the Statement of Profit and LossIncluding the statement of other Comprehensive Income the cash flow statement and thestatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the CompaniesAct 2013 in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards under section 133 of the Companies Act 2013 read with thecompanies (Indian Accounting Standard) Rules 2015 as amended and other accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 and its Loss for the year ended on that date.
Basis for opinion
I have conducted audit in accordance with the standards on auditing specified undersection 143 (10) of the Companies Act
2013. My responsibilities under those Standards are further described in the"Auditor's responsibilities for the audit of the financial statements" sectionof my report. I am independent of the Company in accordance with the Code Of Ethics issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to my audit of the financial statements under the provisions of the Actand the rules there under and I have fulfilled my other ethical responsibilities inaccordance with these requirements and the code of ethics. I believe that the auditevidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Information other than the financial statements and auditors' 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 Annexure to Board's Report Business Responsibility Report but does notinclude the financial statements and my auditor's report thereon.
My opinion on the financial statements does not cover the other information and I donot express any form of assurance conclusion thereon.
In connection with my audit of the financial statements my responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of my audit or otherwise appears to be materially misstated.
Management's Responsibility for the Financial Statements
The Company's board of directors are responsible for the matters stated in section 134(5) of the Companies Act 2013 with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial 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 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 boards of directors are also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the audit of the financial statements
My objective is to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with SAs I exercise professional judgment andmaintain professional skepticism throughout the audit I also:
1) 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.
2) Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Clause (i) of section 143(3)of the Companies Act 2013 requiring reporting on the adequacy of the Internal FinancialControls with reference to financial statements in place and the operating effectivenessof such control is not applicable to the company.
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.
4) 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.
I 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.
I 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.
Report on Other Legal and Regulatory Requirements:-
As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of Section 143 of the Act we enclose inthe Annexure A a statement on the matters specified in paragraph 3 and 4 of thesaid Order to the extent applicable to the Company during the year under review.
As required by Section 143(3) of the Act we report that:
|(a) I have sought and obtained all the information and explanations which to the best of 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 the Company 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 statement dealt with by this report are in agreement with the books of account; |
|(d) In my opinion the aforesaid financial statements comply with the accounting standards specified under section 133 of the Companies Act 2013 read with the companies (Indian Accounting Standard) Rules 2015 as amended and other accounting principles generally accepted in India |
|(e) On the basis of the written representations received from the directors as on March 31 2020 taken on record by the board of directors none of the directors is disqualified as on March 31 2020 from being appointed as a director in terms of Section 164 (2) of the Act; |
|(f) Since the Company's turnover as per last audited financial statements is less than Rs.50 Crores and its borrowings from banks and financial institutions at any time during the year is less than Rs.25 Crores the Company is exempted from getting an audit opinion with respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls vide notification dated June 13 2017; and |
|(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us: |
|a. The Company does not have any pending litigations which would impact its financial position; |
|b. The Company did not have any long-term contracts including derivate contracts for which there were any material foreseeable losses. |
For Nitin K Kumar & Co. Chartered Accountants (Firm Registration No.029517N)
Signature ACA Nitin Kumar Prop.
(Membership No. 512144) Place: New Delhi Date: 25.06.2020
Annexure A to the Auditors' Report
(Referred to in paragraph of our report of even date)
In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under:
|(i) a) The Company has maintained proper records showing full particulars including Quantitative Details and the situation of the fixed assets. |
|b) The company has a regular programme of physical verification of fixed assets by which fixed assets are verified in a physical manner over a period of three years. In accordance with this programme certain fixed assets were verified during the year. |
|c) No material discrepancies were noticed on such verification. |
|(ii) a) In our opinion physical verification of inventory has been conducted at reasonable intervals by the management and the procedures of such verification followed by the management are both reasonable and adequate in relation to the size of the Company and nature of the business. |
|b) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification of the said inventory. |
|(iii) During the year the Company has not granted any loans secured or unsecured to the parties covered in the register maintained under Section 189 of the Act. |
|(iv) In our opinion and according to the information and explanations given to us the Company has complied with the provisions of Section 185 and 186 of the Companies Act 2013 in respect of grant of loans making investments and providing guarantees and securities as applicable. |
|(v) According to the information and explanations given to us the Company has not accepted any deposits from the public and hence reporting under clause (v) of the CARO 2016 is not applicable. |
|(vi) The maintenance of cost records as specified by the Central Government under section 148(1) of the Companies Act 2013 are not applicable on the company. |
|(vii) According to information and explanations to us in respect of statutory dues |
|a) The Company has been regular in depositing undisputed statutory dues including Provident Fund Employees' State Insurance Income Tax Sales Tax GST Service Tax Value Added Tax Excise Duty Customs Duty Cess and other material statutory dues applicable to it with the appropriate authorities. |
|b) There are no undisputed amounts payable in respect of Provident Fund Employees' State Insurance Income Tax Sales Tax Service Tax Value Added Tax Excise Duty Customs Duty Cess and other material statutory dues in arrears as at 31st March 2020 for a period of more than six months from the date they became payable. |
|(viii) In our opinion and according to information and explanation given to us during the year Company has not defaulted in repayment of secured loans taken from Financial Institutions/Banks. The company has not issued any debentures. |
|(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instrument) or term loans and hence reporting under clause (ix) of the CARO 2016 is not applicable. |
|(x) To the best of our knowledge and according to the information and explanations given to us no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year. |
|(xi) In our opinion and according to the information and explanations given to us the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act 2013. |
|(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable. |
|(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177 of the Companies Act 2013 where applicable for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards. |
|(xiv) According to the information and explanations given to us and based on the examination of records of the company the Company has not made any preferential allotment or private placement of shares during the year under review. |
|(xv) In our opinion and according to the information and explanations given to us during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act 2013 are not applicable. |
(xvi) The Company is not required to be registered under section 45-IA of the Reservebank of India Act 1934.
|For Nitin K Kumar & Co. |
|Chartered Accountants |
|(Firm Registration No. 029517N) |
|ACA Nitin Kumar |
|(Membership No. 512144) |
|Place: New Delhi |
|Date: 25.06.2020 |
|UDIN: 20512144AAAAAT5710 |