The Members of GRP Limited
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of GRPLimited (the Company) which comprise the Balance Sheet as at 31st March2021 the Statement of Profit and Loss (Including Other Comprehensive Income) Statementof Changes in Equity and Statement of Cash Flows for the year then ended and notes to theStandalone Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as Standalone FinancialStatements).
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 Companies Act 2013 (the Act) in the manner sorequired and give a true and fair view in conformity with accounting principles generallyaccepted in India of the state of affairs of the Company as at 31st March 2021 and itsprofits including Other Comprehensive Income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of Standalone financial statement in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules thereunder 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 on Standalone Financial statements.
Key Audit Matters
Key audit Matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statement ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statement as a whole and in forming our opinion thereon we do notprovide a separate opinion on these matters.
We have determined the matters described below to be the Key AuditMatters to be communicated in our report
1. Interest liability on delayed payment to Micro and Small Enterprises
We draw attention to note No 19 of Standalone Financial Statement-Trade payable the company has incurred interest liability on account of delayed paymentto micro and small enterprises of Rs 8.14 lakhs for the financial year 2020-21. Cumulativeamount of interest payable outstanding as on 31st March 2021 on account of delayed paymentto Micro and Small Enterprises is Rs. 23.66 lakhs.
Our Audit Procedure in respect of above Key audit matters included:
a) Verification of Vendor Master to identify the Micro and SmallEnterprises.
b) Terms of payment to Micro and small Enterprises.
c) Verification of the interest liability on account of delayed paymentto Micro and Small Enterprises.
As discussed with the management the company will be starting with theprocess of payment of interest to Micro and Small Vendors from the financial year 2021-22.
2. Contingent Liabilities
We draw attention to Note no 32 of the Standalone Financial Statementsthe Company has material amounts arising from uncertain tax positions including disputesrelated to Income Tax Excise Duty Value Added Tax. These matters involve significantmanagement judgment to determine the possible outcomes.
We obtained details of completed assessments during the year ended 31stMarch 2021 from the management considered the estimates made by the management inrespect of tax provisions and possible outcomes of the dispute. Additionally we alsoconsidered the effect of new information in respect of uncertain tax positions and mattersunder dispute as at 31st March 2021 to evaluate whether any changes were required in themanagements position on these uncertainties.
The Company's Management and Board of Directors is responsible for thepreparation of other information. The other information includes the information in AnnualReport but does not include the standalone financial statements and our auditor's reportthereon.
Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financial performanceincluding Other Comprehensive Income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and 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 Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the Standalone Financial Statements the Board ofDirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of theseStandalone Financial Statements.
As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional scepticism throughout the audit.
Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 as amended we are also responsible forexpressing our opinion on whether the company has adequate internal financial controlssystem in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the Standalone Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
1. 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 Act we give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen 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 including OtherComprehensive Income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid Standalone Financial Statementscomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2015 as amended.
(e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B.
(g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 itsStandalone Financial Statements- Refer Note No. 32 to the Standalone Financial Statements.
ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2021
3. As required by Section 197(16) of the Act we report that theCompany has paid remuneration to its directors during the year in accordance with theprovisions of the limits laid down under Section 197 read with Schedule V of the Act.
| ||For DKP & Associates Chartered Accountants |
| ||Firm's Registration No. 126305W |
| ||D K Doshi |
|Place: Mumbai ||Partner Membership No. 037148 |
|Date: 21st May 2021 ||UDIN: 21037148AAAACJ2666 |
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT ON THESTANDALONE FINANCIAL STATEMENTS OF GRP LIMITED
(Referred to in Paragraph 1 under the heading of Report on otherlegal and regulatory requirements of our report of even date)
i. In respect of its fixed assets :
a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets on the basis of availableinformation.
b. As explained to us all the fixed assets have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.
c. According to the information and explanation given to us and on thebasis of our examination of the records of the company the title deeds of immovableproperty are held in the name of the company.
ii. As explained to us physical verification of the inventories havebeen conducted at reasonable intervals by the management which in our opinion isreasonable having regard to the size of the Company and nature of its inventories. Nomaterial discrepancies were noticed on such physical verification.
iii. According to the 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 Section189 of the Act. Consequently the requirement of clause (iii) of paragraph 3 of the Orderis not applicable to the Company.
iv. In our opinion and according to the information and explanationsprovided to us the company has not granted any loans or provided any guarantees orsecurity to parties covered under section 185 of the Act. The company has complied withprovisions of section 186 of the Act in respect of investments made or loans or guaranteesor securities provided to parties covered under section 186.
v. According to the information and explanations given to us theCompany has not accepted any deposits within the meaning of provisions of sections 73 to76 or any other relevant provisions of the Act and the rules framed there under.Therefore the clause(v) of paragraph 3 of the Order is not applicable to the Company
vi. We have broadly reviewed the books of accounts maintained by thecompany pursuant to the rules made by the Central Government for the maintenance of Costrecords under section 148 of the Act and are of the opinion that prima facie theprescribed accounting records have been made and maintained.
vii. In respect of Statutory dues :
a. According to the records of the Company undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Goods andService Tax Service Tax Duty of Custom Duty of Excise Value Added Tax Cess and anyother statutory dues have been generally regularly deposited with appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were outstanding as at 31st March 2021 for a period ofmore than six months from the date becoming payable.
b . According to the information and explanations given to us and tothe records of the Company examined by us particulars of dues of income tax sales taxincluding value added tax duty of excise goods and service tax cess as at 31st March2021 which have not been deposited on account of dispute are as follows:
|Name of The Statute ||Nature of Dues ||Period to which the amount relates ||Amount (Rs in lakhs) ||Forum Where Dispute is pending |
|Maharashtra Value Added Tax ||Sales Tax/VAT ||FY 2011-12 ||88.69 ||Deputy Commissioner (Appeal) |
|Maharashtra Value Added Tax ||Sales Tax/VAT ||FY 2013-14 ||49.97 ||Deputy Commissioner(Appeal) |
|Maharashtra Value Added Tax ||Sales Tax/VAT ||FY 2015-16 ||39.95 ||Joint Commissioner (Appeal) |
|Maharashtra Value Added Tax ||Sales Tax/VAT ||FY 2016-17 ||45.55 ||Joint Commissioner (Appeal) |
|Tamilnadu Value Added Tax ||Sales Tax/VAT ||FY 2013-14 ||6.64 ||Dy. Commissioner (Appeal) |
|Tamilnadu Value Added Tax ||Sales Tax/VAT ||FY 2014-15 ||11.97 ||Assistant Commissioner Sales Tax |
|Tamilnadu Value Added Tax ||Sales Tax/VAT ||FY 2015-16 ||11.19 ||Assistant Commissioner Sales Tax |
|Gujarat Value added Tax ||Sales Tax/VAT ||FY 2016-17 ||9.00 ||Dy. Commissioner (Appeal) |
|Income Tax Act1961 ||Income Tax ||FY 2014-15 ||84.84 ||CIT(A)-Mumbai |
|Income Tax Act1961 ||Income Tax ||FY 2015-16 ||20.11 ||CIT(A)-Mumbai |
|Income Tax Act1961 ||Income Tax ||FY 2016-17 ||88.33 ||CIT(A)-Mumbai |
|The Central Excise Act 1944. ||Central Excise ||January 2005 to March 2012 ||131.82 ||CESTAT |
viii. In our opinion and according the information and explanationsgiven to us the company has not defaulted in repayment of loans or borrowings to theBanks or Financial institution government and dues to debenture holder; hence clause(viii) of paragraph 3 of the Order is not applicable to the Company.
ix. According to the information and explanation given to us and basedon our audit procedures the Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) and the company has obtain theterm loans which are applied for the purpose for which they were taken .
x. In our opinion based on the audit procedures performed for thepurpose of reporting the true and fair view of the Standalone Financial Statements and asper information and explanations given to us no fraud by the Company or on the Company byits officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanationsgiven to us managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theCompanies Act 2013
xii. In our opinion Company is not a Nidhi Company and hence reportingunder the provisions of clause (xii) of paragraph 3 of the Order are not applicable tothe Company.
xiii. In our opinion and according to information and explanationsprovided by the management transactions with related parties are in compliance withsection 177 and 188 of the Act where applicable and the details have been disclosed inthe Standalone Financial Statements as required by the applicable accounting standards.
xiv. In our opinion and according to the information and explanationsgiven to us the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year and hence reporting underclause (xiv) of paragraph 3 of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanationsgiven to us during the year the Company has not entered into any non-cash transactionwith the directors or persons connected with him and covered under section 192 of the Actand hence reporting under clause (xv) of the paragraph 3 of the Order is not applicable tothe Company.
xvi. In our opinion to the best of our knowledge and according to theinformation and explanations given to us the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934.
| ||For DKP & Associates Chartered Accountants Firm's Registration No. 126305W |
|Place: Mumbai Date: 21st May 2021 ||D K Doshi Partner Membership No. 037148 UDIN: 21037148AAAACJ2666 |
"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT ON THESTANDALONE FINANCIAL STATEMENTS OF GRP LIMITED
(Referred to in paragraph 2 (f) under Report on Other Legal andRegulatory Requirements' of our report of even date)
Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (theAct).
We have audited the internal financial controls with reference tostandalone financial statements over Financial Reporting of GRP LTD. (theCompany) as of 31st March 2021 in conjunction with our audit of the standalonefinancial statements of the Company for the year then ended.
Management Responsibility for the Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the Guidance Note) issued by the Instituteof Chartered Accountants of India (ICAI). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to Standalone Financial Statements based on our audit.We conducted our audit in accordance with the Guidance Note issued by ICAI and theStandards on auditing prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. 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 to obtain audit evidence aboutthe adequacy of the internal financial controls system with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internalfinancial controls with reference to financial statements assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system with reference to standalone financial statements.
Meaning of Internal Financial Controls with reference to financialstatements
A company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Financial Statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statements includes those policies andprocedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls with reference tofinancial statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to standalone financial statements maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.
| ||For DKP & Associates |
| ||Chartered Accountants |
| ||Firm's Registration No. 126305W |
| ||D K Doshi |
|Place: Mumbai Date: 21st May 2021 ||Partner Membership No. 037148 UDIN: 21037148AAAACJ2666 |