Gujarat Petrosynthese Ltd.
|BSE: 506858||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE636P01011|
|BSE 00:00 | 26 Nov||45.25||
|NSE 05:30 | 01 Jan||Gujarat Petrosynthese Ltd|
Gujarat Petrosynthese Ltd. (GUJPETROSYNTH) - Auditors Report
Company auditors report
To the Members of Gujarat Petrosynthese Limited
Report on the Standalone Financial Statements
We have audited the Financial Statements of Gujarat PetrosyntheseLimited ("the Company") which comprise of the Balance Sheet as at 31st March2021 and the Statement of Profit and Loss Statement of Changes in Equity and Statementof Cash Flows for the year then ended and notes to the Financial Statements including asummary 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 financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India
(a) in the case of the Balance Sheet of the state of affairs of theCompany as at March 312021;
(b) in the case of the Statement of Profit and Loss (including OtherComprehensive Income) of the Profit for the year ended on that date;
(c) in the case of the Statement of Changes in Equity of the changesin equity for the year ended on that date; and
(d) in the case of the Cash Flow Statement of the cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the Financial Statements.
Key Audit Matter
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion there on and we do not provide a separate opinion onthese matters.
Information Other than the Financial Statements and Auditor'sReport thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises of the information included in theManagement Discussion and Analysis Board's Report including Annexures to the said Board'sReport Corporate Governance and Shareholder's Information but does not include thefinancial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the 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 financial statementsthat give a true and fair view of the financial position financial performance changesin equity and cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate implementation and maintenance ofaccounting 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the FinancialStatements
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. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing (SAs) will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace 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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 Companies Act 2013 we give in the Annexure "A"statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.
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 have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Cash Flow Statement dealt with by this Report are inagreement with the relevant books of account.
d) In our opinion the aforesaid financial statements comply with theInd AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
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 controls overfinancial reporting of the Company and the operating effectiveness of such controls referto 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 does not have any pending litigations which would impactits financial position in financial statements.
iii. There were no dues which were required to be transferred toInvestor Education and Protection Fund by the Company.
ANNEXURE - A' TO THE INDEPENDENT AUDITOR'S REPORT OFEVEN DATE ON THE FINANCIAL STATEMENTS OFGUJARAT PETROSYNTHESE LIMITED
Statement on the matters specified in paragraphs 3 and 4 of theCompanies (Auditor's Report) Order 2016 ("the Order") issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Companies Act2013 to the extent applicable.
1. In respect of its fixed assets:
a) The Company on the basis of available information has maintainedproper records showing full particulars including quantitative details and situations offixed assets;
b) The Management of the Company has physically verified the fixedassets at reasonable intervals. The discrepancies if any noticed during such verificationhave been suitably adjusted in the books of account. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets;
c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.
2. a) According to the information and explanations given to us theinventories have been physically verified at reasonable intervals by the management duringthe year and no material discrepancies have been noticed.
b) In our opinion and according to the information and explanationsgiven to us the procedures followed by the management for physical verification ofinventory are reasonable and adequate in relation to the size of the Company and thenature of the business.
3. According to the information and explanations given to us and on thebasis of our examination of books of account the Company has not given unsecured loan toCompany covered in the register maintained under section 189. Accordingly reporting underclause (iii) of the order is not applicable to the Company.
4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made and the Company has not provided anyloan guaranty or security.
5. According to the information and explanation given to us theCompany has not accepted any deposits as per the provisions of Section 73 to 76 or anyother relevant provisions of the Companies Act 2013 and the rules framed there under.
6. We have broadly reviewed the cost records maintained by the Companypursuant to the Companies (Cost Accounting Records) Rules 2011 prescribed by the CentralGovernment for the maintenance of cost records under section 148 (1) of the Companies Act2013 in respect of the Company's Products to which the said rules are made applicable andare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the records with a viewto determine whether they are accurate or complete.
7. a) According to the records of the Company undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Customs Duty Goodsand Service Tax Cess and any other statutory dues have been regularly deposited with theappropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March2021 for a period of more than six months from the date it became payable.
b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues of Provident Fund Employees'State Insurance Income Tax Customs Duty Goods and Service Tax Cess and any otherstatutory dues which have not been deposited on account of any dispute
8. The Company has not taken any loans or borrowings from financialinstitutions banks and government or has not issued any debentures. Hence reporting underclause 3(viii) of the Order is not applicable to the Company on the basis.
9. In our opinion and on the basis of information and explanationsgiven to us the Company has not raised any money by way of initial public offer orfurther public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3 (ix) of the Order is not applicable.
10. According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.
11. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.
12. In our opinion and according to information and explanations givento us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order isnot applicable.
13. According to information and explanations given to us and based onour examination of the records of the Company transactions with related parties are inaccordance with section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in Financial Statements as required by applicable Ind AS.
14. According to the information and explanation given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year.
15. According to information and explanations given to us and based onour examination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Therefore paragraph 3(xv) ofthe Order is not applicable.
16. In our opinion and according to the information and explanationsgiven to us the Company is not required to be registered under section 45- IA of ReserveBank of India Act 1934.
ANNEXURE - B' TO THE INDEPENDENT AUDITOR'S REPORT OFEVEN DATE ON THE FINANCIAL STATEMENTS OF GUJARAT PETROSYNTHESE LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Gujarat Petrosynthese Limited ("the Company") as of March 312021in conjunction with our audit of the financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
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 of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding 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.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting 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 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 over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company's internal financial control over financial reporting 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 control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial 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.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 312021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of Internal Control stated in the Guidance note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India (ICAI).