THE MEMBERS OF SHRI GANG INDUSTRIES AND ALLIED PRODUCTS LTD
I. Report on the Audit of the Financial Statements
A. We have audited the accompanying Standalone Financial Statements of SHRI GANG
INDUSTRIES AND ALLIED PRODUCTS LTD ("the Company") which comprise theBalance Sheet as at March 31 2021 the Statement of Profit and Loss (including othercomprehensive income) Statement of Changes in Equity and the Statement of Cash Flows forthe year ended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the FinancialStatements").
B. 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 the
Companies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Accounting Standards prescribed under section 133 of theAct read with the Companies (accounting standards) Rules 2006 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 the loss changes in equity and its cashflows for the year ended on that date.
2. Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose
Standards are further described in the Auditor's Responsibilities for the Audit of the
Financial 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 (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theFinancial Statements
3. 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.There are no specific matters to be communicated in our report.
4. Information Other than the Financial Statements and Auditor's Report Thereon
A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the
Management Discussion and Analysis Board's Report including Annexures to Board'sReport Business Responsibility 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.
B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Financial Statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated. If based on the workwe have 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.
5. Management's Responsibility for the Financial Statements
A. 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 which have beenused for the purpose of preparation of standalone financial statements by the Board ofDirectors of the Company as aforesaid.
B. In preparing the Financial Statements management is responsible for assessing the
Company'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.
6. Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
A. Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.
B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
i. 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.
ii. Obtain an understanding of internal financial controls relevant to the audit inorder to 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 with reference to financial statements inplace and the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv. 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.
C. 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 Standalone Financial Statements.
D. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
E. 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.
F. 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.
II. 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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by Section 143(3) of the Act based on our audit 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 the
Company so far as it appears from our examination of those books.
C. The Balance Sheet the Statement of Profit and Loss the Statement of Changes in
Equity and the Statement of Cash Flow dealt with by this Report are in agreement withthe books of account.
D. In our opinion the aforesaid standalone financial0 statements comply with the Ind
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 the directors as on March
31 2021 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.
G. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
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 if any
ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses. iii) There is no amount required to betransferred to the Investor Education and Protection Fund by the Company.
For Satendra Rawat & Company
Firm Registration No.: 008298C
(CA. Satendra Rawat)
Membership No.: 074126
Place: New Delhi
Annexure "A" referred to in the Auditor's Report of even date to the Membersof SHRI GANG
INDUSTRIES AND ALLIED PRODUCTS LTD on the financial statements for the year ended March31 2021.
In terms of the Companies (Auditor's Report) Order 2016 ("the Order") issuedby the Central
Government of India in terms of sub-section 11 of section 143 of the Act we report onthe matters specified in the paragraph 3 and 4 of the Order as may be applicable ashereunder:
1. a). During the year the company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.
b). The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified annually. In accordance with this program fixed assetswere verified during the year and no discrepancies were noticed on such verification. Inour opinion the frequency of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.
c). As explained to us the title deeds of immovable properties are held in the name ofthe company.
2. As explained to us inventories have been physically verified at reasonableintervals by the management and in our opinion the frequency of verification isreasonable. According to the information and explanations given to us no materialdiscrepancies were noticed on such physical verification.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Therefore paragraph3(iii) (a) to(c) of the Order are not applicable to the Company.
4. According to information and explanations given to us the company has not given anyloan to directors or any other person in whom the directors is interested or given anyguarantee or provided any security in connection with any loan taken by directors or suchother person as provided in sections 185 & 186 of the Companies Act 2013 thereforeother disclosure requirements are not applicable to the company for the year.
5. The Company has not accepted any deposits from the public within the provisions ofSections 73 to 76 of the Act and the rules framed there under to the extent notified.
6. Pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148 (1) of the Companies Act 2013 in our opinion and to best ofour knowledge the prescribed cost records prima-facie have been made and maintained.
7. a) According to the information and explanations given to us and on the basisof our examination of the records of the company undisputed statutory dues includingprovident fund employees state insurance income-tax sales-tax service-tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable have been regularly deposited with the appropriate authorities to the extentapplicable to it. Further no undisputed amounts payable in respect thereof were inarrears at the year-end for a period of more than six months from the date they becamepayable; except for the Deferred Trade Tax/ Vat amounting to Rs.23.11 Crores as explainedin note no. 12 and 25 of these financial statements.
b) According to the information and explanations given to us and on the basis of ourexamination of the records of the company there are no statutory dues of income-taxsales-tax service-tax duty of customs duty of excise value added tax as applicablewhich have not been deposited on account of any dispute; except the following:
|Sl. No. ||Statute ||Nature of dues ||Forum where dispute is pending ||Amount (Rs.) ||Period to which the amount relates |
|1 ||U.P. Trade Tax Act ||Demand on regular assessment ||Trade Tax Tribunal ||46703355/- ||FY 2005-06 |
|2 ||U.P. Vat Act ||Demand on regular assessment ||Trade Tax Tribunal ||215000/- ||FY 2009-10 |
8. Based on our audit procedures and on the information and explanations given bymanagement and in terms of UP Government Order dated 29.12.2016 regarding measures ofrehabilitation and re-scheduled repayment terms we are of the opinion that the companyhas not defaulted in repayment of dues to PICUP.
9. According to the information and explanations given to us the Company has notraised any money by way of initial public offer further public offer (including debtinstruments) or term loans during the year. According para 3 (ix) of the Order is notapplicable.
10. According to the information and explanations given to us no material fraud by the
Company and on the company by its officers or employees has been noticed or reportedduring the course of our audit.
11. In our opinion and according to the information and explanations given to us theCompany has not paid/provided managerial remuneration in excess of the limits andapprovals prescribed under Section 197 read with Schedule V to the Companies Act 2013.
12. According to the information and explanations given to us the Company is not aNidhi
Company. Accordingly para 3 (xii) of the Order is not applicable.
13. According to the information and explanations given to us and on the basis of ourexamination of records of the company the transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and the details of suchtransactions have been duly disclosed in the financial statements as required by theapplicable accounting standards.
14. According to the information and explanations given to us and on the basis of ourexamination of records of the company the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and on the basis of ourexamination of records of the Company the company has not entered into any non-cashtransactions with its directors or persons connected with him.
16. According to the information and explanations given to us and on the basis of ourexamination of records of the Company the Company is not required to be registered withReserve Bank of India u/s 45-IA of the Reserve Bank of India Act 1934.
|For Satendra Rawat & Company |
|Chartered Accountants |
|Firm Registration No.: 008298C |
|(CA. Satendra Rawat) |
|Membership No.: 074126 |
|Place: New Delhi |
|Date: 29.06.2021 |
|UDIN: 21074126AAAAGL4241 |
Annexure "B" to the Independent Auditors' Report of the even date on theFinancial Statements of SHRI GANG INDUSTRIES AND ALLIED PRODUCTS LTD
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 over financial reporting of Shri GangIndustries &
Allied Products Limited ("the company") as of March 31 2021 in conjunctionwith our audit of
Standalone IndAS Financial Statements of the company for the year ended on 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 control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the 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 the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company's' internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion 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 March 31 2021 based on theinternal control over financial reporting criteria established by the Company 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 Satendra Rawat & Company
Firm Registration No.: 008298C
(CA. Satendra Rawat)
Membership No.: 074126
Place: New Delhi