We have audited the accompanying standalone financial statements of GODHA CABCON &
INSULATION LIMITED (“the Company"), which comprise the Balance Sheet as at 31st March
2025, the statement of Profit and Loss (including other comprehensive income), the statement of
changes in equity and statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information.
We do not express an opinion on the accompanying financial statements of the entity. Because of
the significance of the matter described in the Basis for Disclaimer of Opinion section of our
report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for
an audit opinion on these financial statements.
Basis for Disclaimer of Opinion
1. The company has unsecured loans amounting to ?7093.50 Lacs. Management
has not charged interest on these loans, and relevant agreements along with
cross-confirmations are not available. In the absence of valid agreements and
necessary confirmations, the accuracy of the balances and their interest-free
status could not be verified, potentially impacting the fair presentation of
liabilities and interest expenses.
2. Balance of GST Credit Receivables 220.05 Lacs pending for GST
reconciliation. Reconciliation with the GST Online Portal has not been carried
out, affecting the accuracy of GST Input Credit and the liability towards the
government.
3. The company has trade payables amounting to 6644.84 Lacs; however, the
bifurcation of Micro, Small, and Medium Enterprises (MSME) creditors has
not been provided. Non-disclosure of MSME classification contravenes the
Micro, Small and Medium Enterprises Development (MSMED) Act, 2006,
impacting regulatory compliance and financial transparency.
4. Outstanding balances of 835.26 Lacs with certain suppliers remain
unconfirmed. Absence of confirmations from these suppliers affects the
reliability of liabilities disclosed in the financial statements.
5. A loan amounting to 500.00 Lacs remains unconfirmed from certain lenders.
The absence of loan confirmations impacts the reliability of liabilities and
financial disclosures.
6. An outstanding receivable balance of 174.45 Lacs is reported with no
transactions during the year, and balance confirmation is not available. In the
absence of cross-confirmation, the balance may be misstated, affecting the
fair representation of financial positions.
7. We are in receipt of certain sales invoices; however, they are not supported
with E-Way bills, Delivery Challans, or Transportation details. In the absence
of these critical documents, we are unable to comment on the genuineness of
the transactions.
8. With respect to purchases, the company has not provided Goods Inward
Reports. Further, the company does not own or lease any godown facilities,
raising concerns over the storage of inventory. Management claims that the
goods are traded directly from suppliers to customers without being held in
the company’s possession; however, in the absence of evidence, we are
unable to verify this assertion.
9. The company has not maintained a Fixed Assets Register. The absence of a
fixed asset register impairs our ability to verify the existence, condition, and
valuation of the assets held by the company.
We conducted our audit of standalone financial statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities
under those Standards are further described in the Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the financial statements
under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the Code of Ethics
We believe that the audit evidence we have obtained are not sufficient and appropriate to
provide a basis for our opinion ____
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the standalone financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined depending upon the facts and circumstances of the entity and the audit, that there are
no key audit matters to communicate in the Auditors Report except stated above under Basis of
Opinion
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Board of Directors is responsible for the other information. The other information
comprises the information included in the Director’s Report including Annexures to the Director's
Report, but does not include the standalone financial statements and our auditor’s report thereon
Our opinion on the standalone financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the standalone financial statements or our knowledge obtained during the course of our audit
or otherwise appears to be materially misstated If. based on the work we have performed we
conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Emphasis on matter
1. As disclosed in Note 2(4) to the financial statements, the Company has stated that
there were no related party transactions during the year. However, we have not
been provided with adequate supporting documentation to independently verify the
absence of such transactions.
2. The disclosure under Note 14 regarding the change in shareholding pattern of
shareholders holding more than 5% equity during the year has not been supported
by relevant documentation made available to us for verification
Management’s responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act") with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance total
comprehensive income, changes in equity and cash flows of the Company in accordance with Ind
AS and other accounting principles generally accepted in India, including the accounting
Standards specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statement that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the
Company s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditors report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always
detect a material misstatement when it exists Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these standalone financial
statements
As part of an audit in accordance with SAs we exercise professional judgment and maintain
professional skepticism throughout the audit We also
• Identify and assess the risks of material misstatement of the standalone financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(j)
of the Act, we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls system in place and the operating effectiveness of
such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report to the related disclosures in the
standalone 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's report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial
statements, including the disclosures, and whether the standalone financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the standalone financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor's report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor’s Report) Order, 2020 ("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 Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order to
the extent applicable.
As required by Section 143(3) of the Act, we report that:
a) As described in the Basis of Disclaimer of Opinion paragraph and Key audit matters
paragraph, we sought but were unable to obtain 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 not been kept by the
Company so far as details and records provided to us.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income,
Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account
d) In our opinion, the aforesaid standalone financial statements subject to the matters
mentioned in the ‘Basis for Disclaimer of Opinion’ para above, comply with the Indian
Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014
e) We have not been provided with written representations or any other supporting for
determination whether any of the director is disqualified as on 31st March, 2025 from being
appointed as a director in terms of Section 164 (2) of the Act
0 With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate report in
Annexure B Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company’s Internal Financial Controls over financial reporting.
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, as amended in our opinion
and to the best of our information and according to the explanations given to us:
The Company has disclosed the impact of pending litigations on its standalone
financial position in its financial statements - Refer Note for Contingent Liability
to the financial statements
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses
in There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company
iv. The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been advanced
or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person or entity, including
foreign entity (“Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; ( Comment on Entries/Outstanding advances)
v. The Management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity (“Funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall
whether, directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
vi. Based on such audit procedures that we considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (i) and (ii) contain material misstatement.
vii. The company has not declared any dividend during the year.
viii. Company has not used such accounting software for maintaining its books of
account which has a feature of recording audit trail (edit log) facility and the
same has not been operated throughout the year for all transactions recorded in
the software. Since the accounting software with audit trail has not been used,
the question of it being tampered with and preserved by the company does not
arise.
For Parin Patwari & Co.
Chartered Accountants
Place Ahmedabad ,CA Parin Patwari)
Date : 22/05/2025 Proprietor
UDIN : 25193952BMGWQN9857 Chartered Accountants
Membership No. 193952
Firm Regn. No. 154571W
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