A Oneindia Venture

Get Updates

Get notified about market trends, financial advice, and investment tips!

சென்செக்ஸ் 78,205.98 +0.82% ↑ நிஃப்டி 24,288.15 +1.08% ↑ தங்கம் ₹ 15,050/gm வெள்ளி ₹ 3,00,000/kg பெட்ரோல் ₹ 101.06 டீசல் ₹ 92.61 கச்சா எண்ணெய் $ 92.18 USD ₹ 91.96

Gala Global Products Ltd. இன் முடிவுகள்

Mar 31, 2024

We have audited the accompanying Financial Statements of GALA GLOBAL
PRODUCTS LIMITED (the Company), which comprise the Balance Sheet as at March 31,
2024, the Statement Of Profit and Loss, including the Statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement of Changes in Equity for the year
then ended, and Notes to the Financial Statements, including a summary of Significant
Accounting Policies and other Explanatory Information (hereinafter referred to as the
Financial Statements).

In our opinion and to the best of our information and according to the explanations given
to us, except for the possible effects of the matter described in the Basis for Qualified
Opinion section of our report, the aforesaid Financial Statements give the information
required by the Companies Act, 2013 (the Act), in the manner so required and give a true
and fair view in conformity with the accounting standards prescribed under section 133
of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended (Ind AS), and other accounting principles generally accepted in Iridjaâofthq''4tate.
of affairs of the Company as at March 31, 2024, the loss and total cqfftRr^hpnsive income^ v-

changes in equity and its cash flows for the year ended on that daf^f ^C rbPucn. Y?2?oq¹⁰ )j

\\oX MEF Noâ 04060 /&//

NvoX^AHMEDAEAD

Basis for Qualified Opinion

1. (a) Considerable payments made as advances to the supplier can be quantified
subject to detailed investigation with the outcome of future events only. As per the
information and explanations provided to us, this matter is sub- judice at present. ECL
Provisioning for the same will be done on the basis of a detailed investigation with the
outcome of future events only. The considerable value of the stock is subject to
acceptance by a customer and can be quantified with the outcome of future events only,
(b) There is a major amount of stock and it is not possible to value the stock, especially
in the light of the obsolescence possibility due to the nature of goods. Ind AS 2 is not
followed. We are not in a position to quantify the effect on the Profit and Loss accounts
and Balance Sheet of the company.

2. Ind AS adjustments are yet to be affected in the books. In light of this, we are not
in a position to quantify the effect on the Profit and Loss accounts and Balance Sheet of
the company.

3. During the year the company had made various transactions with Director/s and
other related parties. We are unable to verify whether such transactions were carried
out at armâs length price. With reference to the overall situation of the company, the
company is running a current account with the Director/s and section 185 may be
attracted.

4. As required under Ind AS 109, Financial Instruments, the company has not
measured the loss allowance with regard to the provision of expected credit loss for
financial instruments.

5. As auditors, we observe the reasonable threat to the going concern status even though
visible efforts are seen to avert the treat.

6. As required under Ind AS 108, Operating Segments, the company has not reported the
operating segment with respect to various segments. The company has entered into
trading of many commodities other than paper.

7. The company carries Intangible assets worth Rs. 13 crores which are not amortized
and are subject to valuation and we are not in a position to quantify.

8. The savings on OTS of Rs. 41.54 Lakh have been booked in spite of the provisional
letter resulting in over statement of profit and understatement of liability to that extent.

9. The company has not accounted audit fees in the books. Accordingly, profit is
overstated, and current liabilities is understated to that extent.

10. Some bank Loan Statements/ Confirmations are not provided for the verification and
certifications are pending.

11. Bank CC Account as on 31.03.2024 is showing long outstanding with a
substantial amount under reconciliation.

12. Provision of interest on Loans is not provided in the books.

13. Audit trail accounting yet to be adopted by the Company.

We conducted our audit of the Financial Statements in accordance with the Standards on
Auditing (''SAs''), as specified under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the ''Auditor''s Responsibilities for the Audit of
the Financial Statementsâ 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 Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and ICAl''s Code
of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our qualified audit opinion on the Financial Statements.

Emphasis of Matters

1. We draw attention to the requirements of Ind AS 19 â Employee Benefits have
not been complied with. Based on the books of account and as per the explanations
given by the management, the Company is in the process of finalization of structure
for the employee benefits, and hence, there were no employees who were eligible for
the benefits yet. Accordingly, Employee Benefits have not been provided in the
financial statements as per the criteria defined by the Company.

2. We draw attention to the inability to pay income tax liabilities of Rs. 63.2 lakhs
based on tax audit assessment of the company on the earlier due date.

3. The company is required to maintain cost records and required to be audited u/s
148 of the Companies Act, 2013. However, cost records have not been maintained
as prescribed, nor the same has been audited as prescribed. Hence, we are unable
to review the same.

4. As required under Section 138 of the Companies Act 2013 read with rule 13 of
Companies (Accounts) Rules,2014, every listed company is required to appoint an
Internal Auditor. However, the company has not appointed an Internal Auditor and
are in the process of appointment of the internal auditor.

5. Various compliances of statutory requirements like; company law, PF, TDS,
Income tax, etc; are subject to actual compliance.

6. We draw attention to outstanding dues of the provident fund and outstanding TDS,
TCS, etc. are yet to be paid.

7. Balances of Debtors, Creditors, Security Deposits, etc; are subject to confirmation.

8. Valuation of inventories is accounted on the basis of management evaluation.

9. Some mandatory disclosures as per schedule - III Division - II are not properly
presented.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Financial Statements for the financial year ended March
31, 2024. These matters were addressed in the context of our audit of the Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. In addition to the matter described in the âBasis for

Qualified Opinionâ section, we have determined the matters described below to be the key
audit matters to be communicated in our report.

We have fulfilled the responsibilities described in the ''Auditor''s responsibilities for the
audit of the Financial Statements'' section of our report, including in relation to these
matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the Financial
Statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying
Financial Statements.

Sr.

No.

Key

Audit

Matter

Auditorâs Response

None

Looking to the nature of various notificiations already
reported in other sections of this report, we believe that our
relevant comments are appropriately reported.

Other Matters

1. We draw attention to Note 3 to Note 8

2. We draw attention to Note 32 of the financial results, as regards the managementâs
evaluation of COVID-19âs impact on the future performance of the Company. To
assess the recoverability of certain assets, investments, and trade receivables, the
Company has considered internal and external information up to the date of this
report in respect of the current and estimated future global including Indian
economic indicators consequent to the global health pandemic. The actual impact of
the pandemic may be different from that considered in assessing the recoverability of
these assets.

Information Other than the Financial Statements and Auditorâs Report Thereon

The Companyâs Board of Directors is responsible for the other information. The other

information comprises the information included in the Management Discussion and

Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility

Report, Corporate Governance and Shareholderâs Information, but does not include the
Financial Statements and our auditorâs report thereon.

Our opinion on the 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 Financial Statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the Financial Statements or our knowledge obtained in the 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.

Responsibilities of Management and Board of Directors for the Financial Statements

The Companyâs Management and Board of Directors are responsible for the matters
stated in section 134(5) of the Act with respect to the preparation of these Financial
Statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company
in accordance with the Ind AS and the accounting principles generally accepted in India.
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 the 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 Statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Financial Statements, the Management and Board of Directors are
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 the Board of Directors either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company''s financial
reporting process.

Auditorâs 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 auditorâs 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:

â¢ 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.

â¢ Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under
section 143(3){i) 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.

â¢ Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.

â¢ Conclude on the appropriateness of managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditorâs
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 auditorâs report.
However, future events or conditions may cause the Company to cease to continue
as a going concern.

â¢ 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.

Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, make it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work: and (ii) to evaluate the effect of any identified
misstatements in the financial statements.

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
for the financial year ended March 31, 2024, and are therefore the key audit matters. We
describe these matters in our auditorâs 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

1. As required by Section 143(3) of the Act^ vpe''fdport that^''^>_:;:

/f%^^>FRN

if. / ratkC, No WftO 510

a. We 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 company''s balance sheet and the statement of profit and loss account dealt
with by this report are in agreement with the books of account.

d. In our opinion, the aforesaid Ind AS financial statements, subject to the matters
mentioned in the âBasis for Qualified Opinionâ para above, comply with the Ind AS
specified under Section 133 of the Act, read with relevant rules issued there under;

e. On the basis of the written representations received from the directors taken
on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2024 from being appointed as a director in terms of Section 164 (2)
of the Act.

f. 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 âAnnexure Aâ.

g. With respect to the other matters to be included in the Auditorâs 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:

I. The Company does not have any pending litigations which would impact
its financial position.

II. The Company does not have any long-term contracts, including
derivative contracts having any material foreseeable losses.

III. There were no amounts which were required to be transferred to the

Investor Education and Protection Fund by the Company during the year
ended March 31, 2024. _ _

A. 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 (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) or provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries.

B. 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 (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) or provide
any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

C. Based on such audit procedures that we have considered
reasonable and appropriate in the circumstances, nothing has
come to our notice that has caused us to believe that the
representations under both sub-clauses mentioned above contain any
material mis-statement.

IV. The company has not proposed or declared any dividend during the year.

V. Based on our examination which included test check, the company has
not used an accounting software for maintaining its books of account
which has feature of recording audit trail (Edit Log) facility for all relevant
transactions recorded in the software. As ..proviso Rule 3(1) of the

companies (Accounts) Rules, 2014 is applicable from April, 2023
reporting under Rule 11(g) of the companies (Audit and Auditors) Rules,
2014 on preservation of audit trail as per the statutory requirements for
record retention is not applicable for the financial year ended on March
31, 2024.

VI. With respect to the other matters to be included in the Auditorâs Report
in accordance with the requirements of sub-section (16) of Section 197
of the Act, as amended, we report that to the best of our information and
according to the explanations given to us, remuneration paid by the
Company to its directors during the year is in accordance with the
provisions of Section 197 of the Act.

h. In our opinion , the remuneration paid/provided by the company for its directors
and manager for the year ended on March 31, 2024 is in accordance with the
provision of section 197 read with Schedule V to the Act.

2. As required by the Companies (Auditorâs Report) Order, 2020 (the âOrder''), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we
give in the âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of
the Order.

For

H K Shah & Co.,

Chartered Accountants

â¢-^{! 109583W} /feSEKA

H K Shah _Hf,/_DA8AD^^

Partner

M.No.: 042758

Place: Ahmedabad

Date: September 06, 2024

UDIN:

Mar 31, 2018

REPORTS ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of âGALA GLOBAL PRODUCTS LIMITEDâ, which comprise the Balance Sheet as at Mar 31, 2018, the Statement of Profit and Loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards Specified under Section 133 of the Act and relevant rules there under.

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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making, those risk assessments, the auditor considers internal control relevant to the Companyâs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

We draw attention to the departures from complying with the requirements of Accounting Standard-15 âEmployee Benefitsâ. According to the explanations given by the management, there were no employees who were eligible for Retirement Benefits and hence Provision for retirement benefits has not been provided for in the financial statements during the period under report.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2018;

b) In the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date;

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Audit Qualification (each audit qualification separately): a. Details of Audit Qualification:

The management have adopted policy of amortizing Intangible Assets from the next financial year, resulting into departures from complying with requirements of applicable accounting standards. Such policy adoption has an effect of overstatement of profit of Financial Year 2017-18.

b. Type of Audit Qualification: Qualified Opinion

c. For Audit Qualification(s) where the impact is quantified by the auditor, Managementâs Views:

The Company has adopted Policy of reviewing the intangible in the year of recognition for possible returns. In case of the returns are not sustainable the intangible assets could be written off with in a period of 2-3 years. Moreover, if sustainable the same would be written off as provided under the applicable standard. Since the Company is required to adopt Ind-As compulsory with effect from 01st April 2018 and it has specifically defined in these forthcoming standards that any such Intangible Assets needs to be reviewed at each balance sheet date for any impairment (if any) whereas existing accounting standards require to amortize such intangibles compulsory within maximum of 5/10 years. Further the management foresee that there would not be any impairment requirement comparing to its carrying value as on 31 march 2018 (even in near future as well) and hence no amortization of intangible asset has been made in the period under report.

For Audit Qualification(s) where the impact is not quantified by the auditor: NA

(i) Managementâs estimation on the impact of audit qualification:

(ii) If management is unable to estimate the impact, reasons for the same:

(iii) Auditorsâ Comments on (i) or (ii) above:

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT

1. As required by the Companies (Auditorâs Report) Order, 2016(âthe orderâ) as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 of the Companies Act, 2013 we report that:

a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet, the Statement of Profit and Loss and the cash flows statement, dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Companies Act, 2013.

f) 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 âAnnexure Bâ.

g) With respect to the other matters to be included in the Auditorâs 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:

i. Company is originally listed on BSE SME platform and was successfully migrated to BSE main board platform with effect from 9th Nov, 2017 as per the BSE Notice No. - 20171107-19, dated Nov. 072017.

As per the road map issued by MCA for applicability of Indian Accounting Standard wide Companies (Indian Accounting Standards) Rules, 2015, the applicability criteria for the implementation of Indian Accounting Standards are given. The same are applicable to the company even if the company is in the process of listing in main board but the testing date for the criteria as per Para - 4, Explanation - 2 shall be the last date of the accounting year. (I.e. 31 March 2017, if company wants to apply for FY 201718.) Company is neither in the process of listing nor fulfilling any other criteria for applicability on Ind AS on 31st March 2017, so all financial results as well as Annual accounts for the Financial Year 2017-18 must be prepared under IGAAP. Applicability criteria testing was fulfilled, as on 31st March 2018, so Ind AS are applicable for the financial year 2018-19

ii. The Company does not have any pending litigations which would impact its financial position,

iii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses,

iv. There were no amounts, which were required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE âAâTO THE INDEPENDENT AUDITORâS REPORT

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of GALA GLOBAL PRODUCTSLIMITED on the accounts of the company for the year ended 31st March, 2018.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, majority of the assets have been physically verified by the management during the year in accordance with the planned programme of verification once in three years, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

2 The inventory has been physically verified by the management at reasonable intervals during the year. The procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. As per the information and explanations given to us, discrepancies noticed on physical verification between the physical stocks and book records were not material.

3. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clause 3(iii) of the Order are not applicable to the Company and hence not commented upon.

4. 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 Act to the extent applicable, with respect to the loans and investments made, guarantees given and security provided.

5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

6. In our opinion and according to the information and explanation given to us, the Central Government has not prescribed maintenance of cost records under section 148 of the Companies Act, 2013.

7. (a) According to the information and explanations given to us and on the basis of our examination of the records, the Company is generally regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues applicable to the Company with appropriate authorities. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution or bank.

9. Based on audit procedures and according to the information and explanations given to us, the company has not raised any fund during the year under review. However, due to merger of this company with Gala Products Limited via NCLT Order dated 17^th May,2017, 1,00,00,000 Equity shares of Rs.10 each were issued and allotted to the shareholders of Gala Products Limited as on 20.06.2017.

10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor we have been informed of such case by the management.

11. Based on our audit procedures and on the information given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section197 read with schedule V to the Companies Act.

12. The company is not Nidhi Company. Therefore, this clause is not applicable to the company.

13. Based on our audit procedures and on the information given by the management, we report all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act, 2013 where applicable and the details havebeen disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act, 2013.

14. Based on our audit procedures and on the information given by the management, we report the company has not made any preferential allotment / private placement of fully paid equity shares during the year under review. However, during the financial year under review, GALA GLOBAL PRODUCTS LIMITED further issued equity shares in numbers of 1,00,00,000 shares to the shareholders of Gala Products Limited as per Scheme of Amalgamation approved via NCLT Order dated 17^th May,2017 and Also issued bonus shares on 14^th November, 2017 in the ratio of 1: in numbers 12,37,825.

15. Based on our audit procedures and on the information given by the management, we report the company has not entered into any non-cash transactions with directors or persons connected with him.

16. Based on the information given by the management, we report the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

Annexure âBâ

Annexure to the independent auditorâs report of even date on the financial statements of âGALA GLOBAL PRODUCTS LIMITEDâ

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (ââthe Actââ)

We have audited the internal financial controls over financial reporting of GALA GLOBAL PRODUCTS LIMITED (ââthe Companyââ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditorsâ Responsibility

Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ââGuidance Noteââ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

DATE: 30/05/2018 FOR, P P SHAH & CO.

PLACE: AHMEDABAD CHARTERED ACCOUNTANTS

FRN: 131378W

Sd/-

(PRITESH SHAH)

PARTNER

Mem.No. 123449

Mar 31, 2017

We have audited the accompanying financial statements of "Gala Print City Limited" which comprise the Balance Sheet as at Mar 31, 2017, and the Statement of Profit and Loss for the period ended on that date, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards as per Section 129 of Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2017;

b) in the case of the Profit and Loss Account, of the profit/ loss for the period ended on that date;

1. As required by the Companies (Auditor''s Report) Order, 2015 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 statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 of the Companies Act, 2013 we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet and Statement of Profit and Loss, dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to section 129 of the Companies Act, 2013;

e) on the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of section 164 of the Companies Act, 2013.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Gala Print City Limited on the accounts of the company for the year ended 31^st March, 2017.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, majority of the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us the company is maintaining proper records of inventory and there were no discrepancies between the physical stocks and the book records.

3. (a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained under section 189 of the Companies Act, 2013.

(b) The Terms and conditions at which the said loan has been granted are not prejudicial in the interest of the company.

(d) There is no overdue amount of loans granted to Companies listed in the register maintained under section 189 of the Companies act, 2013

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. The Company has not accepted any deposits from the public covered under section 73 to 76 of the Companies Act, 2013 or any other provisions of the Companies Act and the rules framed there under.

6. In our opinion and according to the information and explanation given to us, the Central Government has not prescribed maintenance of cost records under section 148 of the Companies Act, 2013.

7. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31^st of March, 2017 for a period of more than six months from the date they became payable.

9. Based on audit procedures and according to the information and explanations given to us, the company has not raised any fund during the year under review. However, due to merger of this company with Gala Products Limited, the share capital has been merged with the capital of this company.

12. The company is not Nidhi Company. Therefore this clause is not applicable.

13. Based on our audit procedures and on the information given by the management, we report all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act, 2013.

14. Based on our audit procedures and on the information given by the management, we report the company has made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review. However, during the financial year under review, Gala Products Limited has been merged with Gala Print City Limited w.e.f. 1^st April,2016 and consequently share capital of GPL has been merged in GPCL and therefore the paid up capital has been increased from Rs. 4,75,65,000/- to Rs. 14,75,65,000/15. Based on our audit procedures and on the information given by the management, we report the company has not entered into any non-cash transactions with directors or persons connected with him.

16. Based on the information given by the management, we report the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

PLACE: AHMEDABAD For, P P SHAH & CO.

DATE: 12/06/2017 CHARTERED ACCOUNTANTS

Sd/-

(PRANAV SHAH)

PARTNER

M. No. 130500

FRN: 131378W

Mar 31, 2016

To the Members of Gala Print City Limited Ahmedabad

We have audited the accompanying financial statements of "Gala Print City Limitedâ which comprise the Balance Sheet as at Mar 31, 2016, and the Statement of Profit and Loss for the period ended on that date, and a summary of significant accounting policies and other explanatory information.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Companyâs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;

b) in the case of the Profit and Loss Account, of the profit/ loss for the period ended on that date;

1. As required by the Companies (Auditorâs Report) Order, 2015 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 statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 of the Companies Act, 2013 we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the Balance Sheet and Statement of Profit and Loss, dealt with by this Report are in agreement with the books of account.

d) in our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to section 129 of the Companies Act, 2013;

e) on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164 of the Companies Act, 2013.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Gala Print City Limited on the accounts of the company for the year ended 31^st March, 2016.