Provisions:
A provision is recognized when there exists a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to present value and are determined based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent liabilities:
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably, the Company does not recognize a contingent liability but discloses its existence in the financial statements.
Cash and cash equivalent:
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term deposits with banks with an original maturity of three months or less.
Other remarks
• The Company has generally been regular in depositing undisputed statutory dues including income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, Goods and Services Tax, Cess and other material statutory dues to the appropriate authorities, except for Provident Fund (PF) and other employee related compliances.
• It was informed to us that the delay was due to the conversion process of the Company from a Limited Liability Partnership (LLP) to a limited company.
• Additionally, it was observed that the Company continued to report turnover under the GST registration of the LLP for a few months following the conversion. This was due to delays in obtaining a new GST registration number for the company.
• We recommend that the Company ensure timely completion of statutory registrations and maintain compliance with all statutory dues in a timely manner to avoid any future discrepancies.
• During the financial year 2023-24, GSM Foils Limited was converted from GSM Foils LLP. After conversion, the income tax liability of GSM Foils LLP was settled from the account of LLP which is later merged to the newly incorporated company, GSM Foils Limited. The said transaction will be settled in the current financial year by the directors of GSM Foils Limited, who were previously partners in GSM Foils LLP, through their personal accounts. The necessary adjustments will be made accordingly in the books of accounts.
• During the current financial period, certain reclassifications and regroupings of accounts were made to enhance the presentation of the financial statements. These changes were implemented to better align the financial reporting with industry practices and accounting standards, without any impact on the overall financial position or performance of the company. The reclassifications pertain only to presentation improvements and do not affect the substance of the financial data.
For, M N C A & ASSOCIATES
CHARTERED ACCOUNTANTS For GSM FOILS LIMITED
FRN : 100586W
NISHIT PABARI, FCA SAGAR BHANUSHALI MOHANSINGH PARMAR PRATIK MAKWANA
PARTNER CFO & Whole-time Director Managing Director Company Secretary
MEM. NO 149385 DIN : 09126902 DIN : 08413828
UDIN : 24149385BKBGWP3306
Place : VASAI (E)
Date : 20/06/2024
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