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Gayatri Projects Ltd.

BSE: 532767 Sector: Infrastructure
NSE: GAYAPROJ ISIN Code: INE336H01023
BSE LIVE 19:40 | 19 Oct 188.35 0.20
(0.11%)
OPEN

190.50

HIGH

191.45

LOW

184.50

NSE 19:31 | 19 Oct 188.50 0.45
(0.24%)
OPEN

188.05

HIGH

192.65

LOW

184.80

OPEN 190.50
PREVIOUS CLOSE 188.15
VOLUME 1408
52-Week high 209.00
52-Week low 114.00
P/E 29.94
Mkt Cap.(Rs cr) 3,339
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 190.50
CLOSE 188.15
VOLUME 1408
52-Week high 209.00
52-Week low 114.00
P/E 29.94
Mkt Cap.(Rs cr) 3,339
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gayatri Projects Ltd. (GAYAPROJ) - Auditors Report

Company auditors report

To The Members of Gayatri Projects Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Gayatri ProjectsLimited ("the Company") which comprise the Balance Sheet as at 31st March 2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of accounting records relevant to the preparation and presentation of thesefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act and the Rulesmade there under including the accounting standards and auditing standards and matterswhich are required to be included in the audit report.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards and pronouncements require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Board of Directors as well as evaluating the overallpresentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and cash flows for the year ended on that date.

Emphasis of Matters

(Note Nos. referred hereunder are with reference to respective Notes forming part ofthe standalone financial statement) We draw member's attention to the following matter: i)Note No.31.21 & 31.22 regarding certain loans & advances and work advances givento some of the sub-contractors which are long pending for recovery.

Our Opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by 'the Companies (Auditor's Report) Order 2016' issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as the "Order") we give in the "Annexure A" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act 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 accounts as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g. 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 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. As stated in Note No. 19 & 31.2 (d) the company has disclosed the impact ofpending litigations on its standalone financial position.

ii. As per the information and explanations given by the company the Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses.

iii. As per the information and explanations given by the company the amounts whichare required to be transferred to Investor Education & Protection Fund have beentransferred.

For M O S & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No.: 001975S/S200020
S V C REDDY
Place: Hyderabad Partner
Date: 30th May 2016 Membership No.: 224028

Annexure "A" to the Independent Auditor’s Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date) i) In respect of Fixed Assets:

a. In our opinion and as per the information and explanations given to us the Companyhas maintained proper records showing particulars including quantitative details andsituation of fixed assets.

b. The management of the company has verified the fixed assets at reasonable intervalsduring the year.

According to the information and explanations given to us no material discrepancieswere noticed on such physical verification.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii) According to the information and explanations given to us the inventories havebeen physically verified during the year by the management. In our opinion the frequencyof such verification is reasonable. The discrepancies noticed on physical verification ofinventories as compared to the book records which in our opinion were not material havebeen properly dealt with.

iii) According to the information and explanations given to us the Company has grantedunsecured Loans of Rs.11550.50 lakhs to parties covered in the Register maintained undersection 189 of the Companies Act 2013. In respect of such loans

a. In our opinion and according to information and explanations given to us the termsand conditions of such loans given by the Company are not prima facie prejudicial to theinterest of the company.

b. The Schedule of repayment of the principal and interest has not been stipulated asthe principal amount is repayable on demand.

c. There is no repayment schedule and therefore there is no overdue amount.

iv) According to the information and explanations given to us and in our opinion thecompany has complied with the provisions of sections 185 and 186 of the Act to the extentapplicable in respect of grant of loans making investments and providing guarantees andsecurities.

v) According to the information and explanations given to us the Company has notaccepted any deposits from public within the meaning of Sections 73 to 76 of the Act andthe Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly theprovisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.

vi) We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended and prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been made and maintained. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

vii) In respect of statutory dues:

a. According to the information and explanations given to us the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Sales Tax Income Tax Wealth Tax Service Tax Customs DutyExcise Duty and Cess with the appropriate authorities during the year.

b. According to the information and explanation given to us there are no dues of Salestax Income Tax Wealth Tax Service Tax Customs Duty and Cess which have not beendeposited as on 31st March 2016 on account of any dispute except the following:

Sl. No. Name of the Statute Name of the Tax Due Forum where Dispute is pending Amount ` in Lakhs
1 Mines and Minerals (Development and Regulation) Act 1957 Department of Mines and Geology Supreme Court 1043.51
2 Central Sales Tax Act 1956 and Sales Tax Acts of Various States Sales Tax/Vat Appeals pending before High Courts of respective states and Appellate Tribunals and other appropriate authorities. 3436.55
3 Central Excise Act 1944 Service Tax Appeals pending before various Authorities 323.03
4 Income Tax Act 1961 Income Tax Appeal pending before CIT(Appeals) Hyderabad 3768.07

viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government and dues to debentureholders as at the Balance Sheet date.

ix) According to information and explanations given to us the company has not raisedmoneys by way of public offer (including debt instruments). Based on our audit proceduresand according to the information and explanations given to us in our opinion the Termloans availed by the Company were prima facie applied for the purpose for which theywere obtained.

x) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor we have been informed of any such case by themanagement.

xi) The company has paid or provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

xii) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii) The Company has entered into transactions with the related parties in compliancewith the provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under AccountingStandard - 18 Related Party Disclosures specified under section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

xiv) The Company has made preferential allotment and private placement of equity sharesduring the year.

According to the information and explanations given to us the preferential allotmentand private placement of equity shares are in compliance with the provisions of Section 42of the Act and the amounts raised have been used for the purpose for which they wereraised.

xv) According to the information and explanations given to us the company has notentered into any non cash transactions with its directors or persons connected with themand accordingly the provisions of Clause 3(xv) of the Order are not applicable to theCompany.

xvi) The Company is not required to be registered under section 45-IA IA of the ReserveBank of India Act 1934 and accordingly the provisions of Clause 3(xvi) of the Order arenot applicable to the Company.

For M O S & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No.: 001975S/S200020
S V C REDDY
Place: Hyderabad Partner
Date: 30th May 2016 Membership Number: 224028

Annexure "B" to Independent Auditor's Report

(Referred to in paragraph 2(f) under the heading of 'Report on Other Legal andRegulatory Requirements' of our report of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GayatriProjects Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for the 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

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 accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the 'Guidance Note') and the Standards onAuditing issued by the Institute of Chartered Accountants of India ('ICAI') and deemed tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperating effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control 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 risk of materialmisstatement 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 control systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control system over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withGenerally Accepted Accounting Principles (GAAP). A Company's internal financial controlsystem over financial reporting includes those policies and procedures that (1) pertain tothe maintenance of records that reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorization ofthe Management and Directors' of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company'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 control system over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial control system over financialreporting to future periods are subject to the risk that the internal financial controlsystem over financial reporting may become inadequate because of the changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsystem over financial reporting were operating effectively as at 31st March 2016 based onthe internal financial control system over financial reporting criteria established by theCompany considering the essential components of internal control stated in the Guidancenote on Audit of Internal Financial Control over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For M O S & ASSOCIATES LLP
Chartered Accountants
Firm's Registration No.: 001975S/S200020
S V C REDDY
Place: Hyderabad Partner
Date: 30th May 2016 Membership Number: 224028