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Great Eastern Shipping Company Ltd.

BSE: 500620 Sector: Infrastructure
NSE: GESHIP ISIN Code: INE017A01032
BSE LIVE 15:40 | 18 Dec 390.75 -7.30
(-1.83%)
OPEN

399.00

HIGH

399.00

LOW

390.00

NSE 15:29 | 18 Dec 391.10 -8.15
(-2.04%)
OPEN

393.00

HIGH

397.95

LOW

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OPEN 399.00
PREVIOUS CLOSE 398.05
VOLUME 13412
52-Week high 477.00
52-Week low 348.75
P/E 13.22
Mkt Cap.(Rs cr) 5,892
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 399.00
CLOSE 398.05
VOLUME 13412
52-Week high 477.00
52-Week low 348.75
P/E 13.22
Mkt Cap.(Rs cr) 5,892
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Great Eastern Shipping Company Ltd. (GESHIP) - Auditors Report

Company auditors report

TO THE MEMBERS OF THE GREAT EASTERN SHIPPING COMPANY LIMITED

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Standalone Ind AS Financial Statements of THE GREATEASTERN SHIPPING COMPANY LIMITED ("the Company") which comprise the BalanceSheet as at March 31 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Standalone Ind AS FinancialStatements").

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS 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 Ind AS Financial Statements that give a true and fair view of thefinancial position financial performance including Other Comprehensive Income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS Financial Statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASFinancial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at March 31 2017 and its financial performanceincluding Other Comprehensive Income the changes in equity and its cash flows for theyear ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theCompanies Act 2013 we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the said 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 account 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 (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read withrelevant rules issued thereunder.

e) On the basis of the written representations received from the Directors of theCompany as on March 31 2017 and taken on record by the Board of Directors none of theDirectors of the Company is disqualified as on March 312017 from being appointed as aDirector in terms of Section 164 (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".

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 information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements. Refer Note No. 34 to theStandalone Ind AS Financial Statements.

ii) The Company has made provision as required under the applicable laws or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts. Refer Note No. 2(p) and 35 to the Standalone Ind AS FinancialStatements.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv) The Company has provided requisite disclosures in its Standalone Ind AS FinancialsStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016. Based on audit procedures and relying on theManagement representation we report that the disclosures are in accordance with the booksof account and other records maintained by the Company and as produced to us by theManagement. Refer Note No. 39 to the Standalone Ind AS Financials Statements.

For KALYANIWALLA & MISTRY LLP

CHARTERED ACCOUNTANTS

Firm Regn. No.: 104607W / W100166

Daraius Z. Fraser

PARTNER

M. No.: 42454

Mumbai: May 5 2017.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 'Report on Other Legal and RegulatoryRequirements' in our Independent Auditor's Report to the members of the Company on theStandalone Ind AS Financial Statements for the year ended March 31 2017:

STATEMENT ON MATTERS SPECIFIED IN PARAGRAPHS 3 AND 4 OF THE COMPANIES (AUDITOR'SREPORT) ORDER 2016:

1. Fixed Assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a program for physical verification of fixed assets at periodicintervals. In our opinion the period of verification is reasonable having regard to thesize of the Company and the nature of its assets. The discrepancies noticed on suchverification are not material and have been properly dealt with in the books of account.

c) According to the information and explanations given to us and on the basis of therecords of the Company examined by us the title deeds of immovable properties are held inthe name of the Company except in one case where the deed of assignment in respect of theCompany's leasehold property at Worli (Gross block - ' 55.42 crores and Net block -' 48.05 crores) is yet to be transferred in the name of the Company. The Companyhas received a demand for transfer charges from the Bombay Municipal Corporation fortransferring the property in favour of the Company. The Company has filed a writ petitionin the Bombay High Court contesting the demand.

2. The Management has conducted physical verification of inventory at reasonableintervals. The discrepancies noticed on physical verification were not material inrelation to the operations of the Company and the same have been properly dealt with inthe books of account.

3. During the year the Company has not granted any loans secured or unsecured tocompanies firms LLP or other parties covered in the register maintained under Section189 of the Companies Act 2013. Therefore the provisions of sub-clauses (a) (b) and (c)of paragraph 3 (iii) of the Order are not applicable.

4. In our opinion and according to the information and explanations given to us andrecords examined by us the Company has complied with the provisions of Section 185 and186 of the Companies Act 2013 in respect of loans investments guarantees and security.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 73 to76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder.

6. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub section (1) of Section 148 of theCompanies Act 2013 in respect of any of the activities of the Company.

7. Statutory Dues:

a) According to the information and explanations given to us and on the basis of therecords examined by us the Company is regular in depositing undisputed statutory duesincluding Shore Staff Provident Fund Employees' State Insurance Income-tax Sales- taxService Tax Duty of Customs Value added tax Cess and any other statutory dues with theappropriate authorities wherever applicable. We have been informed that in respect offloating staff it is not possible to accurately ascertain the provident fund dues in viewof the nature of Company's activities. The Company regularly makes ad hoc payments to theappropriate authorities and on final determination the balance if any is paid. We havebeen informed that there are no undisputed dues which have remained outstanding as at thelast day of the financial year for a period of more than six months from the date theybecame payable.

b) According to the information and explanations given to us there are no dues ofIncome-tax Sales tax Service tax Duty of Customs Value added tax or Cess outstandingon account of any dispute other than the following:

NAME OF THE STATUTE NATURE OF DUES AMOUNT (' IN CRORE) PERIOD TO WHICH THE AMOUNT RELATES FORUM WHERE DISPUTE IS PENDING
The Central Sales Tax Act Sales Tax 0.80 1998-99 The Sales Tax Appellate Tribunal
1956 0.87
The Bombay Sales Tax Act Sales Tax 0.07 1995-96 The High Court at Bombay
1959 0.07 1996-97
0.09 1997-98
3.86 1998-99 The Sales Tax Appellate Tribunal
0.70
1.00 2001-02 Commissioner of Sales Tax
(Appeals)
The Maharashtra VAT Act VAT 0.00* 2009-10 Sales Tax Officer
2005 0.00* 2010-11
The Maharashtra Land Transfer charges for office premises under the scheme of demerger 1.24 2002-03 The High Court at Bombay
Revenue Code 1966
Transfer Charges for office Premises 3.10 2003-04 The High Court at Bombay
Customs Act 1962 Custom Duty regarding vessels at different ports 0.04 2009-10 Commissioner of Customs (Appeals) Jamnagar
0.44 2010-11 CESTAT Ahmedabad
0.07 2011-12
0.02 2011-12 Commissioner of Customs (Appeals) Bhubaneshwar
5.56 2012-13 The High Court at Ahmedabad Chennai and Bhubaneswar
0.37 2012-13 Commissioner of Customs (Appeals) Jamnagar
0.01 2013-14 Commissioner of Customs (Appeals) Kolkata
Income-tax Act 1961 Income-tax 0.75 2007-08 Income Tax Appellate Tribunal Mumbai
0.08 2008-09 Income Tax Appellate Tribunal Mumbai
0.05 2009-10 Income Tax Appellate Tribunal Mumbai
0.03 2013-14 Asst. Commissioner of Income Tax
The Major Port Trusts Act 1963 Wharfage Charges 0.99 2014-15 The High Court of Judicature at Madras

8. According to the information and explanations given to us and based on the documentsand records produced before us there has been no default in repayment of dues to banks ordebenture holders. There are no dues to financial institutions or Government.

9. According to the information and explanations given to us and the records examinedby us the term loans obtained by the Company were applied for the purpose for which theloans were obtained. The Company did not raise any money by way of initial public offer orfurther public offer (including debt instruments) during the year.

10. During the course of our examination of the books of account and records of theCompany to the best of our knowledge and belief and according to the information andexplanations given to us by the Management no fraud on or by the Company has beennoticed or reported during the year.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company; hence the provisions of Clause 3(xii) of the Order are notapplicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Ind AS Financial Statements as requiredby the applicable accounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with Directors or persons connected with him. Accordingly the provisions ofClause 3(xv) of the Order are not applicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For KALYANIWALLA & MISTRY LLP

CHARTERED ACCOUNTANTS

Firm Regn. No.: 104607W / W100166

Daraius Z. Fraser

PARTNER

M. No.: 42454

Mumbai: May 5 2017.

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 2(f) 'Report on Other Legal and Regulatory Requirements' inour Independent Auditor's Report to the members of the Company on the Standalone Ind ASFinancial Statements for the year ended March 31 2017.

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES Act 2013.

We have audited the internal financial controls over financial reporting of THE GREATEASTERN SHIPPING COMPANY LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Companies Act 2013 (the "Act" orthe "Companies Act").

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 accordancewith the Guidance Note and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Standalone Ind AS Financial Statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone Ind AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company are beingmade only in accordance with authorisations of Management and Directors of the Company;and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Ind AS Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the ICAI.

For KALYANIWALLA & MISTRY LLP

CHARTERED ACCOUNTANTS

Firm Regn. No.: 104607W / W100166

Daraius Z. Fraser

PARTNER

M. No.: 42454

Mumbai: May 5 2017.