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GI Engineering Solutions Ltd.

BSE: 533048 Sector: IT
NSE: GISOLUTION ISIN Code: INE065J01016
BSE LIVE 15:14 | 17 Oct 4.48 0.08
(1.82%)
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NSE 10:19 | 06 Jul Stock Is Not Traded.
OPEN 4.48
PREVIOUS CLOSE 4.40
VOLUME 200
52-Week high 6.50
52-Week low 2.65
P/E
Mkt Cap.(Rs cr) 4
Buy Price 4.18
Buy Qty 200.00
Sell Price 4.48
Sell Qty 200.00
OPEN 4.48
CLOSE 4.40
VOLUME 200
52-Week high 6.50
52-Week low 2.65
P/E
Mkt Cap.(Rs cr) 4
Buy Price 4.18
Buy Qty 200.00
Sell Price 4.48
Sell Qty 200.00

GI Engineering Solutions Ltd. (GISOLUTION) - Auditors Report

Company auditors report

TO THE SHAREHOLDERS OF GI ENGINEERING SOLUTIONS LIMITED

TO

THE MEMBERS OF GI ENGINEERING SOLUTIONS LTD

Report on the Financial Statements

We have audited the accompanying standalone financial statements of GI ENGINEERINGSOLUTIONS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

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 preparationof these standalone financial statements that 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 the accounting records relevant to the preparation and presentation ofthe 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 financial statementsbased on our audit.

We have taken into account the provisions of the Act the Accounting and Auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors’ judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation 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 loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the provisions of ‘the Companies (Auditor’s Report) Order2016’ issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act (hereinafter referred to as the "Order") and on thebasis of such checks of the books and records of the Company as we considered appropriateand according to the information and explanations given to us we give in the "AnnexureA" statement on the matters specified in paragraphs 3 and 4 of the Order;

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 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".

(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 as at March 31 2016 onits financial position in its standalone financial statements – Refer Note 16 to theConsolidated Financial Statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended March 31 2016.

For DIXIT DATTATRAY & ASSOCIATES
Chartered Accountants
(Firm Registration No.102665W)
(D.B. Dixit)
(Proprietor)
MumbaiMay 30 2016 (Membership No. 40032)

ANNEXURE 'A'

TO THE INDEPENDENT AUDITORS’ REPORT

We report that referred to in paragraph 1 under the heading ‘Report on OtherLegal & Regulatory Requirement’ of our report of even date of GI EngineeringSolutions Limited :

(i)(a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;

(b) The fixed assets have been physically verified by the management as per a phasedprogramme of verification. In our opinion the frequency of verification is reasonablehaving regard to the size of the Company and the nature of its assets. The discrepanciesreported on verification were not material and have been properly dealt with in the booksof account.

(c) According to information and explanations given to us and on the basis of ourexamination of the records of the company title deeds of immovable properties are held inthe name of the Company.

(ii) The Company is in the business of rendering services and consequently does nothold any inventory.

Therefore the provisions of Clause 3(ii) of the said Order are not applicable to theCompany

(iii) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act.Accordingly Clause (iii) (a) (b) and (c) of Paragraph 3 of the Order are not applicable tothe Company.

(iv) The Company has not granted any loans or made any investments or provided anyguarantees or security to the parties covered under Section 185 and 186.

Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany.

(v) The Company has not accepted any deposits during the year from the public withinthe meaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under tothe extent notified. Accordingly

The provisions of Clause 3(v) of the Order are not applicable to the Company;

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company. Therefore the provisons of Clause vi of Paragraph 3 of the Order are not applicable to the company.

(vii) In respect of statutory dues :

(a) According to the records of the Company undisputed statutory dues includingprovident fund employees’ state insurance income-tax sales-tax wealth tax dutyof customs duty of excise value added tax cess and any other statutory dues have beengenerally regularly deposited with appropriate authorities.

Based on the information and explanations given to us and records of the companyexamined by us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2016 for a period of more than 6 months from the date ofbecoming payable.

(b) According to the records of the Company the dues outstanding of income tax salestax service tax customs duty wealth tax excise duty and cess which have not beendeposited as at March 31 2016 on account of any dispute are given below:

Statute and nature of dues Assessment Year Amount (Rs. in lakhs) Forum where dispute is pending
Income Tax Act 1961 2009-10 3.78 DCIT
Income Tax Act 1961 2011-12 14.38 DCIT

(viii) As the Company does not have any borrowings from any financial institution orbank or Government nor has it issued any debentures as at the balance sheet date theprovisions of Clause 3(viii) of the Order are not applicable to the Company.

(ix) The company has not raised any term loans accordingly the provision of Clause3(ix) of the Order are not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice 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 have we been informed of any such case by themanagement.

(xi) No managerial remuneration has been paid or provided during the year accordinglythe provision of Clause 3(xi) of the Order are not applicable to the Company.

(xii) As the Company is not a Nidhi Company the provisions of clause 3 (xii) of theOrder are not applicable to the Company;

(xiii) The Company has entered into transactions with related parties in compliancewith the provisions of Section 177 and 188 of the Act. The details of such related partytransaction have been disclosed in the financial statements as required under accountingstandard AS 18 - Related Party disclosers specified under Section 133 of the CompaniesAct 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debenture during the year under review. AccordinglyThe provisions of Clause 3(xiv) of the Order are not applicable to the Company;

(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company;

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

For DIXIT DATTATRAY & ASSOCIATES
Chartered Accountants
(Firm Registration No.102665W)
(D.B. Dixit)
(Proprietor)
Mumbai May 30 2016 (Membership No. 40032)

ANNEXURE 'B'

TO THE INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GIENGINEERING SOLUTIONS LIMITED ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theperiod 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 Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate 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 judgement including the assessment of the risks ofmaterial misstatement 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 controlssystem over 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the 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 31st March 2016 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 Institute of CharteredAccountants of India.

For DIXIT DATTATRAY & ASSOCIATES
Chartered Accountants
(Firm Registration No.102665W)
(D.B. Dixit)
(Proprietor)
Mumbai May 30 2016 (Membership No. 40032)