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Gujarat Industries Power Co Ltd.

BSE: 517300 Sector: Infrastructure
NSE: GIPCL ISIN Code: INE162A01010
BSE 15:44 | 17 Jan 130.30 -1.45
(-1.10%)
OPEN

132.00

HIGH

132.00

LOW

128.55

NSE 15:49 | 17 Jan 130.40 -1.15
(-0.87%)
OPEN

131.15

HIGH

131.50

LOW

128.00

OPEN 132.00
PREVIOUS CLOSE 131.75
VOLUME 37218
52-Week high 150.55
52-Week low 100.00
P/E 8.21
Mkt Cap.(Rs cr) 1,971
Buy Price 130.30
Buy Qty 548.00
Sell Price 0.00
Sell Qty 0.00
OPEN 132.00
CLOSE 131.75
VOLUME 37218
52-Week high 150.55
52-Week low 100.00
P/E 8.21
Mkt Cap.(Rs cr) 1,971
Buy Price 130.30
Buy Qty 548.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Industries Power Co Ltd. (GIPCL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

GUJARAT INDUSTRIES POWER COMPANY LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) financial statements

We have audited the accompanying standalone Ind AS financial statements of GujaratIndustries Power Company Limited ("the Company") which comprise the BalanceSheet as at 31st March 201 7 the Statement of Profit and Loss including othercomprehensive income the Statement of Cash Flow and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "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 cash flowsand changes in equity 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.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement 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 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 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 31st March 201 7 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Other Matter

The transition date opening balance sheet as at 1st April 201 5 included in thesestandalone Ind AS financial statements is based on the previously issued statutorystandalone financial statements prepared in accordance with the Companies (AccountingStandards) Rules 2006 audited by the predecessor auditor whose report for the year ended31st March 2015 dated 13th June 2015 expressed an unmodified opinion on those standalonefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the lnd AS which have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport 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 1 33 of the Act;

e. On the basis of the written representations received from the directors as on 31stMarch 201 7 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 201 7 from being appointed as a director in terms ofSection 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"; 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 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. 44 to thestandalone Ind AS financial statements;

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

iii. Amounts due and outstanding to be credited to Investor Education & ProtectionFund which was transferred on 8th May 201 7. Refer Note No. 29 to the standalone Ind ASfinancial statements and;

iv. The Company has provided requisite disclosures in the standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 201 6 to 30th December 201 6. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the Management. Refer Noteno. 13 to the standalone Ind AS financial statements.

For K. C. Mehta & Co.

Chartered Accountants

Firm's Registration No. 106237W

Vishal P. Doshi

Partner

Membership No. 101533

Place: Gandhinagar

Date: 18th May 2017

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The annexure referred to in our Independent Auditor's Report to the members of GujaratIndustries Power Company Limited ("the Company") on the standalone Ind ASfinancial statements for the year ended 31st March 201 7 we report that:

i. (a) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets (Property Plant& Equipment).

(b) The fixed assets of the Company are physically verified by the management accordingto a phased programme designed to cover all the items over a period of three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. Pursuant to the programme a portion of the fixed assets (Property Plant& Equipment) has been physically verified by the Management during the year and nomaterial discrepancies have been noticed on such 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 except for the following cases (which are awaiting legalformalities) as on date of report:

(Rs. in Lakhs)

Category of Assets Total No. of Cases Gross Block as at 31st March 2017 Net Block as at 31st March 2017
Freehold land 3 15.54 15.54

ii. As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals and as explained to us no material discrepancies werenoticed during the physical verification.

iii. In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013 and therefore reporting under clause

(iii) of the Order is not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us noloan or guarantee or security is given as per provision of section 185 and 186 of the Act.However the Company has complied with the provisions of Section 186 of the Act to theextent applicable in respect of Investments made.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year from the public within the meaningof provisions of section 73 to 76 of the Companies Act 2013 and the rules framedthereunder and therefore reporting under clause (v) of the Order is not applicable to theCompany.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe order of the Central Government for maintenance of cost records under sub-section (1)of section 148 of the Companies Act 2013 and are of the opinion that prima facie theprescribed records have been made and maintained. We have however not made a detailedexamination of the records with a view to determining whether they are accurate orcomplete.

vii. (a) In our opinion and according to the information and explanations given to usthe Company has been regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employee's state insurance income-tax salestax service tax duty of customs duty of excise value added tax cess and otherstatutory dues applicable to it. Further no undisputed amounts payable in respect ofprovident fund employee's state insurance income tax sales tax service tax duty ofcustoms duty of excise value added tax cess and any other statutory dues were inarrears as at 31st March 201 7 for a period of more than six months from the date theybecome payable.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no disputed dues in respect of value added tax duty ofcustoms and Service tax which have not been deposited. The following are the particularsof income tax and duty of excise as at 31st March 2017 which have not been deposited onaccount of dispute:

Nature of Statue Nature of Dues Amount (7 in lakhs) Period to which the amount relates Forum where the dispute is pending
Income tax Act 1961 Income Tax 0.02 A.Y. 2012-13 Commissioner of Income Tax of Appeals Baroda
Central Excise Act 1944 Excise 49.01 F.Y. 2015-16 Audit Central Excise Office Surat.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to banks. The Company does not have anyloans or borrowings from any financial institution government or debenture holders.

ix. In our opinion the Company has not raised moneys by way of initial public offer orfurther public offer (including debt instrument) and term loans during the year andtherefore reporting under clause (ix) of the Order is not applicable to the Company.

x. In our opinion and according to information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/ provided for managerial remuneration in accordance with requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to information and explanations given to us theCompany is not a Nidhi company and therefore reporting under clause (xii) of the Order isnot applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with Section 177 and 188 of the Act where applicable and thedetails have been disclosed in the standalone Ind AS financial statements as required bythe applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review and therefore reporting under clause(xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith directors and therefore reporting under clause (xv) of the Order is not applicableto the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For K. C. Mehta & Co.

Chartered Accountants

Firm's Registration No. 106237W

Vishal P. Doshi

Partner

Membership No. 101533

Place: Gandhinagar

Date: 18th May 2017

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of GujaratIndustries Power Company Limited ("the Company") as of 31st March 201 7 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 FinancialControls 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"). 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 safeguarding ofits 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 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants ofIndia(ICAI) and the Standards on Auditing issued by ICAI deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 standalone Ind AS financial statements whether due to fraudor error. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system 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 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 themaintenance of records that in 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 standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standaloneInd 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 31st March 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 Institute of CharteredAccountants of India.

For K. C. Mehta & Co.

Chartered Accountants

Firm's Registration No. 106237W

Vishal P. Doshi

Partner

Membership No. 101533

Place: Gandhinagar

Date: 18th May 2017