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Gujarat Pipavav Port Ltd.

BSE: 533248 Sector: Others
NSE: GPPL ISIN Code: INE517F01014
BSE LIVE 15:56 | 18 Aug 137.50 -0.75
(-0.54%)
OPEN

137.00

HIGH

138.70

LOW

135.70

NSE 15:56 | 18 Aug 138.40 0.45
(0.33%)
OPEN

137.50

HIGH

139.20

LOW

136.65

OPEN 137.00
PREVIOUS CLOSE 138.25
VOLUME 743293
52-Week high 197.35
52-Week low 121.20
P/E 27.01
Mkt Cap.(Rs cr) 6,647
Buy Price 137.50
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00
OPEN 137.00
CLOSE 138.25
VOLUME 743293
52-Week high 197.35
52-Week low 121.20
P/E 27.01
Mkt Cap.(Rs cr) 6,647
Buy Price 137.50
Buy Qty 100.00
Sell Price 0.00
Sell Qty 0.00

Gujarat Pipavav Port Ltd. (GPPL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

Gujarat Pipavav Port Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Gujarat PipavavPort Limited("the Company") which comprise the Balance Sheet as at 31 March2016 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 theAccounting 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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. 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.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' 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 Directors as well as evaluating the overall presentationof the financial statements.

7. 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

8. 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 31 March 2016 and its profit and its cash flows for the year ended on that date.

Other Matter

9. The standalone financial statements of the Company for the fifteen months ended31March 2015 were audited by another firm of chartered accountants under the CompaniesAct 1956/ Companies Act 2013 who vide their report dated 28 May 2015 expressed anunmodified opinion on those financial statements.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

10. As required by 'the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

11. 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 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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 theCompany and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.

(g) With respect to the other matters to be included in the Auditors' 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. The Company has disclosed the impact of pending litigations as at 31 March 2016 onits financial position in its standalone financial statements - Refer Note 31

ii. The Company has long-term contracts as at 31 March 2016 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts as at 31March 2016.

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

For Price Waterhouse
Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
Priyanshu Gundana
Mumbai Partner
19 May 2016 Membership Number 109553

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph [12(f)] of the Independent Auditors' Report of even date tothe members of Gujarat Pipavav Port Limited on the Standalone financial statements as ofand for the year ended 31 March 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection143 of the Act

1. We have audited the internal financial controls over financial reporting of GujaratPipavav Port Limited ("the Company") as of 31 March 2016 in conjunction withour audit of the Standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. 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 company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

3. 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 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 ICAI. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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

6. A company's internal financial control 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. 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. 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

8. 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 31 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 Price Waterhouse
Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
PriyanshuGundana
Mumbai Partner
19 May 2016 Membership Number 109553

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph [11] of the Independent Auditors' Report of even date to themembers of Gujarat Pipavav Port Limited on the standalone financial statements as of andfor the year ended 31 March 2016.

i. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of 3 years which in our opinionis reasonable having regard to the size of the Company and the nature of its assets.Pursuant to the programme a portion of the fixed assets has been physically verified bythe Management during the year and no material discrepancies have been noticed on suchverification.

(c) The title deeds of immovable properties other than self constructed properties asdisclosed in fixed assets (Note 11) to the financial statements are held in the name ofthe Company except for a free hold land of gross and net book value of Rs. 1.47 millionregistered in the name of Associate Company - Pipavav Railway Corporation Limited.

ii. The physical verification of inventory have been conducted at reasonable intervalsby the Management during the year.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Therefore the provisions of Clause 3(iii) (a) (iii)(b) and(iii)(c) of the said Order are not applicable to the 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 theprovisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 74 75 and 76 of the Act and the Rules framed there under to the extentnotified.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.

vii. (a) According to the information and explanations given to us and the records ofthe Company examined by us in

our opinion the Company is generally regular in depositing undisputed statutory duesin respect of professional tax income tax and service tax though there has been a slightdelay in a few cases and is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance sales tax duty of customs duty of excisevalue added tax cess and other material statutory dues as applicable with theappropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of sales-tax service-tax duty of customs dutyof excise or value added tax which have not been deposited on account of any dispute. Theparticulars of dues of income tax as at 31 March 2016 which have not been deposited onaccount of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs in million) Period to which the amount relates Forum where the dispute is pending
Income tax Act 1961 Tax deducted at source 6.50 2005-06 Commissioner of Income Tax appeals
Income tax Act 1961 Tax deducted at source 2.69 2006-07 and 2007-08 Income Tax Appellate Tribunal
Income tax Act 1961 Tax deducted at source 0.73 2007-08 Assessing Officer
Income tax Act 1961 Tax deducted at source 5.54 2007-08 and 2008-09 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.02 2008-09 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.07 2009-10 Assessing Officer
Income tax Act 1961 Tax deducted at source 2.27 2010-11 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.41 2011-12 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.24 2011-12 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.49 2012-13 Assessing Officer
Income tax Act 1961 Tax deducted at source 0.08 2013-14 Assessing Officer

viii. As the Company does not have any loans or borrowings from any financialinstitution or bank or Government nor has it issued any debentures as at the balancesheet date the provisions of Clause 3(viii) of the Order are not applicable to theCompany.

ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans. Accordingly the provisions ofClause 3(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 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 have we been informed of any such case by theManagement.

xi. The Company has paid/ provided for managerial remuneration in accordance withtherequisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Act.

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 related parties in compliance withthe 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 (AS) 18 Related Party Disclosures specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014.

xiv. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactions with its directors orpersons connected with him. Accordingly the provisions of Clause 3(xv) of the Order arenot applicable to the Company.

xvi. 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 Price Waterhouse
Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
Priyanshu Gundana
Mumbai Partner
19 May 2016 Membership Number 109553