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Gujarat Pipavav Port Ltd.

BSE: 533248 Sector: Others
NSE: GPPL ISIN Code: INE517F01014
BSE LIVE 10:15 | 11 Dec 139.75 2.05
(1.49%)
OPEN

140.20

HIGH

140.20

LOW

138.80

NSE 10:17 | 11 Dec 139.45 1.65
(1.20%)
OPEN

138.00

HIGH

140.00

LOW

138.00

OPEN 140.20
PREVIOUS CLOSE 137.70
VOLUME 1921
52-Week high 179.00
52-Week low 121.20
P/E 29.30
Mkt Cap.(Rs cr) 6,756
Buy Price 139.25
Buy Qty 35.00
Sell Price 139.80
Sell Qty 286.00
OPEN 140.20
CLOSE 137.70
VOLUME 1921
52-Week high 179.00
52-Week low 121.20
P/E 29.30
Mkt Cap.(Rs cr) 6,756
Buy Price 139.25
Buy Qty 35.00
Sell Price 139.80
Sell Qty 286.00

Gujarat Pipavav Port Ltd. (GPPL) - Auditors Report

Company auditors report

To the Members of Gujarat Pipavav Port Limited

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying standalone Ind AS financial statements of GujaratPipavav Port Limited ("the Company") which comprise of the Balance Sheet as at31 March 2017 the Statement of Profit and Loss (including Other Comprehensive

Income) the Cash Flow Statement and the Statement of Changes in Equity for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Ind AS 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 of these standalone Ind ASfinancialstatements to give a true and fair view of comprehensive income)thefinancialpositionfinancial cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting

Standards specified in the Companies (Indian Accounting Standards) Rules 2015 (asamended) under 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 financialstatements 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 Ind AS financialstatements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethereunder.

5. We conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards and pronouncements require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone

Ind AS financial statements. The procedures selected depend on the auditors' judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thestandalone Ind AS 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 standalone Ind AS 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 Ind AS financial statements.

Opinion

8. 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 information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March

2017 and its profit (including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Other Matters

9. a) The transition date opening balance sheet as at 1 April 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutorystandalone financial statements as at 31 March 2015 and for the fifteen months period thenended prepared in accordance with the Companies (Accounting Standards) Rules 2006 (asamended) which were audited by the predecessor auditors who expressed an unmodifiedopinion vide their report dated 28 May 2015. The adjustments to those standalone financialstatements for the differences in accounting principles adopted by the Company ontransition to the Ind AS have been audited by us. b) The standalone Ind AS financialinformation of the Company for the year ended 31 March 2016 included in these standaloneInd AS financial statements arebasedonthepreviouslyissuedstatutorystandalonefinancialstatements as at and for the yearended 31 March 2016 prepared in accordance with the Companies (Accounting Standards)

Rules 2006 (as amended) which were audited by us on which we expressed an unmodifiedopinion dated 19 May 2016. The adjustments to those standalone financial statements forthe differences in accounting principles adopted by the Company on transition to the IndAS have been audited by us.

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

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of section 143 of the Act ("theOrder") and on the basis of such checks of the books and records of the Company aswe considered appropriate and according to the information and explanations given to uswe give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 ofthe 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 (including other comprehensiveincome) the Cash Flow

Statement and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2017 taken on record by the

Board of Directors none of the directors is disqualified as on 31 March 2017 frombeing appointed as a director 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 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 litigationsas at 31 March 2017 on its financial standalone Ind AS financial statements Refer Note 33;ii. The Company has long-term contracts as at 31 March 2017 for which there were nomaterial foreseeable losses. The Company did not have any derivative contracts as at 31March 2017. iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2017.iv. The Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November 2016 to 30 December 2016 and based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management – ReferNote 40.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
Priyanshu Gundana
Ahmedabad Partner
11 May 2017 Membership Number 109553

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 11(f) of the Independent Auditors' Report of even date to themembers of Gujarat Pipavav Port Limited on the standalone Ind AS financial statements asat and for the year ended 31 March 2017

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

1. We have audited the internal financial controls over financial reporting of GujaratPipavav Port Limited ("the Company") as of 31 March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

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 controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding financial 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 prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. 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 controlsoverfinancialreporting 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 material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the Ind AS financialstatements 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 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 transactions are recorded as necessary topermit preparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the Ind AS 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 risk that theinternal financial control over financial reporting may that the degree of compliance withthe 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 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 Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
Priyanshu Gundana
Ahmedabad Partner
11 May 2017 Membership Number 109553

ANNEXURE B TO INDEPENDENT AUDITORS' REPORT

Referred to in paragraph [10] of the Independent Auditors' Report of even date to themembers of Gujarat Pipavav Port Limited on the standalone Ind AS financial statements asat and for the year ended 31 March 2017. i. (a) The Company is maintaining proper recordsshowing full particulars including quantitative 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 Property Plant and statements are EquipmentNote3(a)totheInd ASfinancial heldin the name of the Company except for a free hold land of gross and net book valueof Rs. 1.47 million registered in the name of Associate Company - Pipavav RailwayCorporation Limited. ii. The physical verification of inventory have been conducted atreasonable intervals by the Management during the year. The discrepancies noticed onphysical verification of inventory as compared to book records were not material. iii. 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 Act. Therefore the provisions of Clause 3(iii)(a) (iii)(b) and (iii)(c) ofthe said Order are not applicable to the Company. iv. The Company has not granted anyloans or made any investments or provided any guarantees or security to the partiescovered under Section 185 and 186. Therefore the provisions of Clause 3(iv) of the saidOrder are not applicable to the Company. v. The Company has not accepted any deposits fromthe public within the meaning of Sections 73 74 75 and 76 of the Act and the Rulesframed there under to the extent notified. vi. The Central Government of India has notspecified the maintenance of cost records under sub-section (1) of Section 148 of the Actfor any of the products of the Company. vii. (a) According to the information andexplanations given to us and the records of the Company examined by us in our opinionthe Company is generally regular in depositing undisputed statutory dues in respect ofprofessional tax provident fund income tax service tax value added tax and cess thoughthere has been a slight delay in a few cases and is regular in depositing undisputedstatutory dues including duty of customs duty of excise and other material statutorydues as applicable with the appropriate 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 duty of customs duty of exciseand value added tax which have not been deposited on account of any dispute. Theparticulars of dues of service tax and income tax as at 31 March 2017 which have not beendeposited on account of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs in million) Period to which the amount relates (Financial year) 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 2.66 2007-08 to 2008-09 and 2010- 11 to 2016-17 Assessing Officer
Finance Act 1994 Service Tax 37.66 2008-09 and 2010-11 Customs Excise and Service Tax Appellate Tribunal

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 during the year. Accordingly theprovisions of Clause 3(ix) of the Order are not applicable to the Company. x. During thecourse of our examination of the books and records of the Company carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance ofmaterial fraud by the Company or on the Company by its officers or employees noticed orreported during the year nor have we been informed of any such case by the Management.

xi. The Company has paid/ 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 notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany. xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the Ind AS financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedunder Section 133 of the Act read with

Companies (Indian Accounting Standard) Rules 2015. xiv. The Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of Clause3(xiv) of the Order are not applicable to the Company. xv. The Company has not enteredinto any non cash transactions with its directors or persons connected with him.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 of theReserve Bank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Orderare not applicable to the Company.

For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/ N-500016
Chartered Accountants
Priyanshu Gundana
Ahmedabad Partner
11 May 2017 Membership Number 109553