TO THE MEMBERS OF G G ENGINEERING LIMITED
Report on the Standalone financial statements
We have audited the accompanying standalone financial statements of G. G. EngineeringLimited ('The Company") which comprise the Balance Sheet as at 31st March 2021Statement of the Profit & Loss ( including other comprehensive income) changes inequity and the cash flow statement for the year ended including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").
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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 and Profit & Loss and otheTcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode ot Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the standalone Ind AS financial statements.
Emphasis of Matter Paragraph
a) We draw attention that we have not verified the Quantitative and physical Stock yearto date. The Stock has been verified by third party and the reportis provided to us As perStandard on Auditing 600 Using the Work of another Auditor the stock audit report hasbeen provided to us and we have relied on the work done by other auditor.
b) We draw attention to Note 5 to the Standalone Audited Financial Results in which thecompany describes the uncertainties arising from the COVID 19 Pandemic.
c) We draw attention to note no 28 to the Standalone Audited Financial Results in whichthe company has disclosed the Contingent liability of Rs. 7522748/- towards disputedincome tax demand. The management have the opinion that the outcome of the appeal would bein favour of the company hence no provision has been provided.
As per IND AS 37: PROVISIONS CONTINGENT LIABILITIES AND CONTINGENT ASSETS we are ofthe opinion that the its not a contingent liability. As per our opinion the Probability offavorable outcome is less than 50% in company's favour hence provision should haveprovided for the liability arising out of income tax dispute.
d) We draw attention that the Company has not provided CST liability on the advancesreceived by the Company from vendors. The impact of the liability is not ascertained ourconclusion is not modified in respect of the above all matters.
Management's Responsibility for the Standalone Financial Statements
The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs profit and loss(including other comprehensive income) changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibdity also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends Lo liquidate the Company or to ceaseoperations or has no realistic alternative but to do so Board of Directors is alsoresponsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of in temal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls with reference to standalone financial statementsin place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. CXir conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial thatindividually or in aggregate makes it probable that the economic decisions of areasonable knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financialstatements.
We communicative with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters Lhat may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein "Annexure A" a statement on the matters specified in paragraphs 3 and 4 ofthe 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 ol Profit and Loss the Standalone Statement ofChanges in Equity and the Statement of Cash Flows dealt with by this Report are inagreement with the relevant 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 2021 taken on record by the Board of Directors none ol the directors isdisqualified as on 31st March 2021 from being appointed as a director m terms of Section164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B". Our Report express an unmodifiedopinion on the adequacy and operating effectiveness of the company's internal financialcontrols over financial reporting.
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 information and according to the explanations given to us wefurther report that:
i. The Company has disclosed the impact of pending litigations as at 3lst March 2021 onits financial position in its standalone financial statements;
ii The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses
iii There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
FRN - 134565W
Membership No.: 154074
Date: 29th June 2021
ANNEXURE A TO THE AUDITORS' REPORT
The Annexure referred under "Report on other Legal and RegulatoryRequirement's" section of our
Independent Auditors report to the members of the company on the standalone financialstatements for the year ended 31st March 2021 we report that:
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) Fixed assets (Property Plant & Equipment) have been physically verif ied by themanagement during the year and no material discrepancies were identified on suchverification.
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 propertiesincluded in fixed assets are held in the name of the Company as at balance sheet date.
ii) The inventory has been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable. No material discrepancies werenoticed on verification between the physical stock and the book records.
iii) According to the information and explanations given to us and on the basis ofexamination of the records of the company
a) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships (LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act'). Accordingly the provisionsstated in paragraph 3 (iii) (a) to (c) of the Order are not applicable to the Company.
b) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 73 74 75 and 76 of the Act therules framed there under and the Circulars notifications issued from time to time withregard to the deposits accepted. No order has been passed by the Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunalin this respect
The provisions of sub-section (1) of section 148 of the Act are not applicable to theCompany as the Central Government of India has not specified the maintenance of costrecords for any of the products of the Company. Accordingly the provisions stated inparagraph 3 (vi) of the Order are not applicable to the Company.
iv) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income-tax goods and service tax duty of customs cess and any otherstatutory dues applicable to it.
v) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duly of custom duty of excise value added tax goods and service tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.
vi) According to the information and explanation given to us and examination of recordsof the Company the outstanding dues of income-tax goods and service tax customs dutycess and any other statutory dues on account of any dispute are as follows;
|Name of the statute ||Nature of dues ||Amount Rs. ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Litigated Statutory Liability ||7522748 ||AY 17-18 ||CIT Appeals |
vii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to the financial institution hank ordebenture holders.
viii) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordingly theprovisions stated in paragraph 3 (ix) of the Order are not applicable to the Company.
ix) During the course of our audit examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees.
x) 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.
xi) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions stated in paragraph 3(xii) ofthe Order are not applicable to the Company.
xii) 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 transactionswith the related parties as stated in the provisions of the sections 177 and 188 of theAct. Accordingly provisions stated in paragraph 3(xiii) of the Order are not applicableto the Company.
xiii) 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. Accordmgly the provisions stated in paragraph 3 (xiv) of the Order are notapplicable to the Company.
xiv) 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 provisions statedin paragraph 3(xv) of the Order are not applicable to the Company.
xv) In our opinion the Company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions stated in paragraphclause 3 (xvi) of the Order are not applicable to the Company.
FRX - 134565W
Membership No.: 154074
Date: 29" June 2021
ANNEXURE B TO AUDITOR S REPORT
Referred to in paragraph 2 (f) under "Report on other Legal and RegulatoryRequirement's" section of our report to the members of G. G. ENGINEERING LIMITED ofeven date
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 G. G.ENGINEERING LIMITED as of 31st March 2021 in. conjunction with our audit of the financialstatements of the Company for the year ended on that date.
Management's Responsibility for the Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls 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 and adequacy of internal financialcontrols that were operating effectively for ensuring the orderly and efficient conductof its business including adherence to the Company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.
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 Guidance Note in Audit of Internal Financial Controls over Financial Reporting (theGuidance Note) and the Standards on Auditing issued by ICAI and deemed to be prescribedunder Section 143 (10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India (ICAI). ThoseStandards and the Guidance Note require that vve comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate InternalFinancial Controls over financial reporting were established and maintained and if suchcontrols 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 included obtaining anunderstanding of Internal Financial Controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of Internal Financial Controls based on the assessed risk. The proceduresselected depend on the auditors' judgment 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 Controls overfinancial reporting.
Meaning Of Internal Financial Controls over Financial Reporting
A company's Internal Financial Controls 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 Controls over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of the records that in reasonable detail accuratelyand fairly 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 expenditure of the Company are being made only inaccordance with authorization of the 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 Limitation of Internal Financial Controls Over Financial Reporting
Because of the inherent limitation of Internal Financial Controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or frauds may occur and not be detected.Also projection of tiny evaluation of the Internal Financial Controls over financialreporting to future periods are subject to the risk that the Internal Financial Controlsover financial reporting may become inadequacy because of changes in condition or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate Internal Financial Controlsover financial reporting and such Internal Financial Controls over financial reportingwere operating effectively as at 31st March 2021 based on the Internal Controls overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
FRN - 134565W
Membership N'o.: 154074
UDIN: 2154074 A A A ACT7307
Date: 29th June 2021