G G Engineering Ltd.
|BSE: 540614||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE694X01030|
|BSE 00:00 | 08 Feb||1.15||
|NSE 05:30 | 01 Jan||G G Engineering Ltd|
G G Engineering Ltd. (GGENGINEERING) - Auditors Report
Company auditors report
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. Engineering Limited ('The Company") which comprise the Balance Sheet as at 31stMarch 2022 Statement of the Profit & Loss (including other comprehensive income)changes in equity and the cash flow statement for the year ended including a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as "the standalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("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 2022and Profit & Loss and other comprehensive income changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalone Ind ASfinancial statements.
Emphasis of Matter Paragraph
a) We draw attention that we have not verified the Quantitative andphysical Stock year to date. The Stock has been verified by third party and the report isprovided to us.
As per Standard on Auditing 600 Using the Work of another Auditor thestock audit report has been provided to us and we have relied on the work done by otherauditor.
b) We draw attention that the Company has not provided GST liability onthe advances received by the Company from vendors. The impact of the liability is notascertained
Our conclusion is not modified in respect of the above all matters.
c) We draw the attention that the company had discontinued itsoperation in situated at Palej Industrial Estate Bharuch Gujrat pertaining to Gensetmanufacturing. The company also sells its Agriculture land situated at village BisaharaPargana Dadri G B Nagar Uttar Pradesh during the year.
d) We draw attention to note no 13 to the Standalone Audited FinancialResults in which the company has disclosed that the promoter of the company had reducedtheir stake in the company by 42.80% through selling the share in the open market.
e) We draw attention to note no 28 to the Standalone Audited FinancialResults in which the company has disclosed the Contingent liability of ^ 7522748/-towards disputed income tax demand. The management have the opinion that the outcome ofthe appeal would be in favor of the company hence no provision has been provided.
As per IND AS 37: PROVISIONS CONTINGENT LIABILITIES AND CONTINGENTASSETS we are of the opinion that it's not a contingent liability. As per our opinion theProbability of favorable outcome is less than 50% in company's favor hence provisionshould have provided for the liability arising out of income tax dispute.
Management?s Responsibility for the Standalone FinancialStatements
The Company's management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit and loss ( including other comprehensive income) changes in equity and cash flowsof the Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.
Auditor?s Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists.
Misstatements can arise from fraud or error and are considered materialif individually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the company has adequate internal financial controls with reference to standalonefinancial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial that individually or in aggregate makes it probable that the economicdecisions of a reasonable knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and factors in (i) planning the scope ofour audit work and in evaluating the results of our work; and (ii) to evaluate the effectof any identified misstatements in the financial statements.
We communicative with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
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 give in ''AnnexureA" a statement on the matters specified in
paragraphs 3 and 4 of the 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss the StandaloneStatement of Changes in Equity and the Statement of Cash Flows dealt with by this Reportare in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on 31 March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". Our
Report express an unmodified opinion on the adequacy and operatingeffectiveness of the company's internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous we further report that:
i. The Company has disclosed the impact of pending litigations as at 31March 2022 on its financial position in its standalone financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.
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 thecompany on the standalone financial statements for the year ended 31st March 2022.
To the best of our information and according to the explanationsprovided to us by the Company and the books of account and records examined by us in thenormal course of audit we state that:
i) In respect of the Company's Property Plant and Equipment andIntangible Assets:
The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.
The Company has maintained proper records showing fullparticulars of Intangible Assets.
b) The Company has a program of physical verification of PropertyPlant and Equipment and right-of-use assets so to cover all the assets at reasonableintervals which in our opinion is reasonable having regard to the size of the Companyand the nature of its assets. Pursuant to the program Property Plant and Equipment werephysically verified by the Management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
c) According to the information and explanation given to us the titledeeds of the immovable properties (other than properties where the company is the lesseeand the lease agreements are duly executed in favour of the lessee) are held in the nameof the company as at the balance sheet date.
d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets or both during the year.
a) According to the information and explanation given to us noproceedings have been initiated or are pending against the company for holding any benamiproperty under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and rules madethereunder during the year.
a) The management has conducted physical verification of inventory atreasonable intervals during the year in our opinion the coverage and procedure of suchverification by the management is appropriate. As informed to us any discrepancies of 10%or more in the aggregate for each class of inventory were not noticed on suchverification.
b) The Company has not been sanctioned working capital limits in excessof T 5 crore in aggregate at any points of time during the year from banks or financialinstitutions on the basis of security of current assets and hence reporting under clause3(ii)(b) of the Order is not applicable.
iii) During the year the company has made investments in provided anyguarantee or security or granted any loans or advances in the nature of loans secured orunsecured to companies firms Limited Liability Partnerships or any other parties.
a) As per the information and explanation given to us the investmentsmade guarantees provided security given and the terms and conditions of the grant of allloans and advances in the nature of loans and guarantees provided are not prejudicial tothe company's interest.
b) As per the information and explanation given to us the loan grantedare repayable on demand and no repayment schedule is stipulated.
c) In the view of (d) above there is no overdue amount in respect ofthe loan taken by the company.
d) As per the information and explanation given to us no loan oradvance in the nature of loan granted which has fallen due during the year has beenrenewed or extended or fresh loans granted to settle the overdues of existing loans givento the same parties.
e) As per the information and explanation given to us the company hasgranted loans or advances in the nature of loans either repayable on demand or withoutspecifying any terms or period of repayment to Promoters related parties as defined inclause (76) of section 2 of the Companies Act 2013.
iv) According to the information and explanation given to us thecompany has no loans investments guarantees or security where provisions of section 185and 186 of the Companies Act 2013 are to be complied with.
v) The Company has not accepted any deposits or amounts which aredeemed to be deposits under the directives of the Reserve Bank of India and the provisionsof Sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed thereunder where applicable. Accordingly the provisions of clause 3(v) ofthe Order are not applicable.
vi) To the best of our knowledge and belief the Central Government hasnot specified maintenance of cost records under sub-section (1) of Section 148 of the Actin respect of Company's products/ services. Accordingly the provisions of clause 3(vi) ofthe Order are not applicable.
vii) In respect of statutory dues:
a) In our opinion the Company has generally been regular in depositingundisputed statutory dues including Goods and Services tax Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise ValueAdded Tax Cess and other material statutory dues applicable to it with the appropriateauthorities.
There were no undisputed amounts payable in respect of Goods andService tax Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax duty of Custom duty of Excise Value Added Tax Cess and other material statutorydues in arrears as at March 31 2022 for a period of more than six months from the datethey became payable.
b) Details of statutory dues referred to in sub-clause (a) above whichhave not been deposited as on March 31 2022 on account of disputes are given below:
According to the information and explanation given to us company hasno transactions not recorded in the books of account have been surrendered or disclosedas income during the year in the tax assessments under the Income Tax Act 1961 (43 of1961)
viii) a. In our opinion the company has not defaulted in repayment ofloans or other borrowings or in the payment of interest thereon to any lender during theyear.
b. Company is not declared willful defaulter by any bank or financialinstitution or other lender.
c. According to the information and explanation given to us term loanswere applied for the purpose for which the loans were obtained.
d. According to the information and explanation given to us fundsraised on short term basis have not been utilized for long term purposes.
e. According to the information and explanation given to us thecompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries associates or joint ventures.
f. According to the information and explanation given to us thecompany has not raised loans during the year on the pledge of securities held in itssubsidiaries joint ventures or associate companies.
ix) The Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
During the year the Company has not made any preferential allotment orprivate placement of shares or convertible debentures (fully or partly or optionally) andhence reporting under clause 3(x)(b) of the Order is not applicable.
x) a. According to the information and explanation given to us anyfraud by the company or any fraud on the company has not been noticed or reported duringthe year.
b. No report under sub-section (12) of section 143 of the Companies Acthas been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government during the year and upto the date of this report.
c. According to the information and explanation given to us nowhistle-blower complaints received during the year (and upto the date of this report)while determining the nature timing and extent of our audit procedures.
xi) Company is not a Nidhi company accordingly provisions of theClause 3(xii) of the Order is not applicable to the company.
xii) In our opinion the Company is in compliance with Section 177 and188 of the Companies Act 2013 with respect to applicable transactions with the relatedparties and the details of related party transactions have been disclosed in thestandalone financial statements as required by the applicable accounting standards.
xiii) According to the information and explanations given to us thecompany has an internal audit system commensurate with the size and nature of itsbusiness.
We have considered the internal audit reports for the year under auditissued to the Company during the year. in determining the nature timing and extent of ouraudit procedures.
xiv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordinglyprovisions stated in paragraph 3(xv) of the Order are not applicable to the Company.
xv) In our opinion the Company is not required to be registered undersection 45 IA of the Reserve Bank of India Act 1934 and accordingly the provisionsstated in paragraph clause 3 (xvi) of the Order are not applicable to the Company.
In our opinion there is no core investment company within the Group(as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvi) The Company has incurred cash losses during the financial yearcovered by our audit and the immediately preceding financial year.
xvii) There has been no resignation of the statutory auditors duringthe year and accordingly the provisions of clause 3(xviii) of the Order is notapplicable.
xviii) On the basis of the financial ratios ageing and expected datesof realisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements and our knowledge of the Board of Directors andManagement plans and based on our examination of the evidence supporting the assumptionsnothing has come to our attention which causes us to believe that any materialuncertainty exists as on the date of the audit report indicating that Company is notcapable of meeting its liabilities existing at the date of balance sheet as and when theyfall due within a period of one year from the balance sheet date. We however state thatthis is not an assurance as to the future viability of the Company. We further state thatour reporting is based on the facts up to the date of the audit report and we neither giveany guarantee nor any assurance that all liabilities falling due within a period of oneyear from the balance sheet date will get discharged by the Company as and when they falldue.
xix) There are no unspent amounts towards Corporate SocialResponsibility (CSR) on other than ongoing projects requiring a transfer to a Fundspecified in Schedule VII to the Companies Act in compliance with second proviso tosub-section (5) of Section 135 of the said Act. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.
There are no unspent amounts towards Corporate Social Responsibility(CSR) on ongoing projects requiring a transfer to a Fund specified in Schedule VII to theCompanies Act in compliance with second proviso to subsection (5) of Section 135 of thesaid Act. Accordingly reporting under clause 3(xx)(b) of the Order is not applicable forthe year.
ANNEXURE B TO AUDITOR?S REPORT
Referred to in paragraph 2 (f) under "Report on other Legal andRegulatory Requirement?s" section of our report to the members of G. G.ENGINEERING LIMITED of even date
Report on the Internal Financial Controls under clause (i) of subsection 3 of section 143 of the Companies Act 2013 (the Act?)
We have audited the internal financial controls over financialreporting of G. G. ENGINEERING LIMITED as of 31st March 2022 in conjunctionwith our audit of the financial statements 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 andmaintaining internal financial controls based on the internal controls over financialreporting criteria established by the company considering the essential components ofinternal control stated in the Guidance Note on Audit of internal financial controls overFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI)these responsibilities include the design implementation and maintenance and adequacy ofinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with Guidance Note in Audit of Internal Financial Controls over FinancialReporting (the Guidance Note) and the Standards on Auditing issued by ICAI and deemed tobe prescribed under Section 143 (10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India(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 were established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the Internal Financial Controls system over financial reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over financial reportingincluded obtaining an understanding of Internal Financial Controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of Internal Financial Controls based on theassessed risk. The procedures selected depend on the auditors' judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or 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 over financial reporting.
Meaning Of Internal Financial Controls over Financial Reporting
A company's Internal Financial Controls over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's Internal Financial Controlsover financial reporting includes those policies and procedures that (1) pertain to themaintenance of the 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 expenditure of the Company are being made only in accordance with authorization of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitation of Internal Financial Controls Over FinancialReporting
Because of the inherent limitation of Internal Financial Controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or frauds may occur and not bedetected. Also projection of any evaluation of the Internal Financial Controls overfinancial reporting to future periods are subject to the risk that the Internal FinancialControls over financial reporting may become inadequacy because of changes in conditionor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us the company has in all material respects an adequate InternalFinancial Controls over financial reporting and such Internal Financial Controls overfinancial reporting were operating effectively as at 31st March 2022 based onthe Internal Controls over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.