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G S Auto International Ltd.

BSE: 513059 Sector: Auto
NSE: N.A. ISIN Code: INE736H01024
BSE 00:00 | 28 Sep 10.00 -0.01
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NSE 05:30 | 01 Jan G S Auto International Ltd
OPEN 10.25
PREVIOUS CLOSE 10.01
VOLUME 2473
52-Week high 16.45
52-Week low 3.40
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.25
CLOSE 10.01
VOLUME 2473
52-Week high 16.45
52-Week low 3.40
P/E
Mkt Cap.(Rs cr) 15
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

G S Auto International Ltd. (GSAUTOINTL) - Auditors Report

Company auditors report

To the Members of G.S. Auto International Limited Report on the Audit of the FinancialStatements

Opinion

We have audited the accompanying Ind AS financial statements of G.S. AutoInternational Limited ("the Company") which comprise the Balance Sheet asat March 31 2020 the Statement of Profit & Loss (including other comprehensiveincome) Statement of Cash Flow and the Statement of Changes in Equity for the year thenended and notes to the financial statements including summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Companies Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs(financial position) of the Company as at March 31 2020 and loss (financial performanceincluding other comprehensive income) its cash flows and changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial 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 thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. We havedetermined that there are no key audit matters to communicate in our report.

Impact of COVID-19 pandemic on Going Concern assessment of the Company

Refer Note 2( c) related to "Going Concern" and Note 2(d)(v) related to"Estimation of uncertainties relating to the global health pandemic fromCOVID-19" of the standalone financial statements

The World Health Organization in February 2020 declared COVID 19 as a pandemic.Governments around the world including India have been taking significant measures to curbthe spread of the virus including imposing mandatory lockdowns and restrictions inactivities. Consequently the Company's manufacturing plants and offices also had to beclosed down for a considerable period of time including after the year end.

These lockdowns have a significant impact on the overall economic activity in India andin particular on the automotive industry. Accordingly the future cash flow projectionsused to assess going concern are subject to significant estimation uncertainties.

In view of the above we have identified our assessment of the going concern basis ofaccounting as a key audit matter.

How the matter was addressed in our audit

In view of the significance of the matter we applied the following audit procedures inthis area among others to obtain sufficient appropriate audit evidence:

• Obtained an understanding of the Company's internal controls over itsforecasting process;

• Compared the key assumptions adopted by the Company in preparing the forecastedcash flows with our expectations based on actual cash flows of 2019-20 and ourunderstanding of the changes to the Company's business;

• Assessed the sensitivities and performed stress testing on the forecasted cashflows;

• Examined the Company's funding arrangements and evaluated the financing termsand covenants to assess its ability to renew existing loans and/or obtain additionalfinancing if the need arises;

• Assessed the adequacy of the disclosures related to application of the goingconcern assumption.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (‘the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the state of affairs(financial position) profit or loss ( financial performance including other comprehensiveincome) cash flows and changes in the equity of the Company in accordance with theaccounting principles generally accepted in India Including the Indian accountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (Indian

Accounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent :and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial informationof the Company to express an opinion on the financial statements of which we are theindependent auditors. We are responsible for the direction supervision and performance ofthe audit of financial information of the Company.

We communicate 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 that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we are required todetermine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

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 purpose 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 thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as on March312020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312020 from being appointed as a director in terms of section 164 (2) of theAct;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B" ;

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial Statements - Refer Note 37 to the financialstatements.

ii. According to the information and explanations provided to us the Company did nothave any long term contracts including derivative contracts for which there were anymaterial foreseeable losses.

iii. There has been no delay in the transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company.

For SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Place:Ludhiana Partner
st
Date: 31 July 2020 Membership Number: 093100
UDIN:20093100AAAAFY9401

Annexure A referred to the Independent Auditor's Report of even date to the members of"G.S. Auto International Limited" on the Ind AS financial statements for theyear ended March 31 2020.

Re: G.S. Auto International Limited ("the Company")

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b) The Company has a regular program of physical verification of its fixed assets underwhich fixed assets are verified in a phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c) The title deeds of all the immoveable properties (which are included under the head"Property Plant and Equipment") are held in the name of the Company

(ii) In our opinion the management has conducted physically verification of inventoryat reasonable intervals during the year. No material discrepancies were noticed on suchverification.

(iii) As informed to us the Company has not granted any loans secured or unsecuredto any of the companies firms limited liability partnerships or other parties covered inthe register maintained by the Company under section 189 of the Companies Act 2013.

(iv) In our opinion the Company has complied with the provisions of Section 185 and 186of the Act in respect of loans and investments. The Company has not given any guaranteesor provided security during the year.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended).

(vi) We have broadly reviewed the accounts and records maintained by the Companypursuant to the rules made by the Central Government for the maintenance of the costrecords under section 148(1) of the Companies Act 2013 related to the maintenance ofmanufacture of auto components and are of the opinion that prima facie the specifiedaccounts and records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Wealth tax Service tax sales tax duty of customs duty of excise Value Added TaxCess and other statutory dues including GST as applicable to it. Further no undisputedamounts payable in respect thereof were outstanding at the year end for a period of morethan six months from the date they became payable except in case of Provident Fund andemployees' State Insurance deposited after due dates in some months.

b) According to the records of the Company the dues outstanding of the Income Tax onaccount of any dispute are as follows:-

Name of the Statute Nature of the dues Period to which it relates(AY) Amount (Rs Lakhs)* Forum where dispute is pending
Income tax Act 1961 Income Tax including interest as applicable 2008-09 97.54 Commossioner (Appeals)
Income tax Act 1961 Income Tax including interest as applicable 2009-10 23.51 Commossioner (Appeals)
Income tax Act 1961 Income Tax including interest as applicable 2009-10 36.30 Commossioner (Appeals)
Income tax Act 1961 Income Tax including interest as applicable 2010-11 62.23 ITAT/Commossioner (Appeals)
Income tax Act 1961 Income Tax including interest as applicable 2011-12 94.44 ITAT/Commossioner (Appeals)
Income tax Act 1961 Income Tax including interest as applicable 2012-13 273.11 Commossioner (Appeals)

*Net of amount deposited under protest.

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loans during the year.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the year.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith requisite approvals mandated by the provisions of Section 197 read with Schedule V tothe Companies Act 2013.

(xii) The Company is not a nidhi Company. Accordingly provisions of clause 3(xii) ofthe Order are not applicable.

(xiii) In our opinionall transactions with the related parties are in compliance withsection 177 and 188 of the Companies Act 2013 where applicable and the requisite detailshave been disclosed in the financial statements etc. as required by the applicable IndAS.

(xiv) During the yearthe Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinionthe Company has not entered into any non-cash transactions withdirectors or persons connected with them covered under Section 192 of the Companies Act2013.

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

For SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Partner
Place: Ludhiana Membership Number: 093100
st
Date: 31 July 2020 UDIN:20093100AAAAFY9401

Annexure B to the Independent Auditor's Report of even date on the Ind AS financialstatements of G.S. Auto International Limited

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

In conjunction with our audit of the Ind AS financial statements of "G.S. AutoInternational Limited" (‘the Company') as of and for the year ended March31 2020 we have audited the internal financial controls over financial reporting of theCompany as of that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls over financial reporting. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was 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 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 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 systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly 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 expenditures of the Company are being made only inaccordance with authorizations of 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 Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 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 SUKHMINDER SINGH & CO.
Chartered Accountants
ICAI Firm Registration Number: 016737N
Sd/-
(Sukhminder Singh)
Partner
Place: Ludhiana Membership Number: 093100
st
Date: 31 July 2020 UDIN:20093100AAAAFY9401

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