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Garden Reach Shipbuilders & Engineers Ltd.

BSE: 542011 Sector: Others
NSE: GRSE ISIN Code: INE382Z01011
BSE 00:00 | 22 Oct 184.15 8.95
(5.11%)
OPEN

174.95

HIGH

191.05

LOW

174.30

NSE 00:00 | 22 Oct 184.30 9.00
(5.13%)
OPEN

173.95

HIGH

191.45

LOW

172.90

OPEN 174.95
PREVIOUS CLOSE 175.20
VOLUME 70726
52-Week high 191.05
52-Week low 77.00
P/E 17.13
Mkt Cap.(Rs cr) 2,109
Buy Price 184.15
Buy Qty 1331.00
Sell Price 184.00
Sell Qty 70.00
OPEN 174.95
CLOSE 175.20
VOLUME 70726
52-Week high 191.05
52-Week low 77.00
P/E 17.13
Mkt Cap.(Rs cr) 2,109
Buy Price 184.15
Buy Qty 1331.00
Sell Price 184.00
Sell Qty 70.00

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF GARDEN REACH SHIPBUILDERS & ENGINEERS LIMITED

The report is revised to comply with the observations made by the Comptroller &Auditor General of India with regard to the "Other Matter" para of theIndependent Auditor’s Report clause (i)(c) of "Annexure A" and"Annexure C" to the Auditor's Report. This Report supersedes our earlier Reportissued on 30h June 2017.

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Garden ReachShipbuilders & Engineers Limited ("the Company") which comprise the BalanceSheet as at 31s' March 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (in which are incorporated the returns for the year ended on thatdate audited by the Branch auditor of the Company's Branch at Ranchi).

Management's Responsibility for the Ind AS 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 equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 ofthe accounting records relevant to the preparation and presentation

of the Ind AS financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit 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 Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs (financial position) of the Company as at 31st March 2017 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Other Matter

We did not audit the financial statements of 1 (One) branch included in the financialstatements of the Company whose financial statements reflect total assets of Rs. 3073.52Lakhs as at 31s1 March 2017 and total revenues of Rs. 372.30 Lakhs for theyear ended on that date as considered in the financial statements except to the extentmentioned in the succeeding paragraph.

The Financial Statements of Ranchi Branch have been audited by the Branch Auditor whosereport has been furnished to us and our opinion in so far as it relates to the amountsand disclosures included in respect to the branch is based on the report of such branchauditor except that Fixed Asset register (including depreciation) relating to RanchiBranch and other issues (mentioned under SI. No. 3 (E) of Other Notes to the FinancialStatement of (GRSE DEP- Ranchi) and reported by the Branch Auditor as maintained at headoffice level) have been audited by us.

Our opinion is not qualified in respect of this matter. Report on Other Legal andRegulatory Requirements

1. 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 Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143 (3)oftheAct we report that:

i. 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.

ii. 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.

iii. The reports on the accounts of Ranchi Branch of the Company audited under Section143 (8) of the Act by branch auditor has been sent to us and has been properly dealt withby us in preparing this report.

iv. The Balance Sheet the Statement of Profit and Loss the Cash flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

v. In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act.

vi. On the basis of the written representations received from the directors as on 31s*March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31s1 March 2017 from being appointed as a director in termsof section 164 (2) of the Act.

vii. 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".

viii. 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:

a. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note No. 30 to the Ind AS financialstatements.

b. The Company did not have any long-term contracts including derivatives contracts forwhich there were any material foreseeable losses.

c. No amount was required to be transferred to the Investor Education and ProtectionFund by the Company.

d. The Company has provided requisite disclosures in the Ind AS financial statements asto holdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30h December 2016 and these are in accordance with thebooks of account maintained by the Company- Refer Note No. 38 to the Ind AS financialstatements.

3. As required by the sub-section (5) of section 143 of the Act we give in Annexure Ca statement on the matters contained in directions issued by Comptroller & AuditorGeneral of India in terms of aforesaid section.

For G.P. Agrawal & Co.

Chartered Accountants

Firm's Registration No. - 302082E

(CA. Ajay Agrawal)
Place of Signature: Kolkata Partner
Date: 29h day of July 2017 Membership No. 17643

"Annexure A" to the Independent Auditor's Report

Statement referred to in paragraph 'Report on Other Legal and Regulatory Requirements'of our report of even date to the members of Garden Reach Shipbuilders & EngineersLimited on the Ind AS Financial Statements for the year ended 31s' March 2017

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

b) The fixed assets have been physically verified by the management during the year atperiodical intervals as per the programme of physical verification of fixed assets. To thebest of our knowledge no material discrepancy was noticed on such verification and in ouropinion the periodicity of such physical verification is reasonable having regard to thesize of the Company and nature of its assets.

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 properties areheld in the name of the Company.

(ii) The inventories (other than those in transit and those lying with third parties)have been physically verified during the year by the management at reasonable intervals.In respect of goods lying with third parties these have substantially been confirmed bythem.

(iii) The Company has not granted any loan secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Therefore clauses (iii) (a) (b) and (c) of paragraph 3 of thesaid order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere are no loans guarantees and securities granted in respect of which provisions ofSection 185 and 186 of the Companies Act 2013 are applicable.

(v) The Company has not accepted any deposit within the meaning of section 73 to 76 orany other relevant provisions of the Act and the rules framed there under. The directivesissued by the Reserve Bank of India are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company in respect ofproducts where pursuant to the Companies (Cost Records & Audit) Rules 2014prescribed by the Central Government the maintenance of Cost records has been prescribedunder section 148(1) of the Act and are of the opinion that prima facie the prescribedcost records have been made and maintained. We however as not required have not made adetailed examination of such records.

(vii) (a) According to the information and explanations given to us and based on theexamination of the records of the Company as provided to us the Company is regular indepositing undisputed statutory dues including provident fund employees' state insuranceincome tax sales tax service tax duty of customs duty of excise value added tax cessand other statutory dues to the extent applicable with appropriate authorities and noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31s'March 2017 for a period of more than six months from the date of becoming payable.

"Annexure A" to the Independent Auditor’s Report (contd.)

(b) The disputed statutory dues aggregating to Rs. 3781.68 lakh that have not beendeposited on account of matters pending before appropriate authorities are as under:

Name of the Statute Nature of dues Period to which pertain Amount ( Rs. in lakh) Forum where the dispute is pending
1 West Bengal Value Added Tax Act 2003 Value Added Tax 2007-08 506.83 West Bengal Taxation Tribunal
2 Jharkhand Value Added Tax Act 2005 Value Added Tax 2004-05 8.80 Commercial Tax Tribunal Jharkhand
3 Central Sales Tax Act 1956 Central Sales Tax 2004-05 17.48 Commercial Tax Tribunal Jharkhand
4 Central Sales Tax Act 1956 Central Sales Tax 2009-10 188.31 Commissioner of Commercial Taxes Jharkhand
5 Central Sales Tax Act 1956 (Jharkhand) Central Sales Tax 2012-13 283.71 Revision petition and stay petition filed before the Commissioner of Commercial Taxes Ranchi.
6 Central Sales Tax Act 1956 Central Sales Tax 2010-11 1201.93 Commissioner of Commercial Taxes
7 Jharkhand Value Added Tax Act 2005 Value Added Tax 2010-11 768.01 Commissioner of Commercial Taxes
8 Central Excise Act 1944 Central Excise 2001-02 to 2005-06 17.90 Commissioner of Central Excise (Appeals)
9 Central Excise Act 1944 Central Excise 2011-12 75.54 CESTAT
10 Central Excise Act 1944 Central Excise 2016-17 106.54 Commissioner of Central Excise
11 Finance Act 1994 Service Tax 2003-04 to 2007-08 121.30 CESTAT
12 Income Tax Act 1961 Income Tax 2009-10 18.56 Deputy Commissioner of Income Tax (Rectification)
13 Income Tax Act 1961 Income Tax 2008-09 352.85 Commissioner of Income Tax (Appeal)
14 Income Tax Act 1961 Income Tax 2011-12 111.33 Commissioner of Income Tax (Appeal)
15 Income Tax Act 1961 Income Tax 2013-14 0.67 Commissioner of Income Tax (Appeal)
16 Income Tax Act 1961 Income Tax 2014-15 1.92 Commissioner of Income Tax (Appeal)
Total 3781.68

(viii) The Company has not defaulted in repayment of loans or borrowings to financialinstitutions or banks or Government. The Company has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. On the basis of our examinationand according to the information and explanations given to us money raised by way of termloans have been applied for the purpose for which the loans were obtained.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

(xi) 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.

(xii) In our opinion the Company is not a nidhi company. Therefore clause (xii) ofparagraph 3 of the said order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations give 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.

(xv) 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 them. Accordingly clause (xv) ofparagraph 3 of the said order is not applicable to the Company.

(xvi) According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For G.P. Agrawal & Co.

Chartered Accountants

Firm's Registration No. - 302082E

(CA. Ajay Agrawal)
Place of Signature: Kolkata Partner
Date: 29h day of July 2017 Membership No. 17643

"Annexure B" to the Independent Auditor's Report

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 GardenReach Shipbuilders & Engineers Limited ("the Company") as of March 31 2017in conjunction with our audit of the Ind AS financial statements of the Company for theyear ended on 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired underthe 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 both issued by the ICAI. 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 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Ind AS 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 authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 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 ICAI.

For G.P. Agrawal & Co.

Chartered Accountants

Firm's Registration No. - 302082E

(CA. Ajay Agrawal)
Place of Signature: Kolkata Partner
Date: 29th day of July 2017 Membership No. 17643