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Garden Reach Shipbuilders & Engineers Ltd.

BSE: 542011 Sector: Others
NSE: GRSE ISIN Code: INE382Z01011
BSE 00:00 | 24 Feb 199.35 1.30
(0.66%)
OPEN

196.40

HIGH

203.55

LOW

196.40

NSE 00:00 | 24 Feb 199.70 1.75
(0.88%)
OPEN

198.50

HIGH

204.00

LOW

195.00

OPEN 196.40
PREVIOUS CLOSE 198.05
VOLUME 31051
52-Week high 243.20
52-Week low 105.30
P/E 13.65
Mkt Cap.(Rs cr) 2,284
Buy Price 199.50
Buy Qty 50.00
Sell Price 200.90
Sell Qty 35.00
OPEN 196.40
CLOSE 198.05
VOLUME 31051
52-Week high 243.20
52-Week low 105.30
P/E 13.65
Mkt Cap.(Rs cr) 2,284
Buy Price 199.50
Buy Qty 50.00
Sell Price 200.90
Sell Qty 35.00

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

Company auditors report

To the Members of Garden Reach Shipbuilders & Engineers Limited

Report on the Audit of the Ind AS Financial Statements Opinion

We have audited the accompanying Ind AS financial statement of GardenReach Shipbuilders & Engineers Limited (“the Company”) which comprise theBalance Sheet as at 31st March 2020 and the Statement of Profit and Loss(including other comprehensive Income) the Statement of Changes in Equity and the CashFlow Statement for the year then ended and notes to the Ind AS financial statementsincluding a summary of significant accounting policies and other explanatory informationin which are included the Returns for the year ended on that date audited by the branchauditor of the Company's branch located at Ranchi.

In our opinion and to the best of our information and according to theexplanation given to us the aforesaid Ind AS financial statements give the informationrequired by the Companies Act 2013 (”the Act”) in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2020 and its profit(including other comprehensive income) changes in equity and its cash flows for the yearended on the 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 thoseStandards are further described in the Auditor's Responsibilities for the Audit ofthe Ind AS Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of theInd AS financial statements under the provisions of the Act and the Rules thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgmentwere of most significance in our audit of the Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the Ind AS financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion of these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters Our Response
1 Contract revenue from shipbuilding Our audit procedures on revenue recognized from shipbuilding contracts included :
Referred in Note No.1.2(i) and No.20 of the Ind AS financial statements. a) Understanding of the systems processes and control implemented by management for recording and calculating revenue and the associated contract assets unearned and deferred revenue balances.
The company has adopted Ind AS 115 revenue from contract with customers which is a new accounting standard effective from April 2018. The company is mainly engaged in fixed price construction of ships on behalf of customers where revenue is recognized using the percentage of completion computed as per input method based on management's estimate of contract costs. The application of the accounting standard is complex and is an area of focus in the audit. We identified revenue recognition of shipbuilding contracts as a KAM considering : b) Assessed the operating effectiveness of Key IT Controls over :
(a) The revenue standard establishes a comprehensive framework for determining whether how much and when revenue is recognized. This involves certain key judgments relating to identification of distinct performance obligations determining transaction price of identified performance obligation determining variable consideration and to measure variable consideration the appropriateness of the basis used to measure revenue recognized over a period. i) Treating the IT Controls over the completeness and accuracy of the cost and revenue reports generated by the systems.
(b) The standard mandates robust disclosures in respect of revenue and periods over which the remaining performance obligations will be satisfied subsequent to balance sheet date. ii) On selected samples of contracts we tested that the revenue recognized is in accordance with the applicable accounting standards.
(c) There is significant involvement of IT system. c) Evaluated the appropriateness of the disclosures provided under the new accounting standard.
(d) At year end a significant amount of work-in-progress (contract assets) related to these contracts is recognized in the balance sheet. d) Recognition of work-in-progress (Contract Assets) in the Balance Sheet has been checked with the relevant statement of Computation of work-in-progress as on the reporting date and other relevant records of the Company.
2 Lease Accounting
The company has adopted Ind AS 116 (Leases) which is a new accounting standard with effect from 1st April 2019. Ind AS 116 introduces a single lease accounting model and requires a lessee to recognize assets liabilities for all leases irrespective of whether the lease is a finance lease or operating lease except for short term leases (lease period less than twelve months) and leases of low value assets. The application and transition to this accounting standard is complex and an area of focus in the audit. We therefore identified lease transactions as a KAM. Our audit procedures on recognition of Rs Right- of-use' assets corresponding lease liability lease expenses (comprising of depreciation on right-of- use assets and finance costs) included :
The standard establishes a comprehensive framework for determining whether the leased assets are to be considered as right- of- use assets to be recognized in the balance sheet under “Property Plant and Equipment” (Non current assets) and how much and when expenses associated with lease contracts is to be recognized. This involves identification and recognition of assets taken on lease as Rs Right-of-use' assets and to recognize corresponding lease liability initial measurement of right-of-use assets and lease liability at the commencement date of lease (i.e. the date on which the lessor makes the assets available for use by the company (the lessee) subsequent measurement of right- of-use assets and lease liability measurement of lease rental and finance costs to be paid by the company significant involvement of IT system disclosure of lease transaction in the financial statements of the company. (a) Examination of lease agreements for assets taken on lease to determine whether the lease contracts conveys the right to control the use of the subject assets taken on lease for a period of time in exchange for consideration so as to obtain substantially all the economic benefits from use of the assets taken on lease;
(b) Examined the calculation of initial measurement of respective assets and liabilities at the lease commencement date and subsequent to initial measurement as per Ind AS-116 calculation of lease payment and depreciation on right-of-use assets for the reporting period as per Ind AS 116;
(c) Testing the IT controls over the completeness and accuracy of the reports generated by the system in connection with lease transactions.

Information Other than the Ind AS Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of other information. The other information comprises the information includedin the Annual Report but does not include the Ind AS financial statements and ourauditor's report thereon.

Our opinion on the Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Ind AS financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibilities for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these Ind ASfinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statement that give a true and fairview and are free from material misstatement whether due to fraud or error.

In preparing the Ind AS financial statements management is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the IndAS financial statements as a whole are free from material misstatement whether due tofraud 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 material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Ind AS 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 theInd AS 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace 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 thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Ind AS financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theInd AS financial statements including the disclosures and whether the Ind AS financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate 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 Ind ASfinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

(i) We did not audit the Ind AS financial statements/ information ofone branch included in the Ind AS financial statements of the Company whose Ind ASfinancial statements/financial information reflect total assets of Rs 7995.11 lakh as at31st March 2020 and the total revenue of Rs 4413.85 lakh for the year ended onthat date as considered in the Ind AS financial statements. The Ind AS financialstatement/ information of the branch have been audited by the branch auditor whose reportshave been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of the branch is based solely on the report of suchbranch auditor.

(ii) Amount shown in Note No. 30 (Contingent Liabilities) does notinclude interest/ penalty that may be payable on final settlement of claims.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory 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 of the Companies Act 2013 we give in the Annexure-A a statement onthe 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 havebeen kept by the Company so far as it appears from our examination of those books.

(c) The reports on the accounts of the branch office of the Companyaudited under Section 143(8) of the Act by branch auditor have been sent to us and havebeen properly dealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) the Statement of Changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account.

(e) In our opinion the aforesaid Ind AS financial statements complywith the Ind AS specified under

Section 133 of the Act read with the companies (Indian AccountingStandards) Rules 2015 as amended.

(f) In our opinion provisions under section 164(2) of the Actregarding disqualification of Directors are not applicable to a Government Company interms of Notification No. G.S.R. 463(E) dated June 5 2015 issued by Ministry of CorporateAffairs.

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure-B.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS financial statements (Refer Note. 30 - ContingentLiabilities to the Ind AS financial statements) ;

ii. The Company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

3. As required by Section 143(5) of the Act we give in Annexure-C astatement on the matters specified in directions issued by the Comptroller & AuditorGeneral of India in respect of the company.

For A. Kayes & Co.
Chartered Accountants
Firm's Registration No. 311149E
Sd/-
(CA. S.R. Biswas)
Partner
Membership No. 051512
ICAI UDIN: 20051512AAAAAE1063
Place : Kolkata
Date: 6th June 2020

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of its fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which all assets are verified in a phased manner over a period of threeyears. Accordingly fixed assets of some division/ unit of the Company were verifiedinternally by management during the year. Discrepancies noticed on such verification havebeen properly dealt with in the accounts. In our opinion the periodicity of such physicalverification is reasonable having regard to the size of the Company and nature of itsassets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. In case of Right of use assets leaseagreements have been duly executed in the name of the Company.

(ii) The inventories (other than those lying with third parties) havebeen physically verified during the year by the management. In respect of goods lying withthird parties these have substantially been confirmed by them. The discrepancies betweenphysical stock and book records arising out of physical verification have been properlydealt with in the books of accounts.

(iii) According to the information and explanations given to us theCompany has not granted any loan secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has not given any loan guarantee or provided any securities inconnection with such loan and given/made any loan/ investment within the meaning ofSection 185 and 186 of the Companies Act 2013. Further in terms of Notification No.G.S.R. 463(E) dated June 5 2015 the provisions of section 186 of the Companies Act 2013are not applicable to the Company as the Company is a Government Company engaged indefence production and as such reporting under this clause is not applicable to theCompany.

(v) The Company has not accepted any deposits during the year withinthe meaning of section 73 to 76 or any other relevant provision of the Companies Act 2013and does not have any unclaimed deposits as at 31st March 2020 as suchreporting under this clause is not applicable to the Company.

(vi) According to the information and explanations given to usmaintenance of cost records by the Company has been prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 in respect of construction of shipsmanufacturing of engineering goods and diesel engines. We have broadly reviewed such costrecords and are of the opinion that prima facie prescribed accounts and records havebeen made and maintained.

(vii) (a) According to information and explanations given to usand onthe basis of our examination of books and accounts the Company has been generally regularin depositing undisputed statutory dues including provident fund ESI income tax goodsand service tax duty of customs duty of excise cess and any other statutory dues withthe appropriate authorities and no undisputed amount payable in respect of aforesaid duesas on 31st March 2020 for a period of more than six months from the date theybecome payable.

(b) According to the records of the Company and information andexplanations given to us the following are the details of disputed dues not deposited on31st March 2020 :

Name of the Statute Nature of dues Period to which pertain Amount (' 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 Central Sales Tax Act1956 Central Sales Tax 2010-11 1201.93 Commissioner of Commercial Taxes Jharkhand
3 Jharkhand Value Added Tax Act 2005 Value Added Tax 2010-11 768.01 Commissioner of Commercial Taxes Jharkhand
4 Central Excise Act 1944 Central Excise 2016-17 106.54 Additional Secretary Revision Application Govt of India New Delhi.
5 Income Tax Act 1961 Income Tax 2008-09 352.85 Commissioner of Income Tax (Appeal)
6 Income Tax Act 1961 Income Tax 2013-14 1.92 Commissioner of Income Tax (Appeal)
7 Income Tax Act 1961 Income Tax 2012-13 136.98 Commissioner of Income Tax (Appeal)
8 Income Tax Act 1961 Income Tax 2013-14 96.18 Commissioner of Income Tax (Appeal)
9 Income Tax Act 1961 Income Tax 2016-17 8.61 Commissioner of Income Tax (Appeal)
Total 3179.85

The amount mentioned above is exclusive of interest and penalties thatmay be payable on final settlement of pending cases.

(viii) The Company has not taken any loans or borrowings from financialinstitutions banks and government or has not issued any debentures. Hence reporting underclause 3 (viii) of the Order is not applicable to the Company.

(ix) On the basis of our examination of records and according to theinformation and explanations given to us the Company has not raised any money by way ofinitial public offer or further public offer (including Debt Instruments) and term loansduring the year and as such reporting under this clause is not applicable to theCompany.

(x) According to the information and explanations given to us no fraudby the Company or any fraud on the Company by its officers or employees has been noticedor reported during the year.

(xi) In view of exemption given vide Notification No. G.S.R. 463(E)dated June 5 2015 issued by Ministry of Company Affairs provision of section 197 readwith Schedule V to the Companies Act 2013 regarding managerial remuneration are notapplicable to a Government Company and as such reporting under this clause is notapplicable to the Company.

(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company and as such reporting under this clauseis not applicable to the Company.

(xiii) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

(xiv) According to the information and explanations give to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and as such reporting under this clause is not applicable tothe Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intononcash transactions with directors or persons connected with them and as such reportingunder this clause is not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and as such reporting under this clause is notapplicable to the Company.

For A. Kayes & Co.
Chartered Accountants
Firm's Registration No. 311149E
Sd/-
(CA. S.R. Biswas)
Partner
Membership No. 051512
ICAI UDIN: 20051512AAAAAE1063
Place : Kolkata
Date: 6th June 2020

ANNEXURE - B TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under clause

(i) of sub-section 3 of Section 143 of the Companies Act 2013(“The Act”)

We have audited the internal financial controls over financialreporting of Garden Reach Shipbuilders & Engineers Limited (“the Company”)as of 31st March 2020 in conjunction with our audit of the Ind AS financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control 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 of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the “Guidance Note”) and the Standards on Auditing bothissued by ICAI and prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively 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 control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud 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 internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) Provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) Provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assetsthat could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

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 system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020based on the internal control 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 ICAI.

For A. Kayes & Co.
Chartered Accountants
Firm's Registration No. 311149E
Sd/-
(CA. S.R. Biswas)
Partner
Place : Kolkata Membership No. 051512
Date: 6th June 2020 ICAI UDIN: 20051512AAAAAE1063

ANNEXURE- C TO THE INDEPENDENT AUDITOR'S REPORT

Directions Auditor's Comments
1 Whether the Company has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. Yes the Company has system in place to process all the accounting transactions through IT system and no accounting transaction is processed outside IT system. Therefore any implication of processing accounting transactions outside IT system on the integrity of the accounts along with financial implication does not arise.
2 Whether there is any restructuring of an existing loan and cases of waiver/written off of debts/loans/ interest etc. made by a lender to the Company due to the Company's inability to repay the loan? If yes the financial impact may be stated. There is no instance of restructuring of an existing loan and cases of waiver/written off of debts/loans/interest etc. made by any lender to the Company due to the Company's inability to repay the loan. Therefore the financial impact due to above reasons does not arise.
3 Whether funds received/receivable for specific scheme from Central/State agencies were properly accounted for/utilized as per its terms and conditions? List the cases of deviation. No such cases of receipts/receivables of any amount by the Company in the financial year 2019-20 for specific scheme from Central/State agencies have come to our notice nor have we been informed of receipts/ receivables of any such amount by the management.

 

For A. Kayes & Co.
Chartered Accountants
Firm's Registration No. 311149E
Sd/-
(CA. S.R. Biswas)
Partner
Membership No. 051512
ICAI UDIN: 20051512AAAAAE1063
Place : Kolkata
Date: 6th June 2020

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