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Gati Ltd.

BSE: 532345 Sector: Services
NSE: GATI ISIN Code: INE152B01027
BSE 00:00 | 25 Jan 145.95 -3.95
(-2.64%)
OPEN

146.90

HIGH

150.50

LOW

145.40

NSE 00:00 | 25 Jan 145.85 -4.05
(-2.70%)
OPEN

150.00

HIGH

150.70

LOW

145.10

OPEN 146.90
PREVIOUS CLOSE 149.90
VOLUME 55470
52-Week high 219.50
52-Week low 126.00
P/E 858.53
Mkt Cap.(Rs cr) 1,900
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 146.90
CLOSE 149.90
VOLUME 55470
52-Week high 219.50
52-Week low 126.00
P/E 858.53
Mkt Cap.(Rs cr) 1,900
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gati Ltd. (GATI) - Auditors Report

Company auditors report

To the Members of Gati Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Gati Limited("the Company") which comprise the Balance sheet as at March 31 2022 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flow Statement for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as "the standalonefinancial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 its loss including othercomprehensive loss changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report. For each matter below our description of how our auditaddressed the matter is provided in that context. We have fulfilled the responsibilitiesdescribed in the Auditor's responsibilities for the audit of the financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the financial statements. The results of our audit proceduresperformed by us including those procedures performed to address the matters belowprovide the basis for our audit opinion on the financial statements.

Sr. No. Key Audit Matter How our audit addressed the key audit matters
1 Recoverability of Trade Receivable (See Note 9 to the Standalone Financial Statements)
The gross balance of trade receivables as at March 31 2022 amounted to Rs 2219 Lakhs. Our audit with respect to determining recoverability of Trade Receivables included the following:
Due to the inherent subjectivity that is involved in making judgments in relation to credit risk exposures to determine the recoverability of trade receivables recoverability of trade receivables is considered a key audit matter. Evaluating the Company's processes and controls relating to the monitoring of trade receivables and review of credit risks of customers.
Examination of management's assessment of the credit review procedures of trade receivables obtaining trade receivable confirmations and mapping receipts from the trade receivables after the year end on test basis.
Evaluation of management's assumptions used to determine the expected credit loss on the trade receivables through detailed analyses of ageing of receivables to historical patterns of receipts assessment of material overdue individual trade receivables and risks specific to the trade receivable.
2 Reasonableness of carrying amount of Assets held for sale (See Note 15 to the financial statements)
The Company has classified assets earmarked for disposal as Assets held for sales. Assets held for sales carried at lower of cost or fair value. Fair value has been estimated using significant unobservable input including non–binding offers from and negotiation held with prospective buyers as a result of which fair value is sensitive to change in input assumption. Our audit with respect to determining carrying value of Assets held for sales included the following:
Evaluating the Company's processes and controls relating to the classification and valuation of assets held for sale
Examination of management's assessment of expectation of outcome of negotiation with prospective buyer.
Review of independent valuation report of independent external valuer

Information Other than the Standalone Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon. Our opinion on thestandalone financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting

Standards (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 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 the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error andestimation to determine the likelihood and/ or timing of cash flows and the interpretationof preliminary and pending court rulings.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. Those Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient 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 to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion.

Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

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

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the financial statements.

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 determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.

We describe these 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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("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 to the extent applicable.

2. As required by section 143 (3) of the Act based on our audit we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with the relevant rulesthereon.

(e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2022 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 with respect to standalone financial statement of the Company and the operatingeffectiveness of such controls refer to our separate Report in "Annexure B" ofthis report.

(g) The Company has not paid or provided for any managerial remuneration during theyear. Accordingly reporting under Section 197(16) of the Act is not applicable.

(h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Note 46 and 37 (1)(a) to the financial statements;

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

iii. There were no amounts which were required to be transferred to investor educationand protection fund by the company.

iv. (a) The management has represented that to the best of it's knowledge and beliefas disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the company to or in any other person or entity including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries (refer note 57.v to the financialstatements);

(b) The management has represented that to the best of it's knowledge and belief asdisclosed in the notes to the accounts no funds have been received by the company fromany person or entity including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the company shall whetherdirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries (refer note 57.vi to the financial statements); and

(c) Based on such audit procedures that we considered reasonable and appropriate in thecircumstances nothing has come our notice that has caused us to believe that therepresentations under sub-clause (a) and (b) contain any material mis-statement. v. TheCompany has not declared any dividend in the last year which has been paid in the currentyear. Further no dividend has been declared in the current year.

For Singhi & Co.
Chartered Accountants
(Firm's Registration No. 3020409E)
(Anurag Singhi)
Partner
Place: New Delhi Membership No. 066274
Date: 20th May 2022 UDIN : 22066274AJIQHL1147

Annexure - A to the Independent Auditor's Report

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' section of our report of even date in respect to statutory auditof Gati Limited for the year ended March 31 2022)

We report that: i.

(a) A. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment. B. The Company hasmaintained proper records showing full particulars of intangible assets.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a regular programme of physicalverification of its Property Plant and Equipment by which all property plant andequipment are verified in phased manner over a period of three years. In accordance withthis programme certain property plant and equipment were verified during the year. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(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 (otherthan immovable properties where the Company is the lessee and the leases agreements areduly executed in favour of the lessee) disclosed in the standalone financial statementsare held in the name of the Company.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its PropertyPlant and Equipment (including Right of Use assets) and intangible assets during the year.

(e) According to information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

ii. (a) The inventory has been physically verified by the management during the year.In our opinion the frequency of such verification is reasonable and procedures andcoverage as followed by management were appropriate. No discrepancies were noticed onverification between the physical stocks and the book records that were more than 10% inthe aggregate of each class of inventory.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned any workingcapital limits from banks and financial institutions on the basis of security of currentassets at any point of time of the year. Accordingly clause 3(ii)(b) of the Order is notapplicable to the Company.

iii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any investmentsprovided guarantee or security or granted any loans or advances in the nature of loanssecured or unsecured to companies firms limited liability partnerships or any otherparties during the year. Accordingly provisions of clauses 3(iii)(a) to 3(iii)(f) of theOrder are not applicable to the Company.

iv. According to the information and explanations given to us and on the basis of ourexamination of records of the Company the Company has neither made any investments norhas it given loans or provided guarantee or security and therefore the relevant provisionsof Sections 185 and 186 of the Companies Act 2013 ("the Act") are notapplicable to the Company. Accordingly clause 3(iv) of the Order is not applicable.

v. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in our opinion the Company has complied withthe provisions of Sections 73 to 76 or other relevant provisions of the Act and the rulesframed thereunder where applicable and the directives issued by the Reserve Bank of Indiaas applicable with regard to deposits or amounts which are deemed to be deposits. Asinformed to us there have been no proceedings before the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal in thismatter and no order has been passed by any of the aforesaid authorities in this regard.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the Act for theservices provided by it. Accordingly clause 3(vi) of the Order is not applicable.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company in our opinion amounts deducted / accruedin the books of account in respect of undisputed statutory dues including Goods andServices Tax (‘GST') Provident fund Employees' State Insurance Income-Tax Duty ofCustoms Cess and other statutory dues have been regularly deposited by the Company withthe appropriate authorities though there have been slight delays in a few cases ofprofessional tax.

According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofGoods and Services Tax (‘GST') Provident fund Employees' State InsuranceIncome-Tax Duty of Customs Cess and other statutory dues were in arrears as at 31 March2022 for a period of more than six months from the date they became payable except asmentioned below:

Name of the statute Nature of the dues Amount (Rs In Lakhs ) Period to which the amount relates Due date Date of payment Remarks if any
Professional Tax Professional Tax 0.24 FY-2020-21 & FY- 2021-22 Various Not yet paid Coimbatore & Pondicherry

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company statutory dues relating to Goods and ServiceTax Provident Fund Employees State Insurance Income-Tax Duty of Customs or Cess orother statutory dues which have not been deposited on account of any dispute are asfollows: -

Name of the statute Nature of the dues Amount (Rs In Lakhs ) Period to which the amount relates Forum where dispute is pending
Finance Act 1994 Service Tax 4434.49 From Year 2005 -2016 CESTAT Audit Commission-erate Commissioner of Service tax

viii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under theIncome Tax Act 1961 as income during the year.

ix.(a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in repaymentof loans and borrowings or in the payment of interest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the Company has not been declared Wilful Defaulter by anybank or financial institution or government or government authority.

(c) In our opinion and according to the information and explanations given to us by themanagement term loans were applied for the purpose for which the loans were obtained.

(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised onshort-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overallexamination of the standalone financial statements of the Company we report that theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its subsidiaries as defined under the Act.

(f) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries (as defined under the Act).

x.(a) In our opinion and according to the information and explanations given to usthe Company has not raised any moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Accordingly clause3(x)(a) of theOrder is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any private placementof shares or fully or partly convertible debentures during the year. In our opinion inrespect of preferential allotment of equity shares made during the year the Company hasduly complied with the requirements of Section 42 and Section 62 of the Act. The proceedsfrom issue of equity shares have been used for the purposes for which the funds wereraised.

xi. (a) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud by the Company or on the Company noticed or reported duringthe year nor have we been informed of any such case by the management.

(b) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us a report under Section 143(12)of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 was not required to be filed with the Central Government. Accordingly thereporting under clause 3(xi) (b) of the Order is not applicable to the Company.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause3(xii) of the Order is not applicableto the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with 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.(a) Based on information and explanations provided to us and our audit proceduresin our opinion the Company has an internal audit system commensurate with the size andnature of its business.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit.

xv. According to the information and explanations given to us and as represented to usby the management and based on our examination of the records of the Company the Companyhas not entered into non-cash transactions with directors or persons connected with him.Accordingly clause 3(xv) of the Order is not applicable to the Company.

xvi. (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly the reporting under clause 3(xvi)(a) of theOrder is not applicable to the Company.

(b) The Company has not conducted non-banking / housing finance activities during theyear. Accordingly the reporting under clause 3(xvi)(b) of the Order is not applicable tothe Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly reporting under clause 3(xvi)(c) of theOrder is not applicable to the Company.

(d) Based on the information and explanations provided by the management of theCompany the Group does not have any CIC's which are part of the Group. We have nothowever separately evaluated whether the information provided by the management isaccurate and complete.

Accordingly reporting under clause 3(xvi)(d) of the Order is not applicable to theCompany.

xvii. The Company has incurred cash losses of Rs 1324.42 lakhs in the currentfinancial year and Rs 6581.10 lakhs in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year.Accordingly reporting under clause 3(xviii) of the Order is not applicable.

xix. According to the information and explanations given to us and on the basis of thefinancial ratios (refer note 56 to the financial statements) ageing and expected dates ofrealisation of financial assets and payment of financial liabilities other informationaccompanying the financial statements 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 that the Company is not capable ofmeeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this isnot an assurance as to the future viability of the Company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the Company as and when they fall due.xx. In our opinion and according to the information and explanations given to us there isno unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project.Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.

For Singhi & Co.
Chartered Accountants
(Firm's Registration No. 3020409E)
(Anurag Singhi)
Partner
Place: New Delhi Membership No. 066274
Date: 20th May 2022 UDIN : 22066274AJIQHL1147

Annexure – B to the Independent Auditor's Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date in respect to statutory audit of GatiLimited for the year ended March 31 2022)

Report on the Internal Standalone Financial Controls Over Financial Reporting underClause (i) of Sub-section 3of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference to standalone financialstatement of Gati Limited (‘the Company') as of March 31 2022 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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 Company's policies the safeguarding ofits 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 with reference to these standalone financial statement based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of internal FinancialControls over Financial Reporting (the ‘Guidance Note') issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls .Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to theses financial Statementwas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to these financial statement and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statement included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement 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 system over financial reporting with refence to financial Statement .

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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to standalone financial statement and such internal financialcontrol with reference to financial statement were operating effectively as at March 312022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.However financial control over contract revenue mapping in information technology systemneed to be further strengthened.

For Singhi & Co.
Chartered Accountants
(Firm's Registration No. 3020409E)
(Anurag Singhi)
Partner
Place: New Delhi Membership No. 066274
Date: 20th May 2022 UDIN : 22066274AJIQHL1147

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