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Gayatri Projects Ltd.

BSE: 532767 Sector: Infrastructure
NSE: GAYAPROJ ISIN Code: INE336H01023
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VOLUME 599488
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OPEN 8.90
CLOSE 9.11
VOLUME 599488
52-Week high 53.50
52-Week low 8.50
P/E
Mkt Cap.(Rs cr) 163
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gayatri Projects Ltd. (GAYAPROJ) - Auditors Report

Company auditors report

To the Members of Gayatri Projects Limited Report on the Audit ofthe Standalone Financial Statements Opinion

We have audited the Standalone Financial Statements of GayatriProjects Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2021 and the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year thenended and notes to the Standalone Financial Statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2021 and the Profit and other comprehensive Income changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) as specified under Section 143(10) of theCompanies Act 2013. Our responsibilities under those standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the ‘Codeof Ethics' issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Companies Act 2013 and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

Emphasis of Matters

(Note No's. referred hereunder are with reference to respectiveNotes forming part of the Standalone Financial Statements) We draw attention to thefollowing matters:

i) As stated in Note No.33.17 the Investee Company in which theCompany has invested by way of Compulsorily Convertible Cumulative Preference Shares("CCCPS") has incurred considerable losses there has been significant erosionof Networth and further business operations of the investee company are severely impacteddue to COVID – 19 Pandemic. No provision for diminution / impairment for carryingvalue of the investment is provided for the year ended 31st March 2021 and thefinancial statements of the said investee Company have been prepared on going concernbasis for the detailed reasons stated in the said note.

ii) As stated in Note No.33.18 regarding the status and recoverabilityof the investments unsecured loan/subordinate debt infused by the company in an associatecompany which has been incurring operating losses during the past few years the financialstatements of the said associate Company have been prepared on going concern basis for thedetailed reasons stated in the said note.

iii) As stated in Note No.33.19 the Inter Corporate Loan grouped under‘Non-current Loans' and accumulated interest thereon long pending for recovery.

iv) As stated in Note No.33.20 the recovery of trade receivables isdelayed for the detailed reasons stated in the said note the road project was terminatedby the NHAI and the toll rights were handed over to the NHAI. As per the information andexplanation give to us the termination payment calculated by the NHAI is very low ascompared to the expected termination payment. Further as stated in the same note thecompany has given an irrevocable and unconditional corporate guarantee to a subsidiary ofthe associate Company which has defaulted in repayment of dues to the lenders.

v) As stated in Note No.33.21 the amount receivable from the erstwhileassociate Company is long pending for recovery as the same is based on the receipt ofclaims by the said erstwhile associate Company.

vi) As stated in Note No.33.22 the work advances in respect of certaincontract works given to a subcontractor grouped under ‘Other Current Assets'which are long pending for recovery.

vii) As stated in the Note No. 33.23 as per the agreement dated 14thSeptember 2020 the Company and Gayatri Highways Limited ("GHL") – anAssociate Company jointly and severally agreed to repay the loan availed by GHL fromIL&FS Financial Services Limited (IL&FS) and repaid amount of c 34.42 crores sinceSeptember 2020. The repayment of remaining loan installments are pending since January2021.

viii) As stated in the Note No.33.24 wherein it is explained the COVID– 19 Pandemic effects and impact on the business operations of the company andhowever the actual effect will be known based on the future developments. Our opinion isnot modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements for the yearended 31st March 2021. These matters were addressed in the context of ouraudit of the Standalone Financial Statements as a whole and in forming our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be key audit matters to be communicated in our report.

Key Audit Matter Audit Process
Revenue recognition and measurement of contract Assets in respect of unbilled amounts We have obtained the procedure and process involved in estimating the percentage of completion of the projects.
The management of the Company has applied significant judgement in determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. We have also obtained and verified the costs incurred on the project/works up to the reporting date for the revenues accounted in respect of works on sampling basis.
Revenue is recognized on fixed price construction contracts in accordance with the percentage of completion basis which necessarily involve technical estimates of the percentage of completion and costs to completion of each contract / activity on the basis of which profits and losses are accounted. We have also obtained the certified copies (i.e percentage of completed work approved by the relevant authorities) of works executed till the reporting date in respect of revenues accounted on sampling basis.
When the outcome of the contract is ascertained reliably contract revenue is recognized at cost of work performed on the contract plus proportionate margin using the percentage of completion method. Percentage of completion is the proportion of cost of work performed up to the date to the total estimated contract costs. We have also performed analytical procedures for reasonableness of revenues recognised.
The stage of completion of contracts is measured by reference to the proportion that contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs for each contract. Further at the reporting date revenue is accrued for costs incurred against work performed and which are not billed and further measurement of work completed/cost incurred during the period for recognition of unbilled revenue. We have also verified the reasonableness of the estimation of remaining costs to be incurred to complete the project / work and profit / loss estimated in the project / work.
Reviewed the delivery and collection history of customers against whose contracts un-billed revenue is recognised
Tested relevant contracts for measurement of work completed during the period for unbilled revenue.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and analysis Boards Report including annexures toBoard's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the Standalone Financial Statementsand our auditor's report thereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the Standalone Financial Statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Financial Statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and those Charged with Governance forthe Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with the Companies (Indian Accounting Standards)Rules2015as amended. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that as 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 Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has adequate internal financial controls system in placeand 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 Standalone 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 theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation. Materiality is the magnitude of misstatements in thestandalone financial statements that individually or in aggregate makes it probable thatthe economic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in theStandalone Financial Statements.

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 StandaloneFinancial 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.

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" astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2) As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including otherComprehensive Income the Statement of Changes in Equity and the statement of Cash Flowdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directorsnone of the Directors is disqualified as on 31st March 2021 from beingappointed as a Director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) With respect to the other matters to be included in the AuditorsReport in accordance with the requirements of Section 197(16) of the Act as amended inour opinion and to the best of our information and according to the explanations given tous the company has paid or provided for managerial remuneration for the year ended 31stMarch 2021 in accordance with the requisite approvals mandated by the provisions ofsection 197 of the Act read with schedule V to the Act.

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. As stated in Note no. 33.1(a) of the Standalone FinancialStatements the Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements.

ii. As per the information and explanations given by the Company theCompany did not have any long-term contracts including derivative contracts for whichthere were any material for eseeable losses.

iii. As per the information and explanations given by the Companythere has been no delay in transferring the amounts which are required to be transferredto Investor Education & Protection Fund.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
Oommen Mani
Partner
Place: Hyderabad Membership Number: 234119
Date: 14th June 2021 UDIN: 21234119AAAABW5338

ANNEXURE A TO THE AUDITORS' REPORT

The Annexure referred to in the Independent Auditors' Report tothe members of the Company on the Standalone Financial Statements for the year ended 31stMarch 2021 we report that:

(i) In respect of Fixed Assets: a. In our opinion and as per theinformation and explanations given to us the Company has maintained proper recordsshowing particulars including quantitative details and situation of fixed assets b. Themanagement of the company has verified the Fixed Assets at reasonable intervals during theyear. According to the information and explanations given to us no material discrepancieswere noticed on such physical verification. c. According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company.

(ii) According to the information and explanations given to us theinventories have been physically verified during the year by the management. In ouropinion the frequency of such verification is reasonable. The discrepancies noticed onphysical verification of inventories as compared to the book records which in our opinionwere not material have been properly dealt with.

(iii) According to information and explanations given to us theCompany has granted unsecured Loans of c 25370.48 lakhs to parties covered in theRegister maintained under section 189 of the Companies Act 2013. In respect of suchloans

a. In our opinion and according to information and explanations givento us the terms and conditions of such loans given by the Company are not prima facieprejudicial to the interest of the company.

b. The Schedule of repayment of the principal and interest has not beenstipulated as the principal amount is repayable on demand.

c. There is no repayment schedule and therefore there is no overdueamount.

(iv) According to the information and explanations given to us and inour opinion the company has complied with the provisions of sections of 185 and 186 ofthe Act to the extent applicable in respect of grant of loans making investments andproviding guarantees and securities.

(v) According to the information and explanations given to us theCompany has not accepted any deposits from public within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended) during theyear. Accordingly the provisions of clause 3(v) of the Order are not applicable to theCompany.

(vi) We have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amended andprescribed by the Central Government under section 148(1) of the Companies Act 2013 andare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) In respect of statutory dues

a. According to the information and explanations given to us and basedon our examination of records of the Company the company has been generally regular indepositing amounts deducted/ accrued in the books of accounts in respect of statutory duesincluding provident fund value added tax cess and other material statutory dues exceptincome tax and goods and service tax for which there have been delay in few cases.

b. According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax goods and service tax duty of custom duty of excisevalue added tax Cess and other material statutory dues were outstanding at the year endfor a period of more than six months from the date they became payable except as givenbelow;

Name of the statute Nature of Dues F.Y. to which the amount relates Amount involved (Rs. in Lakhs)
Income Tax Act 1961 TDS 2020-21 572.98
Goods and Service Tax Act 2017 GST dues 2020-21 882.88
Provident Fund PF dues 2020-21 87.98
Professional Tax PT dues 2020-21 0.72

c. According to the information and explanation given to us there areno dues of Sales tax Income Tax Wealth Tax Service Tax Customs Duty Goods and ServiceTax and Cess which have not been deposited as on 31stMarch 2021 on account of anydispute except the following:

Sl. No. Name of the Statute Name of the Tax Due Forum where Dispute is pending Amount c in Lakhs Financial Years
1 Central Sales Tax Act 1956 and Sales Tax Acts of Various States Sales Tax/Vat Appeals pending before High Courts of respective states and Appellate Tribunals and other appropriate authorities. 1403.60 2001-02 2004-05 to 2009-10 2011-12 and 2016-17
2 Central Excise Act 1944 Service Tax Appeals pending before various Authorities 1760.09 2007-08 to 2011-12
3 Goods and Service Tax Act 2017 GST Dues Appeal filed before the Commissioner (Appeal) Guwahati 186.66 2017-18
4 Income Tax Act 1961 Income Tax Appeal Filed before Appellant Authority 3985.62 2017-18

(viii) Based on our audit procedures and according to the informationand explanations given to us we are of the opinion that the Company has defaulted inrepayment of loans or borrowings to Bank Financial Institutions / Non Banking FinancialCorporation's (NBFC's) during the year and as on the Balance Sheet date.

The details of the defaults / over dues which were not paid as at thebalance sheet date are as follows:

Non-Current borrowings

Rs. in Lakhs

Principal

Interest

Particulars 0-30 days 31-60 days 61-90 days 91-120 days 0-30 days 31-60 days 61-90 days 91-120 days
Banks
Andhra Bank 189.20 189.20 189.20 - 25.50 23.13 19.70 -
Bank Of Baroda 451.51 335.53 333.62 - 109.41 100.29 107.80 -
Bank Of Maharastra 28.00 - - - 5.40 - - -
Canara Bank 44.80 44.80 44.80 - 46.52 34.63 34.17 -
IDBI Bank Ltd 265.40 265.40 265.40 - 78.38 70.12 76.69 -
Indian Overseas Bank 187.07 187.07 187.07 - 102.01 90.85 98.84 -
Punjab National Bank 52.00 - - - 6.31 5.70 6.28 -
State Bank Of India 28.00 - - - 2.59 - - -
Union Bank Of India 62.00 62.00 62.00 - 8.08 7.16 7.77 -
United Bank Of India 174.38 174.38 174.38 - 104.08 93.10 100.94 -
Financial Institutions/NBFCs
Shriram Transport Finance 11.65 11.44 1.97 1.90 2.30 2.52 0.57 0.28
SREI Equipment Finance Ltd. 233.13 227.89 225.62 224.50 63.67 68.91 71.17 59.32
Sundaram Finance Ltd. 32.37 31.27 30.99 3.36 7.66 8.76 9.04 1.98
Total 1759.51 1528.98 1515.05 229.76 561.91 505.17 532.97 61.58
Total 5033.30 1661.63

Current Borrowings – Secured Working Capital Facilities

Rs. In Lakhs

Interest
Name of the Bank 0-30 days 31-60 days 61-90 days 0-30 days 31-60 days 61-90 days
Andhra Bank 18.14 21.1 - 18.86 9.37 9.68
Bank Of Baroda 354.85 358.33 - 367.73 10.22 10.53
Bank Of Maharastra 52.77 59.50 59.50 2.20 - -
Canara Bank 759.50 - - 137.69 - -
Corporation Bank 73.18 73.45 73.45 53.83 2.74 2.88
Federal Bank 17.35 17.04 - 17.15 - -
IDBI Bank Ltd 212.94 212.94 - 218.77 58.06 2.36
Indian Overseas Bank - - - 97.99 97.99 -
Punjab National Bank 250.98 251.32 251.32 118.26 66.69 72.73
State Bank of India 444.69 - - 57.13 - -
Syndicate Bank 1073.68 - - 142.99 - -
Union Bank Of India 22.36 22.28 - 50.94 - -
Inter Corporate Deposits
Kakinada Seaports Limited - - - 12.57 - -
Gajraj Infrastructure Pvt. Ltd. - - - 2.00 - -
Total 3280.44 1016.05 384.27 1298.11 245.07 98.18
Total 4680.76 1641.36

(ix) According to information and explanations given to us the companyhas not raised moneys by way of public offer (including debt instruments). Based on ouraudit procedures and according to the information and explanations given to us in ouropinion the Term loans availed by the Company were prima facie applied for the purposefor which they were obtained.

(x) During the course of our examination of the books and records ofthe company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the company or on the company by its officers oremployees noticed or reported during the year nor we have been informed of any such caseby the management.

(xi) In our opinion and according to the information and explanationsgiven to us the company has paid or provided for managerial remuneration for the yearended 31st March 2021 in accordance with the requisite approvals mandated bythe provisions under Section 197 of the Act read with Schedule V to the Act.

(xii) As the Company is not a Nidhi Company provisions of clause3(xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given to us andbased on examination of records of the Company transactions with related parties are incompliance of Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Financial Statements as required by theapplicable 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 madepreferential allotment or private placement of shares or fully or partly convertibledebentures and hence reporting under clause (xiv) of the order is not applicable to thecompany.

(xv) According to the information and explanations given to us andbased on examination of records of the Company the Company has not entered into anynon-cash transaction with directors or persons connected with them. Hence Clause 3(xv) ofthe Order is not applicable for the current year under report.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 and accordingly the provisions of Clause 3(xvi) ofthe Order are not applicable to the Company.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
Oommen Mani
Partner
Place: Hyderabad Membership Number: 234119
Date: 14th June 2021 UDIN: 21234119AAAABW5338

ANNEXURE - B TO THE AUDITORS' REPORT

(Referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" section of our main audit report)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Gayatri Projects Limited ("the Company") as of 31stMarch 2021 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining 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 andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over 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 Standalone Financial Statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the Standalone 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 read together with our observations under paragraph Emphasis ofMatter of our main report the Company has in all material respects an adequate internalfinancial controls system over financial reporting with reference to these StandaloneFinancial Statements and such internal financial controls over financial reporting wereoperating effectively as at 31st March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
Oommen Mani
Partner
Place: Hyderabad Membership Number: 234119
Date: 14th June 2021 UDIN: 21234119AAAABW5338

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