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Gayatri Projects Ltd.

BSE: 532767 Sector: Infrastructure
NSE: GAYAPROJ ISIN Code: INE336H01023
BSE 11:57 | 21 Nov 178.00 -0.15
(-0.08%)
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178.00

HIGH

178.35

LOW

177.50

NSE 11:47 | 21 Nov 177.30 -1.05
(-0.59%)
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179.70

HIGH

179.70

LOW

176.90

OPEN 178.00
PREVIOUS CLOSE 178.15
VOLUME 648
52-Week high 229.57
52-Week low 151.50
P/E 17.54
Mkt Cap.(Rs cr) 3,332
Buy Price 177.10
Buy Qty 11.00
Sell Price 178.00
Sell Qty 61.00
OPEN 178.00
CLOSE 178.15
VOLUME 648
52-Week high 229.57
52-Week low 151.50
P/E 17.54
Mkt Cap.(Rs cr) 3,332
Buy Price 177.10
Buy Qty 11.00
Sell Price 178.00
Sell Qty 61.00

Gayatri Projects Ltd. (GAYAPROJ) - Auditors Report

Company auditors report

To the Members of Gayatri Projects Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of GayatriProjects Limited ("the Company") which comprise the Balance Sheet as at31st March 2018 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements to give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards prescribed under Section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015(as amended).This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

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

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the standalone IndAS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriatein the circumstances. An audit also includes evaluating the appropriateness of theaccounting policies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit including other comprehensive income itscash flows and the changes in equity for the year ended on that date.

Emphasis of Matters

(Note Nos. referred hereunder are with reference to respective Notes forming part ofthe standalone Ind AS financial statements)

We draw member’s attention to the following matters:

i) As stated in Note No. 31.16 Inter Corporate Deposits (ICD) grouped under"Non-Current Loans" and accumulated interest there on long pending for recovery.

ii) As stated in Note No.31.17 Considerable Work Advances in respect of certainContract works given to sub-contracts grouped under "Other Current assets" whichare long pending for recovery.

Our Opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act("the Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the 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 the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act and Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

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

(g) With respect to the other matters to be included in the Auditors’ Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our knowledge and belief and according to the informationand explanations given to us:

i. As stated in Note No.31.2 of the Standalone Ind AS financial statements the Companyhas disclosed the impact of pending litigations on its standalone Ind AS financialstatements.

ii. As per the information and explanations given by the Company the Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses.

iii. As per the information and explanations given by the Company there has been nodelay in transferring the amounts which are required to be transferred to InvestorEducation & Protection Fund.

iv. The disclosures regarding details of specified bank notes held and transactedduring 8th November 2016 to 30th December 2016 has not been made since the requirementdoes not pertain to financial year ended 31st March 2018.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
S V C Reddy
Place: Hyderabad Partner
Date: 30th May 2018 Membership Number: 224028

Annexure A to the Auditor’s Report

The Annexure referred to in the Independent Auditors’ Report to the members of theCompany on the standalone Ind AS financial statements for the year ended 31st March 2018we report that:

i. In respect of Fixed Assets:

a. In our opinion and as per the information and explanations given to us the Companyhas maintained proper records showing particulars including quantitative details andsituation of fixed assets;

b. The management of the company has verified the fixed assets at reasonable intervalsduring the year. According to the information and explanations given to us no materialdiscrepancies were noticed on such physical 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 areheld in the name of the Company.

ii. According to the information and explanations given to us the inventories havebeen physically verified during the year by the management. In our opinion the frequencyof such verification is reasonable. The discrepancies noticed on physical verification ofinventories as compared to the book records which in our opinion were not material havebeen properly dealt with.

iii. According to information and explanations given to us the Company has grantedunsecured Loans of ` 29385.00 Lakhs to parties covered in the Register maintained undersection 189 of the Companies Act 2013. In respect of such loans

a. In our opinion and according to information and explanations given to us the termsand conditions of such loans given by the Company are not prima facie prejudicial to theinterest of the company.

b. The Schedule of repayment of the principal and interest has not been stipulated asthe principal amount is repayable on demand.

c. There is no repayment schedule and therefore there is no overdue amount.

iv. According to information and explanations given to us and in our opinion thecompany has complied with the provisions of sections of 185 and 186 of the Act to theextent applicable in respect of grant of loans making investments and providingguarantees and securities.

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

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 as amended and prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been made and maintained. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

vii. In respect of statutory dues

a. According to the information and explanations given to us and based on ourexamination of records of the Company amounts deducted/ accrued in the books of accountsin respect of statutory dues including provident fund income tax value added tax goodsand service tax cess and other material statutory dues have been regularly depositedduring the year by the Company with appropriate statutory authorities.

b. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees’ state insurance income-tax servicetax sales-tax goods and service tax duty of custom duty of excise value added taxCess and other material statutory dues were outstanding at the year end for a period ofmore than six months from the date they became payable.

c. According to the information and explanation given to us there are no dues of Salestax Income Tax Wealth Tax Service Tax Customs Duty Goods and Service Tax and Cesswhich have not been deposited as on 31st March 2018 on account of any dispute except thefollowing:

Sl. No. Name of the Statute Name of the Tax Due Forum where Dispute is pending Amount ` in Lakhs Financial Years
1 Mines and Minerals (Development and Regulation) Act 1957 Department of Mines and Geology Supreme Court 1043.51 1998-99
2 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. 3436.55 2001-02 and 2004-05 to 2009-10
3 Central Excise Act 1944 Service Tax Appeals pending before various Authorities 1770.10 2007-08 to 2011-12
4 Income Tax Act 1961 Income Tax Appeal pending before CIT(Appeals) 1649.70 2013-14 and 2015-16

viii. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to any financial institution bank or Government as on the BalanceSheet date.

ix. According to information and explanations given to us the company has not raisedmoneys by way of public offer (including debt instruments). Based on our audit proceduresand according to the information and explanations given to us in our opinion the Termloans availed by the Company were prima facie applied for the purpose for which theywere obtained.

x. 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 explanations given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the year nor we have been informed of any such case by themanagement.

xi. In our opinion and according to the information and explanations given to us thecompany has paid or provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. As the Company is not a Nidhi Company provisions of clause 3(xii) of the Orderare not applicable to the Company.

xiii. According to the information and explanations given to us and based onexamination of records of the Company transactions with related parties are in complianceof Sections 177 and 188 of the Act where applicable and details of such transactions havebeen disclosed in the financial statements as required by the applicable AccountingStandards.

xiv. The Company has made private placement of equity shares during the year. Accordingto the information and explanations given to us the private placement of equity sharesare in compliance with the provisions of section 42 of the Act and the amounts raised havebeen used for the purpose of which they were raised and unutilized balance amount of `360.44 Lakhs is available in the QIP Escrow Account.

xv. According to the information and explanations given to us and based on examinationof records of the Company the Company has not entered into any non-cash transaction withdirectors or persons connected with them. Hence Clause 3(xv) of the Order is notapplicable for the current year under report.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and accordingly the provisions of Clause 3(xvi) of the Order arenot applicable to the Company.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
S V C Reddy
Place: Hyderabad Partner
Date: 30th May 2018 Membership Number: 224028

Annexure B to the Auditor’s Report

The Annexure referred to in the Independent Auditors’ Report to the members of theCompany on the standalone Ind AS financial statements for the year ended 31st March 2018:

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

We have audited the internal financial controls over financial reporting of GayatriProjects Limited ("the Company") as of 31st March 2018 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

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

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor’s judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for M O S & Associates LLP
Chartered Accountants
Firm Registration No.: 001975S/S200020
S V C Reddy
Place: Hyderabad Partner
Date: 30th May 2018 Membership Number: 224028