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GCCL Construction & Realities Ltd.

BSE: 531953 Sector: Infrastructure
NSE: N.A. ISIN Code: INE775C01015
BSE 05:30 | 01 Jan GCCL Construction & Realities Ltd
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GCCL Construction & Realities Ltd. (GCCLCONST) - Auditors Report

Company auditors report

To the Members of

GCCL Construction & Realities Limited

Report on Financial Statements:

We have audited the accompanying financial statements of GCCL Construction &Realities Limited ("the Company") which comprise the Balance Sheet as at 31March 2017 the Statement of Profit and Loss the cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements:

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the Accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements.

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. In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company’s Directorsas well as evaluating the overall presentation of the financial statements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the financial statements.

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date;

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure A"statement 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 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 and cash flow statement dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 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 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 Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigation which would impact its financialStatements;

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

iii. There is no transferring amount required to be transferred to Investor Educationand Protection Fund by the company. Hence question of delay in transferring such amountdoes not arise;

The Company has provided requisite disclosures in its Financial Statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with books ofaccounts maintained by the Company. Refer Note 1.8 to the Financial Statements.

Place: Ahmedabad For Hiren D Shah & Associates
Date: 30/05/2017 Chartered Accountants
FRN: 135212W
Hiren D Shah (Partner)
Membership No.:047928

ANNEXURE - A TO THE AUDITOR’S REPORT

The Annexure referred to in paragraph 1 of the Our Report of even date to the membersof GCCL Construction & Realities Limited on the accounts of the company for theyear ended 31st March 2017.

1) The Company does not have fixed assets. Therefore the provisions of clause (i) ofthe Companies (Auditor’s Report) Order 2016 is not applicable to the Company.

2) According to the information and explanations given to us the inventory has beenphysically verified at reasonable intervals during the year by the management. In ouropinion the frequency of verification is reasonable. The discrepancies noticed onverification between the physical stocks and the book records were not material. Thediscrepancies have been properly dealt with in the books of accounts.

3) According to the information and explanations give to us and based on ourexamination of the records of the Company it has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause (iii) of theCARO 2016 is not applicable to the Company.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

5) The Company has not accepted any deposits covered the provisions of sections 73 to76 or any other relevant provisions of the Companies Act. Therefore clause (v) of theCARO 2016 is not applicable to the company.

6) In our opinion and according to the information & explanation given by themanagement maintenance of cost records has not been prescribed by the Central Governmentunder subsection (1) of section 148 of the Companies Act. Therefore clause (vi) of theCARO 2016 is not applicable to the company. 7)

a) According to the records of the company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income-tax Sales-tax Service TaxCustom Duty Excise Duty value added tax cess to the extent applicable and any otherstatutory dues have generally been regularly deposited with the appropriate authorities.According to the information and explanations given to us there were no undisputed amountspayable in respect of statutory dues as on 31st of March 2017 for a period ofmore than six months from the date they became payable.

b) According to the information and explanations given to us the disputed statutorydues as on 31st March 2017 that have not been deposited on account of disputedmatter pending before appropriate authorities are as under:

Statute Nature of dues Forum Dispute pending where is Period to which the amount relates Amount involved (Rs in lakhs)
Income tax Act 1961. Income Tax Income Officer Tax A.Y. 2004-05 & A.Y. 2006-07 2.10

8) The company does not have any loans or borrowings from any financial institutionbanks Government or debenture holders during the year accordingly clause (viii) of theCARO 2016 is not applicable to the company.

9) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly clause(ix) of the CARO 2016 is not applicable to the company.

10) According to the information and explanations given to us no material fraud on orby the company its officers or employees has been noticed or reported during the courseof our audit.

11) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company is private limited So clause (xi)of the CARO 2016 for managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act is notapplicable.

12) In our opinion and according to the information and explanations given to us theCompany is not Nidhi Company. Therefore Clause (xii) of the CARO 2016 is not applicable.

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

14) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly Clause (xv) of theCARO 2016 is not applicable.

16) The company has not required to be registered under section 45 IA of the ReserveBank of India act 1934.

Place: Ahmedabad For Hiren D Shah & Associates
Date: 30/05/2017 Chartered Accountants
FRN: 135212W
Hiren D Shah (Partner)
Membership No.:047928

Annexure - B to the Auditor’s Report

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

We have audited the internal financial controls over financial reporting of GCCLConstruction & Realities Limited ("the Company") as of March 31 2017 inconjunction with our audit of the 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) .

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company’s policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

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 ICAI.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 appropriateto provide 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 process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company;

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI) .

Place: Ahmedabad For Hiren D Shah & Accountants
Date: 30/05/2017 Chartered Accountants
FRN: 135212W
Hiren D Shah (Partner)
Membership No.:047928